BEEP Cebu announces suspension of operations for 6 months

By: Futch Anthony Inso September 25,2023 - 08:45 PM

Photo of a BEEP modern jeep.

| File photo

LAPU-LAPU CITY, Cebu – A modern jeepney company in Cebu has decided to temporarily suspend its operations as it suffers from “severe problems.”

In a Memorandum dated September 22, 2023, BEEP Cebu said that it will suspend its operations for six months starting on October 1, 2023.

“In order to stave off worst losses, we will need yo wait for favorable conditions to return in Cebu, if any,” part of the memo read.

The one-page memo signed by Terminal Operations Head Michael Baldo and Human Resources Director and Lawyer Edgar Jino Bartolata was address to Beep Cebu drivers and Passengers Assistance Officers (PAO).

 

Reasons for suspension of operations

In its memo, the transport company said that one of the reasons for the suspension of its operations was the ongoing Russia-Ukraine war which prevents the effective dispatch of the 20 Gazelle units that were manufactured in Russia.

The ongoing war has prevented BEEP Cebu from sourcing spare parts for its Gazelle units.

The transport company also mentioned of stiff competition, delays in the approval of its request for route modification, and the ongoing construction works for the Bus Rapid Transit (BRT) project as the other reasons for its decision to temporarily suspend operations for six months.

BEEP Cebu said that ongoing BRT construction works had been hurting, especially the company’s Guadalupe to Carbon route, thus “preventing us from earning.”

The modern jeepney company has around 58 units that ply routes from Cebu City Hall to IT Park, Banawa to Panagdait, Tabunok to IT park and Minglanilla to IT Park under a special permit.

Show cause order

Regional Director Eduardo Montealto Jr. of the Land Transportation Franchising and Regulatory Board in Central Visayas (LTFRB-7) said that he is yet to received a formal communication from BEEP Cebu on its plan to temporary suspend operations.

“Mag-issue ta ug show cause order. Di na pwede nga mohunong sila nga di mananghid nato,” he said.

Montealto, however, gave the assurance that BEEP’s decision will not affect the availability of local transport here.

The LTFRB director said they could always find other transport companies to service the areas that will be vacated by BEEP units.

He said that about 20 percent of the modern jeepneys that are being operated by other corporations and cooperatives are still on standby and waiting for its official dispatch.

“Daghang operators ang malipay kay makapuli man sila sa mabiyaan nga rota,” he added. / dcb

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TAGS: beep, BRT, competition, losses, operations, suspension
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