DOTr reopens consolidation, issues provisional authority for non-compliant operators

Metro Manila, Philippines - Jeepney and UV express operators are given another chance to meet the consolidation requirement for the government’s modernization program, as Transportation Secretary Vince Dizon reopened applications to follow the policy.

A new department order released to the media on Wednesday, May 7, covers operators who did not follow the consolidation requirement and failed to register their unit with the Land Transportation Office for 2023 and 2024. It also includes those with pending applications.

The move followed a series of consultations with pro and anti-modernization groups and a three-day transport strike in March. Dizon earlier formed a committee that will review the implementation of the government’s program.

Under the new guidelines, operators may join existing transport service entities (TSE) in routes with 60% and above consolidation rate.

“Covered PUJ and UVE Operators may be allowed to consolidate (form a new TSE or join an existing TSE) in routes with less than 60% consolidation, provided that they were previously granted authority to operate on the said routes,” the order added.

In an interview on Wednesday, Land Transportation Franchising and Regulatory Board Chairman Teofilo Guadiz said the application for consolidation will reopen on May 14.

He said there was no deadline so that operators can comply with the requirement.

“Tatantiyahin muna namin ilan na ang nag-consolidate from among the 15% na hindi sumama and then kapag substantial na then we will eventually put a closure to the first phase of industry consolidation,” said Guadiz.

[Translation: We will first assess how many from the 15% who did not join have eventually consolidated, and once the number becomes substantial, we will eventually bring the first phase of industry consolidation to a close.]

LTFRB data showed that over 40% of jeepney units have finished the consolidation process from the 86% that filed an application.

Meanwhile, Dizon also issued a one-year provisional authority to non-compliant operators upon compliance with the agency’s roadworthiness test.

Guadiz, however, clarified that the provisional authority will only apply to those who will join the consolidation program.

“The moment you entered into the program, you’ll be given provisional authority. Kapag sinabing entered into a program, dapat may specific route ka na, hindi yung pwede you entered a program then wala kang sasabihin na ruta na tatahakan,” he said.

“Tanggap ka ba ng kooperatiba? Kapag may existing cooperatives. Kapag wala, may bago kang ruta pwede mo ma-establish. Iyan bang ruta mong iyan ay hindi mag-overlap sa mga existing routes? Kapag yes ang sagot na iyan, we will definitely accept you and we will enroll you into the program. Bibigyan ka namin ng provisional authority,” Guadiz added.

[Translation: The moment you enter the program, you’ll be given provisional authority. When we say 'entered into a program,' you must already have a specific route, it’s not allowed to join the program without stating the route you intend to operate…Are you accepted by a cooperative? If there are existing cooperatives, you need to be part of one. If not, and you have a new route, you may establish it. Does your proposed route not overlap with existing routes? If the answer is yes, we will definitely accept you and enroll you into the program. We will give you provisional authority.]

The order said the LTFRB, LTO and Office of Transportation Cooperatives shall explore deferring the payment of registration, consolidation, and other pertinent fees and penalties.

Rejecting new chance

Meanwhile, transport groups immediately dismissed the transportation department’s move to reopen the consolidation application.

In a statement, the Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON) slammed the order, saying it is only a rebranding of the old policy.

“Nananatili itong bahagi ng sapilitang konsolidasyong matagal nang sumisira sa kabuhayan ng mga drayber, nagpapalayas sa maliliit na operator, at naglalagay ng kontrol ng mga ruta sa malalaking kooperatiba at korporasyon,” it said.

[Translation: It remains part of the forced consolidation that has long been destroying the livelihood of drivers, displacing small operators, and placing control of routes in the hands of large cooperatives and corporations.]

Manibela, which held a three-day strike in March, said Dizon only gave operators false hope.

“Mga taga-LTFRB pa rin ang pinakinggan niya at hindi ang ating mga hinaing na ma-extend ang ating mga prangkisa o PA at makapag pa-rehistro ng ating mga sasakyan mapa-PUV o UV Express,” the group said.

[Translation: He still listened to the people from the LTFRB and not to our pleas to extend our franchises or PAs and to allow the registration of our vehicles, whether PUV or UV express.]

In 2024, President Ferdinand Marcos Jr. ruled out further extensions for operators who failed to meet the consolidation deadline. The modernization program has spanned three DOTr leadership changes since it was launched in 2017.