PUV modernization bid rolls on, finally

The seven-year-old Public Transport Modernization Program (PTMP), which has been a subject of heated debate, is pushing forward despite growing resistance from various stakeholders. 

With over 80 percent of Public Utility Vehicle (PUV) units already consolidated, the Land Transportation Franchising and Regulatory Board (LTFRB) is pressing on with its ambitious modernization agenda. However, questions remain about its impact on operators, commuters, and the broader public transport landscape.

The PTMP, launched in 2017, aimed to overhaul the country’s public transport system by modernizing fleets, improving safety standards, and optimizing route efficiency. 

Despite initial support, the program has faced significant resistance, especially from transport advocacy groups and lawmakers who argue that the initiative is inequitable, leaving small operators behind.

In an interview with LTFRB chairperson Teofilo Guadiz III, he acknowledged the challenges but reiterated that the government remains keen on pushing through with the plan. 

“This is considered a milestone, not just for the LTFRB, but for the entire government. It took seven years to finally reach this far in terms of the aspiration to modernize the country’s public transport,” Guadiz said. 

“Despite several objections, strikes, and moves to suspend the program, we remain committed to accomplishing the modernization program,” he added.

In August, a resolution was signed by 22 senators urging the Department of Transportation to temporarily halt the modernization rollout. 

The senators cited the need for additional consideration and clarification to address the concerns raised by stakeholders.

Among the issues raised by the senators is the high number of unconsolidated PUV units, which they attributed to the government’s inadequate information drive in educating drivers, operators, and transport groups about the program. 

Financing, a persistent concern

Additionally, the senators expressed concern about the burden of financing the cost of modern PUVs, which they said significantly exceeds the financial capacity of drivers and operators. Turn to page 11

Another concern raised by the senators is the potential phaseout of the iconic jeepney design in favor of so-called modern jeepneys, which are essentially mini-buses imported from other countries.

“Many jeepney drivers are forced to rely on risky financial schemes or loans they may not be able to repay,” noted Senator Grace L. Poe, who has been vocal about the program’s impact on marginalized operators.

To address concerns of operators unable to meet initial deadlines, the LTFRB has extended the consolidation period, issuing provisional authorities to jeepneys. The move aligned with President Marcos Jr.’s directive to ensure a smoother transition, especially for those who face significant financial burdens.

Meanwhile, targeted route rationalization programs in urban centers like Metro Manila aim to optimize efficiency, reduce congestion, and provide better service. Yet, the impact remains a topic of scrutiny as critics question whether the system adequately serves rural areas and economically disadvantaged communities.

As of the end of 2024, over 164,137 PUV units have been consolidated under the new system, reaching an 85.6 percent milestone, achieved through a combination of aggressive campaigns, policy relaxations, and stakeholder collaboration, including deadline extensions.

Data from the LTFRB shows that this effort has been supported by presidential pronouncements and budget allocations aimed at facilitating the transition. 

However, discrepancies still exist regarding the representation of smaller operators and the availability of financing options for those who struggle to meet modernization requirements.

The PTMP’s ambitious goals, including transitioning to Euro 4 engines or electrically-powered vehicles, are expected to improve safety, environmental standards, and commuter experience. But, the real challenge lies in balancing modernization with inclusivity for operators and passengers alike.

While the PTMP has taken substantial steps toward modernizing the country’s public transport system, challenges remain in ensuring inclusivity and affordability for operators and commuters alike. With ongoing scrutiny from lawmakers and stakeholders, the LTFRB remains committed to reaching its goals despite the obstacles that continue to arise.

The transition to modern, efficient public transport is a complex journey, but one that holds the promise of a safer, more sustainable future for the Philippines.