The influence of history on transport in the Philippines

Author:
Fianza, Florencio D.
Publication Date:
1980
DOI:
https://doi.org/10.26190/unsworks/13322
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THE INFLUEI\UE OF HISTORY ON TRANSPORT

IN THE PHILIPPINES

FLOREM}I 0 D.. FIANZA

(B.A .. SLU Philippines)

Thesis submitted to the University of

New South Wales for the degree of
Master of Engineering Science
in the School of Transport
and Highways

1980
u·NIVERS-ITY OF N.S.W.

7 7 2 58 11. DEC. 8 1

--=-L18 R A.. :. .:R:_; _;_Y_ _

I, the undersigned, certify that the work described in this

thesis has not been submitted for a higher degree to any

other University or Institution.

 CONTENTS

ACKNOWLEDGMENTS · i

ABSTRACT ii
LIST OF FIGURES iv
LIST OF TABLES v
COMMON ABBREVIATIONS vi

CHAPTER 1 INTRODUCTION 1

1.1 Situation 1

1.2 Objectives 2
1.3 Scope and Limitations 4

CHAPTER 2 HISTORICAL PERSPECTIVE 7

2.1 Background 7
2.2 The Law Making Process 10

2.2.1 Spanish Period 12

2.2.3 American Period 13
2.2.4 After Independence 15

CHAPTER 3. ROAD TRANSPORT DEVELOPMENT 18

3.1 Background 18
3.2 Early Development 21

3-3 Early American and Pre War Development 23

3-4 Post War Development 24

3-5 The Buses (PUB) 30

3.6 The Jeepneys (PUJ) 35
3.7 The Taxi Service (TX) 37
3.8 Trucks for Hire (TH) 37
3-9 The Tricycle 38
 Page
CHAPTER 4 GROWTH OF URBAN SETTLEMENTS 41
4.1 Background 41
4.2 Pre-spanish Settlements 46
4-3 Spanish Settlements 47
4.4 American Period 51
4.5 Present Trends 52

CHAPTER 5 TRANSPORT AGENCIES AND REGULATIONS 57

5-1 Present Situation 57
5.2 Public Service Regulations 59
5.3 Transport Agencies 61
5-4 The Board of Transportation 61
5.5 Functions of the Board of Transportation 63
5.6 The Franchise System 66

CHAPTER 6 DISCUSSION OF TRANSPORT ISSUES 70

6.1 Background 70
6.2 The Board of Transportation 74
6.3 The Absence of a Transport Policy 76
6.4 Lack of Technical Skills 78

6.5 Effect of the Present Franchising System 79

6.6 Effects of Presidential Decree No. 101 82

CHAPTER 7 COJ\'CLUSIONS AND COMMENTARIES 86

REFERENCES R-1

APPENDIX A SOURCES OF DATA A-1

APPENDIX B PRESIDENTIAL DECREE NO. 101 B-1

APPENDIX C SUMMARIES OF THE MORE RELEVANT ROAD AND

AND TRANSPORT LAWS C-1
 i

ACKNOWLEDGMENTS

The author wishes to express his gratitude to the Philippine

government particularly the Philippine Constabulary for providing the

opportunity for the undertaking of this study.

The writer also wishes to acknowledge the generosity of the

Australian government for the scholarship grant and to the help and
assistance provided by the personnel of the Australian Development

Assistance Bureau.

The author is further indebted to the following persons who

willingly gave their valuable time and effort throughout this project.

In particular, to Dr. John Black, who acted as supervisor

throughout the period of the study, the author expresses his appre-

ciation for all his invaluable advice and assistance.

To Professor W.R. Blunden, Head of the School of Transport

and Highways for his vnluable help and guidance.

To MG F.V. Ramos for his generosity in many forms, the author

is eternally grateful.

To Miss Aurora C. Samson for her painstaking effort in typing

this thesis, the author expresses his profound gratitude.

 ii

ABSTRACT

Transport in the Philippines has always played a very important

role in the nation's economy. With the government's determined effort

to industrialize, large investments are being poured into transport deve-

lopment to support this process of economic development.

There are however, many transport problems and over the years,

these problems have developed into a complex situation. Although there

are problems in the other transport modes such as rail, air and water,

it is in the public road transport sector that the problems are more

pronounced and confused. The reasons are many and varied. Colonization

is one important factor. Many of the prevalent transport issues today

are deeply rooted to the country's colonial history and in order to have

a better and clearer understanding of ~he present complicated transport

situation, it is necessary to consider the historical context of trans-

port development, urban growth and government policies that have influenced

transport growth.

This study therefore is an overview of the country's history as it

relates to the transport issues and problems today. It is organized

into two broad parts: the first portion presents an introductory chapter

of the prevailing transport situation and the reason that prompted this

study. The study then proceeds to give a general information on the

Philippines with respect to its geography, political development and the

law making process designed to provide a better understanding on the

evolution of laws and political si~ation by which the country is governed.

This is followed by tracing the development of road transport from the

period of Spanish colonization to the present. It shows the shift in

the dominance of the different transport modes from water, rail and then
road.
 iii

The growth of urban settlements is then presented. Thi~ includes

the different Spanish and American colonial economic and political poli-

cies that contributed to the pattern of dispersions which in turn

influenced some of the transport problems today.

The different transport agencies are then taken together with how

the present public service regulatory system originated.

The last portion of this study then discusses the important trans-

port issues and problems within the context of the history outlined.
 iv

LIST OF FIGURES

Figure Title

1 Map of the Philippines showing 13

Regional Subdivisions 8

2 Map of the Philippines showing extent of

internal penetration as of 1899 20

3 Growth of Motor Vehicles, 1961-1978 25

4 Growth of Highway Kilometrage, 1910-1977

5 Map of the Philippines showing existing

primary roads, major seaports and
airports, 197 5 27

6 The J eepney

7 The Tricycle 39

8 Map of the Philippines showing existing

urban settlements, 1975 43

9 Population Growth and Projections 44

10 Density Map of the Philippines 45

11 Town Plan as Decreed by King Philip II

in 1573 49

12 Transport Agencies and Functions 62

13 BOT Organizational Chart 64

14 Functional Chart Specialized Regulatory

Boards 65
 v

LIST OF TABLES

Table Title

1 Traffic by Modes as of 1974 29

2 Projected Traffic by Mode, 1980 29

3 Projected Traffic by Mode, 1985 29

4 Highway Development Program Investment

Requirement, 1978-1982 30

5 Growth of Applicants 84
 vi

COMMON ABBREVIATIONS

LOI Letter of Instructions

PD Presidential Decrees

RA Republic Act

CA Commonwealth Act

PNR Philippine National Railways

MMTC Metro Manila Transport Corporation

PUB Public Utility Bus

PUJ Public Utility Jeepney

AC Auto Calesa

.TH Truck for Hire

TX Taxi
BOT Board of Transportation

BP Batasang Pambansa (Parliament)

 CHAPTER 1

INTRODUCTION

1.1 Situation

The growth of any nation is intimately linked to the develop-

ment and growth of its transportation system. The importance of trans-

port to the maintenance of a sound and strong national economy can

hardly be overemphasized (Haefele, 1969). Indeed, transportation has

often been referred to as 11 the arteries and veins" of the body of any
national economy (Yoshpe and Brown, 1961).

The Philippines is no exception. The country with its peculiar

geography of 7,100 islands stretching over an archipelago of 1,851

kilometers depends heavily on transport for the maintenance of its

economy. With the government's determined effort to industralize,

large investments (see Table 5) are being poured into transport develop-

ment to support this process of economic development.

The decades after the Second World War have been characterized
'
by a very high rate of population growth and a large migration of people

from the rural areas to the cities. This is best demonstrated in the

case of Metro Manila, which covers only about one per cent of the coun-

try's land area but contains 15 per cent of its people. From a popula-

tion of about 1.5 million in 1948, it has grown to approximately 7.2

million people today. Transport in and through the city has become a

problem of national importance to such an extent that the government

policies relating to transport tend to thiru{ that it is the only trans-

portation problem deserving attention in the country and that by solving

this, all the other problems would be solved. It is obvious that the
 2.

vast concentration of people in a small area has put a strain on the

existing institutions and social facilities resulting in many maladjust-

ments, social as well as physical. However, the transport situation

and its problems is wider than Metro Manila and this study will concen-

trate on the national situation rather than the city's problems.

The situation in Metro Manila as well as in the other major

cities in the Philippines has been aggravated by the lack of government

planning in directing and guiding urban growth until very recent times.

It was not until the 1970's that any kind of comprehensive National

Development Plan was formulated. Now, the government is forced to take

a more active part in the solution of long neglected problems and the

magnitude of the problem in Metro Manila tends to overshadow the prob-

lems in the rest of the country. Yet, the efficient movement of goods

and persons in the whole country is of paramount importance to the

government.

1.2 Objectives

Although there are many transport problems in the Philippines

today, pronouncements by responsible government officials (Abellera et

al, 1978) as well as the publications of government transport agencies

(BOT report to the National Assembly, 1978) show a major concern with

the franchise system in the public road transport industry as a critical

problem. Although this is a real problem, it can in no way be consi-

dered the only one. There are others equally important. Furthermore,

to understand the complex transport situation that have developed over

the years, this thesis argues that it is necessary to consider the

historical context of transport development, urban growth and govern-

ment policies that have influenced transport growth.

To present a fairer and broader picture of the public road

 3.

transport industry today requires the inclusion of an overview of the

country 1 s colonial history as it relates to transport issues and an

insight to the problems created by the increasing urbanization process

in the country. This would enable this thesis to trace the origin of

the public service laws operative in the country which form the basis

for the present public service regulatory system and the foundation of

the agencies of government involved in the public road transport indus-

try today.

The government is convinced of the necessity to search for an

economical and efficient road transport system which is because of its

increasing demands, may now be beyond the capability of private enter-

prise. But this is easier said than done. Many problems have to be

faced and many factors contribute to these difficulties such as the

following: the lack of transport studies in the past that could be used

as guides for present and future programs; the scarcity of available

literature arid data, and the difficulty in locating it; the difficulty

in achieving bureaucratic and institutional changes due to old and

antiquated institutions, practices and legislations; and the lack or

improper utilization of the limited available local technical skills.

Seen against this background, it is not surprising that the

government's efforts have not been entirely successful. An additional

problem is that the government, recognising that the private sector

could not meet the increasing demands of the public transport, tends to

concentrate all its efforts and resources in solving the problems of

Metro Manila without relating them to the overall transport situation.

The creation of a new Ministry of Transportation which was intended to

coordinate all government transport programs and decisions have so far
failed to achieve its purpose. This is because the present structure
 4.

still allows considerable and unusual independence of actions to the

various transport agencies which are supposed to function under it and

this has compounded the old problems such as the overlapping of func-

tions and therefore added to the problems rather than solve them. The

stated government policy is to leave the public transport industry in

private hands but it has undertaken steps to build up an ever increasing

fleet of government buses. All these tend to indicate a lack of clarity

of purpose.

Although there is a concerted government effort to resolve the

confusing situation, very little attention is given to the origin of

the problems or to the historical factors which have created the situa-

tion where the problems have developed. This makes for the stop-gap

measures rather than for long term policies and solutions. Taking all

these factors into consideration, it is hoped that this study has not

only achieved its purpose of relating the country's history to the trans-

port situation today but has also convinced government decision makers

to look into history and consider its importance as a source of finding

solutions to the present transport problems instead of relying only on

high technology and legislation to solve these problems.

1.3 Scope and Limitations

The primary concern of this thesis is to obviate some of the

problems mentioned in the preceding paragraphs by collating pertinent

historical data and legislations, placing them in a historical perspec-

tive and seeing them against the background of factual situations pre-

valent in the country today. The study will concentrate on the histori-

cal development of the road transport industry. The urbanization process

that led to the growth of Metro Manila as the primate city of the country

is taken only as it affects the present transport situation. This work

 s.
takes a historical perspective and is therefore largely descriptive.

To collect and gather all the data for this study, a field trip

back to the Philippines was made. Fortunately, the various transport

agencies have been very helpful in providing the necessary information

requested. Results of some government surveys were also made available.

The interviews with responsible government officials and transport

operators have been very helpful in gaining an insight to the problems

of the private transport operators and government as well. Taking these

factors into consideration, it is hoped that this study would be of some

value to the Australian who wishes to understand the difficulties of the

present transport situation in the Philippines and may be interested to

contribute to their solution. To the Filipino government decision

maker, it is also hoped that this study has been able to present a better

understanding of the historical relatedness of the present transport

problems of the country which are necessary for future studies and the

formulation of solutions to the transport problems of the country today.

The thesis is organized into two broad parts: the first chapters

traces government involvement in transport and the later chapters dis-

cusses selected transport issues and problems within the context of the

history outlined.

Chapter 2 contains general information on the Philippines as to

its geography and population. It also traces the political development

and the law-making process designed to provide a better understanding

on the evolution of laws of the country and a better understanding of

the present political situation by which the country is governed.

Chapter 3 traces the development of road transportation from the

period of Spanish colonization to the present. It shows the shift in

 . 6.

the dominance of the different transport modes from water, rail and then

road; that this shift to a predominantly road based transport system

took place in a short time and the rapidity contributed to the inability

of the government to cope with the ever increasing demands of road trans-

portation.

Chapter 4 traces the growth of urban settlements from the pre-

Spanish period to the present. This includes the different economic

and political P.Olicies of the Spaniards and Americans that contributed

to the pattern of dispersion which in turn influenced some of the

transport problems of today.

Chapter 5 dwells on the Board of Transportation, the principal

government regulatory agency. This includes its organization and

functions. The system of franchising public road transport services

is also taken up in this chapter. The origins of the present public

service law is also traced and the chapter will show that the present

public transport regulatory system has been greatly influenced by the

American system which was in use at the turn of the century.

Chapter 6. discusses the selected issues affecting the public

road transport industry. It includes the Board of Transportations, its

organizational structure, functions and duties. The franchise system

and its effects to the overall road transport system is also discussed

in this chapter.

The findings of the study and the issues raised in the pre-

vious chapters are drawn together in Chapter 7.

 7·

CHAPTER 2

HISTORICAL PERSPECTIVE

2.1 Background

The name 11 Philippines 11 by which the country is known today,

was given in the year 1543 by the famous Spanish adventurer and navi-

gator, Ruy Lopez de Villalobos in honor of Prince Philip of Asturias

who later became King Philip II of Spain.

The Republic of the Philippines is an Archipelago composed of

7,100 islands, grouped into three main geographical divisions- Luzon,

Visayas, and Mindanao. Luzon and Mindanao are the two principal

islands. The country's approximate total area is 115,707 square miles

or 300,000 square kilometers, 98 per cent of which is contained in the

11 largest islands. Only 357 of the islands have areas of 1 square

mile or more. The greatest length north to south is 1,851 kilometers

and greatest breadth east to west is 1,107 kilometers. The country has

a very extensive coastline covering 21,500 statute miles or 34,600

kilometers (Philippine Yearbook, 1977).

1
The Philippines is subdivided into 13 regions consisting of

72 provinces, 61 cities, 1,439 towns or municipalities, and 34,330

barangays or villages (Fig. 1). Current total population is estimated

from the 1975 national census to be about 46,500,000. The inhabitants

are composed of various ethnic groups speaking 87 different but related

dialects, with Pilipino as the national language. English, however,

1
The Region is not a political subdivision. It is only a grouping
of several provinces for the purpose of identifying priorities in
the government's economic development program.
 8.
FIGURE 1

I. MAP OF THE PHILIPPINES

,_:r••tr SHOWING 13 REGIONAL
•t
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 9.

is spoken by more than one half of the population and the country is

sometimes referred to as the third largest English speaking nation in

the world. This came about as a result of a public school system intro-

duced into the country by the Americans at the turn of the century.

English was introduced as the medium of instruction.

