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Manila Bulletin devider Philippines devider National devider LTFRB allows unconsolidated jeepneys, other PUVs to ply routes until April 30, but...

LTFRB allows unconsolidated jeepneys, other PUVs to ply routes until April 30, but...

Published Feb 1, 2024 06:07 am

Operators of passenger jeepneys and other public utility vehicles (PUV) who failed to meet the Dec. 31 deadline for consolidation will be allowed to operate until April 30 this year as part of the three-month extension approved by President Marcos.

But LTFRB chairman Teofilo Guadiz III was quick to clarify that only those with no expired motor vehicle registration with the Land Transportation Office (LTO) will be allowed to ply their routes amid the ongoing anti-colorum drive.

"The authority to operate the units of all unconsolidated individual operators is extended until 30 April 2024, provided the unit is currently registered with the Land Transportation Office (LTO) and has a valid Personal Passenger Accident Insurance Coverage," said Guadiz, citing Memorandum Circular 2024-001.

The Memorandum Circular sets the guidelines on the consolidation during the period of extension and grants provisional authority to unconsolidated individual operators to operate until the extension of the consolidation deadline on April 30.

"Confirmation of units of unconsolidated individual operators may be allowed until April 30, 2024. The said units are allowed to ply the route as PUV only within the said period," he added.

The crackdown on unconsolidated PUV units would have started on Thursday, Feb. 1, but Marcos approved the recommendation of Transportation Secretary Jaime J. Bautista to extend the consolidation until April 30.

Around 76 percent of PUV operators across the country were able to meet the Dec. 31 deadline to consolidate into either a cooperative or corporation, a mandatory requirement and the first phase of the PUV Modernization Program.

Fears of transportation crisis, however, was raised after only 52 percent of PUV operators were able to consolidate in Metro Manila.

Bautista earlier said that the April 30 deadline to consolidate will be the last extension since it is already the eighth time he government has extended it since 2017.

Optimistic

Bautista earlier said that they are hoping to increase the number of consolidated PUVs by 85 percent for the entire country, saying the figure is sufficient enough to run the modernization program.

The same optimism of 85 percent consolidation was expressed by the LTFRB for Metro Manila which has only 52 percent consolidation rate currently.

Under the extension approved by the President, unconsolidated PUV operators will have the option to join existing cooperative or corporations, or form a new corporation or cooperative.

Rules…

Guadiz, however, reiterated that all applications for consolidation shall comply with the documentary requirements and procedures.

For routes covered by the Local Public Transport Route Plan (LPTRP), Guadiz said the consolidation is allowed on existing rationalized routes with no consolidated entity as of Dec. 31, 2023.

For routes not yet covered by LPTRP or route rationalization, he said consolidation is allowed if the number of unconsolidated units in a particular route is at least 40% of the total number of authorized units (NAU).

“The consolidated entities on the said route must comply with a common fleet management to ensure organized dispatch of units and avoid cut-throat competition between them. If the number of unconsolidated units is below 40% of the total NAU, consolidation shall not be allowed,” said Guadiz,

“However, the unconsolidated individual operators may join existing Transport Service Entity (TSEs) on the route subject to the conformity of the latter,” he added.

For routes with NAU of less than 15 units, the official said consolidation shall be allowed if the application for consolidation covers at least the majority of the existing NAU on the said route.

For this purpose, Guadiz said those individual operators whose application for consolidation was limited by prior issuances of the Board restricting the number of units to at least 15 units, may now be allowed to form their own TSE or join any existing TSEs in overlapping routes until April 30, 2024, with the latter's conformity.

… And more rules

Based on Memorandum, individual members are allowed to withdraw his/her membership in a cooperative without the need for Office of Transport Cooperatives (OTC) Endorsement, provided the application for consolidation of the cooperative from which the member seeks withdrawal is still pending with the LTFRB or its Regional Franchising and Regulatory Office (RFROs) and no Certificate of Public Convenience (CPC) has been issued at the time of withdrawal.

The memo added that the withdrawal of membership shall conform to existing Cooperative Development Authority (CDA) and OTC rules and regulations.

Individual stockholders/members are likewise allowed to withdraw from the TSE corporation, provided that the application for consolidation of the corporation is still pending with the LTFRB, or its RFROs and no CPC has been issued at the time of withdrawal.

The withdrawal of membership/shareholding shall conform to existing Securities Exchange Commission (SEC) rules and regulations.

Guadiz said the new memorandum shall take effect immediately upon its publication in a newspaper of general circulation.

Related Tags

PUV Modernization Program LTFRB Jeepney
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