Home » 3PL/4PL, Breaking News, Customs & Trade, Ports/Terminals » LTFRB opens satellite office to expedite franchise applications

ID-100120050The Land Transportation Franchising and Regulatory Board (LTFRB) will open a temporary satellite office in Parañaque City starting June 26 to accommodate franchise applications for freight trucks.

The decision came about after the Philippine International Seafreight Forwarders Association, Inc. (PISFA) and Aircargo Forwarders of the Philippines, Inc. (AFPI) on June 23 offered to help LTFRB chairman Atty Winston Ginez expedite the franchise application process.

Since the Joint Administrative Order No. 2014-01, dated June 2, issued by the Department of Transportation and Communications together with the LTFRB and Land Transportation Office increased fines on illegally operating public utility vehicles (locally known as colorum), the LTFRB head office in Quezon City has been inundated by franchise applicants. As a result, there has been much complaint over the slow application process. In the beginning there was only one signatory for all applications; now according to Ginez, there are three.

On June 17 the LTFRB also issued Memorandum Circular No. 2014-08 granting provisional authority to operate for freight trucks with pending applications for a franchise. The memo was promulgated to ensure that delivery of goods is not hampered by the lack of franchised trucks on the road.

Confederation of Truckers Association of the Philippines (CTAP) president Ruperto Bayocot earlier told PortCalls that about 40% of its 8,000 members have green plates (not franchised) while Integrated North harbor Truckers Association president Teodorico Gervacio said 80% of its members still need to secure a franchise.

Under JAO 2014-01, first-time colorum offenders will be fined P200,000 and the unit impounded for a minimum of three months.

The LTFRB satellite office located at the Sky Freight Center on Ninoy Aquino Avenue Parañaque City (across NAIA Ternina1 1), will be open from 8am to 5pm, and will be manned by three LTFRB personnel and complemented by three PISFA/AFPI staff.

Depending on the need, another satellite office in Intramuros will be opened.

At the Parañaque satellite office, all franchise applicants (not just PISFA and AFPI members), may apply for a franchise and pay the application fee of P520 for the first two units. The fee for each subsequent unit is P70. A provisional official receipt will be issued. The applicant will receive an acknowledgment stub and, if all papers are in order, will be asked to return to the satellite office two days later to secure the provisional authority to operate.

The process completely cuts the need to go to the congested LTFRB head office.

Bayocot said the satellite office “is a big help especially if the PA (provisional authority) can be done/issued there.”

CTAP itself has set up a help desk but within the confines of the LTFRB head office.

Since JAO 2014-01 took effect on June 19 until June 15, Ginez said the LTFRB has already processed around 5,000 applications.


PCCI request

Earlier, the Philippine Chamber of Commerce and Industry (PCCI) asked the government to defer implementation of JAO No. 2014-01.

PCCI president Alfredo Yao in a statement said the organization is not against the intent of the JAO but that the timing of its implementation is “misplaced” as it coincides with the implementation of the Manila City truck ban.

PCCI instead urged LTFRB to expedite and rationalize its processing of franchises to ensure that only legitimate operators are granted approval.

According to Yao, the JAO may lead to a shortage of trucks, aggravating the ill effects of the port congestion in Manila which was made worse by the Manila truck ban policy.

“We have not yet recovered from losses caused by delivery delays, disruptions in our businesses and additional costs that resulted from the port congestion,” Yao said.

“We need some more time to address this issue first before the full implementation of JAO. Otherwise, there might be no more goods to sell in the markets if trucks and similar vehicles to move goods are prevented from doing so at this time,” he explained.

“While the effects of the congestion has somewhat eased because of the opening of 24/7 express lanes on certain Manila thoroughfares, transport stakeholders project that the situation at the ports could still take months to normalize,” he said.

CTAP earlier said it could take up to three to six months for the situation to normalize.

“We hope the government grants our request to defer the implementation. This problem of truck shortage will especially be acute for perishable commodities for consumption or as raw materials in production,” Yao added. – Roumina Pablo

Image courtesy of imagerymajestic / FreeDigitalPhotos.net

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