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The Jeepney Phaseout / PUV Modernization continues to be a contentious issue. There are many arguments that have been raised both for and against it. Perhaps most troubling is the fact that there is a lot of misinformation spreading, particularly from armchair pundits that don’t quite understand the entire issue.

In this article, we go over some of the most common myths about the jeepney phaseout and debunk them in order to give you a better understanding of the program as a whole.

Myth #1: These modern jeepneys are all made in China and benefit the Chinese government, not the Philippines.

Centro presents ‘Ang Hari ng Kalsada’ at PIMS 2022 — A modern PUV designed and built by Centro Manufacturing Corporation in the Philippines

False. Nearly all of the Modern PUVs are made in the Philippines, by Filipinos. The Jeepney Phaseout / PUV Modernization program requires all manufacturers of Modern PUVS to submit their designs to the DTI’s Bureau of Philippine Standards (BPS). This bureau, together with the Truck Manufacturer’s Association (TMA) has come out with a Philippine National Standard (PNS) for Modern PUVs: PNS 2126:2017. It specifies dimensional limits for PUVs, divided into four classes, with strict limits on the seating arrangement and capacity, as well as maximum mass.

Pangasinan ushers in Hyundai Modern PUVs — Hyundai's Class 2 Modern PUVs were designed specifically for the Philippine market.

These specifications are unique to the Philippines and not based on any specs from any other vehicle or government. As such, any vehicle manufacturer that wishes to sell Modern PUVs must meet these standards and receive approval. Operators can only buy Modern PUVs from these authorized manufacturers. In essence, these new PUVs have strict size and capacity limitations, and the most efficient way to meet them is to build a vehicle from the ground up, not simply adapt one from China.

Many manufacturers have already registered with the DTI and received approval. Majority of these are Japanese manufacturers or Philippine coachbuilders. All of their submitted designs were conceived by Filipinos and are assembled in the Philippines, by Filipino workers.

The Japanese manufacturers are Hino trucks, Fuso trucks, Toyota, Suzuki, and Isuzu. Korean manufacturers include Hyundai, Kia, and Daewoo trucks. Philippine coachbuilders include Centro, Santarosa, Almazora, Sarao, and FMC. All of these participants assemble their respective modern jeepneys locally.

The only Chinese participants are Foton, JAC, and JMC. These three may be Chinese in origin, but they are operated by Filipino-owned companies. Foton’s Modern PUV is actually assembled in their manufacturing facility in Clark, Pampanga, by Filipino workers. The powertrains and chasses may be sourced from China, but everything else is sourced from the Philippines. The Modern PUV program is actually providing jobs, not just to PUV cooperatives, but to assemblers of these vehicles.

Myth #2: Old jeepneys can be upgraded to meet these modern standards

ILOILO CITY JEEPNEYS.jpg — Conventional jeepneys bearing the headlights and grilles of pickup trucks.

False. These old jeepneys are based on a design that is already 70-years old. It would be cheaper to buy an entirely new Modern Jeepney than upgrade all of its components to meet these new standards. The idea of upgrading these old vehicles is like trying to convert an old Nokia GSM phone into an Android-based smart phone. The old device simply cannot handle the new frequency, power, and processing demands of modern phone usage. The same can be said of old jeepneys. They were never designed to meet these modern requirements.

Old jeepneys are powered by used or surplus Japanese diesel engines that are already at least a decade old. Many of these old engines were built before the implementation of Euro-4 emissions standards, which is a requirement for modern jeepneys. They cannot simply be upgraded because meeting Euro-4 standards requires the use of an Electronic Control Unit (ECU) to govern the engine, as well as direct injection. These old engines are analog and were not designed to meet such higher standards of efficiency and cannot even be fitted with the engine sensors or fuel injection systems to make them more efficient and produce less emissions. The engine can't do it alone. Compatible exhaust systems, emissions treatment systems, and a catalytic converter must be fitted to meet Euro-4 emissions standards.

Old jeepneys are brought to a stop by drum brakes. These systems are seeing less use in modern trucks because they are not as powerful as new alternatives. Drum brakes cannot be fitted with Anti-lock Brake Systems (ABS). In addition, drum brakes also lose their effectivity when wet. As such, any Jeepney that drives through a flood will not be able to stop effectively until the brakes have dried. Modern PUVs use disc or air brakes. These systems are governed by sensors and computers to effectively apply the brakes and stop the vehicle in a shorter distance than drum brakes. They can also be submerged in flood water and still function effectively.