Located about 600 miles off the southeast coast of mainland

Asia, the Philippines, with Metropolitan Manila as its national capital,

lies at the crossroads of international commerce and travel in the

western region. Manila Bay is the biggest and most important port faci-

lity in the country and is growing in importance as a center of foreign

shipping in the Southeast Asian area. Commercial airlines also link

the Philippines to the rest of the world.

The Philippines' economy is largely agricultural but is now in

the process of developing a modest industrial capability. Economic

growth has been fairly good and stable during the past years and the

outlook is bright for the future. The country is blessed with vast

natural resources, both on land and in its territorial waters. It has

a fertile soil and a tropical climate. About 30 per cent of the total

land area consists of commercial forests which produce lumber, hardwood

and other forest products. The mineral wealth includes commercial

quantities of gold, silver, chrome, manganese, marble, cobalt, lead,

coal, gypsum, petroleum and ceramics. Oil was discovered about 3 years

ago and is now supplying 12 to 15 per cent of the energy needs of the

country. Geothermal power has also been harnessed and is now providing

part of the energy requirement of the country. Principal export pro-

ducts are timber, minerals, agricultural products such as copra, sugar,

rice, bananas and others.

Philippine culture traces its roots mainly to its Indo-Malayan

 10.

origin, with strong Chinese, Spanish and American influences. Chinese,

because long before the Spaniards came to the Philippines, there was

already an extensive trade and cultural contact between the Chinese and

the early Filipinos (Epistola, 1977). The Spaniards were the first

Europeans to reach and stay in the Philippines. Except for a brief

British occupation of Manila from 1762 to 1764, the Spaniards controlled

and colonized the country for more than 300 years bringing with them

Christianity which has remained their greatest legacy to the Filipino

people. In 1896, the Filipinos revolted against Spain and in June 12,

1898, declared their independence. This was, however, shortlived. As

a result of the defeat of Spain in the Spanish-American War, the Phil-

ippines was ceded to the United States upon the signing of the Treaty

of Paris in 1898 and the payment of the sum of $20,000,000. Occupation

for the Americans was not, however, easy. It took three years of
vicious fighting before American sovereignty could be firmly established

in the country in 1901. The Americans were to stay until July 4, 1946

when Independence was finally restored to the country.

Since the declaration of Philippine Independence in 1946 up

to 1972, the country had a Presidential form of government, with equal

powers shared by the Executive, the Legislative and the Judiciary. On

September 21, 1972 President Ferdinand E. Marcos declared Martial Law

on all parts of the Philippines. On April 7, 1978, the first national

election was held to elect members of the Interim Batasang Pambansa

(National Legislative Assembly) as provided for in the 1973 Constitution.

2.2 Xhe Law Making Process

Long before the coming of the Spaniards to the Philippines,

the early Filipinos lived in organized society under a regime of law

and political authority (Aruego, 1963). Local and regional governments

 11.

were in full operation for the exercise of the three recognized func-

tions of government - Executive, Legislative and Judicial.

The basic unit of government was what was known as barangay

or village. This consisted usually of a number of closely related

families or households under a single chief or 11 datu 11 and this number

would vary from thirty to one hundred families or maybe more in some

places like Manila, Bohol and Cebu.

The chiefs of the barangay governed the people; led his group

in war; and was obeyed and revered by the village people. While each
barangay and consequently its chief was theoretically independent of
all others, the strongest or richest of the chiefs of one village, or

perhaps even of a region was usually accorded leadership and was known
by the native title of 11 rajahn.

Lawmaking was one of the important functions of the chiefs.

When the situation called for a new law, the principal chief called

into consultation all the other chiefs and explained the need for a law

to preserve peace and insure justice to all. If they agreed with him,

they usually authorized him to draw up such a law. Thereupon, a public

crier went from barangay to barangay and from village to village sound-

ing a bell and announcing to all the inhabitants the regulations which

the head chief had made, and the penalties for disobedience.

The laws that existed then were both written and unwritten.

The unwritten law was based on customs and traditions handed down from

generation to generation. Although the codification of laws was not

extensively practiced, there existed two codes of laws promulgated and

practiced before the coming of the Spaniards. These were the Maragtas

Code written at about 1250 A.D. and the Kalantiaw Code promulgated in
1433 A.D. (Aruego, 1963).
 12.

2.2.1 Spanish Period

The coming of the Spaniards to the Philippines in 1521 was the

result of Europe's desire to open trade routes to the countries of the

east such as China, India, Malaya, Indonesia and the Indies. Trade,

more than anything else was the most compelling motive which brought

the great voyages of discovery. Although Ferdinand Magellan came to

the Philippines in 1521, Spanish sovereignty was not successfully

established. It took the next 45 years and several costly expeditions

before Spanish sovereignty was firmly established by the Spanish

Conquistador Miguel Lopez de Legaspi. The Spaniards found no central

form of government in the country. They, therefore, superimposed on

the existing forms of Filipino local government a chain of command lead-

ing up to the representative of the King of Spain - the Governor General.

Starting with the top, the chain ran down through what was called

encomiendero or later the alcalde-mayor and his assistants to the

governor (gobernadorcillo) of the village or town and finally to the

chief of the barangay. Top legislative powers were to some extent

retained by the King of Spain, in some respects conferred upon the

governor-general advised by the audiencia. The ultimate court of jus-

tice was the audiencia, but the governor general and the lower provin-

cial and municipal officials had judicial powers as well as legislative

and executive. There was not the rigid separation of these powers under

the Spanish system.

The governor-general was the head of the colonial government

in the Philippines. He was responsible only to the King of Spain for

his actions. The power and authority conferred on the governor-general

was as great as that given to any official in Spain under the King. He
 13.

appointed most of the lower government officials throughout the islands;

he made local laws with the advice of the audiencia; and he was res-

ponsible for the entire functioning of the government of the Philippines,

subject only to compliance with laws passed in Spain for its colonies

and the authority of the King himself. The Spaniards introduced a new

system of government and brought to the country.the great system of law

which had been developed in Spain from the Roman Law. The colonial

government of the Philippines was thus defined and regulated by laws,

Royal Decrees, and instructions and ordinances from Spain, sent to its

officials in the country.

2.2.2 American Period

When the Spanish-American war broke out on April 25, 1898,

Commodore George Dewey, the Commander of the American asiatic squadron

was directed to proceed to Manila and engage the Spanish fleet there.

He did this by destroying the Spanish war vessels anchored in Manila

Bay on May 1, 1898. The coming of the Americans were first welcomed

by the Filipino revolutionaries. This was because of the active assist-

ance given by the Americans in procuring arms in Hongkong and shipping

them to the Philippines. The Americans were therefore considered as

liberators and allies.

When additional American troops arrived for the occupation of

Manila, however, the Filipino revolutionary army was not allowed to

enter the city. This was resented by the Filipinos and was construed

as a betrayal of their trust. Although the American forces were con-

siderably stronger than the Spanish garrison in Manila, without the help

of the Filipino revolutionary army, the defeat of the Spaniards by the

Americans would have been costly and more difficult. This atmosphere

continued for several months both sides waiting for an appropriate

 14.

moment to start open hostilities. This came on February 1899. An

American sentry shot a Filipino officer trying to cross a bridge into

American held territory. This started a vicious war which was to last

for more than three years and would cost the Americans 4,234 lives and

300,000,000 dollars (Zaide, 1962).

Soon after the defeat of the Spanish fleet in the battle of

Manila Bay in 1898, President McKinley of the United States issued

instructions for the military government of the new territory which

had not yet been subdued. The military commander or governor exercised

all three powers government - executive, legislative and judicial.

When the Filipino-American War was drawing to a close in 1901,

the United States government formed what was called the Philippine Com-

mission as the first step towards a civilian type of government and

also to cooperate with the naval and military authorities in Manila in

the effective extension of American sovereignty over the archipelago.

Although the Commission was formed in 1899, it did not exer-

cise any legislative functions till 1901 when the first civil governor

was inaugurated. It was through the Philippine Commission that the

first laws of the land under the Americans were promulgated. It was

to remain this way until 1907 when a unicameral law-maldng body was

inaugurated. This first Philippine Assembly, constituted entirely by

Filipinos, was to exercise legislative authority over all parts of the

Philippines not inhabited by Muslims or other non-christian tribes,

jointly with the Philippine Commission, the sole legislative body at

that time. In 1916, with the passage of what was known as the Philip-

pine Autonomy Act of 1916 by the U.S. Congress, a bicameral legislature,

composed of members elected by the direct vote of the people was

 15.

2
created. The legislature was vested with general legislative powers.

In spite of all the extensive autonomy granted to the Philippine Assembly

the American Governor-General was still appointed by the President of

the United States and exercised supreme executive power. The Governor-
General in the exercise of his legislative function had also the power

to approve or veto bills passed by the law-making body. The Governor-

General retained all these powers to the very end of American rule in

the Philippines. For almost twenty years, the Filipinos were governed

principally under the provisions of the Philippine Autonomy Act of 1916.

In 1934, the Congress of the United States passed Public Act

127 commonly known as the Tydings-McDuffie Law. This law authorized

the Filipino people to convene a constitutional convention and frame

their own constitution. It also provided for a transition period of

ten years by which time the Philippine Republic will be declared by said

law. When the Commonwealth Government was inaugurated in 1935, the law-

making process was again vested in the two houses of the Ph ilippine
Assembly. The Senate and the House of Representatives. The position

of Governor-General was abolished by this time and the position taken

over by a High Commissioner appointed by the President of the United

States. Laws passed during the Commonwealth period, were known as

Commonwealth Acts. At the outbreak of the Second World War in 1941, the
Philippine Government went into exile in the United States.

2.2.3 After Independence

When Independence was finally declared in 1946, the Philippines

2The exception to this was that two members of the Senate and
nine members of the House of Representatives were to be appointed
by the American Governor-General. The Appointees, however, must
all come from the non-christian provinces of the Philippines,
such as the Mountain Provinces in Northern Luzon and the Muslim
Provinces of Mindanao.
 16.

became a Republic with a Presidential form of government. The legis-

lative function was vested in the two houses of Congress. Congress had

the power to enact and amend laws and laws passed were known as Republic

Acts. Under the Presidential system of government, the President had

the power to approve and veto bills passed by Congress. It required a

two thirds vote of each House to override a veto. The President also

issued regulations or directions in the form of executive orders. This

power of the President to issue such executive orders was authorized

under the 1935 Constitution.

Communist insurgency has always been a problem of the govern-

ment. The Communists or Huks for short emerged from after the war with

a considerable mass base and a sizable armed force. They were soon

fighting a full-pledged rebellion in Luzon which was not contained until

the mid-1950's. Although the back of the rebellion was broken, small

skirmishes with the country's armed forces continued. By 1967, a commu-

nist party self modeled after the Chinese example was organized by

university intellectuals. A "New Peoples Army" was soon founded and

started countryside ambuscades and urban terrorism. This problem was

compounded by the growing threat of a Muslim secessionist movement which

started to gain ground in Mindanao. There was now a growing danger of

the inability of the government to cope with this situation and there

was the downward trend towards anarchy as the leftist and rightist

elements in the society competed to manipulate the deteriorating situa-

tion to their advantage. Toward the end, Manila was the scene of riots,

demonstrations, terror-bombings and other violence. The unprecedented

heavy floods in Central Luzon in the summer of 1972 compounded popular

misery. Gross National Product growth fell from its average 6.5 per

cent to 4.2 per cent (The Philippines, 1976). It was against this back-

ground that President Ferdinand E. Marcos declared Martial Law over the
 17.

country on September 21, 1972.

Upon the proclamation of Martial Law, the Congress of the

Philippines was abolished and its functions were assumed by the incum-

bent President. The President issued Presidential Decrees and Letters

of Instructions which are now part of Philippine Laws.

On April 7, 1978, under a program of returning to political

normalcy, a national election to choose the members of the Interim

Batasang Pambansa (National Legislative Assembly) was held. This step

was intended to shift legislative powers back to an elected national

assembly. The election was also in compliance with the provisions of

the 1971 Constitution which provided for the change of the form of

government from Presidential to Parliamentary. The National Legisla-

tive Assembly was inaugurated on June 12, 1978. Under the Interim

National Assembly, the President is at the same time the Prime Minister
and although legislative functions are now vested in the Legislative
Assembly, the President can still promulgate Presidential Decrees and

issue Letters of Instructions. 3

3one would think of the situation as a little unusual. The only

explanation to this is that Martial Law, even with the establish-
ment of a legislative assembly has not yet been lifted. This is
because of the prevailing internal security situation particularly
in Mindanao which require solutions which would be difficult to
implement under ordinary government conditions.
 18.

CHAPTER 3

ROAD TRANSPORT DEVELOPMENT

3.1 Background

The development of the transportation network in the Philip-

pines from the small scattered ports and its gradual internal expansion

was greatly influenced by the degree of economic growth and the extent
of political and military control by the colonizing countries. This

process of spatial diffusion exhibited certain broad patterns and

characteristics that are not distinct to the country but have been
found to be common in the transport development of many developing

countries (Taaffe et al, 1974).

The colonial period from 1565 to 1946 could be divided broadly

into four phases. The first was from 1565 to 1830. This was the

period of scattered trading posts and the attempt by the Spaniards to

establish complete political and military control over the whole country.

The small trading posts that the Spaniards found were the first to be

expanded to support the growing trade, especially the export of sugar,

indigo, abaca, copra and sugar with Spain. Internal penetration during

this period was virtually non-existent especially in the earlier part

of this period.

The second phase was from 1830 to 1898. This period was

characterized by the attempt of the Spaniards to expand internal pene-

tration. In the 1830's a highway development program was undertaken.

Manila was connected with the outlaying provinces of Luzon through a

system of wagon roads and horse trails (Philippine Highways, 1950). By

the time the Spaniards left in 1898, an inland transport network con-
 19.

sisting of roads, footpaths and rail was already in existence (See Figure

2). The extent of internal penetration in the transport system however,

left much to be desired. The network was very limited as shown in

Figure 2 and their use was restricted by the wet season.

To a very large degree, this slow process of internal penetra-

tion was due to the failure of the Spaniards to exploit the mineral

resources of the country and their inability to establish complete poli-

tical and military control in all parts of the country (The Philippines,

1976 ).

The railroad was introduced in the last quarter of the 19th

century and lateral interconnections between Manila and the provinces

of central Luzon was expanded. The major effort during this period was

the expansion of the internal links in the agricultural producing pro-

vinces to increase production and open new areas for cultivation. The

focus was thus centered on Luzon and the provinces in the Visayas such

as Negroes, Panay, Bohol, and Cebu. Very little was done to develop

Mindanao, Samar, Palawan and the Mountain Provinces in Northern Luzon.

The third phase was the period from 1899 to 1946. Most of the

wagon roads built by the Spaniards were destroyed as a result of the

revolution of 1896. The Americans however, rebuilt and improved these

roads. Because military and political control was established in all

parts of the country, the Americans were able to undertake a more success-

ful road building program. The gradual expansion of the railroad to the

south of Luzon and the opening of the Mountain Provinces by road in 1905

were significant in that large scale mineral exploitation was undertaken

for the first time. Internal accessibility in Mindanao was also improved

through a road building program and the government policy of encouraging

settlement in the sparsely populated eastern portions of the island.

 ~··

·r. ...-r~-.-.- ... rr··-

·--- -~--- ~-
· - · - - - · · - · · - · · - · · - · - · - --··-----,-----~
I' -t
'
20.
t FIGURE 2
....." ... ,......
/)

Map of-the Philippines --L'

:o·-
-·--· · - - - : - - - - - + - - - - - - showing exte~t of
Internal Penetration
as of 1899
6... ,... taL••••
/}

~-

WAGON ROADS rc.o.MINOS CAIIRETE"OS,

-
TRAII.S I"CAMINDS DE HERRADURA")
FOOTPATHS I"SENDEROS")
R.llLRO&D I"FERROCAIIRIL"I

'

... . .
~~
.·· .•d

S r: L U S E A

,P'ICJ;.'·.
. 0
·,.
'· <::1--·
!
!:'-::-· .1: .·. .~· . . ~ .:• ·I
'-··-··, .~I ~· ' ... ' - i
,.,.:,_..,•• ~ . '· -cP:.:o: (,0

t~--"' •. • • •• • .• ,u::J (.",.

