Road-Based Public Transport Reform 3

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We are currently waiting for the confirmation of schedule of the Session 2 workshop of the PUV Modernization program for the Iloilo province and city LGUs which is to be conducted by DOTr and LTFRB. I have checked on the memo and it is supposedly next week but there is still no official communication from the agencies as of this posting. For now, let me share the part 3 of this program.

Maximum Distance Policy

PUJ Service Routes shall have the following maximum distances:

Route Coverage Max. Route Length
HUCs, ICCs, and CCs 15 kms.
Inter-regional, inter-provincial, intraprovincial 35 kms.

For PUJ loop services, the loop length shall be covered by similar restrictions.

 

UV express shall have the following maximum distances:

Route Coverage Max. Route Length
HUCs, ICCs, and CCs 35 kms.
Inter-regional, inter-provincial, provincial, and municipal routes originating or terminating in Metro Manila 35 kms.
Inter-regional, inter-provincial, provincial, and municipal routes not originating or terminating in Metro Manila 60 kms.

For PUBs, no maximum distance is required.

Exemptions:

  • Absence of a transfer area between route ends;
  • Absence of alternative transport services or the existing services cannot supply demand; route is abandoned;
  • Most sections of the route have limited road space or width capacities
  • Transport demand is not substantial to assure profitable operations;
  • Other conditions.

LPTRP Requirements

  1. List and map of existing public transport modes in the area including route description; route distances; number of operating units, operating hours, turnaround time; headway
  2. List and map of proposed routes: route name, length, alignment, transport mode, type of service required
  3. Location of stops, pick-up and drop-off points
  4. Terminal or turning points
  5. Map indicates the classification and link attributes such as distance, number of lanes per direction, average travel speed
  6. Estimated existing and forecasted passenger demand for each proposed route
  7. Inventory of available transport facilities, e.g., airport, ports, railways, ITS, bicycle lanes, loading and unloading areas, etc.

 

Fleet Modernization

Safety, Security and Convenience requirements (PUV) based on the Omnibus Franchising Guidelines:

Feature Requirement
Environment-Friendly Clean Air Act compliant engine. Euro 4 emission or better. Electric, Solar, Alternative Fuel
Safety Side door, Speed limiter, Automatic Braking System, Compliant with safety standards.
Security CCTV, GPS, Dashboard Camera
Comfort/Convenience PWD/elderly-friendly, Free Wi-fi, AFCS

 

ECO-PUV Program

– An initiative of the DTI-Board of Investments (DTI-BOI) to dedicate the 3rdslot of CARS Program (P9B) to support locally manufactured PUV unit.

Rationale:

  • keep/grow in-country manufacturing jobs
  • sustain/deepen national industry capability, especially of SMEs
  • reduce total vehicle import bill
  • reduce vehicle SRPs
  • ensure reliable after-sales parts and services

Industry Consolidation – refers to strategically merging smaller transport industry players to form into a legal entity either by forming cooperative or corporation, among others, through the help of OTC and CDA.

CURRENT STATE: Majority are operating under ONE FRANCHISE, ONE OPERATOR, ONE VEHICLE.

UNDER THE PROGRAM: Existing operators shall form a consolidated group (either a cooperative or corporation) who owns and operates the fleet.

Requirement for Operators under the Omnibus Franchising Guidelines

Before: One Franchise, one unit =Inefficiency

After: Industry consolidation CDA & OTC: Formation of cooperatives, corporation or consortium.

  • Fleet Management
  • Safety Officer
  • Terminal and garage = Efficient Operations and reduced costs

Operational Benefits of Consolidation:

  • Access to credit facilities
  • Maximizes revenue while keeping maintenance costs low;
  • Spread of Capital Expenses; Shared O&M Costs
  • Operational efficiency via organized dispatching system and fleet management system
  • Improves collection and lesser risk (efficient multiple trips)
  • Consolidated entities can access to more discounts in fuel and spare parts
  • Access to common garage/depot
  • Has dividend and membership benefits

Indirect Benefits of Consolidation:

  • Enhances service quality of Public Transport
  • Reduces competition among drivers (facilitate
  • compliance on traffic rules and regulations); thus, promoting safer PUVs and more disciplined drivers
  • Organized operators and drivers
  • Improve service quality monitoring of public transport providers

 

Financing PUV Modernization

GFIs to provide special financial terms for procuring the new PUJ.

– Memorandum of Understanding already in place with Landbank and DBP

– Operators can avail of the Php 80,000 equity incentive subsidy directly charged

from Landbank and DBP upon availment of their loan packages. (subject to Vehicle

Useful Life , loan and franchise requirements.

– MOU with Landbank (SPEED Jeepney Program)

– MOU with DBP (PASADA program)

Automatic Fare Collection System (AFCS)

  • Facilitates easier repayment to lending institutions.
  • Savings from costs and losses from cash handling.
  • Reduced risks from the operators
  • Real-time transport information.
  • Passenger convenience and comfort.
  • Reduces risk of Financing institutions. Enables them to continue with their low financing packages