LTFRB-7 backs FCTC’s call not to extend the Dec. 31 deadline for consolidation

Land Transportation Franchising and Regulatory Board Central Visayas Director Eduardo Montealto Jr. is backing the | file photo

CEBU CITY, Philippines — A transport cooperative has gotten support from the chief of the Land Transportation Franchising and Regulatory Board in Central Visayas (LTFRB-7) in their call not to extend the Dec. 31, 2023 deadline for public utility vehicle (PUV) operators to consolidate into cooperatives or corporations for the PUV modernization program (PUVMP).

In a phone interview with CDN Digital, LTFRB-7 Director Eduardo Montealto Jr. echoed the concern of the Federation of Cebu Transport Cooperatives (FCTC) that further extension would have adverse effects on the income of modern PUV operators.

“Sakto ng ilang (FCTC) position paper nga dili na i-extend. Kalima na baya na gi-extend kay supposedly naa may June (deadline),” he said.

(They are right (FCTC) position paper not to extend it. It was extended five times because supposedly there is June (deadline).

“Luoy ning mga nagmodernize. Nangutang sila sa bangko. Dayon, gipabalik man nato ang mga traditional. Maayo man tong mga traditional kay mobyahe or dili mobyahe, pareha karon, wala na sila nanulod sa downtown (in Cebu City), nagtrip cutting sila, wala man silay problema kay wa man silay bayran monthly,” LTFRB-7 chief added.

(It will be put those who have modernized their jeepneys, at a disadvantage. They loaned money from the bank. Then, we let the traditional jeepneys return. It was okay then to drive traditional jeepneys because if they go out or not it was still the same but now they cannot enter the downtown area (in Cebu City), then they will do trip cutting, they have no problem at all because they don’t have any monthly loans to pay.)

READ: Modern jeep operators in CV want Dec. 31 consolidation deadline ‘firmly’ implemented

LTFRB-7 on deadline consolidation

He, however, clarified that the Dec. 31 deadline would only be for the last day of consolidation and not for the phase-out of traditional public utility jeepneys.

Although, he said, those who would fail to consolidate on or before the Dec. 31 deadline might no longer be issued with a provisional authority, which would be the remedy given by the LTFRB to those who would intend to operate their units while their franchise applications would still be pending with the agency.

The FCTC on May 16, 2023, wrote to the Department of Transportation (DOTr) Secretary Jaime Bautista and LTFRB chairman and lawyer Teofilo Guadiz III asking the agencies to give no more extension of the Dec. 31, 2023 deadline for consolidation, which was the first step for the government’s PUVMP.

The FCTC “demands justice” for their support to the PUVMP with the full and strict implementation of the Dec. 31 deadline for consolidation.

“Modernized transport coops find it hard to pay its loans and sustain its business operations regularly,” the federation said in its position paper, noting that the existence of traditional jeepneys would pose an “indirect competition” to modern jeepneys.

As of now, there has been no news yet if the DOTr has decided to extend once again the deadline for consolidation after Dec. 31 this year, but the deadline has been moved several times from the original December 2021 to June 2022, March 2023 to June 2023, and December 31, 2023.

Consolidation extension’s disadvantages

Moreover, Montealto said the extensions of the consolidation deadline brought disadvantages to the status of the modernization program here in the region.

Montealto said some operators, who enlisted for cooperatives or corporations, have returned to operating individually, with some operating colorum vehicles.

“Na drop na siya, pasabot, back to private na (for replacement of modernized unit), pero wala nila gikuha ang mga markings. Private na supposedly, pero namasada na gihapon,” the LTFRB-7 chief

said.

(These vehicles have been dropped, they are back to being private vehicles (for replacement of modernized units), but they no longer have any markings. They are private vehicles but they still ply their routes.)

“Wala man ta nagkuan aning mga traditional kay buhay buhay (livelihood) man, pero di pod pwede nga macompromise ang atong modernization. Luoy man kay ning mga nagmodernize na nga compliance sa unsay gisulti sa gobyerno,” Montealto added.

(We have nothing against the traditional jeepneys because these are their livelihood, but this should not compromise our modernization plan. But this will put those who modernized their jeepneys or who complied with what the government said at a disadvantage.)

He said there are about 1,400 modern PUVs plying the route of tri-cities of Cebu, Mandaue, and Lapu Lapu; however, the number may increase if the consolidation deadline is not extended once again.

As of now, he said, about 61 percent of PUVs, plying in the region are traditional public utility jeepneys.

He said the modernization program is for the safety, security, and comfort of the riding public.

READ MORE:

LTFRB to extend franchise of traditional jeepneys

LTFRB-7 launches four modern PUJ units in Compostela, Cebu

PISTON-Cebu to LTFRB: Suspend compulsory franchise consolidation, MPUJ purchase

PUB modernization must be inclusive, collaborative

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