The long-awaited PUV Modernization Program

As citizens and stakeholders of our public transport system, its about time we confront government with these questions:

Why are busy thoroughfares like EDSA and Quezon Avenue teeming with Public Utility Vehicles (PUVs) which are only partially full while low volume avenues like J.P. Rizal in San Mateo have a shortage of PUVs?

At street level, why has it become acceptable for PUV drivers to stop anywhere they please, park anywhere they want and ignore traffic signs? Worse, why are they allowed to get away with emitting toxic fumes without recourse nor consequence, making a farce of the smoke belching law and the Clean Air Act of 1999?

In terms of safety, why are dilapidated PUVs allowed to ply our roads even if they are accident hazards?

Since the establishment of the Land Transportation and Traffic Code of 1964, the laws that govern public transport have evolved by expediency and not by a progressive master plan that addresses the needs of our rapidly growing cities. The nightmarish state of our public transport system today is a result of decades of inaction and abject lack of political will by administrations prior to the incumbent.

This administration inherited an outdated public transportation system that is unprofessionally managed, riddled with graft, and driven by political accommodation. Case in point, the majority of bus operators given the franchise to ply lucrative routes like EDSA are either ex-government officials or ex-military officers to whom past administrations owed favors. The political clout of these operators are also the reason why their drivers feel they are above the law.

It now falls on the Department of Transportation (DoTr), under the aegis of Secretary Art Tugade, to fix the mess.

I recently sat down with Undersecretary Tim Orbos, who is now in charge of all issues relating to land and roads for DoTr. On Orbos and Tugade’s shoulders lay the herculean task of untangling our archaic public transport system and replacing it with a modern alternative. Change is never easy and backward groups like PISTON are standing in progress’ way. Still, Usec Orbos and Sec. Tugade are dead set on getting the modernization program done. They have the full backing of President Duterte, who himself is determined to see it come to fruition.

At the heart of the PUV Modernization Program is the multi-faceted plan to modernize the country’s existing PUV fleet, migrate to low carbon emission vehicles, improve passenger safety, professionalize the public transport industry and improve the standard of living of PUV drivers. Usec. Orbos shared the details of the plan with me.

A MODERN, LOW CARBON FLEET
Ninety percent of the 250,000 jeepneys that ply our roads today are 15 years old or older. A good number of them even predate the Marcos-era. The basic design of the jeep hasn’t changed since the 1950s, which means they are bereft of safety features like anti-lock brakes, traction control, or collision crumple zones. No surprise, studies reveal that PUVs are ten times more likely to get into accidents than ordinary motorists.

PUVs utilize old, secondhand diesel engines from Japan that fail to meet our minimum emission standards. Their toxic emissions are so bad that 17% of air contaminants in Metro Manila and up to 80% in secondary cities like Iloilo are due to PUVs emissions, says a recent JICA study.

The DoTr plan calls for the replacement of aging jeepneys with brand-new, Philippine made units.

All components will be locally fabricated, except for the chassis and the engine, both of which will be imported from Japan or Korea. The modern version of the jeep will have a maximum capacity of thirty, instead of just 16, allowing its operators to gain more revenues per kilometer.

It will feature a side entrance for easy ingress and egress, avoiding the need for passengers to walk on the road to get to the back of the jeep; it will be PWD-friendly with wider doors and easy roll-in/roll-out ramps; it will also have individual front-facing seats with appropriate handrails, similar to a bus.

More importantly, the new units will be rigged with an automatic fare collection system where debit cards are used. This will make passing coins from the back of the jeep to the driver, a thing of the past.

As a side note, the fact that the new generations of jeepneys will be locally manufactured will yield tremendous economic benefits. It will fire up our manufacturing sector while moving us closer towards becoming a fully integrated auto manufacturing economy.

In terms of safety, the new jeepneys will be fitted with automatic speed limiters, anti-lock brakes, CCTV cameras, a dashboard camera, and a GPS system for easy tracking by operator and government agencies.

The new generation of PUVs will be powered by diesel engines that are Euro 4 compliant. For those unaware, emission of Euro 4 engines are one of the lowest in the world and what is presently acceptable by most advanced economies, like the EU. Eventually, the DoTr plans to utilize electric power and/or hybrid propulsion. At least that is the plan.

FORCED RETIREMENT OF OLD VEHICLES
By January 2018, the DoTr will be implementing what it calls the Motor Vehicle Inspection System (MVIS). The MVIS can be considered a “ rigid quality control system” where all vehicles, public and private, will be subject to a thorough inspection to ascertain their road worthiness and compliance with emissions standards. The MVIS will be a prerequisite for registration.

Unlike the smoke emission tests implemented by the Arroyo administration (which was both a fluke and failure), the MVIS will be fully automated whereby computers inspect all such mechanical details such as break pad thickness, coil spring rigidity, chassis strength, etc. I was assured that the inspection process will have minimum human intervention, thus, making it less susceptible to corruption.

Upon the implementation of the MVIS, we can expect all antiquated buses and some 50% of jeepneys to be banned from our roads. They will be compelled to go into forced retirement. Their owners will have no choice but to replace them if they are to continue operating.

The DoTr has left no stone unturned in that the MVIS will not displace anyone. Credit lines have been prearranged for small PUV operators with the Landbank and the Development Bank of the Philippines. Operators can borrow up to 95% of the cost of the new vehicle at 6% interest per annum over a payment period of seven years. The 5% personal equity can be raised by selling their old jeepneys and buses for scrap.

The caveat is that borrowers must be a member of a transport cooperative or a corporation. Migrating from individual operators to cooperatives and corporations is a vital component of the PUV modernization plan.

INDUSTRY CONSOLIDATION
At present, the majority of PUV operators are individuals. They operate like a mom and pop business, concerned only about their boundary (revenues) for the day.

The DoTr is compelling individual operators to organize themselves into cooperatives or corporations or join existing ones. This will make them more efficient.

Being part of a bigger entity will allow them to share operations and maintenance costs; allow them access to common facilities like garages and depots; allow them to qualify for credit lines towards business expansion; and realize operational efficiencies in fleet management.

In short, being part of a cooperative or cooperation will compel PUVs to operate in a professional manner. It will also be easier for government to cooperate and co-operate with them, as opposed to working with individual operators.

Within this framework, the DoTr can now mandate PUV operators to carefully vet their drivers. Like the transport systems of countries in the EU, PUV drivers must go through an annual re-qualification process to ensure their sound mental and physical health, have a clean criminal and/or traffic violation record, and are up to date with the latest traffic laws.

In addition, the boundary system will be outlawed and drivers will now be paid a fixed salary along with all the government-mandated benefits. This move alone will rid our streets of uncivilized behavior by PUV drivers.

On government’s part, the DoTr will rationalize PUV route franchises, making sure that the appropriate number of PUVs ply both lucrative and missionary routes. Ex-government and ex-military officials will have to find another racket.

I fully support the PUV Modernization Program and tip my hat to Sec. Tugade and Usec. Orbos for having the political will to go where no other bureaucrat has dared to venture before. It is a huge task and they are stepping up to the plate. Civil society must do all it can to make this program succeeds. We have waited too long to have a safe, efficient and environmentally sound transport system. At last, it is now in the pipeline.

Andrew J. Masigan is an economist