THE Land Transportation Franchising and Regulatory Board (LTFRB) has allowed hatchback cars to operate as Transport Network Vehicle Services (TNVS) in Cebu.
LTFRB Chairman Martin Delgra III confirmed what he said during the Senate hearing on public service last Thursday that hatchbacks or compact vehicles would also be allowed in Metro Cebu, contrary to a new LTFRB memorandum, which limits hatchback cars only in Metro Manila.
“Yes, in the same conditions in the MC (Memorandum Circular) namely those with car loans and only during the transition period to allow them to repay their loans,” Delgra told Cebu Daily News in a text message on Saturday.
Under the Memorandum Circular 2018-005, “Hatchback units shall be accepted subject to a transition period of three years in order for the peers to recoup their investment.”
Provided also that the hatchback units shall charge for a lower fare rate approved by the LTFRB.
“That will be discussed with the TNC (Transport Network Companies) Grab and Uber in the separate petitions for a fare hike pending before the board,” he said.
Option to change to sedan
The MC also states that “TNVS applicants are allowed to replace or drop and substitute their accredited vehicles with year models from 2012 and earlier within 90 days from the effectivity of the circular.”
Delgra is advising hatchback owners who have the option to drop and change their units into sedan to take that option.
“They are encouraged to drop and substitute, during the transition period, hatchbacks for sedan to become compliant units,” he said.
Last month, the LTFRB planned to ban the accreditation of compact cars as ride-hailing cabs.
Hatchback units do not provide enough legroom or baggage compartment for the passengers’ convenience, Delgra said during the hearing.
1,500 slots
The LTFRB had expanded their common supply base from 45,700 units to 66,750 applications nationwide to secure the public demand of transportation services.
About 1,500 slots are available for TNVS applications in Cebu.
LTFRB-7 Director Ahmed Cuizon said in a previous interview that there are at least 740 applications for the TNVS permit recorded in the region as of
Sept. 2016.
The LTFRB will open applications for franchise on March 5.