The Confederation of Truckers Association of the Philippines (CTAP) is planning to seek an audience with President Rodrigo Duterte to raise its concern over a Department of Transportation (DOTr) order that effectively implements a 15-year limit on the age of trucks-for-hire.
The planned meeting with the President was suggested and agreed on by CTAP board and members who attended a general membership meeting on August 7. CTAP hopes Duterte would also grant a personal meeting with them the way he held impromptu talks with other groups during previous events.
CTAP chairman Ruperto Bayocot told PortCalls in an interview after the membership meeting that they intend to brief Duterte and his team on the effects of the policy on the industry and the economy if it is implemented. The confederation will also present its recommendations in lieu of the policy.
Bayocot said they have contacted a person close to the President who will help set up a meeting with him.
Opposed to new order
The plan was made following CTAP’s submission of a position paper to DOTr on July 28 asking to revoke Department Order (DO) No. 2017-09 and instead use roadworthiness as the basis for issuing the certificate of public convenience (CPC).
DO 2017-09, signed April 24 by Transportation Secretary Arthur Tugade, reinforces DO 2002-030 on the mandatory age limit for buses- and trucks-for-hire covered by CPC. But truckers said that they acquired copies of the new order only recently and that no public consultation or notice to stakeholders was made before the order was issued.
DO 2017-09 states that the DOTr reiterates DO 2002-030 and “strengthens the policy on the mandatory fifteen (15) year age limit of public utility buses units or Trucks for Hire” that are covered by CPC. This is by requiring truckers to submit a certificate of date of manufacture from the original manufacturer, such as a sales invoice or other competent documents, to prove the age of a motor vehicle.
According to CTAP, “it appears that the DOTr policy on the 15 years age limit on TH (trucks for hire) Trucks blurs all the distinction between a roadworthy vehicle vis-à- vis dilapidated vehicle by focusing primarily on the age of trucks commence from the date of its manufacture.”
During the forum, CTAP director Alberto Suansing said that nowhere in the definition of “dilapidated” is “old” indicated, and that there are brand-new trucks that get involved in accidents due to poor maintenance and human error.
Phasing out of older trucks has long been opposed by truckers, who insist that roadworthiness, not age, be the basis for giving a franchise.
CTAP said more or less 80% of cargo trucks currently in use to transport various types of goods and commodities are refurbished second-hand units aged 15 years old and above.
Death knell
According to CTAP, the abrupt and strict implementation of DO 2017-09 “would definitely kill the Philippine trucking industry and would open the floodgates for foreign corporate giants to control the logistics and transport industry.”
“The government must take into consideration the economic feasibility of this radical action of implementing the 15 years age limit on TH trucks, over and above, the long term macro-economic effect to our fledgling economy,” CTAP said.
It noted that about 70% of truck operators own two to four units and are not financially capable of purchasing brand-new trucks due to their “incredibly expensive price.”
This is why, CTAP said, operators opt for second-hand surplus units from Japan that have already been used for at least 10 years. If truckers are forced to buy brand-new trucks, CTAP said, the return on investment will be “highly improbable” if the government will only grant a CPC of less than five years.
It added that even if truck owners sell four trucks, “the aggregate value of 4 old truck units is not sufficient to purchase a single brand new truck.”
If the government is serious about phasing out old trucks, CTAP said, “then it must create the proper plans and programs in assisting the (truck) owners for (trucks’) proper disposition or suitable utilization thereof.”
CTAP also hopes for financial assistance or loans, through government financial institutions, to enable truckers to acquire new units.
The confederation is also asking the government to allow three- to five-year duty-free importation of brand-new trucks by selected accredited importers “in order to deter the incredibly expensive cost of brand new trucks in the Philippine market.”
DOTr-attached agencies Land Transportation Office and Land Transportation Franchising and Regulatory Board were supposed to issue a joint memorandum circular (JMC) within 30 days of effectivity of DO 2017-09 in order to implement the mandate of the policy within their respective jurisdictions.
However, though the JMC remains unreleased as of press time, some truckers reportedly can no longer renew their CPCs for trucks beyond the age limit specified by DO 2017-09. – Roumina Pablo
