LAKBAY ALALAY NG GOBYERNO

By Heidi Nicodemus 

Amid prevailing inflation and rising prices of commodities, the government is actively formulating ways and means to assuage the impact that has struck the citizenry, now overburdened with the spread of social challenges that include mobility and its costs. 

With this in mind, the Maritime Industry Authority (MARINA) has rolled out the Lakbay Alalay ng Gobyerno (LAYAG) program last May 25 in response to fluctuating fuel prices driven by global energy disruptions. 

MARINA Administrator Sonia Malaluan enthused that around 10 million maritime passengers will benefit from the program as government fare subsidies aim to ease the burden on commuters who rely on maritime transport even as shipping operations and boat operators are maintained and sustained.

Compassion

Anchored on compassion for commuters affected by rising costs, LAYAG was launched through MARINA Advisory No. 2026-20 under the government’s Service Contracting Program (SCP), covering approved fare increases across key domestic routes.

The travel routes include Batangas–Puerto Galera, Batangas–Calapan, Jordan Wharf, Guimaras–Parola Wharf, Iloilo City, Buenavista Wharf, Guimaras–Parola Wharf, Iloilo City, Santa Rosa, Olango Island–Angasil, Barangay Mactan, Lapu-Lapu City, Liloan, Santander, Cebu–Sibulan, Negros Oriental, Zamboanga City–Basilan, Sta. Cruz, Talicud Island–Poblacion Kaputian (IGACOS), Surigao City, Surigao del Norte–San Jose, Dinagat Islands vv

Socorro, Surigao del Norte–Hayanggabon, Surigao del Norte and Socorro, Surigao del Norte–Dapa, Surigao del Norte. 

The program will be participated by 33 shipping operators, supporting 93 passenger vessels operating along these routes.

“Alam ng MARINA ang bigat na dulot ng energy crisis sa ating mga kababayan. Sa pamamagitan ng LAYAG Program, sinisiguro natin na hindi mapuputol ang kanilang biyahe at hindi sila lubos na mabibigatan. Kaya narito ang gobyerno—umaalalay, at kumikilos,” Malaluan pointed out.

Consultations 

She explained that fuel expenses have spiked to comprise roughly 50 percent of average vessel operating costs.

“Profitability in the sector is at a low of about 5 percent to 20 percent, though many operators are on a break-even level. Others are greatly meeting the bench for profitability, solvency, and liquidity. We recognize that to some shipping operators, it has become an issue of survival,” she cited.

According to Malaluan, the  strain had triggered immediate, urgent consultations from vessel owners even before the agency issued its initial advisory last March 6. 

She noted that MARINA has been placed in a difficult position, balancing the need to sustain vital maritime services with the economic realities facing operators: “Under the newly launched Service Contracting Program, the government will directly subsidize recent fare hikes across key routes, shielding everyday commuters from the rising costs of sea travel by ensuring they continue to pay only pre-increase base fares.” 

“This aims to provide assistance to those passengers who are dependent on travel and gain maritime transport to go to work, go to school, or even get their basic supplies and necessities from the outer islands,” she added, noting that the program marks a significant step in the maritime sector receiving crucial legislative and executive backing.

Participation

Initially, participation in the program is strictly limited to pure passenger services with travel times under two hours. To qualify, routes must serve commuter-heavy traffic, utilize vessels carrying maximum passenger capacities, and lack any alternative land-based modes of transport.

Transportation Undersecretary for Road Transport and Infrastructure Mark Steven Pastor clarified that adapting the land-based Service Contracting Program framework for the maritime sector was a logical step to protect vulnerable commuter corridors. 

“The economic impacts of volatile fuel pricing do not stop at the coastline,” Pastor spelled out while emphasizing that the strict under-two-hour criteria ensures that state funds are hyper-focused on high-density daily transit lines rather than leisure routes. 

“By matching the operational guidelines of the contracting program to these vital inter-island connections, we are delivering the same standard of public transport insulation to our maritime commuters that our land-based passengers receive,” he disclosed. 

Rollout

LAYAG’s official rollout followed months of legislative debates and transport sector lobbying, regarding a ₱4.5-billion transport subsidy allocation originally contested during the late 2025 bicameral budget hearings. 

While initial proposals focused heavily on land-based public utility vehicles in Metro Manila, domestic shipping groups successfully argued that island provinces were being left behind. 

The Department of Transportation (DoTr) subsequently expanded the scope of the Service Contracting Program to include critical inter-island links, preventing a looming halt in maritime operations that threatened to isolate island communities and disrupt regional supply chains.

A total of 33 shipping operators managing 93 passenger vessels have qualified to participate in this initial phase. Under the guidelines, subsidies will be calculated based on actual passenger volume per trip and approved fare differentials regulated by MARINA, allowing the government to directly reimburse operators while maintaining stable ticket prices. 

The program is funded under Republic Act 12314, or the Fiscal Year 2026 General Appropriations Act, with MARINA regional offices closely monitoring compliance to ensure transparent implementation.

Implementation

Participated by 33 shipping operators, supporting 93 passenger vessels, the program’s subsidy will be computed based on actual passenger volume per trip and approved fare differentials under MARINA regulations, ensuring that passengers continue to pay only the pre-increase base fare while operators are compensated through government support.

Implemented under Republic Act No. 12314 (FY 2026 General Appropriations Act) and DOTr Department Order No. 2026-008, the program reflects a whole-of-government effort to safeguard both commuters and the continuity of maritime services amid global economic pressures.

In the progam’s implementation, MARINA will closely coordinate with ship operators, regional offices and partner agencies to ensure swift rollout, with subsidies released based on verified passenger data and transparent audit procedures.

In a final word, Administrator Malaluan asserted that through LAYAG, the government reaffirms a simple promise: “Sa bawat hampas ng alon ng buhay, may gobyernong handang umalalay sa bawat biyahe ng Pilipino.”