~ ~' ~ •. ·- ~ ~: .~ .~
I

I -
,.r--.
I
u

-- -·- - -·-c - ·-
.
~-:r\~\
./-"'IV
~ ~,-.
"' ~..
(-+, c .
L

1
aL.
" s c

I -- -- -- ------.-•·
I .
... r··-----------·--·---- !"'.!!!'!""!!!!~.. ~·......L~~------------·--·-~------···-··-··----·-J ,
----
c A

-source·= Philippine Highways;-rg-so. -· --·· ·- ·- --·- - -·--·-- · · -·· - -- '

 21.

The fourth phase started in 1946. The past and present govern-

ment has continued the program of lateral expansion. This is clearly

defined in the country's 1978 5 Year National Economic Development Plan.

Because of the emergence of the motor transport as the most important

mode of transport, the government has and will continue to develop and

improve existing highways and connect the many inaccessible rural areas

to main highways to improve accessibility and social intercourse between

the urban and rural areas. This program has received considerable

assistance from foreign sources, notably Australia which has entered

into a bilateral agreement with the government of the Philippines to

provide funds for the construction of farm to market roads in the econo-

mically depressed areas of Zamboanga del Sur and Samar.

3.2 Early Development

The pre-Spanish Filipinos depended heavily on watercrafts for

transportation both for the movement of people and goods. The early

settlements which were mostly located on river banks, lakes and along

the sea shore made the boat the most logical mode of transportation.

Land movement was very restricted and the development of so many ethno-

linguistic groupings speaking 87 different dialects explains this lack

of contact and the limited social intercourse between the very early

Filipinos.

The development and growth of land transportation during the

Spanish period was slow. This was because of the colonial government's

reliance on shipping as the principal mode of transport to support its

trade policies. For land transport, the horse which the Spaniards

brought from the New World was used. When the colonial government

started interior expansion in the 1830's, the horse drawn vehicle was

introduced and was to remain the principal mode of land transport

 22.

between Manila and the outlaying provinces until the last quarter of

the 19th century. For passenger services the Calesa, a derivative of

the early European Caleche, was used, and for freight, the Caritela, a
bigger version of the Calesa, was used.

In June 1875, a Royal Decree from the Spanish crown directed

that a general plan for a railway system on the island of Luzon be pre-

pared. It was not until 1886, however, that bids for the concession

were invited in Madrid. Only one was received and it was British. A

British company eventually got the concession to operate the railroad

and the operation was to remain in British hands till 1916.

The cornerstone was laid and the building of the line began on

July 31, 1887. Eventually, 196 miles of railway tracks connecting

Manila and Dagupan in the Northeast of Luzon was completed. Operation

started in 1892 and proved to be an instant success. By 1894, the line

was carrying 220,000 tons of freight and 800,000 passengers a year

(Marshall, 1978). The mobility of the people in Central Luzon increased

tremendously and the railway changed the economic life of the region.

Manila also started to grow at a much faster rate so that by the time

the Americans came, Manila was already a growing city of 233,932 people

(Calderon, 1976). The revolution of 1896 and the succeeding war with

the Americans in 1899, however, brought financial troubles to the rail-

road company. In 1896, the Filipino Revolutionary took control of the-

railroad operation and in 1899, the United States Army took control.

-The railway company suffered tremendous losses during this period.

After unsuccessfully trying to collect war damage claims from the

American government, and incurring a large debt to keep the rail opera-

tion going, the company eventually sold out to the Philippine government

in 1916. It has remained in government hands to this day as part of

 23.

the Philippine National Railways.

The city of Manila, being the seat of government and the most

populous community, was the first to have a transport system. In the

1880's the horsedrawn street cars were introduced. This system was

operated by a private company called the Campania de los Tranvias de

Filipinos under a franchise from the Spanish Crown. For the first time,
the Walled City4 was connected with the surrounding suburbs suCh as

Malate, Tondo and Sampaloc. Eventually, steampowered locomotives were

added connecting Tondo and the adjacent town of Malabon.

3.3 Early American and Pre War Development

By 1901, a civil government was already in existence in most

parts of the country5 and the task of reconstruction was undertaken.

The wagon roads and horse trails that the Spaniards built were rebuilt

and upgraded to accommodate the emergence of a new mode of land trans-

port - the motor vehicle. Manila was now being connected by road with
some of the outlaying provinces in the North and the South of Luzon.

By 1905, the first motor car reached Baguio, a mountain resort and

mineral rich town 250 kilometers north of Manila.

Manila, as it was the case during the Spanish period, was the

first municipality to improve its transport system. In 1903, the

Municipal Board of Manila granted a franchise to Mr. Charles Swift of

4 Also known as Intramuros. It was the seat of Government during

the Spanish period. The city surrounded by thick walls was
destroyed during the last war but its walls still stand today.
It has become a tourist attraction.

5Mindanao together with some portions of Northern Luzon particu-

larly in the Mountain Provinces did not have civil governments
until much later.
 24.

Detroit to operate an electric current for light, heat, and power in the

city and its suburbs. It also included the right to operate an electric

train service. The franchise to operate was good for 50 years and the

electric train service was inaugurated in April 11, 1905. The electric

streetcar system was so successful that by the end of the year, it com-

prised 60 kilometers.

Inter-city bus services started operations as early as 1917.

As Manila was now linked by road to most of the bigger towns of the

Southern and Northern portions of Luzon, road transport started to com-

pete with the railways, but the railways remained the dominant mode.

These early bus companies started as a single bus operation but eventually

grew into big transport companies. Bus services were introduced in

Manila in 1.927 to supplement the streetcars. Initially there were 20

buses; by the time the Second World War broke out in 1941 there were 190

units as against 173 streetcars (Nakpil, 1978).

3.4 Post War Developments

The post war years saw the sudden emergence of the road trans-

port as the dominant mode of public transportation. This could be attri-

buted not only to the increasing number of motor vehicles in the Phil-

ippines (see Figure 3) and the expansion of its highway system (see

Figures 4 and 5) but also to other factors, elaborated upon below.

First, the development of the jeepney as a cheap and flexible

mode of intermediate public transport facility. Second, is the slow

6
reconstruction of the Philippine National Railway. As a result, the

6 The total railway network is 738 km of mainline and 321 km of

branch lines and sidings. It is a single track system and
connects Manila with San Fernando, La Union in the Northwest
and Sorsogon in the South. This excludes the 1000 km of tracks
operated by sugar companies and the 117 km of tracks in the
islands of Panay.
 25.
FIGURE 3 ·

GROWTH OF MOTOR VEHICLES, 1961-1978

500
Cars
486,389

400

Cll
"C
l::l
cO
Cll
300
::s0
Trucks
e:l .273,995
'"d
Q) Motorcycles
-El::l .235,756
200
=E

1
Jeepneys
81,888

Buses
21,234
~6.~1--~6~3--~6~5~~6~7--~69~~7~1--~7~3--~7~5--~7=7---7~

Source7: Bureau of Land Transportation, 1978.

7 See Appendix ~.
 26.

FIGURE 4

GROWTH OF HIGHWAY KILOMETRAGE, 1910-1977

120 Total
119,219

110

100

90
Gravel and
Earth
80 85,894
(I'J
H
Q)
.j..l
70
Q)
s0
r-i
·r-l
::.:::
60
"0
§
(I'J

5
so
~
0 4
.-1

Paved
30 32,319

20

0~------------~--~--~-------------------
1910 30 48 65 67 69 71 73 74 77

Source: Ministry of Public Works, and Ministry of Public

Highways, 1978
 FIGURE 5 27.
Map of the Philippines
showing existing Primary
Roads, major Seaports and
Airports, 1975

LEGEND:
Primary Roads
....... ""' Railroad
•• Major Airports

• Major Seaports

·'

Source: Transport and National Development, 1975.

 28.

share of the road transport sector both in the domestic passenger and

cargo traffic has grown to approximately 80 and 45 per cent, respect-

ively. It is estimated that this will continue into the future (see

Tables 1, 2 and 3). Partly because of this and consistent with other

government objectives, an ambitious 5 year highway development program

(see Table 4) to increase mobility and social intercourse between the

urban and rural areas is being pursued.

The public road transport industry today is primarily controlled

and owned by private companies but the government participates through

the buses of the Philippine National Railways and the Metro Manila

Transit Corporation established in 1974. Although private ownership

of jeepneys and buses for the whole country increased dramatically since

1973, there was a slight decrease in bus ownership in Luzon in 1978.

The biggest increase was: registered between 1976 to 1978 as shown in

Tables 5 and 6. This was mainly due to the effects of Presidential

Decree No. 101 (see Appendix B) which granted amnesty and legalized

the operation of many illegal transport operators. This law also author-

ized the government to grant special and temporary permits for the

operation of public road transport services. This shortened the pro-

cessing and waiting period for the approval or disapproval of applica-

tions.

Of the 1,119,796 motors vehicles of various types registered in

1978 which includes trucks, motorcycles and trailers, 210,211 are

public utility or for hire vehi.cles. This is shown in Table 7. Over

the years, four of these different road transport services have emerged

to be the most important in terms of their contribution to the national

economy and transport system.

 29.

TABLE 1
TRAFFIC BY MODES AS OF 1974
Domest~c Passenger
(In Million Units) Cargo
MODE
Pass-km Per Cent Ton-km Per Cent
Highway 20,562 79-4 4,438 43.6
Rail 1,261 4-9 286 2.8
Water 2,462 9.5 5,433 53-4
Air 1,610 6.2 18 0.2
Total . 25,895 100.0 10,175 100.0

Source: Department of Public Works and Communications, 1975·

TABLE 2
PROJECTED TRAFFIC BY MODE, 1980

Domestic Traffic
Pass-km Per Cent Ton-km Per Cent
~in Million Unitsl
Highways 31,440 78.24 7,140 44.0
Railroads 1,710 4.25 360 2.2
Water Transport 3,740 9.30 8,740 53.7
Air Transport 3,290 8.18 23 .1
All Modes 40,180 99.97 16,293 100.0

Source: Department of Public Works and Communications, 1975.

TABLE 3
PROJECTED TRAFFIC BY MODE,1985

Domestic Traffic Per Cent Per Cent

{in Million Unitsl Pass-km Ton-km
Highways 46,000 77.68 11,200 46.46
Railroads 3,050 8.16 970 4.02
Water Transport 5,080 8.88 11,900 49.36
Air Transport 5,085 8.58 39 .16
All Modes 59,215 100.0 24,109 100.0

Source: Department of Public Works and Communications, 1975.

 30.
TABLE 4
HIGHWAY DEVELOPMENT PROGRAM INVESTMENT REQUIREMENT, 1978-1982
(In Million PesosS at 1978 Prices)

1978 1979 1980 1981 1982 5 Year

Total
Region Grand
Total p1,946 ,;2,ooo p2,050 p2,100 p2,250 ?10,346
Region 1 -; 17.5 -;92.2 p133.1 -; 71.0 ?38.8 ?352.6
Region 2 120.2 81.0 59.0 33.5 42.2 335.9
Region 3 48.6 36.5 35.9 2.0 123.0
Region 4 430.9 436-7 407.5 375.2 383.6 2,033.8
Region 5 52.8 61.1 63.2 66.5 85.4 329.0
Region 6 259.8 177.8 95.0 95.4 177-4 805.4
Region 7 65.1 88.5 148.5 148.5 190.9 641.5
Region 8 6.1 12.9 26.1 55-4 129.7 . 230.2
Region 9 57.1 45.8 66.6 46.0 215.5
Region 10 66.6 69.4 41.5 10.0 10.0 197.5
Region 11 17.3 10.5 10.5 75.5 5.0 118.8
Region 12 86.5 101.5 82.9 25.7 6.5 303.1
Inter Regional 717-5 786.1 880.2 1,095.3 1,180.5 4,659.6
Source: Ministry of Public Highways, 1978.

3.5 The Buses

The total number of registered buses in the country as of 1978

was 20,194 units. The buses carry the bulk of inter-urban and inter-

regional travel. Inter modal competition between the bus and the rail

is limited in places where rail service is available such as the rail

line connecting Metro Manila to the Bicol region in the south and La

Union and the northeast of Luzon. Even with the availability of rail

in some places, the bus still predominates over the rail principally due

to its ability to penetrate places that the rail cannot. There is a

large utilization of buses in Metro Manila for its city transport system

but this case is the exception. There is no other city in the Philippines

8
A$1 is equal to 8 .068 pesos as of January 1980.
 TABLE 5
REGISTERED PUBLIC UTILITY JEEPNEYS, 1973 - 1978

YEAR P J!;KL:.KN'l'
AREA OF TOTAL
1973 1974 1975 1976 1977 1978 ( 1978)
Region I 3,081 3,806 4,093 4,098 4,128 4,801 6
Region II 857 918 897 1,126 1,735 1,647 2
Region III 3,396 5,217 5,160 5,604 5,888 5,113 7
Region IV-A 20,498 17,386 17,494 18,623 27,931 34,187 47
Region IV-B 691 1,175 766 814 872 777 1
Region V 1,515 1,921 1,717 2,263 2,485 2,896 4
LUZON (Sub-Total) 30,438 30,423 30,127 32,528 43,039 49,421 67
Region VI 4,628 4,949 5,403 5,122 6,455 7,921 11
Region VII 3,801 3,586 3,597 3,683 2~192 5,025 7
Region VIII 753 1,609 996 1,291 2,637 1,248 1
VISAYAS (Sub-Total) 9,182 10,144 9,996 10,096 11,284 14,194 19
Region IX-A 148 141 77 32 32 38 -
Region IX-B 636 812 712 683 904 844 1
Region X 1,415 1,625 1,771 1,732 1,967 2,064 3
Region XI 1,999 2,613 2,508 2,503 3,678 5,502 7
Region XII 1,184 1,260 1:,029 1,081 1,475 1,838 3
MINDANAO (Sub-Total) 5,382 6,451 6,097 6,031 8,056 10,286 14
PIITLIPPINES (Total) 45,002 47,018 46,220 48,655 62,379 73,901 100

Source: Bureau of Land Transportation, 1978.

 TABLE 6
REGISTERED PUBLIC UTILITY BUSES, 1973-1978

YEAR PERCENT
AREA TO~t
Of 1978
1973 1974 1975 1976 1977 1978
Region I 2,202 3,095 3,213 3,137 2,341 2,482 13
Region II 434 457 523 547 577 502 2
Region III 1,587 1,622 l,572 1,533 3,158 3,018 15
Region IV-A 6,048 6,040 6,183 6,689 6,651 6,340 31
Region IV-B 121 161 147 211 498 181 1
Region V 1,205 1,366 1,103 1,232 1,133 1,277 6
LUZON (Sub-Total) 11,599 12,741 12,741 13,349 14,358 13,800 68
Region VI 1,141 658 1,063 737 1,456 1,359 7
Region VII 1,110 1,154 906 843 942 1,652 8
Region VIII 451 374 323 310 306 321 2
VISAYAS (Sub-Total) 2,702 2,186 2,292 1,890 2,704 3,332 17
Region IX-A 39 37 36 20 26 137 1
Region IX-B 458 454 246 139 148 101 1
Region X 752 785 740 966 568 668 3
Region XI 902 1,569 938 921 1,151 1,674 8
Region XII 372 346 347 208 207 482 2
MINDANAO (Sub-Total) 2,253 3,191 2,307 2,254 2,100 3,062 15
PHILIPPINES (Total) 16,822 18,118 17,340 17,493 19,162 20,194 100

Source: Bureau of Land Transportation, 1978.

