THE PHILIPPINE PUBLIC TRANSPORT SYSTEM

Our public transport system is deemed

unsafe, unhealthy, unreliable, and uncomfortable.

•  PUBs and PUJs: Serve 67% of demand but

uses 28% of road space (JICA, 2014)
•  PUJs dominate road-based public transport:
o  234,739 PUJs nationwide; 90% are 15 years
old and above (LTFRB)
o  17% ambient air pollution in Metro Manila
and up to 80% in other cities due to PUJs*
o  PUJ passengers 10 times more likely to get
into accidents than private car riders*

*GIZ Jeepney Market Transformation Programme Study

 A transformational large-scale initiative and flagship project of President
Duterte supported by the proposed Comprehensive Tax Reform Program of
the Department of Finance.

It envisions a restructured, modern, well-managed, and environmentally

sustainable transport sector where drivers and operators have stable,
sufficient, and dignified livelihoods while commuters get to their destinations
quickly, safely, and comfortably.

“Starting 2018, Filipinos will have a pleasant commuting experience.”

 Main Objectives of the
PUV Modernization Program

•  Modernize the current PUV fleet

•  Reform and consolidate the industry
•  Move towards low emission PUVs
•  Improve welfare of commuters and
encourage modal shift
•  Improve standards of living of drivers,
operators, and their families
RATIONALE

  Executive Order 125-A and Administrative Order 202, s.1987 consistent

with the national government policy, authorize and promote adequate,
safe, reliable, efficient, and environment-friendly Public Utility Vehicles
(PUVs)

  Public Transport Services nationwide should be provided in a timely,

sufficient, cost-effective, and reliable manner.

  DOTr recognized the need to depart from the long-standing exclusive

reliance on private sector initiative in serving local road transport local
requirements
RATIONALE

•  DOTr’s policy is to have a local-level public transport planning

approach in line with RA 7160 or The Local Government Code of
the Philippines

•  LGUs shall endeavour to provide adequate, effective, and efficient

transportation facilities that would provide access and mobility for its
people to pursue socio-economic activities, as reflected in its
Comprehensive Land Use Plan
BASIC POLICY

•  The Department shall reduce reliance on private vehicle use and move
toward environmentally-sound mobility solutions, and shall develop and
promote high quality public transportation systems, including non-
motorized transport, and ensure to prioritize the movement of people
and goods, rather than vehicles.

•  Pursuant to this, the Department shall promulgate, administer, enforce,

and monitor compliance of public transportation policies, laws, and
regulations which promote mobility as a basic human need.

•  LTFRB is tasked to implement this DO and to encourage and require

the consolidation of operators and the establishment of bigger
coordinated fleets of PUVs.

•  Incentives and higher priority may be granted to operators with larger

fleet sizes using higher capacity vehicles.
BASIC POLICY

•  As a basic policy, PUV drivers shall undergo the mandatory continuing

drivers’ education thru the Drivers’ Academy and be on fixed salary
and benefits with no compensation linked to ridership.

•  Road public transport throughout the country shall be delivered in a

manner which is reliable, safe, accessible, environmentally friendly,
dependable, efficient, comfortable, and governed by the following
principles:

1.  Reliability
2.  Safety
3.  Accessibility
4.  Environmental Soundness
5.  Comfort
RELIABILITY

•  Predictable in terms of travel time, waiting time and schedule.

•  Commuters will benefit from a fixed dispatch time and short

intervals between vehicles during peak demand periods

•  Commuters need not wait long for the PUV to arrive

•  Operating hours shall be responsive to the needs of visitors, nights

students and workers who require late night travel.
SAFETY

•  Vehicles shall comply with national standards and international vehicle

safety conventions

•  Relevant vehicle parts shall be compliant with PNS

•  Boarding or alighting from PUB+Vs in undesignated stops is

fundamentally unsafe

•  Bus stops shall be adequately lit at night for security

•  PUVs must be equipped with extinguishers

SAFETY

•  Pursuant to RA 10916 or the Road Speed Limiter Act of 2016

•  CCTVs shall be installed to monitor activity in and around the vehicle

•  Global Navigation Satellite System (GNSS e.g. GPS) shall be installed to

enable recording of vehicle location and speed and sharing or real-time
PUV information

•  For all PUVs, windshield and windows shall not be tinted.

