The Market Monitor Minding the Nation's Business
By Azer N. Parrocha / Philippines News Agency
The Philippines’s road-transport sector in 2015 had a need to improve its image and modernize the country’s transportation services.
Last January, the Department of Transportation and Communications (DOTC) and the Land Transportation Office (LTO) released the country’s new public-utility vehicle (PUV) plates under the Plate Standardization Program.
These were new, security features-packed yellow license plates that, the DOTC said, marked the beginning of its modernization program for the country’s public land-transport services.
According to the department, these plates have the same security features found in the black-and-white private motor-vehicle plates, such as tamper-resistant locks and screws to permanently attach the plate to the vehicle.
The plates can also discourage tanggal-plaka (plate-removing) practices, and have reflectorized sheeting to make them visible from afar and at any angle.
But despite these innovations, the PUV plates proved controversial.
The Commission on Audit (COA) disallowed the program in July, and lawmakers filed in September a petition asking the Supreme Court (SC) to nullify its implementation.
The LTO, however, continues to try resolving issues about the program with the COA. For now, it has temporarily stopped collecting P450 for the replacement of old license plates because of the commission’s move.
In June, the DOTC and the LTO awarded a project for the supply of driver’s license cards to new card-solutions provider Allcard Plastics Philippines Inc.
The LTO began releasing these cards in August to end a shortage that began in 2013.
Transport categories
One of the most significant milestones the DOTC reached this year was the release of four new transport categories, including one that allows app-based service firms to operate in the country.
Launched in May, these categories are the Transportation Network Vehicle Service (TNVS), the Premium Taxi, the Airport Bus, and the Bus Rapid Transit (BRT).
TNVS is the category where app-based and ride-sharing services, such as those offered by GrabTaxi and Uber, fall under. Vehicles under this category are required to install gobal-positioning system (GPS) devices. Its drivers are required to issue e-receipts, and secure passenger insurances from the Land Transportation Franchising and Regulatory Board (LTFRB).
Vehicles under TNVS should not be older than seven years. Only sedans, Asian utility vehicles, sports utility vehicles, vans, or other similar vehicles will be allowed.
Like those under TNVS, vehicles under Premium Taxi should not also be older than seven years. Taxis under this category are also required to install GPS devices, have online- and smartphone-booking capability, and offer cashless transactions.
Airport Bus, meanwhile, provides additional transportation to passengers, especially during peak hours, at the terminals of the Ninoy Aquino International Airport (Naia). These vehicles operate on fixed schedules.
And last, BRT is expected to help decongest traffic and modernize the country’s transportation services. The Cebu BRT project has already been approved, and a feasibility study on a BRT between Quezon City and Manila is being developed.
In August, the LTFRB awarded GrabCar and Uber partners their provisional authorities (PA) to offer TNVS.
This came after the board approved both GrabCar’s and Uber’s application as a Transport Network Company (TNC) that month. TNCs provide the public with TNVS.
A TNC is defined as an organization that provides pre-arranged transportation services for compensation using an Internet-based application or digital-platform technology.
The LTFRB said vehicles without PAs to operate as TNVS will be cracked down and treated as “colorum” vehicles that carry a P200,000 fine.
New denomination
In October, the board sought a study on a new denomination for shuttle services applying as a TNC/TNVS, after Filipino-developed app-based shuttle service U-hop, which recently applied as TNC, did not have a business model envisioned for the transport category.
U-Hop, established only in July, is similar to GrabCar and Uber, except that it sends shuttles that can seat up to seven people at a time, instead of one car for every passenger.
In a memorandum to the DOTC, the board recommended the department to study and formulate a policy for TNCs on a shuttle service mode, since U-hop’s business model is not under the board’s order.
The LTFRB also clarified that it did not deny the application of U-hop as TNC, but set aside its application for recommendation to other possible denominations.
Another accomplishment in the road-transport sector was the September launch of the LTFRB’s 24/7 hotline number to address concerns on road safety, as well as provide assistance on pending applications and information on services rendered by the board, among others.
Also, the LTFRB unveiled a text hotline that works in the same way, but with the added feature of being able to send photos and videos of incident reports and the like through the messaging app Viber at 0917-5501342 for Globe Telecom and TM subscribers or 0998-5501342 for Smart Communications, Talk ‘n Text and Sun Cellular users.
A new app called Safe Ride was also unveiled to help enhance the safety of the commuting public by turning smartphones into advanced personal-safety devices, as it easily tracks the user’s location.
It has a feature that allows a user to take photos of a PUV’s plate number and driver and is automatically sent to Galileo’s database server.
The road-transport sector ended the year with the launch of the LTFRB Holiday Non-Stop bus service, meant to alleviate holiday traffic congestion by encouraging private car users to take public transportion.
It was a rough start for the service, with only a few passengers taking trips. But it was eventually patronized by more people, especially after the board lowered its fare rates.