 TABLE 7
REGISTERED FOR HIRE VEHICLES,1975-1978

YEAR
VEHICLE CLASSIFICATION
1975 1976 1977 1978
FOR HIRE VEHICLES 138,469 158,506 187,969 210,211
CARS 24,448 26,641 26,497 25,192
Taxi (TX) 10,621 13,418 16,302 13,329
Auto-Calesa (AC) 10,681 10,528 6,629 7,271
Public Utility (PU) 2,748 1,822 2,731 3,136
Garage (G) 252 709 760 1,305
Tourist Car ( TC) 146 164 75 151
TRUCKS 76,514 32,505 101,438 113,279
Public Utility Jeepney (PUJ) 46,220 48,655 62,379 73,901
Public Utility Cargo (PUC) 262 2,242 3,256 716
Public Utility Bus (PUB) 17,340 17,493 19,162 20,194
For Hire ( TH) 11,650 12,468 15,857 17,428
Tourist Bus ( TB) 221 267 321 427
School Bus (SB) 57 152 34 830
MOTORCYCLES 36,815 48,535 59,037 70,355
For Hire (MCH) 36,815 48,535 59,037 70,355
TRAILERS 692 827 997 1,385
High-Bed (HHB) 481 670 683 1,223
Low-Bed (HLB) 89 59 166 83
Truck-Trailer (THK) 122 98 148 79
Source: Bureau of Land Transportation, 1978.
 34.

today that could come close to the size of Metro Manila both in popu-

lation and importance as an economic and cultural center.

Most of the buses in operation have seating capacities ranging

from 16 to 55. These consists mainly of imported truck chassis with

locally manufactured bodies. Many of the buses are designed and built

to suit the specifications of the transport operators. The aircondi-

tioned buses of the Philippine National Railways and the Metro Manila

Transport Commission are, however, imported from other countries such

as Japan. The bulk of bigger buses with seating capacities from 40 to

55 carry the bulk of long distance passenger traffic mostly from the
provinces to Metro Manila and vice versa. The smaller buses often

termed locally as "Mini Buses." carry the shorter and medium range

passenger traffic. These travels are mainly within a Province or a

Region. The "Mini Busestt are also used in Metro Manila. Of the total

number of buses plying the country today, 13,800 are concentrated in

Luzon or 68 per cent of the total number with the Visayas and Mindanao

accounting for 1S and 17 per cent respectively.

9
The demographic pattern of the country plus the fact that

Luzon has a more developed road network are factors that contribute to

this difference. Although Mindanao's road network is gradually being

improved, there is still great difficulty in road travel. Recently,

however, there has been a substantial increase in the number of buses

plying the roads in Mindanao. The Visayas is a little different in

that inter-island travel is done mostly by water transport but provincial

9
Luzon accounts for 54 per cent of the national population
while the Visayas and Mindanao have 24 and 22 per cent
respectively.
 35-

travel is done by road. The two major Visayan islands of Samar10 and

Leyte have now been connected by a bridge and road travel has greatly

increased commerce and social intercourse between the two islands.

3 .6 The .I eepneys ( PU.I )

One of the most popular and certainly the most versatile road

transport that has emerged as a result of the destruction of the street-

cars and buses during the last war is what is popularly known as the

jeepney. It could be said that the jeepney is uniquely and distinctly

Filipino and its development through the years has made it one of the

backbones of road transport and this intermediate capacity vehicle has

made it a very reliable means of transportation.

When the people after the war were looking for a substitute to

the totally destroyed transport system, the United States Army surplus

jeeps and trucks were converted to serve as passenger and freight ser-

vice. The tail gates of the jeeps were removed to accommodate 6 to 8

passengers. The trucks were eventually phased out but the jeep stayed

on to be improved and developed to what it is today (Fig. 6). The

jeepney caters to a vast number of the commuting public in Metro Manila,

and throughout the country. It provides a cheap and flexible trans-

portation and is the closest thing to the door-to-door service that

people want. There are two types of jeepney services in operation. The

PUJ is the bigger type and could accommodate 12 to 16 seated passengers.

The PUJ operates within a fixed route within a defined territory. Their

routes are controlled by franchise as are their number. J eepneys in

Metro Manila operate on the same roads as the buses but have been banned

10
Samar is the new site of another major Australian road building
aid program.
 ~.

from certain major streets in the city. They also can be chartered and

they do carry small freight.

FIGURE 6

JEEPNEY

In the provinces, jeepneys and buses operate on the same

routes. The AC or auto calesa is the smaller type and could take only

8 passengers and operate without a fixed route. The operation must,

however, be within a defined area. Their routes and numbers are also

controlled by franchise. As far as the route is concerned, the AC is

more flexible but this system and practice has lapsed in Metro Manila

i n 1974 and the AC now operate in the same manner as the PUJ's.

Presently, there are 81,172 AC's and PUJ's in operation

throughout the country. The PUJ account for 7 3, 901 while the AC 's

number 7,271. There has been steady decline of the AC due to the
 37.

shift of operators to the bigger PUJ 1 s. Although the jeepney has serve

its purpose very well over the years, its operation in Metro Manila has

come under very strong criticism. It has been alleged that the large
number of jeepney are the chief cause of the traffic ills in Metro

Manila and there were serious plans to prohibit jeepney operations in

some of the streets of the city. In the provinces, however, the jeep-

ney continue to be very reliant and efficient transport mode. It does

not only cater to the average citizen but also serves as freight ser-

vice for the small time farmers who bring their produce from the barrios

to the market.

3.7 The Taxi Service

The taxi industry is limited to a number of cities in the

Philippines. With the 13,329 registered units in operation in 1978,

Metro Manila accounted for 11,898. Region VII with Cebu as the center,

had 449 and Region I had 617 mostly found in Baguio City. Taxi's are

registered in specific municipalities and its operation must be within

a defined area. Special trips outside specified areas of operation are

not entirely prohibited and are allowed in some cases. Since taxi fares

are more expensive than the jeepneys and buses, its patronage is limited

to the higher income people and to tourists.

3.8 Trucks For Hire

Trucks for hire are classified either as common carriers or

contract carriers. The former is hired by the general public for haul-

ing services. This type of carrier accounts for 10 per cent of all the

trucking activity in tite country. The contract carrier operate only

for those with whom it has a specified contract. 1978 Bureau of Trans-

portation figures show that there are 17,428 registered units in

 38.

operation. The figures also show a great disparity in truck distribu-

tion between the three major island groupings. Luzon has 10,539 with

Metro Manila having 6,882. Mindanao has 4,665 with the Visayas account-

ing for 2,224 units. The large concentration of trucks operating in

Metro Manila is understandable considering that it is the center of

economic activity and will continue to be such in the future.

Most of the large trucking companies offer mixed services to

trucking operations including freight forwarding, brokerage, packing,

crating, containerization, and cargo handling. In some cases, special-

ized handling of bulk liquid and containerized cargo are provided. Due

to the absence of pipe lines and the limited penetration of the rail-

road, the trucks have become extremely important in the economic life

of the country. The trucks carry large portions of goods, fuel and

food to and from the provinces. A disruption of the trucking service

therefore, would cause tremendous dislocation to the economic activity

of most towns and cities in the country.

3.9 The Tricycle

The tricycle, which is actually a motor cycle with a side car

has increasingly become an important mode of transport expecially in

the rural areas (see Figure 7). It is a cheap and very flexible trans-
port facility. In the rural areas, the tricycle provides for the

transport needs of the barrio people. Since the distances between

towns in the Philippines are fairly short, the tricycle is also used for
journeys between towns. In the cities outside of Metro Manila, the

tricycle is used along side the jeepneys. In Metro Manila, the use is

limited to feeder service to jeepney routes and areas not serviced by

jeepneys and buses and these are mainly on new housing estates.
 39.

FIGURE 7

THE TRICYCLE

The limited passenger capacity of the tricycle is its main

disadvantage. It could only accommodate 2 passengers excluding the

driver. This, however, has not prevented its dramatic rise. The

number of registered tricycles in operation as of 1978 was 70,355

units. The operation of the tricycle along inter urban highways has

come under strong criticism. Since the tricycle competes for road

space with buses, cars, and other types of motor vehicles, the slow

speed of the tricycle is considered a traffic hazard and has been the

cause of road accidents.

Unless the government would be able to construct roads spe-

cially for the tricycle or construct secondary roads to connect the

towns apart from the existing national highways, the tricycle will have

to continue sharing road space with other motor vehicles.

 40.

Internal expansion during the Spanish colonial period was a

very slow process. It was not until the last quarter of the 19th

century that there was an accelerated period of internal expansion.

This was mainly due to the railroad which was responsible in opening

the areas of Central Luzon for cultivation. The railroad also influenced

the expansion of the towns that were found along its line. The conti-
nued expansion of the railroad by the Americans to the south of Luzon

installed the rail as the most important mode of transportation. Its

destruction during the war and its slow process of reconstruction after

independence however, gave way to the motor vehicle as the principal

mode of transport in the country today. The shift from the rail to road

was achieved in so short a time that its growth far outpaced the govern-

ment's ability to cope with the increasing demands of this transport

system.
 41.

CHAPTER 4

GROWTH OF URBAN SETTLEMENTS

4.1 Background

Although the country's peculiar geography and the ancient

trading routes of the East influenced the founding of the very early

settlements, it was Spanish colonization that was responsible for the

political consolidation, growth and development of these communities.

From the very small primitive nomadic communities that the

early Malay settlers founded along the coastal areas and river banks,

they grew into large communities with varying degrees of socio-political

developments. By the time the Spaniards arrived, settlements with

populations as large as 4,000 or more were already in existence in some

parts of the country such as Manila, Cebu and Bohol.

Although the founding of Cebu predates Spanish colonization,

it was the first settlement that the Spaniards developed in the Phil-

ippines and made it the first seat of colonial government. In the last

quarter of the 16th century, the administrative control of the colony

was transferred from Cebu to Manila. This was partly because Manila

was in a better economic position to support the growing requirements

of colonization and the news of gold in Luzon. This move as will be

shown later in the chapter would have far reaching effects on the

pattern of urban growth that would make Metro Manila the primate city

that it is today.

The desire of the Spaniards to develop large scale agriculture

for the export of agricultural produce led to the expansion and deve-

lopment of the existing port towns. The Ilocos region in Northern

 42.

Luzon, the Bicol region in Southern Luzon and the island provinces in

the Visayas and Zamboanga in Mindanao were settled and developed. The

concentration of the effort of the colonial government in expanding the

agricultural capability of the producing areas that they found was mainly

because of its desire to make the country economically self sufficient.

At that time, government operational expenses was subsidized by Mexico.

It was not until 1772 that this subsidy was abolished when the country

achieved surplus production.

The remaining years of the Spanish colonial period were devoted

to increasing agricultural production and the expansion of the coastal

towns to support the growing economic activity of the country. Manila

continued to grow and expand to become the principal trading port of the

country.

By the time the Americans arrived in 1898, the patterns of the

present population centers in the country have already been developed

(See Figure 8). This however, did not prevent them from developing new

ones. In contrast to the Spaniards who developed urban centers because

of economic necessity, most of the urban centers that developed under

the Americans grew as a result of the establishment of military bases

in these areas. They are also credited for passing laws encouraging

settlement in the sparsely populated areas in Mindanao and the Visayas.

The post war years saw the rapid growth of population in the

country (See Figure 9 ). The uncontrolled migration to Manila and the

over concentration of industries there have reached alarming proportions

so that its existing institutions, facilities and social services are

strained to the limits.

This phenomenom of Manila being the natural destination of

 FIGURE 8
0
43.
Map of the Philippines
showing existing urban
settlements, 1975

LEGEND:
• Urban Centers

rfO

0~
Source: Ministry of Human Settlements, 1976.
 44·

migration is not surprising considering that this pattern have long

been established during the colonial period. When internal penetration

was undertaken in the 19th century it was to connect Manila, which was

the seat of government and the dominant trading port, to the outlaying

provinces of Luzon. As Figure 10 shows, most of the populated provinces

of today were the first to be developed. In Luzon, the densely populated

provinces are the ones where the first railroad lines were first estab-

lished (see Figure 2). In the Visayas, the agricultural provinces of

Negroes, Panay, and Cebu were the first to be developed purely because

of their economic potentials.

FIGURE 9
In Millions
POPULATION GROWTH AND PROJECTIONS
1903-2000 90
83.9
,It
I I 80
I I
I
I I
I I
65.31 I . 70
I
,If I
I
I I
I I . 60
,
I 1 I
49.6/ I
I 50
......I l
;' ( I
I I
l 40
I I
I l
I 30
I
! I
I I 20
l I I
I I
l I
I I
l I 10
I I
I
I •

Source: Bureau of Census and Statistics, 1975.

 FIGURE 10
45.
0
Density Map of the
Philippines, 1975

LEGEND:
0
2,000 or more persons
per sq. lan.
0
200 to 1,999 persons
per sq. lan.

100 to 199 persons

per sq. lan.

SO to 99 persons
~ per sq. km.

~ per
49 or less persons
lan.
~

... .
.
...
.A.
~-·
Source: Bureau of Census and
Statistics, 1975 •
» '!
 46.

4.2 Pre-Spanish Settlements

Prior to the coming of the Spaniards to the country, a good

number of population centers developed in many parts of the country.

These communities were found mostly along the coastal areas and the big

river deltas of the country. From the Northern most part of Luzon to

the Southern most part of the archipelago, communities with populations

as large as 4,000 as in the case of the island of Bohol were already in

existence (Marcos, 1977). Most of these communities were found in the

Western portion of the country. In part, this was because most of the

major river systems of the country drain into the South China Sea.

Another important reason, however, was the direction of sea crossing

trade which was westward to the Asian continent. These pattern of

settlement have not changed to the present day as shown in Figure 8.

From the north, the estuary of the Rio Grande de Cagayan in

the Cagayan Valley attracted the Japanese who attempted to establish a

colony before being driven out by the Spaniards. In Central Luzon,

Lingayen in the Province of Pangasinan had a large connnuni ty of 4, 000

trading with the Chinese and Japanese. Manila was one of the largest of

these settlements (Alip, 1977). Spanish records reveal that when the

Spanish leader Martin de Goite accompanied the first expedition to

Manila from Cebu in 1568, the found that the place was defended by a

fort built on the headland between the Pasig river and the sea. The

fort was constructed with coconut trunks and narrow earthen walls and

mounted with twelve medium and light pieces of artillery and some small

calibre cannon. Manila's size was so large that, when the Spaniards

finally captured the place, the soldiers were told not to spread out for

fear of being separated from the main group and be captured.

Farther to the south in Luzon, Paracale in the Bicol region

 47-

attracted the Spaniards from Cebu due to its existing gold mining opera-

tions. When the Spaniards first landed in Cebu, Pigafetta, the Italian

chronicler of Magellan, noted that 11 the house of the chief was large

and was made of wood and grass 11 • In Mindanao, the islands of Sulu lie

along the trading routes established by China and the Arabs and were

therefore a very important settlements.

The earlier Filipinos, however, had more rudimentary patterns

of existence and these could be grouped into three: the permanent

scattered communities of people engaged in swidden agriculture; the

impermanent communities of few families engaged in slash and burn

agriculture; and the migratory groups engaged in hunting and food

gathering. The development of these communities followed lineal patt-

11
erns except the Igorots who moved in clusters (Vol. I, Report of

Task Force on Human Settlements, 1975). Communities were generally

found along the river banks, lakes and coastal areas. The names Tagalog,

which was derived from the word Taga-ilog, meaning from the river,

Pampanga, Agusan, Baybay and Tausog all denoting water, clearly illus-

trate the strong influence of the sea and waterways in the development

of the very early Filipino settlements.

By the time the Spaniards arrived many of these settlements had

already developed into varying degrees of socio-political units so that

the Spaniards had to fight hard to subdue and impose their authority on

the Filipinos.

