Public transportation system has been bereft of any semblance of modernization for so many years.

DoTr Undersecretary for road transport and infrastructure Mark Richmund de Leon

The biggest transformational initiative of President Rodrigo Duterte’s administration remains the modernization of public utility vehicles (PUV) that will get a major push with the merger of bus operators into consortia to put order on their road trips.

The Department of Transportation (DoTr) labels the project as the bus consolidation system which is meant to alleviate traffic congestion in Metro Manila’s major thoroughfares.

In an interview with Daily Tribune, DoTr Undersecretary for road transport and infrastructure Mark Richmund de Leon said that bus operators should consolidate and use a fare-collection system to curb competition for passengers, which has been a major cause of congestion particularly on EDSA.

The huge volume of buses in Metro Manila greatly contributed to the worsening traffic situation in major thoroughfares such as EDSA, which is gridlocked during rush hours.

A study of government think-tank Philippine Institute for Development Studies (PIDS) said the best approach to solve the bus mayhem would be to allow operators of the public transport to “compete for the market” through consortia in which only those that comply with government standards will be allowed to operate.

In a statement, the DoTr said the public transportation system has been bereft of any semblance of modernization for so many years, leaving it in a perpetual state of neglect and retardation.

“But finally, we now have a President and Transportation Secretary with an iron-clad will to undertake the modernization of road-based public transport,” it noted.

DoTr realized that it is a gargantuan task to change road culture “into one anchored on safety, efficiency and comfort.”

“Yet, it is a task that must be done now — not next year, not the next term, not the next decade — to ultimately give the Filipinos a truly roadworthy transportation for their safety and convenience, a better livelihood system for our drivers and operators, and sustainability for the environment,” it added.

De Leon said the bus consolidation system is part of the ambitious program which was launched in 2017 as part of efforts to make nationwide transportation system efficient and environment-friendly.

The program includes fleet modernization and the reorganizing of routes, franchises and vehicle standards.

Earlier this month, President Rodrigo Duterte ordered the speedier and stricter enforcement of the PUV Modernization Program to improve the level of safety and security of passengers.

Mr. Duterte also underscored the need for PUV operators to invest in road safety equipment and facilities.

Bus consolidation is not new as in 1974, the government established its own public utility company called the Metro Manila Transit Corp. (MMTC) to improve the quality of public transportation through the introduction of airconditioned buses commonly known as the “Love Bus.”

The goal then was for private bus operators to form a manageable number of bus consortia “aimed at producing economies of scale in operations, which would enable them to borrow capital from commercial banks to procure new vehicles.”

Due to a number of problems like inadequate fare structure, stiff competition with jeepneys and the absence of operating guidelines in the implementation of the consortia, the MMTC was privatized while the urban bus market was liberalized and took its present form.

The PIDS study said liberalization has brought various problems for the capital’s current bus transport system, saying that “the expected efficient and quality service provided by freely competing franchised bus operators did not materialize.”

Despite the past problems, bus consolidation seems to have remained an attractive option, according to the study.

In contrast to “in-market competition” wherein buses compete for passengers on the road, “competition for the market” requires bus operators to compete under a tendering mechanism espoused by government for the right to provide services in a particular bus route.

This involves the filtering mechanism before bus companies could operate, which could encourage operators to think of ways to improve their service. PIDS said such a system worked in a number of countries like Colombia, United Kingdom, South Korea, Brazil, Chile and Indonesia.

The on-going implementation of the Cebu Bus Rapid Transit (BRT) project is a good move toward the “compete for the market” approach, the study noted.

“Based on our assessment, the biggest challenges to any plan to implement bold reforms in the Metro Manila bus market are institutional and political in nature,” PIDS explained.

Implementing complementary regulatory reforms, strengthening institutional capacity, improving existing road infrastructure, providing assistance to those affected by the reforms and applying the “competition for the market” to non-BRT bus networks are just among the steps the government has to take to make the said approach effective, the study said.

The DoTr said its leaders now has the political will of the President to push through with the reform measure to the hilt.