TRANSPORT COOPS FEAR FINANCIAL RUIN: Crackdown on unconsolidated jeepneys pushed

Transport cooperatives and corporations express concern over the continued operations of unconsolidated and unregistered traditional jeepneys. Around 4,000 jeepneys in Western Visayas are unconsolidated, data from the Land Transportation Franchising and Regulatory Board show. PN PHOTO
Transport cooperatives and corporations express concern over the continued operations of unconsolidated and unregistered traditional jeepneys. Around 4,000 jeepneys in Western Visayas are unconsolidated, data from the Land Transportation Franchising and Regulatory Board show. PN PHOTO

ILOILO City – Fearing heavy financial losses, transport cooperatives and corporations in Western Visayas called on the Land Transportation Franchising and Regulatory Board (LTFRB) and Land Transportation Office (LTO) to apprehend unconsolidated and unregistered traditional jeepneys that continue to operate despite having expired Certificates of Public Convenience (CPC) or Provisional Authorities (PA).

The Western Visayas Alliance of Transport Cooperatives and Corporations, Inc. (WVATCCI) held a caravan on June 14 to demonstrate full support for the national government’s Public Utility Vehicle Modernization Program (PUVMP).

It recently sent a copy of a board resolution to Department of Transportation (DOTr) undersecretary Jesus Ferdinand Ortega, LTFRB chairman Teofilo Guadiz, and LTO chief Assistant Secretary Vigor Mendoza II expressing concern about the continued operations of unconsolidated and unregistered traditional jeepneys.

“Our government should not be hesitant; we must confront this issue directly to ensure the smooth implementation of the PUVMP,” according to Halley Alcarde, secretary of WVATCCI.

Alcarde warned that the continued operation of unconsolidated and unregistered traditional jeepneys undermine the PUVMP.

This situation could also affect the income of cooperatives and corporations, leading to potential financial losses and difficulties in repaying bank loans used to purchase the mini-buses, he added.

Currently, out of the 1,782 units awarded to WVATCCI in Iloilo City, 520 mini-buses are operational.

“Transport cooperatives and corporations will suffer, and we won’t be able to meet our financial obligations,” Alcarde said.

Members of cooperatives are also affected, as lower income from mini-bus operations means delays in receiving dividends and other benefits, he added.

Perfecto Yap, adviser of Joroshely Transport Services, echoed Alcarde’s sentiments, emphasizing that WVATCCI’s investment in 520 mini-buses, amounting to P1.3 billion, is at risk.

Furthermore, the 2,600 employees of WVATCCI face job insecurity due to competition from unconsolidated and unregistered traditional jeepneys, he added.

Yap said the loss of jobs for 2,600 employees would impact approximately 15,600 family members, assuming each employee supports six family members.

WVATCCI’s monthly payroll of P33.8 million underscores the importance of apprehending illegal operators to increase daily income, he added.

Rizalito Alido, president of WVATCCI, noted that before the transport modernization program, each mini-bus earned around P7,000 per day, but now the average income is only P3,000 to P4,000 due to the continued operation of unconsolidated and unregistered jeepneys, especially in the afternoon and evening.

“These illegal operators harm our cooperatives and must be addressed by the government,” Alido said.

Raymundo Parcon, president of Western Visayas Transport Cooperative (WVTC), supported WVATCCI’s action, noting the adverse impact of unconsolidated jeepneys on cooperative and corporate operations.

The caravan started from Barangay Tagbak, Jaro district, proceeding to Diversion Road in Mandurriao district, downtown in the City Proper, and Iloilo provincial capitol on Bonifacio Drive, ending back in Jaro, particularly in front of LTFRB and LTO offices.

According to LTFRB-6 data, around 4,000 jeepneys in the region are unconsolidated or lack CPC or PA, making them illegal operators.

LTO-6 officer-in-charge Atty. Gaudioso Geduspan said in a recent interview with Panay News that they received guidance from their Central Office to defer apprehensions of illegal jeepneys to allow LTFRB-6 time to issue show-cause orders to the approximately 4,000 unconsolidated jeepneys in the region.

As of the first week of June 2024, LTFRB-6 has issued show-cause orders to 400 units.

The members of WVATCCI are as follows:

* Molo Transport Service Cooperative

* Santa Barbara – New Lucena Transport Service Cooperative

* Aerostar Transport Cooperative

* Iloilo Superman Owners and Drivers Transport Cooperative

* Iloilo City Alliance Operators and Drivers Transport Cooperative

* JJL Transport Corporation

* Pavia Iloilo Jeepney Owners and Drivers Transport Cooperative

* Joroshley Transport Services Incorporated

* Western Visayas Transport Cooperative

 * Leon Transport Service Cooperative

* Calumpang Iloilo Service Transport Cooperative./PN

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