4.3 Spanish Settlements

Colonization from Spain was the starting point in the history

11 These are the people who inhabit the Mountain Provinces in

Northern Luzon.
 48·

of the consolidation of the present urban centers. When Spain finally

established control over the archipelago in 1565, the geography as well

as the scattered communities which characterized early Filipino settle-

ments presented a problem to the Spaniards. The estimated population

of half a million was scattered throughout the archipelago. The scarcity

of population did not present any real difficulty to the Spaniards in

subduing the people but social control was more difficult to establish.

The few Spanish missionaries and political administrators found it

extremely difficult to accomplish their mission in an area whose popu-

lation was so widely dispersed and decentralized. To solve these prob-

lems, the Spaniards resettled the people into compact and nucleated com-

munities. In 1573, King Philip issued a Royal Decree regarding the

structure of towns to be constructed and established in all Spanish

colonies and is illustrated in Figure 11. The Decree stated that:-

110n arriving at the locality where the new settlement is to

be founded, the plan of the place, with its squares, streets and build-

ing lots is to be outlined by measuring by cord and rule, beginning at

the main square from which streets are to run to the gates and principal

roads, leaving sufficient open space so that if the town grows, it can

spread in a symmetrical manner • the main plaza is to be in the

center of the town and of an oblong shape • • • A comun12 shall be

assigned to each town of adequate size • • • 11

The basic structure pattern can still be seen in many towns in

the Philippines today. The Spaniards with this Royal Decree were able

to consolidate the scattered villages into compact communities of varying

12 A town plaza.
 49-

FIGURE 11

Town Plan as Decreed by King Phili p II i n 1573

• • , I
. o •: o•
-:·· ·:-: ..:-:.: ···.:
::~ . ~ :·: : :·_.-Re~si:den tial
..... ...
0 0 : :· · .... _;

. • ,, 0. . .....
.· ... -:_:·-.; · -al.ock
•• • 0.
..,* -:~-·: :·.. ·...

r •• ~... ·:· ·'

.
, ., I o

..·.:
·: . ·. · ..
0·: • . 0., •• •
. .. . .. .

,ft',•,• 1 •,. ',

:....... ·.. . ..·.· . .

• 0 • • • ,

·. ?:::-~ ...
.. . . . .. .. .
'· ~ ·.:..:. : ~

. --.:·.·"'·. • •': .:......0.. . : ·...

•

. ...
. :" ...
·. ': .
. .· :. : :·:·_.~};- ..·.:: :
..:: ·.. \:' .: :. ?..:.'· . : .
,_; .·· ...·. .·.. : .·.: : ·..

• •, ·- • ·."·' I\~:
. .
.· ·.·.· ·.·.. ., .
~ ·.·

.. ... . ...... ·.
_

. ·..... :·- , .. · ..
..•:·.-·:...'': ·.

Source: Vol. 1, 2nd Report, The Task Force of Human

Settlements, 1975.

sizes from 400 to 5000 people. Although the task of resettlement was

not easy, the Royal Decree proved to be the beginning of the establish-

ment of Religio-Political centers of the country.

The Spaniards have always maintained the principle of bureau-

 so.
cratic centralization in all her colonies. Consequently, Manila was

not only the seat of government but also the center of economy, culture,

and education. With regard to the Catholic church, the city also became

the most important diocese in the country. It is not surprising that

Manila was a natural destination for migrants: a pattern which has con-

tinued up to the present day.

By the middle part of the ~8th century, better methods of farm-

ing were developed and new crops for export were introduced. This pro-

gram was so successful that large scale agriculture made possible the

exportation of products such as sugar, indigo, abaca, tobacco and copra.

The main effect on settlement patterns was to expand the port towns in

the areas responsible for the production of these crops. Negroes for

sugar, the !locos region for tobacco, the Bicol region in Southern Luzon

for abaca and the Western provinces of Mindanao for copra. The estab-

lishment of tobacco monopoly on 1772 greatly contributed to the abolition

of the situado 1 3 from Mexico. This allowed the country to achieve

financial self sufficiency.

The opening of the Suez Canal in 1869 brought accelerated

expansion of foreign trade. Manila which was opened to foreign trade

in 1843 became the most important port of call in the country (Nakpil,

1971). In 1855, the ports of Iloilo in the Visayas, Sual in Pangasinan,

and Zamboanga in Mindanao were opened to foreign trade. This was fol-

lowed by the opening of the port of Cebu in 1860. Legaspi and Tacloban

were opened in 1873. These port cities remain very important centers

and they now form as centers for regional development.

13 This was the subsidy from Mexico which supported the

operation of the colonial government.
 51.

It is unfortunate however, that these lesser ports were opened

to foreign trade during the later years of the Spanish colonial period.

By this time, Hongkong and Singapore were opened by the British and the

Philippines started to lose its premier position as an important trading

nation in the Far East. This in turn adversely affected the development

of these lesser ports and enhanced the importance of Manila to the whole

country (Hardentorp, 1958).

4.4 American Period

By the time the Americans came to the country, the population

of the country had grown to an estimated 6.5 million people from the

estimated 0.5 million in the middle of the 16th century. Aside from

continuing the Spanish policy of resettling the population into compacted

and nucleated communities, the Americans expanded internal accessibility

through the construction of more roads throughout the country. This was

possible due to the relatively short period by which the Americans were

able to achieve complete political and military control over the whole

country. The railroad was at this time also extended to connect Manila

with the Bicol region. The coming of the Americans saw the introduction

of a completely different political and economic system. They intro-

duced a representative form of government and encouraged free enterprise

as the new basis of economic order. This would have far reaching effects

in the transport development of the country in that the free enterprise

system introduced by the Americans would become the basis of the present

transport institutions and regulatory system still in use at present.

In addition, several legislations were passed during this period

encouraging migration and settlement in the sparsely populated island

of Mindanao. Cagayan de Oro and Davao started to grow as a result of

these laws and the fertile area in the province of Bukidnon was opened
 52.

to agricultural production. This period also saw the growth of commu-

nities where the present American Bases are located: Olongapo grew on

account of the Subic Naval Base in Zambales; Angeles as a result of

Clark Air Force Base in Pampanga; and Cavite City as a result of the

Sangley Naval 14 repair facility.

The Americans made some improvements to the old town plan of

1573. D.H. Burnham, an architect came to the country and directed the

drawing of plans for the improvement of the bigger towns of -the country

such as Manila. In his plan for Manila, he envisioned the following:

The development of the waterfront and the location of parks and park-

ways so as to give proper means of recreation to every quarter of the

city; the street system should secure the direct and easy communication

from every part of the city to other parts; location of building sites

for various activities; and the development of waterways for transporta-

tion (Vol. 1, Integrated Reports, Task Force on Human Settlements, 1975).

In 1909, Manila and Baguio became chartered cities and remained

the only two cities until 1936 when 26 more ncities 11 were added. There

are now 61 cities. Many of these cities, however, with the exception

of Manila, Cebu, Baguio, Bacolod, Davao, Cagayan de Oro, and Dagupan

could hardly be characterized as cities in the way it is generally

understood. Many of these cities were chartered for various reasons

such as politics and perhaps for more centralized government control.

4.5 Present Trends

The country after the Second World War experience a population

14This military facility was turned over to the Philippine

government in 1971.
 53.

growth rate of 3.2 per cent a year. From a population of 18 million in

1948, it has grown to approximately 46.5 million in 1979 (see Figure 9).

At the same time, while the population was growing at a very alarming

rate, the economy was registering a low average growth rate. Clearly,

the economic growth was not enough to sustain and provide the basic

social facilities to support the tremendous growth in people.

Partly due to past colonial policies and the absence of a

national plan to control and regulate urban growth, Metro Manila today

is the classic Asian primate city. There is no other city in the country

today that could come close to it both in size and influence for the

country as a whole. It is the political, educational, economic, and

cultural center of the country (Nakpil, 1977). The city is the base of

all institutions whether private or government. Of the national popu-

lation of 46.5 million, 7.2 are living in the city, 65 per cent of the
country's industrial plants are located in the Metro Manila region. To

the rural people, the City has become a place where they could improve

their fortune and seek better employment opportunities. Migration from

the rural areas became so great that there was a yearly inflow of

250,000 15 people congesting and straining the available social and phy-

sical services of the city. This huge number of unregulated migration

to urban centers is slowly changing the spatial configuration of exist-

ing settlements (Vol. 1, The Integrated Reports, 1975). This process

has resulted in the over concentration of people and activities in a

single urban center while the rest of the country remains largely under-

developed. The urban problems that have developed in the Philippines

15Recent estimates of the Ministry of Human Settlements put

the figure down to 180,000.
 54.

over the years are not unique but are common to most developing countries.

These social problems are characterized by high population growth rate,

high unemployment and underemployment, deficient social facilities and

unplanned urban g~owth.

In the Philippines the growth of these problems to its present

state is deeply rooted in the country's colonial history and political

institutions. The bureaucratic centralization practiced by Spain has

not changed much to the present time. Although the government in 1972
started a program of administrative decentralization, the task has been

difficult and not entirely successful. The system of local governments

introduced and developed under the Americans has not undergone any

meaningful changes to make it more responsive to the growing problems

of urban growth. Chartered cities are independent and therefore plan

their own developments without the benefit of coordination with the

provincial governments. In like manner, provincial governments have

their own development plans independent of each other. There was a

total absence of a national effort to guide and direct development goals.

The present Metro Manila for instance had 4 chartered cities and 13
municipalities before their integration in 1974 into a Metropolitan

Commission. By the early part of the 1970's the problems had become so
acute that sheer necessity forced the national government to develop

comprehensive plan for the future growth of cities and their physical

improvement. The major effort of the government has naturally been

centered on Metro Manila. This is understandable considering the per-

vasive influence of the city to the whole country.

On September 19, 1973, the President by virtue of Executive

Order No. 416 created the Task Force on Human Settlements. The mission

of this Task Force was to formulate a national plan which would serve as
 55.

a general scheme of development for the country. This included a Metro

Manila development plan and a national housing plan. The Task Force

consisted of 17 government agencies headed by the President of the

Development Academy of the Philippines. The result of the work was a

comprehensive 11 volume National Development Plan. The final report

consisted of a 2 volume Summary of Recommendations of 4 volume report

of the various framework plans and programs with a 8 volume supplementary

material have been printed.

Essentially, the present national government effort is directed

1. The redistribution of population by changing the present

migration patterns by establishing and designating

regional growth centers to absorb populations and made

demographic distribution more even and not concentrated

in only one urban center.

2. The dispersions of the industrial plants located in the

Metro Manila region to other designated growth area to

provide employment opportunities in places other than

Metro Manila.

3. Future planning of the growth and development of Metro

Manila and the improvement of the physical structure

of the city.

4. The development of a national housing plan to improve

the acute problem of deficient housing facilities to

all.

16 For a more detailed information, See Vols. 1 to 4 of the

Integrated Reports of the Task Force on Human Settlements;
September 1975.
 ~.

This chapter showed the growth pattern of urban centers during

the Spanish and American colonial period. During the Spanish period

the urban growth was really centered on the growth of Manila. This was

because of the closure of the whole country to foreign trade. This

retarded the growth of the lesser ports leaving Manila to dominate over

them. When internal expansion was undertaken, the effort was to connect

Manila which was already the seat of government, to the rest of the

country. It could be said that the whole period of Spanish colonization

was characterized by the growth of one city.

The coming of the Americans did not change this pattern.

Although the Americans introduced a system of local governments and

encouraged migration to the sparsely populated provinces of Mindanao,

Manila remained the seat of government and continued to grow and expand.

The powers of the local governments·were limited leaving most of the

government decision making in the hands of the central government in

Manila.

The coming of the Americans however, changed the whole politi-

cal and economic system of the country. They introduced a representative

form of government and the economic system of free enterprise replaced

the old one which was largely controlled by the government and the

religious orders.

The introduction of the free enterprise system would have far

reaching effects in the development of public service institutions,

practices and laws that are still in use in the country today.
 57·

CHAPTER 5

TRANSPORT AGENCIES AND REGULATIONS

5.1 Present Situation

Today 1 s general objectives regarding the country's road trans-

port industry have been clearly defined and set forth recently in the

government's 5-year National Economic Development Plans. These goals

and objectives are to increase the efficiency of the available resources

of the road transport industry and increase its carrier capacities

which are all intended to sustain the growth of traditional urban and

production centers to the extent defined in the overall sectoral and

regional development strategies.

"Priority is directed to the provision of improving the basic

transport services in new growth centers and depressed areas with rich

development potentials. Transport investment and other related programs

will henceforth be initiated in less privileged areas to reduce dispari-

ties of income and other social inequities. Physical improvement of

highways facilities have also been programmed to be constructed and

built. Farm-to-market roads which will eventually be connected to

existing highways are now being constructed to increase rural mobility"

(5-year National Economic Development Plan 1978-82, 1977).

The present level of government participation in the road trans-

port industry as an operator is not extensive as in many other coun-

tries. This is because the Philippines has traditionally relied on free

competition in the road transport sector and this has naturally resulted

in extensive private ownership. Since the government is also an operator,

it is faced with the same problems and decisions as all transport

 58.

operators. As an administrator, it defines, and limits the nature of

transport operations. This takes the form of determining the number of

firms and the extent of competition including fares, routes and capaci-

ties of companies to operate. These web of controls have been designed

to circumscribe the freedom of operators in the public interest. The

development of these controls has also exercised considerable influence

on the growth of the present system of road transport.

The country has always adopted a direct and pragmatic approach

in regulating and administering the transport industry. The growth and

development of the different modes of transport consequently resulted

in the passage of different and separate laws that set the legal frame-

work for the administration of each mode as distinct entities. For

example, there is the Civil Aeronautics Administration created by

Republic Act 776, The Maritime Industry Authority established under

Presidential Decree No. 474, the Board of Transportation created under

Presidential Decree No. 1, the Philippine National Railways under

Republic Act 4156, and the Metro Manila Transit Corporation under

Presidential Decree 860.

In many respects, this modal approach just outlined above

worked very well, but it had at least one major deficiency. It failed

to recognize the necessity of developing a comprehensive national

transport policy. The first prerequisite to the development of such a

policy is a recognition of the transport sector as a single entity.

When this is recognized, the need for a coordinated approach to admi-

nistration, policy, and planning in the transport industry would follow

logically.

The Ministry of Transport and Communications was created in

1979 to fill this need. With its establishment, it took over the
 59.

administrative and operational control of some of the existing trans-

port agencies as shown in Figure 12. The Ministry was also given the

responsibility for administering the use and development of the trans-

port system as a whole. This involved policies which influence the

interaction between the various modes as well as policies which apply

across all modes. As Figure 12 shows however, the various transport

agencies still maintain considerable autonomy of actions and are there-

fore still empowered to formulate their own short term goals and plans

for maintaining, improving or establishing new links or services. Under

this situation, the purpose for which the new Ministry was established

has not been entirely successful.

5.2 Public Service Regulations

The regulations governing the extent and character of activity

in the public road transport industry is basically anchored on the

Public Service Law of 1936 otherwise known as Commonwealth Act No. 146.

This Act included the supervision, administration and licensing or fran-

t chising of other public utilities such as electric lights and power

service, ice plants, telephone services, waterworks, cold storages, and

other related utilities.

The regulation of public service did not start with the enact-

ment of CA 146 in 1936. It started much earlier. When the first

horsedrawn streetcars were introduced in Manila in the 1880's, the

extent of its operation was defined in the Royal grant given by the

King of Spain to the concessionaire or operator. This was also true

in the case of the first railroad company which started operation in

1892. The franchise for the operation of a public transport system

during this period was therefore dependent on what was decreed or

granted by the Spanish Crown to the operator.

 60.

