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The Land Transportation Franchising and Regulatory Board is allowing unconsolidated individual public utility vehicle operators to operate until January 31, 2024 under certain conditions
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LTFRB Memorandum Circular No. 2023-052, which contain rules on the implementation of the public utility vehicle modernization program, was issued to ensure unhampered operation of public transportation
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The government earlier required PUV operators to consolidate on or before December 31, 2023
The Land Transportation Franchising and Regulatory Board (LTFRB) is allowing unconsolidated individual public utility vehicle operators to operate until January 31, 2024 under certain conditions to ensure ample supply of public transportation next year.
The provision is contained in LTFRB Memorandum Circular (MC) No. 2023-052 or guidelines on the implementation of the public utility vehicle modernization program (PUVMP). This circular supplements MC 2023-051, which allows operations of consolidated transport service entities (TSE) in all routes with filed application for consolidation on or before December 31, 2023.
MC 2023-052 was signed on December 22 and took effect on December 25. It covers public utility jeepneys (PUJs), filcabs, and UV Express.
Under MC 2023-052, unconsolidated individual operators in routes with less than 60% consolidated number of authorized units (NAU) will be allowed to operate until January 31, 2024. LTFRB may also issue special permits to other consolidated TSE to operate in routes with less than 60% consolidated NAU, valid for three months.
Industry consolidation is a key component of the PUVMP where the formation of transport cooperatives or other legal entities will be entitled to benefits such as government subsidies and access to credit facilities, among others, to aid in modernizing their fleets and run the modernized units in a systematic and predictable manner.
The Department of Transportation (DOTr) had said the December 31, 2023 deadline for consolidation remains even as several transport groups, particularly operators of PUJs, are seeking an extension.
LTFRB said its offices will be open even during the weekend, or on December 30 and 31, to process applications.
“This initiative has gained the support of majority of our PUV operators as around 70% of them have already taken part in the consolidation process,” Transport Secretary Jaime Bautista said in a statement.
For routes with local public transport route plan (LPTRP), TSEs that are already consolidated will retain franchise privileges on routes they are currently plying and will continue to operate under their existing provisional authorities (PA) until December 2024 or upon the issuance of a Certificate of Public Convenience (CPC), whichever comes first.
CPCs issued to consolidated TSEs with brand-new, omnibus franchising guidelines (OFG)-compliant units, regardless of number, will have a validity of seven years. CPCs for consolidated TSEs without brand-new, OFG-compliant units, meanwhile, will have a validity of five years.
For routes with LPTRP, all unconsolidated individual operators who fail to file application for consolidation prior to December 31, 2023 will no longer be allowed to organize into a juridical entity or join existing consolidated TSEs.
If there is a need for additional units on an existing route as a result of the LPTRP, the consolidated TSE will be given priority to increase their authorized units to meet the demand.
For routes with no approved LPTRP, or Route Rationalization Study for the Metro Manila Urban Transportation Integration Study Update and Capacity Enhancement Project (MUCEP)/inter-regional, inter-provincial (IRIP) studies, but with consolidated units 60% of the NAU, the consolidated TSEs will continue to operate under their existing PAs until December 31, 2024, or until their CPCs are issued, whichever comes first.
This will be the same for routes with no approved LPTRP or MUCEP/IRIP studies and have units that are less than 60% consolidated units of the NAU. LTFRB will issue a list of routes with less than 60% consolidated NAU.
For routes with no consolidated TSEs, individual operators in such routes will be allowed to operate until January 31, 2024 in order not to hamper the operation of public transportation in such areas. LTFRB may also issue special permits to consolidated TSEs to operate in routes without consolidated TSEs after January 2024 and valid for three months.
LTFRB earlier said data shows that in the National Capital Region alone, all major routes or thoroughfares are being operated by consolidated transport groups, while secondary routes without consolidated entities will be served by other modes of public transport.
READ: Gov’t prepares for full rollout of PUV modernization program
LTFRB said it is also coordinating with local government units for the next phase of the program, which is route rationalization.
Launched in 2017, the PUVMP is a comprehensive modernization of road public vehicles in the Philippines. The program calls for the phasing-out of jeepneys, buses and other PUVs based on the age limit and replacing them with safer, more comfortable and more environmentally-friendly alternatives. It features a regulatory reform and sets new guidelines for the issuance of franchise for road based public transport services, and devolved the function of route planning to the LGUs. – Roumina Pablo
