LTFRB asking too much from still unconsolidated PUVs - operator

An operator of public utility vehicles left behind by the required consolidation to form a cooperative required by the government's Public Utility Vehicle Modernization Program is pointing his fingers to officials of the Land Transportation Franchising and Regulatory Board as the one hampering the process.

He has over 30 units of UV Express who wish to be included in the PUVMP as he talked to the Daily Tribune on condition of anonymity that they are "being treated like a ping-pong ball by LTFRB officials."

"Kung saan saan kami pinapupuntang opisina. Hinahanapan ng dokumentong tingin namin ay di naman kailangan," the operators who wished not to be named for fear of much longer agony by trying to be part of the PUVMP.

He added that their fleet is already registered as a corporation and they are wondering why they should be required to form a cooperative, with LTFRB officials also not giving a good reason.

"While in fact, at the first day of PUVMP implementation the Department of Transportation along with the LTFRB are harping that we should form a corporation or a cooperative to be part of the program," he added.

"During that time, until this eight times of extension, we are trying to be part of the PUVMP, but never accommodated till now," he explained.

He added that even after President Ferdinand R. Marcos Jr. approved the recommendation of Transportation Secretary Jaime J. Bautista to grant a three-month extension for the Industry Consolidation Component of "the now called Public Transportation Modernization Program, we are still considered unconsolidated." How come? We're in fact we are already a corporation."

"LTFRB even has the gall to come up with a press release Thursday that unconsolidated PUVs are allowed to ply routes and operate until April 30 as long as they are registered with the Land Transportation Office. Sino bang loko-loko ang bibyahe ng di naka-rehistro, di nahuli lang sila," he explained.

"This brand of treating transport industry members are the cause of uproars among our ranks, tinutulungan lang nila yun may kakayahang magbigay ng lagay," the disgusted operator said.

LTFRB Chairperson Teofilo Guadiz III on the other hand said they made the announcement on Thursday, citing Memorandum Circular 2024-001 which issued the guidelines on the consolidation during the period of extension and granted provisional authority to unconsolidated individual operators to operate until the extension of the consolidation deadline on 30 April.

"The authority to operate the units of all unconsolidated individual operators is EXTENDED until 30 April 2024, provided the unit is currently registered with the Land Transportation Office and has a valid Personal Passenger Accident Insurance Coverage," stated the three-page document dated January 30, 2024.

"Confirmation of units of unconsolidated individual operators may be allowed until April 30, 2024. The said units are allowed to ply the route as PUV only within the said period," it added.

For routes covered by the Local Public Transport Route Plan, consolidation is allowed on existing rationalized routes with no consolidated entity as of 31 December 2023.

For routes not yet covered by LPTRP or route rationalization, consolidation is allowed if the number of unconsolidated units in a particular route is at least 40% of the total number of authorized units.

The consolidated entities on the said route must comply with a common fleet management to ensure organized dispatch of units and avoid cut-throat competition between them.

If the number of unconsolidated units is below 40 percent lllof the total NAU, consolidation shall not be allowed, the LTFRB explained.

However, the unconsolidated individual operators may join existing Transport Service Entity on the route subject to the conformity of the latter.

For routes with NAU of less than fifteen (15) units, consolidation shall be allowed if the application for consolidation covers at least the majority of the existing NAU on the said route.

For this purpose, those individual operators whose application for consolidation was limited by prior issuances of the Board restricting the number of units to at least fifteen (15) units, may now be allowed to form their own TSE or join any existing TSEs in overlapping routes until 30 April 2024, with the latter's conformity.

Based on MC 2024-001, the period to complete the required number of units of pending applications for consolidation with affidavit of undertaking as provided for under MC 2020-084 is extended to April 30, 2024.

The new memorandum states that individual members are allowed to withdraw his/her membership in a cooperative without the need for Office of Transport Cooperatives Endorsement, provided the application for consolidation of the cooperative from which the member seeks withdrawal is still pending with the LTFRB or its Regional Franchising and Regulatory Office and no Certificate of Public Convenience has been issued at the time of withdrawal.

The memo added that the withdrawal of membership shall conform to existing Cooperative Development Authority and OTC rules and regulations.

Individual stockholders/members are likewise allowed to withdraw from the TSE corporation, provided that the application for consolidation of the corporation is still pending with the LTFRB or its RFROs and no CPC has been issued at the time of withdrawal.

The withdrawal of membership/shareholding shall conform to existing Securities Exchange Commission rules and regulations.

The new memorandum shall take effect immediately upon its publication in a newspaper of general circulation.