When the Americans took over the country in 1898, they intra-

duced a transport regulatory system based on the economic doctrine of

free enterprise. The transport systems in the United States during this

period was developed largely through private initiative with the govern-
ment providing the legal framework and seeing to it that enacted rules

were not violated. It was this system that was implanted in the Phil-

ippines. When the Filipino-American War was drawing to a close in 1901

and civil government was eventually established, the Philippine Com-

mission started transport regulation with the passage of Act 520 creat-

ing the Coastwise Rate Commission regulating water transport in the

country in 1902. This was followed by the supervising Railway Expert

t Office in 1906 through Act 1507 and the Board Rate Regulation in 1907

by Act 2707. These laws were the forerunners of the first comprehensive

set of public service laws introduced in 1914 with the passage of Act

2307. This law was patterned after the practice in use in the United

States particularly in the State of New Jersey (Almario, 1977). Act

I
2307 created the Board of Public Utility Commissioners which is the

direct descendant of the present Board of Transportation.

f The laws underwent a series of revisions and amendments. In

1933, Act 4042 elevated the members of the commission to the equivalent
I rank of judges of the courts of first instance 17 to be appointed by the

Secretary of Justice. The commission remained under the Department of

• Justice until its abolition in 1972. The passage of CA 146 in 1936
~
I
created the Public Service Commission which remained to be the govern-

ment regulatory body until its replacement by the Board of Transportation

17 The judicial system in the Philippines is organized into:-

The Municipal Courts, Courts of First Instance, Court of
Appeals and the Supreme Court.
 61.

in 1972. The Board is now under the Ministry of Transport and Communi-
cation.

5-3 Transport Agencies

There are presently various government Ministries, authorities

and corporations that are directly or indirectly involved in the regu-

lation, administration and operation of public road transportation.

Some of the more important agencies together with their functions are

shown in Figure 12.

These agencies have been created under different laws and con-

'r
I
sequently act and operate under the legal framework of these legisla-

tions. It is not therefore unusual that these agencies act indepen-

dently of each other. Problems which are not clearly defined are solved

by coordination between these agencies. This arrangement however, has

proved unsuccessful in many instances. Overlapping of functions are

r very common and conflicting and duplicating of functions often make

government programs difficult to pursue. Figure 12 shows and illustrates

' these.

These laws hav~ developed over the years, being added to or

amended as the need has arisen. This evolution of legislation will

undoubtedly continue into the future. The major legislations related

to road transport operation is summarized in Appendix C.

5.4 The Board of Transportation

The Board of Transportation is the principal government agency

charged to regulate and administer public road transport. This agency

was created under Presidential Decree No. 1 of September 1972 replacing

the Public Service Commission which was created under Commonwealth Act
No. 146. Both PD 101 and CA 146 enumerates and defines the quasi-

judicial and administrative functions of the Board of Transportation.

PD 101 was enacted to give added flexibility to the Board in solving

existing and future transport problems. The intention of the government

was for the Board to be more responsive in meeting the new problems in

the road transport industry such as illegal operation and the increasing

transport demand for more carriers especially in Metro Manila.

The Board of Transportation is one among the 3 Specialized

Regulatory Boards established under the reorganization plan of the exe-

cutive branch of the government under PD No. 1. This organization is

shown in Figure 13. The 3 Boards share the services of the same staff

and personnel.

The different functions of the Specialized Regulatory Boards

are illustrated in Figure 14. Prior to 1972, the Board of Transporta-

tion had its own law enforcement unit which had the function of enforcing

the provisions of the Public Service Law and regulations promulgated by

the Board. This function of the Board was abolished in 1972. Hence-

forth, the bulk of the law enforcement activities was done by the regu-

lar law enforcement agencies particularly the Constabulary Highway

Patrol Group. What the Board does at present is coordinate with the

Highway Patrol for the enforcement of its regulations.

5.5 Functions of the Board of Transportation

The Board has the following important functions:

1. Issue Certificates of Public convenience.

2. Establish, prescribe and regulate routes and areas of

of operation of public road utilities.

3. Determine, fix and prescribe fares, charges and rates

 FIGURE 13
BOT ORGANIZATIONAL CHART

Board of Communications Board of Transportation Board of Power

Chairman Chairman Chairman
Members Members Members
I I
I
IExecutive Directorl
I (
Administr~tive Staff
Assessment Staff Secretarial Staff
Budget Cashiering
Assessment Billing Receiving and mailing calendar Personnte~~ General Services
and hear1ng docket Accoun 1n..,.
J I I
Research, Statistics Standards & Meter
Finance and Rate
and Legal Division Laboratory
Analysis Division
Records Division Division

Research and Statistics Transportation Section Finance and Accounting Utilities Standard
Section Regulations Section Section
Communication Section
Records Section Rate Regulation Section Transportation Section
,~.,.,F:"t"1-e..,...,..Ld.....:O~Jf='f:1rc~e--s~.,J
J Region II Meter Laboratory Section

Region VI

I Region VII
J
Region VIII

I ' Region IX
Region X
'
Source: Board of Transportation, 1978.
 FIGURE 14

l
---- _ __. ___ --- FUNCTIONAL CHART SPECIALIZED REGULATORY BOARDS
~- ------------- ........
I
Chairman; Board Chairman; Board Chairman; Board
Military of Communications of Transportation of Power and
Supervisor MEMBERS MEMBERS Waterworks
MEMBERS
I
I
I
l LAND DIV,WATER DIV
Regulates and controls Regulates and controls
Regulates and controls
I Public Utility Communication Publtc Utility Transport Public Utility Power and
l
l services or systems sernces I Waterworks services or
I systems
l Executive Director
I
Asst. Executive Director
Transportation
I
Law Enforcement Supervises the technical staff of the Boards;
Unit provides secretarial, legal and other services
Enforces the Public Service relating to personnel, budgeting, accounting,
Law; orders and rules and assessment, collection, disbursements, supplies,
regulations of the Board equipment, security, general utility and custodial
of Transportation . work.
I
I
& Analysis
~ecords Finance & Rate Standard & Meter
Division Division Laboratory Div.
Keeps and safeguards records Responsible for staff work Responsible for setting standards
of cases and other documents necessary to determine finan- on equipment and installments, on
filed with the Boards; and cial condition and capabilities the efficiency of the operation
compiles and analyzes statis- of applicants for certificates and on the safety of public utili-
tical data regarding public of public convenience amend- ties; and operates and maintains
utilities. ments thereto and permits for the standardizing meter laboratory.
rates to be charged by public
utilities.
Source: Board of Transportation, 1978. Legend: ---- Coordinating agency
 66.

pertinent to the operation of public facilities and

services.

4. Establish, fix, prescribe and enforce rules and regula-

tions standards and specifications in all cases related

to certificate of public convenience.

5. Promulgate rules and regulations for the promotion of

safety in public transport utilities.

6. Investigate any complaint regarding the operation of

a public service vehicle and violation of any provisions

of the Public Service Law and BOT rules and regulations.

7. Issue special permits in some cases for the operation

of vehicles outside their defined routes upon payment

of a regular fee.

The franchise function of the Board is not delegated and is the

function of the Chairman and the members of the Board. This ip.cludes

the determination of fares and the promulgation of rules and regulations

as specified under CA 146 (Sec. 11 Chapter 1 CA 146).

5.6 The Franchise System

Today, the franchising of public service vehicles is exclusively

the duty of the Board of Transportation. Prior to 1936, this function

was also performed by local governments. This practice presented no

problems at that time since the bulk of land transport requirements were

serviced by the railroad both in the urban n~twork (Manila) and the long

distance routes. Road transport was only supplementary to the rail.

There was very little government regulation and control in the road

transport industry. With the enactment of the Public Service Act of

1936, it became obligatory to obtain several authorizations before any

road freight or passenger service could be operated. CA 146 provides

that IINo public service shall operate in the Philippines without possess-

ing a valid and subsisting certificate of public convenience to the

effect that the operation of said service and the authorization to do

business will promote the public interest in a proper and suitable

manner 11 • This provision of law was also aimed at preventing public

transport services engaging in ruinous competition. This was a control

mechanism. The Act further provides that transportation must be easy,

safe and above all, cheap.

Various steps must be accomplished by an applicant prior to

the issuance of a franchise to operate a road transport service. All

applications must contain the following:

1. The number of units ready for operation and the maximum

number of units applied for.

2. Proof of financial capacity of applicant.

3. Proof of Filipino citizenship of the applicant or certi-

fication to the effect that the operation is at least

60 per cent Filipino owned.

4. A statement of willingness by the applicant to abide

by the provisions of the Public Service Law and the

rules and regulations promulgated by the Board of

Transportation.

5. Payment of application and other fees.

As soon as the application is received and calendared for hear-

ing, the Board decides on the merits of the application in a combina-

tion of quasi-judicial and administrative processes (Sec. 2 PD 101).

If the decision of the Board is to approve an application, the trans-

port units must then be registered with the Bureau of Land Transporta-

tion as public utility vehicles within 30 days of the Board's approval.

 68.

The franchise to operate such transport units is valid for a definite

number of years. This could vary from 4 years to 15 years. Upon expi-

ration of the franchise, the operator must stop the operation unless

his franchise is extended. Within the life span of the franchise the

owner operator is not prohibited from selling his franchise to an

interested party. During the hearings, the oppositors are allowed to

present their objections why the application should not be approved.

Most of these oppositors are usually operators in the routes being

applied for and are therefore the prospective competitors. The appli-

cant has the opportunity during the hearing to present more documents

to support his applications such as certificates of availability from

local officials and petitions from local residents.

Obviously, the applicant will apply to. operate the most profit-

able route and the Board of Transportation has no power under the law

to compel the applicant to change the route being applied for. The best

thing that the Board could do is to disapprove his application on the

particular route being applied for. To go around this, an applicant

could reapply for another route which could also be profitable. There

is therefire a built in constraint on the part of the Board in allocating

routes (Abellera, 1978). Routes are dictated by profit not by necessity.

The Board is unable to do anything at the present since the government

has no capacity to field transport units wherever there is lack of

carriers. This explains the overcrowding of carriers in many routes

and the lack of it in others. The solution to this would be for the

government to field government buses and jeepneys but the government

could not do this due to its limited capability. Most of the govern-

ment owned buses are operating in Metro Manila and the buses of the

Philippine National Railway are not sufficient in number to meet all

the demands in the provinces.

 The public service regulatory system in use in the country

today developed from the system introduced by the Americans when they

first came to the Philippines in 1898. This was based on the economic

system of free enterprise. Government participation was therefore

limited and at the turn of the 20th century, the free enterprise was

very much freer than it is today (Papandreou, 1954). There w·ere less

government controls and restrictions. Transport demands, however, grow

and while the Americans were able to see the need of increased govern-

ment participation and the need of revising their transport lalvs and

creating more responsive transport agencies, the Philippines continued

to rely on the same laws and concepts that were used at the turn of the

century. Commonwealth Act No. 146, which is the principal public ser-

vice law of the country has not undergone any major revision since it

was enacted in 1936. The law still provides the legal framework in which

the Board of Transportation act.

In 1979, the government created a new ministry of Transport and

Communications purposely to integrate all government efforts with regards

to transport planning, policies and programs. The various existing

transport agencies however, still maintain their autonomy because the

laws which created them have not yet been repealed or revised. The

government will have to rationalize the relationship between the new

Ministry and the existing transport agencies so that the purpose by

which the Ministry was created will be realized.

 70.

CHAPTER 6

DISCUSSION OF TRANSPORT ISSUES

6.1 Background

Today's road transport problems is not only the result of the

inability of the government to evolve indigenous solutions suited to

the complex and unique conditions of the country but also to its inability

to dismantle old colonial institutions that are no longer relevant in

todays development process.

This chapter will examine some of the prevailing road transport

issues. Before proceeding however, it would be helpful to summarize

briefly the important facets of Spanish and American colonization that

have greatly influenced todays transport problems. These are the follow-

ing:

1. The economic policies of the Spanish colonial government.

One of the first steps that the Spaniards did was to consolidate their

control over the existing coastal trading ports that they found. When

the agricultural economy was developed and surplus production achieved,

the government controlled trade. The ports were also closed to foreign

trade. This led to the dominance of Manila over the other port commu-

nities in the Visayas and Southern Luzon. The country was eventually

opened to foreign trade in the middle part of the 19th century and this

led to the opening of the lesser ports. Although this led to a much

faster development rate, Manila's position as the principal trading

port of the country was never seriously challenged. It was already

firmly established.

While Manila's economic influence over the country was growing

 71.

at this time, its importance to the existing world trade was slowly

diminishing. This was due to the opening of Hong Kong and Singapore by

the British because of the refusal of the Spanish government to open

the country to foreign trade (Hardentorp, 1958). This had far reaching

effect in the development of the country as a whole.

2. The 19th century saw a serious attempt by the colonial

government to expand inward. Up till this time, the effort was mainly

concentrated in developing the coastal trading ports. By 1830 a road

construction program in Luzon was started. Manila was eventually con-

nected with the outlaying provinces. Internal travel was likewise

greatly enhanced by the opening of the railroad connecting Manila with

Dagupan in the northwest of Luzon. This opened the vast areas of central

Luzon for agricultural production. Communities along the railway line

expanded more rapidly. The importance of Manila to the whole country

was further enhanced. The producing areas in the Visayas were also

expanded inward. The Spaniards however, were greatly hampered in their

programs due to their inability to establish complete political and

military control over the whole country (The Philippines, 1976). This

also prevented the Spaniards to go into large scale mineral exploitation.

Although a system of wagon roads, horse trails and footpaths were

already in existence when the Spaniards left in 1898 (see Figure 5).
Mindanao, Samar and Palawan remained largely underdeveloped.

3. The American period of colonization lasted for 48 years.

During this time many of the old Spanish institutions were dismantled

and new ones introduced. A new political system was implanted and the

economic system of free enterprise took over from the economy that

hitherto, had been controlled by the government and the religious orders

(Zafra, 1978).
 72.

In the public transport industry free competition was encour-

aged. This meant that the capital cost in the development of public

transport was largely in the hands of private operators. This has

remained to be the basic government attitude with regards to the public

road transport industry. Based on the system of free enterprise, con-

trol and regulation of transport was introduced patterned after the

method then prevailing in the United States, particularly that of the

state of New Jersey (Almario, 1977). This was when the Board of Public

Utility Commissioners was created through the passage of Act No. 2307.

This Act unden;rent a series of amendments until 1936 when the Public

Service Law of 1936 or Commonwealth Act No. 146 was enacted. This law

is still the principal law which governs the operation of public service

utilities.

4. The Americans were able to establish complete political and

military control over the whole country in the early period of their

colonization. This made the job of reconstruction easier. The road

building program which the Spaniards started was continued. Roads were

upgraded to accommodate the motor vehicle which was introduced at the

turn of the century. Interior expansion was undertaken at a much faster

rate. This was due to the desire to exploit the mineral resources of

the country. The railroad was extended to the southern provinces of

Luzon. Manila was maintained as the seat of government and the princi-

pal trading port. Its continued growth was therefore, assured.

The other areas such as Mindanao, Samar and Palawan were now

opened to agriculture and settlement. The passage of Commonwealth Act

No. 441 encouraged migration to the scarcely populated eastern portion

of Mindanao. By the time the Americans granted independence in 1946,

the road system that they inherited from the Spaniards was greatly
 73.

improved (see Figure 4).

6. The Second World War disrupted what would have been a

peaceful transition to independence. Of all the countries in Asia that

were occupied by the Japanese, no country suffered more than the Phil-

ippines: Manila was virtually destroyed (Manchester, 1978). Against

this picture of destruction independence was granted to the country on

July 4, 1946. A difficult period of reconstruction commenced. The

country w·as facing a serious threat from the communist uprising in the

country side and the country was struggling to survive. Agriculture

which was the chief source of revenue and the rebuilding of Manila,

received the focus of government attention. Because of this, migration

to Manila started to accelerate. Notwithstanding the so-called ~~al

orientation of the Filipinos, they started to migrate to the urban

centers. The inability of the government to evolve indigenous solutions

suited to cope with the rapid urbanization process of the country made

the problems what they are today.

