Transport coops fear being ‘buried in debt’

Transport coops fear being ‘buried in debt’
DEMONSTRATION. Over 2,000 Federation of Cebu Transport Cooperatives members, including drivers, conductors and office staff, participate in a “Unity Walk” from Fuente Osmeña Circle to the Land Transportation Franchising and Regulatory Board 7 office along General Echavez St. in Cebu City on Monday, Aug. 5, 2024. The demonstration aimed to express the group’s opposition to the proposed suspension of the Public Transportation Modernization Program, formerly known as the Public Utility Vehicle Modernization Program. / FRED LEANDER BALDOS, VSU INTERN
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TRANSPORT cooperatives in Cebu are voicing strong opposition to a recent Senate resolution calling for the suspension of the Public Transportation Modernization Program (PTMP).

The Federation of Cebu Transport Cooperatives (FCTC) warns that such a move would leave them “buried in debt” and disrupt progress made in modernizing public transportation.

Ellen Maghanoy, president of FCTC, told SunStar Cebu that even without the suspension, they are facing stiff competition from unconsolidated traditional jeepneys that continue to operate, affecting their daily income.

Transport coops fear being ‘buried in debt’
Members of the Federation of Cebu Transport Cooperative take to the streets of Cebu City on Monday, Aug. 5, 2024, to oppose the suspension of the PUV modernization program. / FRED LEANDRO VALDOS, VSU INTERN

“If this suspension continues, our cooperatives will suffer greatly. Many haven’t reached the break-even point yet and are struggling to pay monthly amortizations due to increased competition from traditional jeepneys returning to the roads,” she said in Cebuano.

“We are mired in debt, while our competition has no debt obligation and there are a lot of them. If one modern jeep has to compete with two traditional jeepneys then we end up suffering a significant financial loss,” she said in Cebuano.

She added that modern PUVs consume more fuel since they are air-conditioned and have bigger engines compared to traditional jeepneys.

These disadvantages, she said, have resulted in transport cooperatives earning less, thereby affecting their capacity to pay for the maintenance, fuel, monthly amortization and salaries of drivers, conductors and staff.

The Central Visayas region boasts a 91 percent compliance rate with the modernization program, according to Eduardo Montealto Jr., director of the Land Transportation, Franchising and Regulatory Board (LTFRB) 7. This high rate of adoption makes the Senate’s call for suspension particularly surprising to local transport officials.

In response to the Senate resolution, over 2,000 FCTC members, including drivers, conductors and office staff, participated in a unity walk from Fuente Osmeña Circle to the LTFRB 7 office on Monday, Aug. 5, 2024. The demonstration aimed to express their opposition to the proposed suspension. (See Nation, Page 13)

The Senate Resolution 1096, passed by 22 senators, urges President Ferdinand Marcos Jr. to halt the PTMP implementation.

Legislators argue that the program would lead to the loss of the iconic Philippine jeepney, replacing them with “mini-bus-like” modern PUVs imported from other countries. They also cited concerns about insufficient information dissemination and the financial burden on drivers and operators.

Maghanoy countered these arguments, stating that the unavailability of locally manufactured units with the “iconic look” forced cooperatives to opt for imported modern PUV units. She emphasized that even local manufacturers like Sarao Motors and Francisco Motors, which advertised lower-priced iconic-look jeepneys, had no available units for procurement.

Not in the market

“Mag-unsa maning iconic unya barato unya wala may available units? Kon naa pa lang sila’y available units, syempre adto gyud ta mopalit sa barato. Nganong adto man ta sa mahal? Ang problema kay wala man,” she said.

(What’s the use of being iconic and cheap if there are no available units? If they had available units, of course we would buy the cheaper ones. Why would we go for the expensive ones? The problem is there aren’t any.)

LTFRB 7 Director Montealto clarified that incorporating the “iconic look” was not discouraged under the modernization program. The primary requirement was for local manufacturers to obtain Philippine National Standard Accreditation from the Department of Trade and Industry.

He said that back in 2017, prototype units with the “iconic look” were put on display, but local manufacturers did not apply for accreditation, resulting in them not being included in the options of transport cooperatives.

He also pointed out that the engine and the chassis of locally made units are imported since these are not manufactured in the country.

Meanwhile, the FCTC is urging senators to lift the resolution, expressing confidence that President Marcos will side with the majority of transport groups that have already complied with the program.

Maghanoy said the senators failed to recognize the majority that have complied with the modernization program and instead chose to support unconsolidated jeepney operators and drivers who refused to comply and defied the program.

She stated that a transport strike is not being considered as an option, as they do not wish to inconvenience the commuting public.

She clarified that Monday’s unity walk was a testament to their steadfast resistance to the Senate resolution.

“Nagsugod na man gyud ta, di na na pwede nga ihunong kay naka-invest na man gud. Dako kaayo na nga insulto sa amoa kay kami man mi-comply. Kami mi embrace sa modernization program. Nya di na sad makatarungan nga yano-yanohon na la’g suspension sa atoang mga senators,” she said.

(We’ve already started, it can’t be stopped now because we’ve already invested. It’s a huge insult to us because we’re the ones who complied. We embraced the modernization program. And it’s not reasonable for our senators to just casually suspend it.)

As the debate continues, the FCTC encourages the remaining 19 percent of unconsolidated jeepneys to embrace the modernization program. They have sent a letter of intent to the President, hoping to have the resolution to temporarily suspend the program revoked.

The outcome of this dispute will have significant implications for the future of public transportation in Cebu and potentially the rest of the Philippines. / EHP WITH REPORTS FROM JERRY YUBAL, FRED LEANDER BALDOS AND GREZEL BALBUTIN, VSU INTERNS

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