ACCESSIBILITY

•  Public transport must be available in every community with accessibility

for all segments of society, including senior citizens and PWDs

•  Access shall include good walkways and bikeways to provide

connectivity with other modes of transportation

•  Designated location of stops, pick-up, and drop-off points with

adequate facilities to facilitate convenient boarding and alighting of
passengers.
ENVIRONMENTAL SOUNDNESS

•  PUVs with combustion engines must have low emissions, as proven by

compliance with EURO IV emission standards or better (e.g. EURO
V, EURO VI), as prescribed by the DENR

•  Other preferred public transport vehicles are those using electric drives
and/or running on alternative fuels, such as electric or solar
COMFORT

•  Vehicle is fitted with comfortable seats where passengers are able to

relax, rest, and be productive during the journey

•  Provision of Wi-Fi access

•  For buses that permit standing passengers, the number of standing

passengers must not exceed five (5) persons per square meter of the
available standing space.
 Initial

“System Reform and Vehicle Modernization”

DOTr Department Order 2017-11:
Omnibus Franchising Guidelines (OFG)
•  New LTFRB guidelines on franchise issuance
for road based public transportation services.
•  DOTr/ LGUs: Local public transport route
planning & route rationalization.
•  Modernized PUV fleet compliant with safety &
environmental laws/ standards.
•  Fleet/Industry consolidation for efficient
operations.
Hierarchy and Classification of Public Transport
Modes
1.  The modes of transportation shall follow the hierarchy of roads.

2.  Higher capacity transport modes shall have priority in terms CPC
allocation and transit right of way in trunk lines or main thoroughfares
over lower capacity modes.

3.  Taxis, TNVS, tourist transport services and shuttle services are
excluded as they are considered as door-to-door services and do not
have specific routes.

4.  As a general rule, assigning higher capacity modes to routes

currently traversed by lower capacity modes in the Local Public
Transport Route Plan may be allowed, but not otherwise.
Hierarchy and Classification of Public Transport
Modes
5.  Operation of tricycles shall be in accordance with JMC No.1, s. of
2008 of the DILG and the DOTC

6.  Tricycle operations should only be confined along city or municipal

roads, not along national roads and is limited only to routes not
traversed by higher modes of public transport

7.  Motorcycles and other farm implements such as kuliglig are not
allowed as public conveyance.
MEMORANDUM CIRCULARS
Seventeen (17) MCs:
1.  Transport Safety Officers
2.  Maximum Distance Policy
3.  Garage
4.  Terminals
5.  Transition Period
6.  Industry Consolidation
7.  Initial Implementation
8.  Operator Selection
9.  Intra-Regional, Inter-Regional,
and Inter-Provincial Public
Transport Route Plans
10. Route Coding
11. Further Vehicle Specs and
Standards
12. LPTRP Preparation, Evaluation,
and Approval
13. Maximum Vehicle Age
14. CPCs Issued in Violation of
Moratorium
15.  Scrappage Process
16.  Driver Compensation
17.  Fleet Management
MEMORANDUM CIRCULARS

Signed MCs: 7

1.  Maximum Distance Policy

2.  Responsibilities and Selection of Transport
Safety Officers
3.  Garages
4.  Off-Street Terminal Operations
5.  Guidelines for Intra-Regional, Inter-Regional, and
Inter-Provincial Public Transport Route Plans
6.  Initial Implementation
7.  Industry Consolidation
“Guidelines on the Preparation and Issuance
of Local Ordinances, Orders, Rules And
Regulation concerning the Local Public
Transport Route Plan (LPTRP)”

35  
LGUs are in a better position to
identify local public transport service
requirements being in-charge of
formulating the Comprehensive Land
Use Plan, Zoning Plans, and Traffic
Management Plans.

36  
 •  Make the routes more responsive to passenger demand and determine the
appropriate vehicle type depending on road hierarchy and configuration
•  LGU initiative (Participatory Planning)

- Intra-city/municipality
-  Inter-province/region
- Inter-city/municipality
-  Between and among
- Intra-province
independent cities
-  Inter-city and inter-
municipality of MM and
adjoining provinces
(MUCEP Area)

37  
37
38  
THE LPTRP TEAM

39  
THE LPTRP TEAM

40  
OBJECTIVE:
Appropriate mode
based on Passenger
Demand and Road
Hierarchy

BASIC POLICY:
Higher capacity PUVs
assigned to high
demand routes
CRITERIA FOR ROUTE RATIONALIZATION

•  The establishment of public transportation routes and the

corresponding modes of services shall be based on the
following criteria:

–  Passenger demand patterns and characteristics

–  Road network configuration
–  Corresponding road functions (road hierarchy)
–  Road capacities
BASIC GUIDELINE IN ROUTE PLANNING

“Transportation modes shall follow hierarchy of

passenger demand and function of roads”
Passengers/hour/direction

Bus  

5,001 and above

1,001 - 5,000
Mini-­‐Bus  
501 - 1,000 Jeepney  and  UV  Express  
500 and below Filcab  
43  
ROUTE CONNECTIVITY POLICY

•  For major arterial roads, highways, and expressways, PUBs

are the prescribed mode of transport.

