Fighting Through PUV Modernization: A Challenge to the Philippine Transport System
The Philippines has begun its journey to transformative progression towards improving public transportation with the Public Utility Vehicle Modernization Program.
The government launched the biggest non-infrastructure program, Department Order №2017–11, commonly known as the Public Utility Vehicle Modernization Program (PUVMP), through the Department of Transportation (DOTr) on June 19, 2017. National Confederation of Cooperatives (COOP-NATCCO) Partylist Hon. Felimon M. Espares introduced and approved House Bill 1332 — another term for PUVMP. With DOTr as the government’s lead agency, individual franchise holders were administered to consolidate themselves into a corporation or cooperative as the only two (2) legal structures acknowledged under DO 2017–11 to be able to successfully implement the PUVMP.
According to a press release by the Land Transportation Franchising and Regulatory Board (Land Transportation Franchising and Regulatory Board [LTFRB], 2023), the PUVMP is the government’s response to “address both the aggravating transport-related problems and the future transportation demand of the country.” Sunio et al. (2019) noted that the project initiated by the national government “aims for a wholesale change of the public land transportation industry of the Philippines.” In addition to this, Bautista & Moyer (2023) asserted that public utility vehicles (PUVs) — including jeepneys that have existed 15 years or older — will be eliminated and be displaced by Euro 4-compliant or higher emission standard vehicles such as electric jeepneys and other vehicles using alternative fuels such as liquefied petroleum gas (LPG), liquefied natural gas (LNG), and compressed natural gas (CNG). The Euro 4 standard limits the amount of pollutant vehicles can contain to improve air quality and establishes more rigorous requirements than standards before.
DOTr published a new regulatory policy, also known as Omnibus Franchising Guidelines (OFG), in which LTFRB (2023) declared to “envision a restructured, modern, well-managed and environmentally sustainable transport sector where drivers and operators have stable, sufficient and dignified livelihoods while commuters get to their destinations quickly, safely, and comfortably”.
The main features of OFG are the following:
1. Local public transport route planning and route rationalization by the government
2. Modernized PUV fleet compliant with safety & environmental laws/standards
3. and; Fleet/industry consolidation for efficient operations.
Of all the vehicles that fall under the PUVMP, however, jeepney drivers and operators are the ones who primarily face the program initially designed for all public transport. Jeepney drivers are forced to deal with a hectic process to continue franchising as well as to be able to obtain a new and modernized jeepney to use as their own. Mendoza (2021) proclaimed that for the affected jeepney drivers, the issue that the project is trying to address is complex and, thus, cannot be fixed by simply remodeling the jeepneys or by combining them through cooperative-led or private-led fleet management.
Jeepney Owners’ Journey of Franchising
The program would signify the end of the gaudily decorated and brightly colored jeepneys, which have been considered the “King of the Road” in Manila and a representation of Philippine culture on wheels.
According to PUVMP (2017), the process of franchising for jeepney modernization consists of various important steps and considerations. A crucial aspect of this process is the creation of a franchising system that outlines the operating rules and regulations for modernized jeepneys (Roces, 2023). This encompasses criteria for vehicle specifications, safety standards, and operational guidelines. Also, the franchising process entails the selection and approval of franchise operators, who are tasked with overseeing and managing the modernized jeepneys within specific routes and areas.
The need to replace PUJs in the Philippines is being influenced by several factors. One major concern is the environmental impact of traditional PUJs, which are often old, inefficient, and contribute to air pollution (Kusuma, 2023). Bautista (2021) added that the congestion and traffic problems resulting from rapid urbanization and increasing population density in cities are further reasons to transition to more sustainable and efficient public transportation options. Moreover, the discussion of replacing PUJs also takes into account the safety and comfort of passengers, as well as the livelihood of PUJ drivers and operators.
The operation of franchising has significant implications for various stakeholders, including jeepney operators, drivers, passengers, and the government, in terms of the modernization of jeepneys (Mariano, 2018). Jeepney operators and drivers face both challenges and opportunities during the modernization process. The cost of the PUVs themselves can be high-priced, ranging from ₱1.6 million to as much as ₱3 million. The price value of ₱2.6 million is for a battery-electric version, which is also approved but not mandatory. Although upgrading to modernized vehicles and meeting the franchising requirements can be costly, modernized jeepneys are expected to offer improved fuel efficiency, reduced maintenance expenses, and a more comfortable and safer travel experience for passengers.
Exploring the potential alternatives for PUJs
- Electric Jeepneys (E-Jeepneys)
An alternative to PUJs in the Philippines could be the implementation of electric jeepneys, known as E-jeepneys. These vehicles are equipped with electric motors that do not produce any emissions, effectively addressing the environmental issues linked to conventional PUJs. E-jeepneys can diminish both air and noise pollution, thus promoting cleaner and quieter urban surroundings. In fact, the adoption of electric vehicles aligns with worldwide attempts to combat climate change and decrease dependence on fossil fuels.