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Old jeepneys are built from adapted World War 2 military jeep chasses. The military jeep is designed to carry only five military personnel or just under 1 ton of cargo. These chasses were never designed to carry the weight of the typical 20 passengers that modern jeepneys are often subjected to. In addition, the chassis was never designed with crumple zones or crash safety in mind. As such, the safety of passengers in an accident cannot be guaranteed. Modern PUVs, by contrast, are built from truck chasses and designed to accommodate anywhere from 1 to 10-tons of cargo, or from 8 to as much as 30 people. They’re also designed with possible accidents in mind and can therefore better protect passengers.

Myth #3: Modern jeepneys cost nearly P2-million per unit, too much for a jeepney driver to afford.

A very affordable Foton Class 1 Modern PUV

False. Like we mentioned before, Modern Jeepneys are divided into four classes, ascending in size, to serve different kinds of routes. Indeed, there are Modern Jeepneys priced at around P1.8M to over P2M, however, these are Class 2 or Class 3 PUVs designed to carry 16-20 passengers on longer routes. The P2.6M Modern Jeepney often cited is a fully-electric Class 2 example, which is naturally more expensive than a diesel version. Chances are, these jeepney operators want modern jeepneys that match their old jeepneys' carrying capacity. However, these may not even be the ideal size for their franchise route.

Hyundai’s Modern PUVs certified to serve as public transportation — Hyundai Class 1 and Class 2 Modern PUVs.

Not all jeepney routes require a Class 2 or Class 3 PUV. In fact, many urban routes can be better served by a smaller Class 1 PUV. There are many Class 1 Modern PUVs priced as low as P1.3-M that can handle 8-12 passengers.

Toyota's Class 1 Modern PUV concept, based on the new Tamaraw.

Part of the rationale behind forming these Modern PUV classes is to ensure the right size modern jeepney is chosen to serve a particular route. No more jeepneys as long as trucks clogging up U-turn slots because they are too long for the U-turn slot to begin with. Class 1 modern jeepneys are smaller to allow them to easily navigate tight urban roads, make sharp turns without obstructing traffic, and prevent overloading.

In addition, the individual jeepney driver is not expected to pay for a unit on his own. Rather, he is required to form a cooperative with several other jeepney drivers and operators so they can pool their funds to acquire multiple units. By working as a cooperative, the members can share in the maintenance and fuel expenses, as well as monitor and dispatch vehicles where they are needed along the route. The jeepneys become communal assets. Rather than having a single driver working a long 16-hour shift, the coop can assign multiple drivers to one modern jeepney over several shorter 8-hour shifts. In effect, the coop need not buy one jeepney for each driver, but rather one jeepney for every three drivers.

A cooperative taking delivery of their fleet of modern PUVs.

To help cooperatives manage the cost of acquiring several jeepneys, the government has even prepared a financing package, called 5-6-7-8. It requires the Jeepney coop to register with the LTFRB and show proof of being a recognized cooperative. From there, they will be required to pay 5-percent downpayment. Payments will be kept at a 6-percent interest rate, and take 7 years to pay. The vehicle’s warranty is also hoped to be extended to 7 years long pending talks with PUV suppliers, however it is currently at 5 years. Finally, the government will offer as high as an P80,000 subsidy per unit.

Myth #4: Current jeepney drivers cannot pass on the jeepney franchise to their children as livelihood.

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It is illegal to simply pass on a jeepney franchise from one driver to another, even if they are related. Would you trust an architect’s son to build a house for you without certification simply because his father was an architect?

Operating a jeepney is a professional career, wherein each driver must meet certain criteria and be granted the license to operate. One must posses a professional license, have the proper paperwork for a valid roadworthy vehicle, and an approved franchise route. All of these must be applied for individually. Even with the old system, it was illegal to simply pass the franchise on to someone else.

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With the PUV Modernization, the government hopes to abolish individual jeepney operators and franchises, especially those that were illegally passed on, in order to ensure that only roadworthy vehicles and qualified individuals are operating. This is why the coop system was chosen. Cooperatives are then incentivized to work as a group rather than against one another and fight for passengers. Aspiring jeepney drivers can apply with the cooperative, which will then submit the application to the government. As such, the cooperative will be incentivized to police their own staff in order to ensure public safety, a high standard of service, and a regularly renewed franchise.