•  However, PUJs, Filcabs, and UV Express Services may

operate on minimal portions of the PUB corridor for the sole
purpose of providing intermodal transfers at bus stops, so
long as such purpose is indicated in the relevant LPTRP.
NEW OR DEVELOPMENTAL ROUTES

•  New routes shall be designed such that overlaps with existing

routes do not exceed 25% of the length of any of the affected
routes.

•  Previously authorized routes may be restructured (i.e., merged

with another previously authorized route, or with a new route, or
shortened, or split into different routes) due to marked change in
trip patterns arising from urban renewal or urban redevelopment
projects or resulting from the LPTRP

•  For new or developmental routes, a minimum fleet size of 15 units

for any type of PUV for 6 months shall be imposed, subject to
review by the LTFRB.
NEW OR DEVELOPMENTAL ROUTES

•  Exceptions to the 25% overlap limit

  New urban development is at least 5 kms. away from the

origin or destination of the traditional route.

  Passenger demand in new area > existing route, and can’t be

adequately served;

  Additional and/or new sections of a road network are

developed, thereby providing shorter and faster trips;

  Other conditions subject to the approval of DOTr

MAXIMUM DISTANCE POLICY

•  PUJ Service Routes shall have the following maximum

distances

Route coverage Maximum route

length
HUCs, ICCs, and CCs 15 kms.
Inter-regional, inter-provincial, intra- 35 kms.
provincial

•  For PUJ loop services, the loop length shall be covered by

similar restrictions.
MAXIMUM DISTANCE POLICY

•  UV express shall have the following maximum distances

Route coverage Maximum

route length
HUCs, ICCs, and CCs 35 kms.
Inter-regional, inter-provincial, provincial, and 35 kms.
municipal routes originating or terminating in
Metro Manila
Inter-regional, inter-provincial, provincial, and 60 kms.
municipal routes not originating or terminating
in Metro Manila

•  For PUBs, no maximum distance is required.

MAXIMUM DISTANCE POLICY

•  Exemptions

  Absence of a transfer area between route ends;

  Absence of alternative transport services or the existing

services cannot supply demand; route is abandoned;

  Most sections of the route have limited road space or width

capacities

  Transport demand is not substantial to assure profitable

operations;

  Other conditions.
LPTRP REQUIREMENTS

  List and map of existing public transport modes in the area including route
description; route distances; number of operating units, operating hours, turn-
around time; headway

  List and map of proposed routes: route name, length, alignment, transport mode,
type of service required

  Location of stops, pick-up and drop-off points

  Terminal or turning points

  Map indicates the classification and link attributes such as distance, number of
lanes per direction, average travel speed

  Estimated existing and forecasted passenger demand for each proposed route

  Inventory of available transport facilities, e.g., airport, ports, railways, ITS, bicycle
lanes, loading and unloading areas, etc.
Safety, Security & Convenience requirements (PUVs) based on the Omnibus
Franchising Guidelines:

FEATURE REQUIREMENT

Environment- Clean Air Act compliant engine. Euro 4 emission

friendly or better. Electric, Solar, Alternative Fuel

Side door, Speed limiter, Automatic Braking

Safety
System, Compliant with safety standards.

Security CCTV, GPS, Dashboard Camera

Comfort/
PWD/elderly-friendly, Free Wi-fi, AFCS
Convenience
 Class 1 Class 2 Class 3 Class 4
Hop ON/ Point To
Passenger Hop ON/ Hop Mixed With
Hop Off Point
Usage Off Cargo
Commute Travel
Parallel/
Forward
Seat layout Forward Parallel Parallel
Facing
Facing
No
Standing Yes
No (High No
passengers (High Roof)
Roof)
Light Truck
Filcab, Van,
Platform Light Truck Light Truck (Heavy
AUV
Duty)
OMNIBUS FRANCHISING GUIDELINES (OFG)
Safety, Security & Convenience requirements (PUVs)
OMNIBUS FRANCHISING GUIDELINES (OFG)
Safety, Security & Convenience requirements (PUVs)
 ECO-PUV PROGRAM
An initiative of the DTI-Board of
Investments (DTI-BOI) to dedicate the 3rd
slot of CARS Program (P9B) to support
locally manufactured PUV units

Rationale:
•  keep/grow in-country manufacturing jobs
•  sustain/deepen national industry capability,
especially of SMEs
•  reduce total vehicle import bill
•  reduce vehicle SRPs
•  ensure reliable after-sales parts and services
INDUSTRY CONSOLIDATION refers to strategically
merging smaller transport industry players to form into a
legal entity either by forming cooperative or corporation,
among others, through the help of OTC and CDA.

CURRENT STATE: Majority are operating under ONE

FRANCHISE, ONE OPERATOR, ONE VEHICLE.

