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:

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

UV express shall have the following maximum distances:

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:

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

Here is part two of the PUV Modernization program that is to be implemented by DOTr, LTRFB and DILG to all the LGUs in the country. Each LGU will then be required to submit a Local Public Transport Route Plan (LPTRP) and here is the continuation of the content of the document LPTRPM Module for this modernization program.

Joint Memorandum Circular with DILG

“Guidelines on the Preparation and Issuance of Local Ordinances, Orders, Rules and Regulation concerning the Local Public Transport Route Plan (LPTRP)”

Local-Level Public Transport Planning Approach

LGUs are in a better position to identify local public transport service requirements being in-charge of formulating the Comprehensive Land Use Plan, Zoning Plans, and Traffic Management Plans.

Local Public Transport Route Plan

• Make the routes more responsive to passenger demand and determine the appropriate vehicle type depending on road hierarchy and configuration
• LGU initiative (Participatory Planning)

City/Municipal LGU
-Intra-city/Municipality

Provincial Government
-Inter-city/Municipality
-Inter-province

DOTr
-Inter-province/region
-Between and among independent cities
– Inter-city and intermunicipality of MM and adjoining provinces (MUCEP Area)

LPTRP Approval Process

The LPTRP Team

PUV Modernization – Route Rationalization

Objective: Appropriate mode based on Passenger Demand and Road Hierarchy

Basic Policy: Higher Capacity PUVs assigned to high demand routes

Criteria: The establishment of public transportation routes and the corresponding modes of services shall be based on the following criteria:

– Passenger demand patterns and characteristics

– Road network configuration

– Corresponding road functions (road hierarchy)

– Road capacities

Basic Guideline in Route Planning

“Transportation modes shall follow hierarchy of passenger demand and function of roads”

Route Connectivity Policy

• For major arterial roads, highways, and expressways, PUBs are the prescribed mode of transport.
• However, PUJs, Filcabs, and UV Express Services may operate on minimal portions of the PUB corridor for the solepurpose of providing intermodal transfers at bus stops, so long as such purpose is indicated in the relevant LPTRP.

New of Developmental Routes

• New routes shall be designed such that overlaps with existing routes do not exceed 25% of the length of any of the affected routes.
• Previously authorized routes may be restructured (i.e., merged with another previously authorized route, or with a new route, or shortened, or split into different routes) due to marked change in trip patterns arising from urban renewal or urban redevelopment projects or resulting from the LPTRP

• For new or developmental routes, a minimum fleet size of 15 units for any type of PUV for 6 months shall be imposed, subject to review by the LTFRB.
• Exceptions to the 25% overlap limit
  • New urban development is at least 5 kms. away from the origin or destination of the traditional route.
  • Passenger demand in new area > existing route, and can’t be adequately served;
  • Additional and/or new sections of a road network are developed, thereby providing shorter and faster trips;
  • Other conditions subject to the approval of DOTr

To be continued on Part 3… 

PUV Modernization – A transformational large-scale initiative and flagship project of President Duterte supported by the proposed Comprehensive Tax Reform Program of the Department of Finance. It envisions a restructured, modern, well-managed, and environmentally sustainable transport sector where drivers and operators have stable, sufficient, and dignified livelihoods while commuters get to their destinations quickly, safely, and comfortably.

Main Objectives:
1. Modernize the current PUV fleet.
2. Reform and consolidate the industry
3. Move towards low emission PUVs
4. Improve welfare of commuters and encourage modal shift
5. Improve standards of living of drivers, operators and their families

Benefits

Reliability
• Predictable in terms of travel time, waiting time and schedule.
• Commuters will benefit from a fixed dispatch time and short intervals between vehicles during peak demand periods
• Commuters need not wait long for the PUV to arrive
• Operating hours shall be responsive to the needs of visitors, nights students and workers who require late night travel.

Safety
• Vehicles shall comply with national standards and international vehicle
safety conventions
• Relevant vehicle parts shall be compliant with PNS
• Boarding or alighting from PUB+Vs in undesignated stops is
fundamentally unsafe
• Bus stops shall be adequately lit at night for security
• PUVs must be equipped with extinguishers
• Pursuant to RA 10916 or the Road Speed Limiter Act of 2016
• CCTVs shall be installed to monitor activity in and around the vehicle
• Global Navigation Satellite System (GNSS e.g. GPS) shall be installed to enable recording of vehicle location and speed and sharing or real-time PUV information
• For all PUVs, windshield and windows shall not be tinted.

Accessibility
• Public transport must be available in every community with accessibility for all segments of society, including senior citizens and PWDs
• Access shall include good walkways and bikeways to provide connectivity with other modes of transportation
• Designated location of stops, pick-up, and drop-off points with adequate facilities to facilitate convenient boarding and alighting of passengers.

Environmental Soundness
• PUVs with combustion engines must have low emissions, as proven by compliance with EURO IV emission standards or better (e.g. EURO V, EURO VI), as prescribed by the DENR
• Other preferred public transport vehicles are those using electric drives and/or running on alternative fuels, such as electric or solar

Comfort
• Vehicle is fitted with comfortable seats where passengers are able to relax, rest, and be productive during the journey
• Provision of Wi-Fi access
• For buses that permit standing passengers, the number of standing passengers must not exceed five (5) persons per square meter of the available standing space.

Major Components
1.Regulatory Reform
2.LGU Local Public Transport Route Planning
3.Route Rationalization
4.Fleet Modernization
5.Industry Consolidation
6.Financing PUV Modernization
7.Vehicle Useful Life Program
8.Initial Implementation
9.Stakeholder Support Mechanism
10.Communication

Regulatory Reform – DOTr Department Order 2017-11: Omnibus Franchising Guidelines (OFG)
• New LTFRB guidelines on franchise issuance for road-based public transportation services.
• DOTr/ LGUs: Local public transport route planning & route rationalization.
• Modernized PUV fleet compliant with safety & environmental laws/ standards.
• Fleet/Industry consolidation for efficient operations.

Hierarchy and Classification of Public Transport Modes
1. The modes of transportation shall follow the hierarchy of roads.
2. Higher capacity transport modes shall have priority in terms CPC allocation and transit right of way in trunk lines or main thoroughfares over lower capacity modes.
3. Taxis, TNVS, tourist transport services and shuttle services are excluded as they are considered as door-to-door services and do not have specific routes.
4. As a general rule, assigning higher capacity modes to routes currently traversed by lower capacity modes in the Local Public Transport Route Plan may be allowed, but not otherwise.
5. Operation of tricycles shall be in accordance with JMC No.1, s. of
2008 of the DILG and the DOTC
6. Tricycle operations should only be confined along city or municipal roads, not along national roads and is limited only to routes not traversed by higher modes of public transport
7. Motorcycles and other farm implements such as kuliglig are not allowed as public conveyance.

Signed Memorandum Circulars: 7
1. Maximum Distance Policy
2. Responsibilities and Selection of Transport
Safety Officers
3. Garages
4. Off-Street Terminal Operations
5. Guidelines for Intra-Regional, Inter-Regional, and
Inter-Provincial Public Transport Route Plans
6. Initial Implementation
7. Industry Consolidation

To be continued…