- Modernized Jeepneys
Modernized jeepneys could incorporate advancements like Global Positioning System (GPS) tracking, electronic payment systems, and air conditioning, ultimately improving the overall passenger experience. Through the upgrading of traditional jeepneys, the government and transportation authorities can effectively tackle safety and environmental issues while preserving the cultural importance of these iconic vehicles.
- Bus Rapid Transit (BRT) Systems
BRT systems include exclusive bus lanes, upgraded buses, and efficient boarding systems, which provide a quicker and more dependable means of public transportation. BRT manages to accommodate more passengers, decrease travel durations, and alleviate urban traffic congestion. By integrating BRT into the public transportation system, Philippine cities can offer a sustainable and high-capacity alternative to PUJs.
- Light Rail Transit (LRT) and Metro Systems
LRT and metro systems offer a high-capacity, fast transportation alternative that is separate from road congestion, presenting a dependable and effective mode of travel. By allocating resources to enhancing and updating LRT and metro systems, cities can decrease their dependence on PUJs and offer commuters a smooth and interconnected public transportation network.
Unleashing the potential of PUV Modernization Projects in the Environment
By upgrading the PUV fleet, the government intends to improve the overall quality of public transportation services and reduce the environmental impact of vehicle emissions. The implementation of this program has the potential to revolutionize the public transportation landscape in the Philippines through the prioritization of modern, eco-friendly vehicles and the enforcement of comprehensive regulatory measures. Consequently, a more sustainable, efficient, and environmentally aware system will be established (Medina, 2023).
- Reduction of Air Pollution
The PUV Modernization Program aims to downscale air pollution by taking the place of old and poorly maintained vehicles with newer and cleaner vehicles that emit fewer harmful pollutants. This will greatly improve air quality and public health.
- Mitigation of Greenhouse Gas Emissions
The PUV Modernization Program lessens local air pollution, but it can also aid in mitigating greenhouse gas emissions. Transportation is a significant contributor to greenhouse gas emissions, specifically through the burning of fossil fuels like carbon dioxide (CO2) and methane (CH4) (Shafa, 2023). By promoting the adoption of alternative fuels such as CNG and electric power, the modernization program can help decrease the carbon footprint of public transportation. CNG is a cleaner fuel compared to diesel and gasoline, resulting in lower CO2 and CH4 emissions. Similarly, electric-powered PUVs produce no emissions from their exhaust, providing a sustainable and environmentally friendly option to traditional fossil fuel vehicles (Muamar, 2023). The shift to low-emission PUVs can contribute to the country’s efforts in addressing climate change and fulfilling its international obligations to reduce greenhouse gas emissions.
- Noise Pollution Reduction
According to LTFRB, not only can the PUVMP decrease air and greenhouse gas emissions, but it can also decrease noise pollution in cities. Public transportation vehicles that are older and poorly maintained often create loud noises due to engine problems and worn-out parts.
The introduction of newer and more advanced vehicles, like electric ones, through the program can drastically lessen noise pollution. Electric-powered vehicles operate silently and generate minimal noise, which helps create a more tranquil urban atmosphere. This enhancement can improve the residents’ quality of life in urban areas, particularly those residing near busy transportation routes.
Optimizing the PUV Modernization for Economic Growth
- Job Creation and Economic Stimulus
One of the main advantages of the PUVMP is that it has the potential to create jobs and stimulate the economy. The program includes the production and use of new PUV units, which will lead to employment opportunities in the automotive industry, including the assembly, manufacturing, and maintenance of modern PUVs (Tugade, 2018).
Furthermore, the program will also generate employment in the transportation sector, such as for drivers, conductors, and support staff. These fresh job prospects will contribute to economic growth and assist in reducing unemployment in the country.
- Travel Efficiency and Security
The modernization of PUVs is anticipated to enhance the effectiveness and productivity of public transportation. The incorporation of cutting-edge technology like GPS tracking, electronic payment systems, and real-time monitoring in new vehicles will simplify operations and enhance the overall quality of service (Gonzales, 2018). As a result, this improved efficiency will contribute to shorter travel durations, decreased traffic congestion, and ultimately, increased productivity for commuters and businesses that heavily rely on public transportation.
Modernizing PUVs also deals with the safety and security issues linked to traditional jeepneys. The inclusion of safety measures like CCTV cameras, speed limiters, and comfortable seating in new vehicles enhances the overall safety of both passengers and drivers. Also, the use of a standardized fleet of PUVs guarantees adherence to safety regulations and decreases the likelihood of accidents and road incidents. Prioritizing safety and security is crucial for establishing trust and confidence in the public transportation system.