UNDER THE PROGRAM: Existing operators shall form

a consolidated group (either a cooperative or
corporation) who owns and operates the fleet.
BEFORE:
One franchise, one unit
= Inefficiency

AFTER:
Industry consolidation
CDA & OTC: Formation
of cooperatives,
corporation or consortium

63  
OPERATIONAL BENEFITS OF CONSOLIDATION:
  Access to credit facilities
  Maximizes revenue while keeping maintenance costs low;
  Spread of Capital Expenses; Shared O&M Costs
  Operational efficiency via organized dispatching system
and fleet management system
  Improves collection and lesser risk (efficient multiple trips)
  Consolidated entities can access to more discounts in fuel
and spare parts
  Access to common garage/depot
  Has dividend and membership benefits
INDIRECT BENEFITS OF CONSOLIDATION:
  Enhances service quality of Public Transport
  Reduces competition among drivers (facilitate
compliance on traffic rules and regulations); thus,
promoting safer PUVs and more disciplined drivers
  Organized operators and drivers
  Improve service quality monitoring of public
transport providers
GFIs to provide special financing terms for
procuring the new PUJ.

  Memorandum of Understanding already in

place with Landbank and DBP

  Operators can avail of the Php 80,000

equity incentive subsidy directly charged
from Landbank and DBP upon availment of
their loan packages. (subject to Vehicle
Useful Life, loan and franchise
requirements.
FINANCING

 MOU with Landbank (SPEED Jeepney Program)

 MOU with DBP (PASADA program)
Automatic Fare Collection System (AFCS)
  Facilitates easier repayment to lending
institutions.
  Savings from costs and losses from cash
handling.
  Reduced risks from the operators
  Real-time transport information.
  Passenger convenience and comfort.
  Reduces risk of Financing institutions.
Enables them to continue with their low
financing packages
 Equity –Loan
Structure Repayment
GFI Interest Remarks
Period
Equity Loan
-  Borrowers may be
individual (about to belong
Land Bank or already part of the
Special  Program  for   6% per cooperatives) or legal
Environment-­‐friendly  and   5% 95% 7 yrs
Efficiently-­‐Driven  Jeepneys     annum entity.
(SPEED  Jeepneys)   -  AFCS, GPS
-  Franchise for 7 yrs

DBP - Borrowers should be coop

Program  Assistance  to   6% per or corporation
Support  Alterna<ve   5% 95% 7 yrs - Chattel Mortgage
Driving  Approaches   annum - AFCS, GPS
(PASADA)   - Franchise for 7 yrs
20% INCREASE IN VEHICLE CAPACITY
•  From the current 16-18 passengers, the new units can
accommodate 22 passengers, some units with
provision for standing passengers. Increase in
capacity entail increase in income.

43% DECREASE IN FUEL EXPENSE

•  Improved Fuel Economy, from the current 5.70km/L
to 10.05km/L for the new Euro4 units.
EFFICIENCY SAVINGS DUE TO
RATIONALIZED ROUTES
•  Determining routes and the appropriate number of units
based on passenger demand.

EFFICIENCY SAVINGS DUE TO INDUSTRY

CONSOLIDATION
•  Organized Dispatching System and Fleet Management
•  Consolidation allows spreading of Capital Expenses and
Operating Expenses as well as Maintenance Costs.
•  Consolidated entities can access discounts in fuel and spare
parts
Objective: To ensure that the old public utility vehicles
are surrendered and effectively scrapped.
 INTER-AGENCY PROGRAM

Supporting policies on road worthiness

Blacklisting of the chassis and engine

To assist in accreditation process and

monitoring of scrapping companies

All scrapping operations to be handled

by the private sector.
  Driver’s Academy to be implemented by LTFRB in
cooperation with LTO and TESDA
o  Public transport drivers need to be certified with NC3

  TESDA training programs to be availed of:

o  Mechanics Training
o  Customer Service Officer
o  Fare Collection Staff (fare card selling and reloading)
o  Safety Inspector

  Other Programs to be linked:

o  DOLE’s DILEEP
(Integrated Livelihood & Emergency Employment)
o  DSWD Sustainable Livelihood Program
o  DTI’s Microfinance/SME Devt
Preparatory/Development Stage
Pilot Stage
Full-Implementation
BENEFITS OF THE PROGRAM

PUV Modernization
Program will engage
the local
manufacturing
industry creating more
jobs/employment.
BENEFITS OF THE PROGRAM

The modernized fleet will produce significantly less carbon dioxide and
particulate matter emissions thereby reducing both environmental and
social costs (health)

GIZ  Study,  2016  

“There are TWO primary choices in life: to
accept conditions as they exist, or accept
the responsibility for changing them.”
- Dennis Waitley