Myth #5: The cooperative system means less profit for the drivers.

Allow more PUVs on the road, commuter group says amid quarantine protocol breach — Modern PUV operators must have a passenger assistance officer to care for the passengers.

False. The cooperative system grants one cooperative a monopoly over a particular route, without competition. By limiting the route to just one group or coop, all the members of the cooperative can share in the profits of servicing that route. Drivers are required to be given fixed salaries instead of compensated by the number of passengers they pick up like the old boundary system. This equalizes the pay, especially for drivers that take on shifts during off-peak hours and with less passengers.

Some PUV routes to and from Antipolo City open — No more fighting for passengers. Jeepneys serving a particular route will be part of the same cooperative.

Because drivers of a coop are working together rather than in competition with each other, you will no longer see modern jeepneys pile up at busy stops fighting for passengers. Modern jeepneys can be dispatched to serve less popular stops or passengers further up the route. The number of vehicles servicing that route can be monitored, and increased or limited as needed. With a fixed salary, there’s very little incentive for drivers to wait for their PUV to be filled before proceeding.

In addition, the cooperative system also provides additional jobs. Coops will not only need drivers as staff, but also a passenger assistance officers for each modern jeepney, a fleet manager, an HR officer, service technicians, and a dispatcher. By operating like a proper transport company, rather than as individuals, more people can be employed, and the route can be serviced better.

Myth #6: Modern jeepneys charge higher fares

Modern PUVs offer more spacious interiors for the same fare.

False. The fare matrix for all public transportation vehicles is determined by the Land Transportation Franchise and Regulatory Board (LTFRB). No single jeepney or cooperative is allowed to dictate their own fare. Transport groups must petition the LTFRB for a fare increase. Even so, the LTFRB reserves the right to approve or deny this petition for a fare increase. Fare increases take effect on a nationwide scale and are not implemented to individual routes.

There is no difference in fare between conventional jeepneys and Modern PUVs for a given route. Both are bound by the same fare matrix prescribed for the route.

Even if all jeepneys were phased out and these transport cooperatives were to petition the LTFRB for a fare increase, the government agency still has final say. No doubt, it will still weigh the pros and cons, keeping the financial capability of commuting public in mind, before approving or denying any increase.

Myth #7: Upgrading to a modern jeepney and cooperative system is difficult and expensive.

Modern PUVs are expensive because they fitted with more modern engines and amenities.

True. Unfortunately, this is the only thing true about the PUV Modernization program. There’s no denying it. It is a costly endeavor for any aspiring cooperative simply because all these changes are meant to address nearly 70 years of lenient or nearly non-existent government regulation. Jeepneys have to catch up to all those decades of safety and emissions improvements that modern passenger cars and trucks have undergone.

Forming a coop is also challenging for these drivers and operators, particularly because it requires incorporation papers and a business plan, of which many of them have little knowledge of how to create. Like any corporation, this requires the selection of a board of directors, roster of members, shares, regular meetings, minutes of those meetings, and proof of accounts and funds.

Another issue is acquiring the physical plot of land for the coop to serve as the car barn, parking and maintenance facility. After all, they cannot simply be allowed to park on the street like before. Since this needs to be near or within their area of operations, the lot can get quite expensive if the coop operates in a very developed area where land values are high.

All these requirements are necessary to establish proper accountability among operators, to better organize routes, and avoid the mistakes and loopholes of the old jeepney franchise system.

Finally, coops that avail of loans may not see that much profit for several years as the payments for the vehicles are being deducted. Unfortunately, the banks need to recoup these funds to be able to lend to other cooperatives.

Thankfully, there are many solutions available. Many LGUs are assisting coops financially and offering plots of land with reasonable leases. Some Modern PUV manufacturers are going the extra mile and assisting these coops in filling up incorporation papers and forming business plans to close contracts. Finally, additional funding can be gained by selling ad space on these vehicles.

LTFRB allows 1,159 more jeepneys to ply 28 new Metro routes starting Sept. 14

Upgrading our jeepneys to more modern alternatives is an objectively difficult task but not an impossible one. All it takes is the political will from the government to enforce it, assistance from banks and LGUs to get it started, and also willingness on the part of jeepney drivers and operators to forego old habits and systems to provide a better service to the commuting public.

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