Over 1,000 modern jeepneys in Cebu may face potential shutdown

Operators may cease operations if Senate resolution 1096 is enacted

A modern PUJ plying the Mandaue Marigondon route is packed with passengers. | CDN Digital photo

CEBU CITY, Philippines – Commuters in Cebu should prepare for potential disruptions in transportation as over 1,400 modern jeepney units may cease operations.

This is if the resolution proposing the temporary suspension of the Public Transport Modernization Program (PTMP) is enacted.

“If madayon gyud ning suspension sa atoang modernization program, akong hangyo sa DBP (Development Bank of the Philippines) og Landbank nga magandam sila og garahe ug didto namo ibutang among mga sakyanan… Amo ng ipanguli,” said Ellen Maghanoy, chairman of the El Pardo Transport Cooperative (El Pardo TC).

(If the suspension of our modernization program will push through, we will appeal to the DBP (Development Bank of the Philippines) and Landbank to prepare a garage and that is where we will put our vehicles…we will return them.)

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During a press conference on August 1, 22 modern jeepney cooperatives and corporations in Cebu voiced their ‘strong’ opposition to the resolution.

The Senate resolution No. 1096, which calls for the temporary suspension of the PTMP, was filed on July 29 and signed by 22 out of 23 senators. Senator Risa Hontiveros was the only senator who did not sign.

The Federation of Cebu Transport Cooperatives with the Allied Transport Cooperative and Corporation convened for the first time to voice their collective concerns about the resolution.

“Solusyon, dili suspensyon,” was the central message they aimed to emphasize.

(Solution not suspension.)

“If madayon gyud ni, ipasuspenso sad namo ang mga utang kay og dili namo ipasuspenso, asa man mi og ibayad sa amo utang? Kanang mga senador dali kaayo makasuspenso, wala tanawa ang mga tawo nga nakautang na og minilyon…Binoang kaayo ning ilaha, silay gahimo sa programa, silay magsuspenso,” Maghanoy said.

(If this will push through, we will also suspend our loans because if we would not suspend them, where will we get money to pay our loans? Those senators they can easily suspend, they don’t look at the people who have already loaned millions of pesos…That is really a dumb thing to do, they are the ones who made the program and they are also the ones who will suspend it.)

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The PTMP was designed to upgrade the country’s public transportation system by replacing old, high-emission vehicles with newer, more environmentally friendly models. It also includes requirements for vehicle franchises and aims to improve safety and efficiency.

However, the resolution cites various issues as grounds for its suspension. These include the financial burden on operators, economic impact, and logistical and procedural challenges that need addressing.

“We understand there may be concerns associated with the modernization programs, but we firmly believe that these issues should be addressed through dialogue, collaboration, and continuous improvement, not by halting the program altogether,” she said.

Despite the April 30, 2024 deadline set by the Department of Transportation (DOTr) for the consolidation of public utility vehicles (PUVs), the resolution pointed out that 36,217 units, or approximately 19 percent of the jeepneys and other PUVs, have not yet been consolidated.

Maghanoy said that justice should be served to those who had complied with and embraced the modernization program.

She said that suspending the program would be a major setback to the progress made in modernizing the public transportation system and would jeopardize the investments that had already been made.

READ MORE: Unconsolidated jeepneys: LTO-7 has yet to start apprehending ‘those drivers’

In 2020, operators were compelled to phase out, sell, or scrap their traditional jeep units due to the program’s initiation in 2017, Maghanoy said.

She said that many operators incurred debts totaling around P200 million from various banks because their traditional jeepney units were replaced with modern jeeps, which cost millions and were financed through bank loans.

“In the middle of the pandemic, among pinalanggang traditional jeeps, among gihinay-hinay og drop, baligya, scrap, among giilisan og nagkantidad og minilyon nga modern jeeps through bank loans… Kami, mga operators, nagtangag mi og minilyon nga utang tagsa-tagsa nga banko ug unya ingana lang kasayon ipa suspend ang program,” Maghanoy said.

(In the middle of the pandemic, we slowly dropped, sold, scrapped, changed our beloved traditional jeepneys with with modern jeeps which cost millions through bank loans…We, the operators, we are grappling millions worth of loans each from the banks  and they just would just easily suspend the program.)

Aquilino Hoyo-a, president of Mabolo Transport Cooperatives (Mabolo TC), also shared his sentiments. He expressed his concerns that the resolution had perceived “bias and unfairness.”

He said that despite extending the consolidation period multiple times to allow the 19 percent to catch up, they still struggle to understand the requirements.

Hoyo-a argued that the resolution was “biased” and questioned why only 19 percent were being considered.

“Ngano ang 19 percent lang ila paminawon? Unya unsaon man na amo giutang?” he said.

(Why will they only listen to the 19 percent? And now, what will we do with our loans?)