7. The decades after the War also saw the introduction of new

means of transportation. These are the jeepneys and the motorized

tricycles. Road transport emerged as the dominant mode of transport.

This necessitated the expansion of the road network to expand internal

accessibility. Highway construction therefore received much attention

from the government. In public road transport, the government has con-

tinued to rely on private investment in its development. With some

amendments, the Public Service Law of 1936 has continued to be the basis

of control and regulation of public road utilities.

8. The country experienced tremendous changes during the early

1970's. Politically, a crises government was declared which is still

enforced today. Economically, tremendous efforts to industrialize have

been pursued by the government. This clearly indicated that some of

 74·

the concepts and attitudes of the government with respect to transport

would have to be reassessed. The government made a major move by pur-

chasing the Philippine Airlines and declared a one airline policy. This

was a sharp departure from the policy of the enterprise which has always

been practiced in the past. This made the Rail and Air both government

owned and operated. It is only in the road transport sector that very

little substantial change have occurred. Instead of clearing some of

the issues that complicates the industry, many of the problems remain

unsolved. It is this area that this chapter intends to examine some of

the important issues.

6.2 The Board of Transportation

Pursuant to PD No. 1, dated September 23, 1972, the Executive

Branch of the national government was reorganized. The Board of Trans-

portation was created to replace the abolished Public Service Commission.

This new office was then made part of the Specialized Regulatory Boards

(see Figure 11). In this particular organizational set-up, the Board

of Transportation shares the same staff and personnel with the other

Boards. This has created administrative difficulty and has undermined

the independence of the three Boards (BOT repor~ to Batasang Pambansa,

1979).

As shown in Figure 13, the Board of Transportation has a very

centralized bureaucracy. The Board does not have the equivalent regional

offices that could perform similar functions in places outside Metro

18
Manila. The so-called regional field offices that have so far been

created only perform limited functions such as collecting required fees

18
The Board of Transportation, on March 10, 1980 closed down
9 of its Regional Offices and retained only 2.
 75.

and to some extent the investigation of minor local complaints. There

is a stated government policy of administrative decentralization of

national offices to regional levels. One reason for this is that people

will not have to make the trip to Manila which is often expensive and

difficult to transact business. Instead, these offices will be region-

alized so that ttthe government could be brought closer to the peoplett.

The Board of Transportation however, has been very slow on this. There

are no separate offices to handle the enormous problems of Metro Manila

and those of the provinces. Everything must be decided by the central

office. For instance, the volume of applications for the operation of

public transport have increased greatly over the last 4 years (see

Table 5), even with the issuing of special permits for operation as con-
templated by PD 101, the volume has taken its toll on the administrative

capability of the Board of Transportation. The abnormal increase in

applications has simply outpaced the administrative capability of the

1
Board (Abellera, 1979) ? This situation has also forced the chairman

and members of the Board to spend most of their time hearing petitions,

applications for fare increases and complaints so that management,

supervision and the policy-making functions have been sacrificed and

neglected.

Over the years, the transport problems in the country have

become more complex as economic development is pursued by the govern-

ment. Urbanization and the increase of motorization have made transport

patterns and characteristics in urban areas such as Metro Manila and

the provinces vastly different. While tremendous changes have been

19 The BOT in the middle part of 1979 was forced to suspend the
issuance of special permits for operations of road transport
utilities until such time that the huge backlog could be
lessened.
 76.

happening in Metro Manila, travel patterns and characteristics in the

rural areas have not changed very greatly. Since the Public Service Law

was enacted in 1936 the transport requirements have certainly become

more demanding, it takes more than just a centralized quasi-judicial

body to regulate and supervise the operation of public road transport

utilities. The organizational hierarchy of the Board of Transportation

has become unresponsive to the ever growing complexities of transporta-

tion especially in a country with a developing economy which is charac-

terized by high underemployment, high population growth, expanding

economy and rapid urbanization.

6.3 The Absence of a Transport Policy

Because of the pragmatic approach of the government in approach-

ing the early transport problems, various and, often, independent,

transport agencies or bodies were established. This meant that the

majority of government decisions pertaining to specific modes were the

responsibilities and concerns of the appropriate agencies. Problems

which are not specifically within the domain of any one agency were

dealt with by the coordination of these agencies. Most often, this is

done by the creation of Ad Hoc bodies that will deal with any problems

that will arise. To a certain degree, this structure just outlined,

worked quite well especially during the 1950's and 1960's. In the

1970's, however, its deficiencies have become readily apparent. The

major deficiency is of course its failure to promote the development of

a comprehensive national transport policy. The separate agencies

created resulted in the overlapping of functions and the pinpointing of

responsibilities has often been confusing (see Figure 12).

Although the Board of Transportation is the principal regulatory

body of the government with regards to public road transportation, there

 77.

are various government authorities and corporations performing functions

related directly or indirectly with transportation. So far, the govern-

ment has failed to recognize that one of the more important prerequi-

sites to the formulation of a comprehensive national transport policy

is to recognize transportation as a single entity.

In 1979, a very important step was taken by the government: on

July 23, pursuant to Executive Order No. 546, the Ministry of Transpor-

tation and Communication was created. With its creation, it was intended

that there would be a single government agency to guide and direct

national transport policies. Instead of fragmented and often confusing

approaches, 11 the new Ministry will henceforth provide the guidance and

direction 11 • Various government agencies were then placed under the

administrative and operational control of the new Ministry. This, how-

ever, has not solved the situation which existed before its creation.

Figure 12 shows this. Some government agencies still continue to per-

form functions related to transportation. The Civil Aeronautics Board

for instance still remains under the Ministry of Tourism and has not yet

been transferred to the Ministry of Transportation. The Philippine

National Railway and the Metro Manila Transit Corporation, two govern-

ment corporations created under separate laws are exempt from many

rules and regulations of the Board of Transportation. The relative

freedom with which these two government firms has caused considerable

apprehension in private bus companies who are confused as to the extent

of direct government participation in the road transport industry

(Freeman, Fox & Associates, 1977). The two government bus firms are

for instance free to field units wherever there is demand. Fare

structuring is not subject to Board of Transportation regulations.

Although the government is well within its rights to do this, the

absence of a definite and clear policy as to how much the government

 78.

intends to take part as an operator must be clearly defined for the

protection of private investors. Although it is the stated policy of

the government to maintain the public road transport industry in the

hands of private operators (BOT Report, 1978). Recent government pro-

grams especially in Metro Manila however, have been viewed suspiciously

by private bus companies. This is one of the causes of diminished invest-

ment in the road transport industry during the past 3 or years.

Clearly the Ministry of Transportation will still have to

rationalize these different and often conflicting situations and inte-

rests to be able to come out with definitive program.

6.4 Lack of Technical Skills

The lack and to a great extent the total absence of transport

planning and policy in the national government level is not the only

result of the absence of a single government Ministry directing the

planning and policy making effort of the different existing transport

agencies but has also been traced to the lack of technical skills 20

(Bautista, 1978; Freeman, Fox and Associates, 1977). In the past, very

little transport planning has been undertaken on the local, provincial

and national levels; this has resulted in the non-development of the

.
needed technical skills to plan and then implement national government

road transport goals and objectives. When the government started to

undertake studies in the 1970 1 s, it became apparent that the country was

lacking in trained personnel to undertake these studies. The government

therefore, turned to foreign consultants. Most of the transport studies

20 The Philippines is not the only country where this problem

is found. In the United Nations sponsored Seminar-Cum-Training
held in Jakarta from 12 January to 12 February 1976, the final
report point out that this problem is common to the other
countries .of ASEAN.
 79.

that have been undertaken so far were mostly done by foreign consultant

groups from Japan, England and Australia. There are obvious dangers to

this. Local conditions differ from country to country and it is impera-

tive that these conditions must be taken into account when arriving at

recommendations. The presence of local counterparts in such studies

would minimize these dangers and ensure that these studies will be of

benefit instead of complicating a situation that is already confused.

The ramifications and importance of transportation to the whole gamut

of development of the country is just beginning to be realized by the

government and it will take years to develop and train a corps of trained

people so that planning on the national and local levels will be imple-

mented and carried out down to the lowest level. An important step

towards this has been the establishment of the Transport Training CenterJ

at the University of the Philippines. This will undoubtedly contribute

immensely to the training of personnel to improve the training profile

of government men engaged in transport work.

6.5 Effect of the Present Franchising System

In 1974 the then Department of Public Works, Transportation and

Communications conducted a nationwide transport survey to find out and

determine the weaknesses of the country's road transport system. An

important finding of that survey was the manner by which routes are

allocated, determined and distributed {Transport in National Development,

1975). It was found out that in many areas, there is lack of transport

carriers but in some routes, there is an oversupply of transport utili-

ties. Road transport requirements are not being properly met through

the proper allocation of transport facilities. This situation ia

directly associated to the present franchising system. The approval

and disapproval of a franchise and the route to be travelled by a parti-

 80.

cular transport unit or firm rests with the Board of Transportation.

The process is carried out in a quasi-judicial manner as provided for

by the provisions of the Public Service Law of 1936 (Sections 13 to 17,

Chap. 11). This has been reinforced by paragraph 1, Section 2 of PD No.

101 which states that 11 the Board shall proceed promptly along the

method of legislative inquiry". "The approval or disapproval of any

application for the operation of road transport service involves the

collective action of the Board of Transportation headed by the Chairman

and its members. Since all applications are eventually forwarded and

processed at the central office, the quasi-judicial hearing is a central-

ized process.

The route that will eventually be operated by an applicant is '

not predetermined by the Board on the basis of lack of carrier capacity

on a particular route but by profit which is dependent on whether the

prospective applicant applies for it. Since there is no government

subsidy of any sort, profit is the chief motive why an applicant applies

for a route. The present process does not vest on the Board the author-

ity to invite prospective applicants to operate on a particular route

because of necessity. The Board only acts on applications brought

before it. If for instance there is the necessity to provide a trans-

port service between the routes B to C which is not necessarily profit-

able, the Board cannot compel the applicant to change the route of his

application without his consent if he originally applied for the route

A to B. The best that could be done is to disapprove the application

altogether and suggest to the applicant other possibilities. There is an

inherent constraint on the Board of Transportation (Castillo, 1978).

The functions of the Board on franchising public service utilities are

expressly defined by Law (Section 13 to 17, Chap. 11, C.A. 146). Although

the Board may be aware of the lack of transport services in a particular

 81.

area, the Board could not initiate any action on its own. It takes

action only on matters brought to its attention. Even PD No. 101

which gives the Board broad powers over road transport facilities has

not altered the situation.

This brings to light the present policy of relying on private

companies for road transport services. While the government is pursuing

a course that is clearly intended to increase the number of the two

government bus fleets, pronouncements by responsible government offi-

cials continue to say that public road services will remain in the hands

of private operators (BOT report to Batasang Pambansa, 1978). Conflicts

of interest have naturally arisen and this has been constantly attacked

by the private sector (Paras-Nisce, 1980). The Board regulates all fare

structures and allocates and fixes all routes of transport services.

The bus fleets of the two government owned bus corporation, the Metro

Manila Transit Corporation (MMTC) and the Philippine National Railway

(PNR) are, however, exempted. These two bus firms have the freedom to

field units to any particular route. The MMTC in Metro Manila and the

PNR in the Provinces in Luzon. The two also have freedom to structure

their own fares. This however, must be questioned. If it is the policy

of government to continue relying on private companies for road trans-

port services, then it has the duty to protect whatever investment the

private sector sinks into the industry. If the government intends to

enter as an operator it must state precisely how far it intends to parti-

cipate as an operator.

The number of buses of these two government bus firms have

increased over the last 4 years. The fares are lower than those of

private bus companies and the private firms could not compete on these

terms. What has happened is that the increase in transport service has
 82.

not kept pace with transport demands. In some cases, investments have

declined especially in the heavily populated island of Luzon. This is

shown in Tables 6 and 7. Because government ownership is not big enough

to be able to meet and satisfy the increasing transport demands as a

result of insufficient carrier capacity, the commuting public have

suffered.

6.6 Effects of Presidential Decree No. 101

The rationale behind the promulgation of this Decree was to

solve the many problems that have plagued the public road transport

industry over the years. This is with the regards to the proliferation

of illegal operators. This law was intended to provide the Board of

Transportation with the authority to grant amnesty to these illegal

operators so that their operations could be legitimized and for the

Board to develop new methods of granting franchises. An important

problem then was to find a faster means of issuing franchises to meet

the tremendous demand for road transport. Another chronic problem prior

to PD 101 which eventually reached alarming proportions was what was

21
locally known as the "Kabit System 11 This is a method by which ille-

gal operators circumvent existing rules and regulations so that they

could operate public transport services without getting a franchise from

the Board by using the franchise of authorized and legitimate operators.

As an example, under existing procedures, a prospective operator may

apply for the authority to operate 10 units but in actual fact has only

5 units ready at the time of the application. If the application is

eventually approved, the applicant is given time (normally a year) to

21 The closest translation to this in English is to attach

or to connect.
fill up the applied quota of 10 units. What is done in many instances

is to get interested parties who are willing to fill up the quota. This

is done by an interested party with ready units making a theoretical

sale to the legitimate operator so that it will appear that the legiti-

mate operator can own the units. In actual fact, however, the operation

of the units remains with the owner. The legitimate operator will in

turn receive a fee for allowing the use of his franchise.

The implications of this practice to the road transport indus-

try are enormous. Safety and good maintenance suffer. In cases of

accidents, judicial litigations becomes complicated and long. It also

complicates insurance settlements and deprives the government of legi-

timate taxes and revenues. A valid question to ask would be why should

the interested party not go and apply directly to the Board for his

franchise? The answer to this is that it has become extremely difficult

to apply for a franchise especially if one is from a far away place such

as Mindanao. The backlog of applications that has built over the years
is huge as will be shown later. With the promulgation of PD 101, it was

the intention to eliminate the notorious "Kabit System". The Decree

also was intended to give a chance to small transport operators and

illegal operators to come out in the open so that their operations

could be legitimized. The provisions of PD 101 are clear on this.

Paragraph 3, section 1 of PD 101 states that the Board is authorized

nto grant special permits of limited term for the operation of public

utility motor vehicles or convert clandestine operators into legitimate

and responsible operatorsn.

The initial result was promising. Special permits which were

more easy to obtain enabled illegal operators to come out in the open.

As years went by, however, another problem developed. This new problem
 84.

has now become bigger than the problem PD 101 intended to solve. As a

result of the authority of the Board to grant special permits the number

of applications started to grow until the backlog became unmanageable.

Table 5 will show the increase of applicants from 1975 to 1978 plus the
number of applicants adjudicated and backlog. Since prospective appli-

cants must buy their units before applying, they run the risk of losing

their investment if they wait too long before their applications are

approved. The solution is that they operate illegally. The number has

increased and the problem has now been compounded.

TABLE 5
GROWTH OF APPLICANTS, 1975-78

Year No. of Applicants No. of Adjudicated Backlog

1975 41,879 35,394 6,485

1976 47,830 43,394 4,436

1977 135,871 97,134 38,737

1978 185,018 138,921 46,097

Source: Board of Transportation, 1978

Not only is there a tremendous strain on the administrative capability

of the Board but it has also created scores of other problems. There
is now an increase in the.number of illegal vehicles in operation due

to the inability of the Board to adjudicate the huge number of applica-

tions. Since it has become the duty of law enforcement agencies to stop

the illegal operation, a substantial effort has been diverted for this
purpose.

The issues just discussed in this chapter are now the focus of

intensive government attention. All these government activities are·

 85.

intended to make road transport more efficient to be able to cope with

the ever increasing transport demands and also make it compatible with

the national transport goals and objectives.

