Modern jeep operators in CV want Dec. 31 consolidation deadline ‘firmly’ implemented
CEBU CITY, Philippines — The Federation of Cebu Transport Cooperatives has called on the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) to “firmly” implement the December 31, 2023 deadline for the consolidation of traditional public utility jeepneys under the government’s Public Utility Vehicle Modernization Program (PUVMP).
The Federation argued that further extension of the consolidation deadline would negatively affect the revenue of modernized transport vehicles operated by transport cooperatives in the region.
“No more extension of consolidation of the traditional PUVs after December 31, 2023, as this is the voice of the majority…These traditional jeepneys operate without monthly amortization to pay in millions,” the federation said in the position paper signed by 11 transport cooperatives (TC) in Cebu.
“Modernized transport coops find it hard to pay their loans and sustain their business regularly,” they said.
The signatories of the position paper dated May 16, 2023 include the transport cooperatives in El Pardo, Lahug-Apas, Inayawan, Pit-os Talamban, Cebu MEPZA Liloan, Mabolo, Kalunasan, Mandaue, Bohol, United Drivers OTC, and the Cebu People’s Multi-Purpose Cooperative.
According to the Federation, an extension of the consolidation would send a “wrong signal” to those who intentionally did not participate in the consolidation program.
Earlier this year, LTFRB chairman and lawyer Teofilo Guadiz said that while the agency plans to extend the deadline for the completion of other requirements for the PUVMP until 2024, the agency will stick to the December 31 deadline for consolidation, which is the first step in the PUV modernization program.
The consolidation deadline has been moved several times from the original December 2021 to June 2022, March 2023, June 2023, and December 31, 2023.
The PUVMP is “an extensive system” reform that will completely transform the public land transportation industry. The program features a regulatory reform and new guidelines for granting franchises for road-based public transportation services.
This also encourages industry consolidation or strategic merging of smaller transportation industry players to form a consortium, either through cooperatives or corporations.
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