- Infrastructure Development
The PUV Modernization Program will affect the development of infrastructure, particularly in transportation facilities and urban planning (Ginez, 2021). The utilization of modern PUVs might necessitate the establishment of designated locations for passengers to embark and disembark, as well as upgrades to road and traffic management systems. These enhancements can contribute to the improvement of urban areas, traffic flow, and the establishment of a more structured and effective public transportation system.
- Financial and Investment Opportunities
The modernization of PUVs offers financial opportunities for stakeholders in the transportation industry. It promotes the involvement of the private sector in vehicle manufacturing, fleet management, and related services, leading to economic growth and attracting investments. Additionally, innovative financing methods like lease-to-own agreements make it easier for PUV operators to obtain modern vehicles without facing financial difficulties. This financial viability encourages stakeholders to participate in the program and contribute to its success (Mariano, 2020).
Roadblocks of the PUV Modernization Initiatives
For the individuals who are in favor of the PUVMP, it is seen as something of high benefit as it provides improvement to the environmental and economic status of the country after accomplishing the modernization of traditional jeepneys. Bautsitua & Moya (2023) claimed that as the major transport group — Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide’s (PISTON) — National President Mody Floranda’s statement: they demand to repeal the franchise consolidation section and postpone the entire program. However, even with the stronghold of PISTON being in opposition to the PUVMP, DOTr stood firm on the December 31 deadline that had been set.
- Unaffordable Cost for the Minimum-wage Jeepney Drivers and Foreseen Job Loss/Displacement
The price of modern jeepneys is a major downside of the PUVMP. Around 2019, Panti (2023), addressed that the cost of modern jeepney is declared to have a ₱2M price tag — which was called on by chairperson Joey Salceda on April 13, 2023. Furthermore, in the article, Salceda said in his statement, “If we can bring the cost of the unit to ₱600,000 to ₱1 million, that becomes more realistic for both the jeepney operator and on a cost-benefit basis. I think the domestic manufacturing sector can do it. But we need to support them.”
Nonetheless, the cost of modern jeepneys remains at ₱2M which will have to be shouldered by the jeepney drivers and operators. As discussed by Bautista & Moya (2023), the subsidy is offered to cooperatives that start at ₱80,000 to ₱160,000 and can only cover around 5% of the total cost of a modern jeepney. This might particularly result in another deliberating factor of the PUVMP which is prospective job loss for thousands of drivers and operators. According to Recuenco (2023), PISTON’s National President Mody Floranda observed that the majority of jeepney drivers and operators face the threat of displacement due to the consolidation strategy that involves owning just one jeepney.
It has been stated by the agency — NATCCO Network (2023) — that it is better for the jeepney drivers and operators of traditional jeepneys to merge a cooperative or join an already existing cooperative to avoid salary boundaries that are possible to arise. The ongoing consolidation issue mentioned by Mody Floranda came from the cooperative requirement for a new route franchise under the DOTr’s OFG. A study by Malasique, et al., (2022) suggested that the potential job displacement might be because not all PUV drivers possess the financial means to transition from their traditional jeepneys to a modernized one as well as secure a valid franchise due to challenges met during the consolidation process.
- A Driver of Economic Transformation
Additionally, this will not only influence the employment status of jeepney drivers and operators, but will also create a significant impact on the country’s economy — particularly on fossil-supported sectors, such as transportation. According to Guno et al. (2021), the Philippines is highly reliant on imported fuels, hence, price shifts of these types of resources exert a substantial effect on the country’s economy. Convenient public utility vehicles (c-PUV) or traditional PUVs are primarily susceptible to this transition due to the potential increase in fuel prices resulting in higher operational costs. In light of this, the majority might overshadow the minority, given that all PUVs are yet to be displaced by a contemporary counterpart.
The whole process of implementing the PUVMP also has a negative effect on infrastructure development. Besides having maintenance costs on modernized terminals and facilities needed for modernization, the establishment of new routes may result in even more road traffic and might cause discomfort to commuters and other drivers. Guno et al. (2021) stated that such hindrances like these can be handled by refining the infrastructure through making it a versatile material for use. This way, not only will it be designed to provide support to a single vehicle, but also to be a replacement for another EV part. On the other hand, Mendoza (2021) affirmed that modernized PUJs are made of components that are imported from other countries which will make it even more difficult for the drivers to repair their modern jeepneys.
- The End of the Line for our Cultural Icon
The Jeepney has become deeply rooted in Filipino culture, serving as a widely used and essential form of transportation for millions of Filipinos. Its vibrant and extravagant appearance often showcases intricate paintings, religious symbols, and other decorations that reflect the creativity and artistic talent of the Filipino people. The Jeepney is more than just a vehicle; it is a canvas that represents the cultural identity and values of the Philippines.
