Metro Manila (CNN Philippines, December 15) — Transport regulators have issued a memorandum circular revoking on Jan. 1 the permits of those who fail to comply with franchise consolidation, officially rejecting calls from transport groups against the Dec. 31 deadline to consolidate.
The revocation of the permits of operators in routes without consolidated entities on Jan. 1 was stated in Memorandum Circular (MC) 2023-051, which adds that units “authorized therein shall not be confirmed for purposes of registration as public utility vehicles.”
“Accordingly, a show cause order shall be issued in compliance with the provisions of the Public Service Act, as amended,” the document read.
“To ensure an adequate supply of public transport on these routes, separate guidelines shall be issued by the Board,” it added.
Franchise consolidation is a key component of the Public Utility Vehicle Modernization Program, which was launched in 2017.
The circular was approved and signed by the Land Transportation Franchising and Regulatory Board (LTFRB) on Dec. 14 and publicized a day after, coinciding with Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide’s (PISTON) latest strike.
RELATED: Dec. 31 consolidation deadline still non-negotiable after LTFRB, transport groups talk
According to the memorandum, all consolidated transport service entities and individual operators with filed applications for consolidation on or before Dec. 31 “shall continue to operate” under their existing provisional authorities or if they are issued with a certificate of public convenience (CPC).
The existing provisional authorities of consolidated operators will be valid until Dec. 31, 2024, it added.
It also set aside the “6-9-12 month scheme” to substitute old/existing units and the “15 Omnibus Franchising Guidelines-compliant unit requirement” for the issuance of CPC.
A last resort?
Manibela, the other transport group that has been staging strikes this year, said the memorandum could be a “last resort” of transport officials for operators to consolidate.
“Lumalabas na talagang hindi uubra yung deadline na ginawa nila. Palpak talaga sistema,” PISTON said in reaction to the latest LTFRB directive.
[Translation: This shows that the deadline won’t work. The system failed.]
Timothy John Batan, Transport Undersecretary for Planning and Project Development, on Friday said franchise consolidation requirements were simplified. He said operators only need to submit the latest Official Receipt (OR) and Certificate of Registration (CR) of their vehicles, registration document of the cooperative, and the attestation they will join that cooperative.
The LTFRB and the Office of Transport Cooperatives will be open from 8 a.m. to 5 a.m. from Monday to Saturday, and on the last Sunday of December “just to give our unconsolidated operators an opportunity to catch the deadline,” he also told CNN Philippines’ The Source.
PISTON and Manibela warned of a transport crisis if unconsolidated operators are not allowed to ply their routes in January next year. The Department of Transportation dismisses these claims.
PISTON earlier said it may hold a bigger protest against the Dec. 31 deadline.
President Ferdinand Marcos Jr. earlier said 70% of all operators have already consolidated under the government’s modernization plan. The number includes all public utility jeepneys, UV Express, minibuses, and public utility buses nationwide.
But PISTON pointed out that the compliance rate for Metro Manila, which has the largest number of PUVs, remains low. Government data also showed a 26% consolidation status for the region as of November.
