The consolidation process for the Public Utility Vehicle Modernization Program (PUVMP) did not receive much support from transport operators in Metro Manila as only 40 percent of them have agreed to join either a corporation or a cooperative based on the data of the Department of Transportation (DOTr).

But on a nationwide basis, DOTr-Office of Transportation Cooperative chairman Jesus Ferdinand Ortega said they achieved the target of around 70 percent of transport operators consolidating as part of the first phase of the country’s transportation modernization.

“Nationwide, it is more or less 70 percent but here in Metro Manila as of now, it is 40 percent but the final count will still have to be done by the LTFRB (Land Transportation Franchising and Regulatory Board). Maybe in the next few days, we will be able to determine the final numbers,” said Ortega in an interview over GMA 7’s Unang Balita.

The deadline for consolidation is on Dec. 31 and President Marcos himself insisted that there will be neither extension nor lifting of the deadline.

Based on the DOTr target, around 154,000 PUV units are expected to beat the deadline for consolidation and this represents 70 percent of all PUV units nationwide.

Ortega said a number of transport operators and small transport groups were able to beat the deadline, especially with the decision of DOTr Secretary Jaime Bautista for both the LTFRB and the OTC to accept the application for consolidation on Dec. 31 despite it being a non-working holiday.

What happens now?

Based on the LTFRB Memorandum Circular 2023-052, which sets the guidelines on transport situation after the Dec. 31 deadline, transport operators in routes with more than 60 percent consolidation will no longer be allowed to join existing consolidated groups or organize themselves into a corporation or a cooperative.

The consolidation process, according to the LTFRB, is important in the PUV Modernization since it would facilitate the processing of franchise and rationalization of routes for the modernization program of the national government.

The franchise of unconsolidated transport operators in routes with more than 60 percent consolidated rate is already deemed revoked.

But for unconsolidated transport operators in routes with less than 60 percent consolidation rate, they will still be allowed to ply their routes until January31, 2024.

But within the January 2024 period, Ortega said Show Cause Orders (SCOs) will be issued to unconsolidated transport operators as part of the due process before the cancellation of the franchise. 

The case of NCR

With only 40 percent consolidation rate in Metro Manila after the Dec. 31 deadline, chances are that unconsolidated transport operators in routes with less than 60 percent will be covered by the LTFRB Memo on allowing them to operate until the end of this month.

But those routes with less than 60 percent consolidation rates appear to cover only short routes since the DOTr earlier said that the majority of the major routes in the National Capital Region have already consolidated.

In a press briefing last week, the LTFRB said that special permits would be given to consolidated transport operators to assist in covering affected passengers in routes with more than 60 percent consolidation since unconsolidated transport operators in these routes will no longer be allowed to operate 

Averting transport crisis

As the deadline for consolidation nears last month, the DOTr and the LTFRB have been coordinating with local government units and other government agencies to address possible shortage of vehicles starting this month.

Such coordination is essential since the first two weeks of January are the expected return of students and workers to their workplaces.

In Metro Manila, Ortega said they already coordinated with the Metropolitan Manila Development Authority (MMDA), the Philippine National Police (PNP), the local government units (LGUs) and other government agencies for libreng sakay or free rides for affected commuters.

But since last week, both the DOTr and the LTFRB have been saying that a transportation crisis is unlikely.

Drivers’ plight 

Ortega also clarified that the issue of consolidation does not cover drivers of PUVs since the instructions to consolidate are intended for the operators.

The assistance for affected drivers whose operators refused or failed to consolidate, according to Ortega, will be addressed.

Initially, Ortega said the plan is for these affected drivers to be allowed to drive PUVs of consolidated transport operators, especially that special permits are expected to be given for affected routes 

“The issue of consolidation only affects operators. There are options for affected drivers and one of them is for them to drive the units of consolidated transport operators,” said Ortega.