Additionally, the Jeepney has become a symbol of community and social interaction. It is common to see passengers engaging in lively conversations, sharing stories, and forming connections during their journeys on the road. The camaraderie and sense of unity fostered within the Jeepney embody the spirit of bayanihan, a fundamental Filipino value that highlights communal togetherness and cooperation.
Apart from being aesthetically crafted by Filipinos and fostering a sense of unity among its passengers, the jeepney’s historical roots are deeply intertwined with the very essence of Filipino identity. Beyond its distinctive appearance and the communal spirit it fosters through lively conversations, the historical narrative of the jeepney holds immense significance in shaping and defining the Filipino people’s sense of self. With the implementation of PUVMP, there will be an imbalance between the way a contemporary issue is addressed and sustaining the jeepney’s reflection in our country’s cultural heritage.
Struggles of the Jeepney Drivers During the Transport Strike
“It’s OK to have modernization for those who have money, but for us jeepney drivers and operators, we cannot afford,” vocalized by jeepney driver Benito Garcia to The Associated Press (AP News, 2023).
The jeepney transport strike has been caused by multiple factors, with one of the main issues being the government’s program to modernize PUVs This program aims to replace old jeepneys with newer and more environmentally friendly models (Bautista, 2022). However, jeepney drivers and operators have opposed this initiative, as they argue that the cost of modernizing their vehicles is excessive and that they could lose their means of making a living. For instance, the strict requirements for modernization have been seen as impractical and burdensome for many small-scale jeepney operators. In addition, addressing the problems related to the jeepney transport strike requires a comprehensive approach that considers the concerns of all parties involved.
One possible solution is to foster constructive dialogue among the government, jeepney drivers and operators, and other relevant stakeholders to find a compromise that supports modernization while safeguarding livelihoods. This may involve exploring financial aid programs, flexible timelines for modernization, and alternative job opportunities for those affected (Guadiz, 2017).
The transport strikes resulting from the phaseout of jeepneys necessitate a comprehensive and long-term solution that considers the concerns of all stakeholders involved. This solution should include financial assistance and retraining programs for affected operators and drivers, the gradual introduction of modernized public vehicles, the expansion and improvement of alternative modes of public transportation, the enhancement of infrastructure and facilities, and the implementation of supportive policies and regulations (Guadiz, 2017). By taking these measures, the government can strive towards a sustainable and contemporary public transportation system that benefits both operators and commuters, which also tackles the difficulties posed by the elimination of traditional jeepneys.
PUVMP Stands Against Everyone
The modernization program consists of various essential elements, each of which plays a vital role in the transformation of the PUV sector. These elements may involve the gradual removal of outdated jeepneys, the introduction of new vehicle models, the adoption of modernized franchising systems, and the integration of technology to enhance efficiency.
The government needs to consider the status of Filipinos, particularly those who are minimum-wage earners, drivers, and commuters. While the PUV Modernization program is beneficial and effective for our economy and transportation system, we should ensure that it will result in improved transportation and economic conditions for minimum wage earners, despite the high cost of living. Despite the noble intentions of the PUVMP, it has been confronted with various challenges and controversies that arise from its economic, social, cultural, and environmental implications. Dealing with these complexities necessitates a comprehensive approach that harmonizes the desire for progress with the protection of livelihoods, cultural heritage, and fair access to transportation services (Bautista, 2022).
The PUVMP has the potential to improve the public transportation system and address ongoing concerns about safety, efficiency, and environmental sustainability. However, the program faces many obstacles that require collective efforts and innovative solutions to overcome. By addressing the financial, regulatory, infrastructure, environmental, and social aspects of the modernization program, the government, together with relevant stakeholders, needs to reevaluate the program’s implementation and its impact on different sectors of Philippine society.
PUVMP presents both negative and positive consequences to individuals who are affected, however, the disadvantages of the said program weigh more than the good it can cause. As concerned citizens who will be subjects of this change, now is the time for us to unite our voices and prevent this massive transformation from occurring. The drawbacks this program presents call for our attention. Your voice matters as this serves representation for the minority — the jeepney drivers, operators, and Filipino commuters. In this way, we can foster a highly inclusive approach on addressing various collective concerns about the program.
Besides, the role of communication and media in relation to the modernization of public utility vehicles in the Philippines is complex and extensive. Various communication methods, including both traditional mass media and social media, as well as government communication and advocacy campaigns, have influenced public opinion, policy decisions, and engagement with stakeholders. It is crucial for communication and media professionals, policymakers, and members of civil society to approach the issue of PUV modernization in a sensitive, inclusive manner, while also promoting well-informed and participatory decision-making processes. By utilizing the power of communication and media, the Philippines can effectively address the challenges associated with PUV modernization.
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