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Manila Bulletin devider Philippines devider National devider LTFRB allows unconsolidated PUVs to operate until January 2024

LTFRB allows unconsolidated PUVs to operate until January 2024

Published Dec 28, 2023 07:54 am

The Land Transportation Franchising and Regulatory Board (LTFRB) has allowed public utility vehicles (PUVs) that failed to consolidate into either a cooperative or corporation after the Dec. 31 deadline will be allowed to operate until Jan. 31 next year.

Under LTFRB Memorandum Circular 2023-052, the LTFRB explained that the leeway granted for drivers and operators who failed to meet the deadline is aimed at ensuring that commuters would not suffer the brunt of possible shortage of public transportation, particularly jeepneys,

The consolidation into either corporation or cooperative is the first phase of the PUV Modernization Program. Its second phase is the Route Rationalization which will began on Jan. 1, 2024.

Originally, PUV drivers and operators who would fail to consolidate on or before Dec. 31 this year will no longer be allowed to ply their routes.

Around 154,000 PUV units are expected to consolidate before the end of 2023 and the figure only represents around 70 percent of the total number of public transport, which means that a number of passengers might be affected by any strict implementation of the consolidation rule.

The need to ensure sufficient number of PUVs was recognized in the LTFRB memorandum and was cited as the reason why unconsolidated PUVs would be allowed to ply their routes until Jan. 31 next year.

“In order not to hamper the operation of public transportation routes without consolidated TSEs (Transport Service Entities), the individual operators in said routes shall be allowed to operate until 31 January 2024,” the Memorandum read.

“During this period, Show Cause Orders shall be issued by the (LTFRB) Board and its Regional Franchising Regulatory Offices to the unconsolidated individual operators in compliance with the provisions of the Public Service Act,” it added.

Special Permits

The Department of Transportation earlier said that the LTFRB is already coordinating with the local government units for the rationalization of routes, which is aimed at identifying routes that may be affected by the rules of PUV Modernization,

The move is aimed at ensuring that no commuters would be affected by any restriction for non-consolidated PUV units to operate.

In the Memorandum, the LTFRB said it may also issue special permits tom operate on routes without consolidated PUV units.

The special permits that may be issued is valid for three months after Jan. 31, 2024 and only for those who were able to consolidate.

“In no case shall the consolidated TSEs that elect to operate on routes without consolidated TSEs reduce its operation to more than 60% of its NAU on its original route,” the Memorandum read.

Related Tags

PUV modernization LTFRB
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