Inspite of government efforts such as the reorganization of some

transport agencies, passage of new legislations, appointment of new

government transport officials and the application of high technology,

many of the problems remain unsolved. The complexity of the situation

is such that it would require the most sustained and professional effort

on the part of the goverrLment to solve many of these problems. There

are no easy solutions and the next and concluding chapter will explain

some of the important reasons and difficulties faced by the government

in its attempt to improve and solve the country's transport problems.

 -86.

CHAPTER 7

CONCLUSIONS AND COMMENTARIES

That there are problems in the public road transport in the Phil-

ippines is. undeniable. As shown in the earlier chapters however, these

problems are not only the result of the government's inability to cope

with the problems associated with the rapid urbanization process that

has taken place after the Second World War but also because of its

failure to dismantle old laws, economic concepts and administrative

procedures that are no longer responsible under present day conditions.

There are therefore important lessons to be learned from history not

only as a tool to a better understanding of the present complex trans-

port situation but also as an instrument in finding solutions to the

many transport problems. It is not enough to rely purely on the appli-

cation of high technology and legislation to solve all these problems.

Some important points are drawn in the presentation of chapters

3, 4, and 5. They are the following:

1. This study has traced the growth of transport from a predomi-

nantly water based transport system to rail and then to road. The shift

from rail to road took place in a relatively short period and this con-

tributed to the inability of the government to cope with the increasing

demands of this mode of transport.

2. This study was also able to trace the pattern of urban growth

that led to the making of Metro Manila as the dominant center of econo-

mic, cultural, educational and political activity in the Philippines.

Because of this, urban blight is very pronounced in the city and the

government has naturally concentrated it major efforts in trying to

solve the city's urban problems particularly transport. The effect of

 87 •.

this to the solution of the overall transport problem however, is

negative. The programs that are being undertaken at present indicate

that the city's transport problems are being solve in isolation without

relating them to the overall transport situation.

3. This study has also shown how the present public service regu-
latory system originated and that this has remained basically unchanged

from the system introduced by the Americans before the Second World War.

One result of th is is that existing administrative procedures which

have evolved over a long period, have developed within the legal frame-

work of these old laws. Whatever steps taken must therefore be within

the legal framework of these laws and would therefore not be effective

under present day conditions.

In Chapter 6, selected issues were brought out and discussed. The

following paragraphs could provide some explanations or commentaries on

the issues brought out.

1• Lack of Transport Coordination

The need for integrated planning and development of transport

facilities to provide and maintain a comprehensive transport system at

the least possible cost has been recognized by the government and this

led to the establishment of the Ministry of Transport and Communications.

Although the establishment of the Ministry was intended to place all

decision making in one single entity, this has not been achieved. This

is shown in Figure g.. Presently therefore, there is no single body that

controls all forms of transport in the Philippines. With so many agen-

cies performing independent functions, it is difficult to achieve the

overriding objective of transport planning and development of land,

water and air transportation in an economical and effective system as

 88.

envisioned in the country's 5 year National Economic Development Plan.

Such a goal is difficult to achieve because the Ministry of Transporta-

tion and Communications does not have complete operational and adminis-

trative control over all the transport agencies. Individual agencies

still enjoy considerable autonomy with power to formulate their own

goals and plans for maintaining, improving or establishing new links or

services. Under this situation, the agencies handles its own resolved

goals by making short term decisions rather than attempting to antici-

pate long term conditions. With such a complex organizational decision

making process, conflict is common among these agencies. It is there-

fore difficult to engender spontaneous change in the bureaucracy to cope

with new and more complex transport problems. Until sweeping reforms

occur, the process of transport coordination will be hampered.

2. Influence of Politics

The situation described ·in the preceding paragraph is to a large

extent the product of the present political system. The head of state

and government is the President who is at the same time the Prime

Minister. Since the country is still in the state of Martial Law, the

government revolves around the President assisted by.his ministers.

The bureaucracy that existed in the past have been characterized

by patronage and virtual obligations. This made attempts at more effi-

cient administration difficult. Inspite of present government efforts

to inject professional considerations in the country's transport deve-

lopment goals, vestiges of the old practices are difficult to eradicate.

Given this consideration, it is easy to see why conflicts of interest

are common and bureaucratic change difficult to achieve.

In the light of the present political system therefore, only the

 89.

President could force a dramatic change in the bureaucracy. Given the

present organizational structure however, it is difficult to see this

happening in the near future.

In the absence of any Presidential action, the situation will have

to wait for the development of a framework that is best suited to the

unique conditions of the country. Unlike many countries where the social

matrix is more permissive of economic development, attitudes and insti-

tutions in the Philippines constitute a major obstacle.

3. Foreign Technology

It has become the practice of many developing countries to rely

on foreign advice and consultants in charting their transport develop-

ment programs. Although this is partly due to the requirements of lend-

ing institutions, such as the World Bank and the Asian Development Bank,

most of these efforts were initiated by the assisted country themselves.

The Philippines is no exception. Due to the lack of technical

skills, the country has relied on foreign technology to help the country

in its development programs. Social, cultural and political institutions

between developed and developing countries are often so different how-

ever that there is always the danger of applying solutions to conditions

in a coun.try based on entirely different situations. Since the Philip-

pines is still in the process of developing a corps of trained personnel,

the country may have to continue to use foreign expertise for the time

being but it is imperative to develop local talent and use efficiently

what is already available.

4. Improved Organization

The Board of Transportation as it is presently organized have

been shown to be unable to cope with the increasli1g demands of road

 90.

transport. As it is, the Board of Transportation suffers deficiencies.

These are: the lack of capability to enforce its own regulations; bureau-

cratic overload; and an organizational set-up that has proven time and

again to be unresponsive to the rapidly changing situation in the road

transport sector. Administratively, a serious step should be taken to

delegate some functions compatible to the government's program of admi-

nistrative decentralization. Regional field offices should be upgraded

to be able to handle additional functions.

The bulk of the Board's efforts is concentrated in trying to solve

Metro Manila's transport problems. This shows a failure on the part of

the Board to relate the city's problems to the whole transport problems

of the country. As shown in Figure 13 the Board is not organized to

cope with this situation. The Board must realize that the city's prob-

lems although very important to the national transport issues, must not

be treated in isolation.

5. Revision of Transport Laws

In the past, the operation of the various modes of transport have

been carried out independently from each other with minimal coordination.

Early legislations are largely responsible for this situation. Amend-

ments and revisions which were intended to improve the system have

failed to give an effective base for the more complex transport demands

of today.

Many of the existing administrative procedures which have evolved

over a long period have developed within the framework of the existing

legislations. They have therefore reinforced the disadvantages and

problems.

It is unfortunate that there have been no major effort to undertake

 91.

studies to reassess existing legislations. These laws have been proven

to be unresponsive to present day transport conditions. Unless a

meaningful change in many of these antiquated laws are undertaken many

of the constraints that are affecting the bureaucracy will continue.

6• Transport Problems of Metro Manila

Given the present trends, Metro Manila's transport problems will

continue to outpace the government effort to solve these problems.

Population will continue to grow and urban blight worsen (Metro Manila

Development Plan, 1979 ). The city lvill also continue to· receive much

of the attention and resources of the government for its development

projects. Because the cityrs problems are viewed as a critical national

problem, there is a tremendous amount of work presently being undertaken

by the government. Transport studies are being undertaken and actions

being implemented. All these actions however, indicate that there is

no single authority directing them and there is difficulty in pinpoint-

ing who is in charge of all the projects being undertaken.

The city is of course unique and it could only be explained by

describing the set-up. The Metro Manila area is within the area of

responsibility of the Board of Transportation. Consequently, the Board

can undertaken its own programs and studies. The Board however, is

also under the Ministry of Transportation which is undertaking its own

programs. The Metro Manila Commission which is running the government

of the area is also undertaking its own studies. It is easy to see

therefore why no single course of action could be taken.

This situation will continue into the future unless consideration

is given for a proper hierarchical structure which could assist in

delimiting the division of functions among the national, provincial and

city government in the transport planning process.
 R-1

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13 Parker, R.S. and Troy, P.N., The Politics of Urban Growth,

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 R-2

14 Pegrunn,D.F., Transportation Economics and Public Policy,

Howewood, Illinois, Richard D. Irwin, Inc., 1973, 596 pp.

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Lifelines, Industrial College of the Armed Forces,
Washington D.C. 1961, 152 pp.
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 R-4

39 The Philippines, Department of Public Information, Manila

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 A-1

APPENDIX A

SOURCES OF DATA

Respective government agencies compile their own statistics

and these are the figures taken by the Bureau of Census and Statistics
for publication.

The Bureau of Land Transportation compiles data on the number

of registered motor vehicles classified by type, make, and by place of
registration; number of drivers licenses issued; fees; accident and
apprehension reports and other information.

The Board of Transportation prepares a list of road transpor.t

operators by place of registration.

Statistics on roads and bridges are compiled regularly by the

Ministry of Public Highways and are usually published in the Ministry's
annual report.

There have been cases in the past of discrepancies in the

figures released by some government agencies. The Highway Patrol for
instance would have different figures on the number of vehicles from
that of the Bureau of Land Transportation and the Board of Transporta-
tion. In collecting the data for this study only those figures from
the agency officially responsible for the publication were used. In
the case of the number of motor vehicles, only the figures of the
Bureau of Land Transportation were used while the figures from the
police and the Board of Transportation were discarded. These informa-
tion therefore could be taken as official government figures.
Unfortunately, there is difficulty in checking which of the figures
are correct. There is no independent agency that could do the veri-
fication of the true figures.

In Fugure 4, the data on the length of roads from 1910 to

1948 were taken from "Philippine Highways", 1950, a study undertaken
by the Bureau of Public Highways • The graph shows an actual decrease
in the length of paved roads from 1948 to 1965. This is very unusual.
Unfortunately, the author was unable to procure official figures
from 1948 to 1965 and could offer no explanation as to the reason
for this decrease.
 B-1

APPENDIX B

PRESIDENTIAL DECREE NO. 101

EXPEDITING THE METHODS IN PRESCRIBING, REDEFINING

OR MODIFYING THE LINES AND MODES OF OPERATION OF
PUBLIC UTILITY MOTOR VEHICLES IN THE PHILIPPINES

WHEREAS, in the Greater Manila Area, the bigger towns and

cities in the Philippines, and main roads connecting them, there exists
serious traffic congestion and disorder that have been causing acci-
dents and delays in travel, which are highly detrimental to public
safety and convenience and to the functions of commerce, industry,
and the Government.
WHEREAS, in many parts of the country, due partly to inade-
quacy of transportation facilities, there have abounded unauthorized
operators of public utility motor vehicles (ncolorum11 and llkabittt),
who have clandestinely operated in violation of the penal provisions
of existing law, rendered unregulated, unsafe or sub-standard service,
put up unfair competition to legitimate operators, and deprived the
Government of considerable amounts of taxes and fees.
WHEREAS, it is the policy of the State, as swiftly as possible,
to improve the deplorable condition of vehicular traffic, obtain maxi-
mum utilization of existing public service motor vehicles, eradicate
the harmful and unlawful trade of clandestine operators by replacing or
allowing them to become legitimate and responsible operators, and
update the standards that should henceforth be followed in the opera-
tion of public utility motor vehicles; and
WHEREAS, to carry out this national policy, it is imperative
to provide, among other urgently needed measures, more expeditious
methods in prescribing, redefining, or modifying the lines and mode of
operation of public utility motor vehicles that now or thereafter, may
operate in this country.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution
as Commander-in-Chief of the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and
General Order No. 1, dated September 22, 1972, do hereby promulgate
this Decree.
SECTION 1. Powers of the Board of Transportation. Notwith-
standing the provisions of existing law to the contrary, the Board of
Transportation, in carrying out the declared national policy, shall
have the power:
1. To prescribe, redefine or modify the lines, routes, or
zones of service of operators that now or hereafter may operate public
utility motor vehicles in the Philippines.

2. To grant special permits of limited term for the operation

 B-2

of public utility motor vehicles as may, in the judgment of the Board,

be necessary to supplement and render adequate the service in any area,
as a consequence of the modification of lines, routes or zones of
service undertaken pursuant to this Decree.

3. To grant special permits of limited term for the operation

of public utility motor vehicles as may, in the judgment of the Board,
be necessary to replace or convert clandestine operators into legiti-
mate and responsible operators.

4. To fix just and reasonable standards, classification,

regulations, practices, measurements, or service to be furnished,
imposed, observed, and followed by operators of public utility motor
vehicles.

SEC. 2. Exercise of powers. -In the exercise of the powers

granted in the preceeding section, the Board shall proceed promptly
along the method of legislative inquiry.

Apart from its own investigation and studies, the Board, in

its discretion, may require the cooperatien and assistance of the
Bureau of Transportation, the Philippine Constabulary, particularly
the Highway Patrol Group, the support agencies within the Department
of Public Works, Transportation and Communications, or any other
government office or agency that may be able to furnish useful informa-
tion or data in the formulation by the Board of any policy, plan or
program in the implementation of this Decree.

The Board may also call conferences; require the submission

of position papers or other documents, information, or data by
operators or other persons that may be affected by the implementation
of this Decree; or employ any other suitable means of inquiry.

SEC. 3. Limitations. -In carrying out the purposes of this

Decree, the Board shall adopt and observe a just and reasonable
system of priorities in the redefinition, modification, or grant
operating rights, and reduce as much as possible any adverse effect
on any person or persons affected by this Decree.

SEC. 4. Transitory provision. - Six months after the promul-

gation of this Decree, the Board of Transportation, the Bureau of
Transportation, the Philippine Constabulary, the city and municipal
police forces and the provincial and city fiscals shall wage a con-
certed and relentless drive towards the total elimination and punish-
ment of all clandestine and unlawful operators of public utility
motor vehicles.

SEC. 5. Repealing clause. - All Acts, parts of Act, executive

orders, and regulations inconsistent with the provisions of this Decree
are hereby repealed.

SEC. 6. Effectivity. -This Decree takes effect immediately.

Done in the City of Manila, this 19th day of January, in the

year of Our Lord, nineteen hundred and seventy-three.
 C-1

APPENDIX C

SUMMARIES OF THE MORE RELEVANT ROAD AND TRANSPORT LAWS

1. Republic Act 4136.

This is known as the Land Transportation and Traffic Code, it
provides the means of controlling the use of the country's land
transportation vehicles. It was enacted in 1964 to develop the
orderly, convenient, safe and peaceful use of motor vehicles
through the control and registration of motor vehicles and the
licensing of owners, dealers, conductors and drivers.
2. Commonwealth Act No. 146.
This is also known as the Public Service Act. It was passed in
1936 to establish procedures for the control and regulation of
public utilities in the country. This act created the public
service commission which was subsequently replaced in 1972 by
the Board of Transportation.

3. Presidential Decree No. 492.

Dated June 27, 1974, this law established the Manila Transit
Corporation, later renamed Metro Manila Transit Corporation
(MMTC) to manage and operate a public transport system within
Metro Manila.

4. Presidential Decree No. 101.

This Decree dated January 19, 1973 prescribes methods for defining
or modifying the lines and modes of operation of public utility
motor vehicles in the country.

5. Presidential Decree No. 207.

This Decree dated June 6, 1973, established a need for the use of
standardized early warning devices (EWD) as a requirement for the
registration of motor vehicles in accordance with the Vienna
Convention on Road Signs and Signals.
6. Presidential Decree No. 843,of December 12, 1975.
This Decree provides that an energy/ad valorem tax shall be levied,
assessed and collected annually, prior to registration, from
owners of every private passenger automobile.
7. Presidential Decree No. 612 of July 1, 1975.
This is known as the "New Insurance Code 11 • It requires compulsory
motor vehicle liability insurance. All vehicles must now be
insured prior to the registration of any motor vehicle.
 c~

8. Presidential Decree No. 1181.

This Decree provides for the control of air pollution caused by

motor vehicles.

9. Presidential Decree No. 98.

This Decree prohibits the attachments of sirens, bell horns,
whistles, and similar gadgets to motor vehicles.
 R-R-1

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