FILE

The Land Transportation Franchising and Regulatory Board (LTFRB) has granted an extension for the operation of unconsolidated Public Utility Vehicles (PUVs) until April 30, 2024. This decision comes in response to the challenges faced by individual operators in meeting the Industry Consolidation Component deadline of the Public Transport Modernization Program (PTMP).

The extension is outlined in Memorandum Circular 2024-001, disclosed by LTFRB Chairperson Teofilo Guadiz III on Thursday. According to the circular, individual operators are allowed to continue operating their units until the specified date, given that the vehicles are currently registered with the Land Transportation Office (LTO) and possess valid Personal Passenger Accident Insurance Coverage.

The memorandum emphasizes that confirmation of units for unconsolidated individual operators may be allowed until April 30, 2024, during which these units are authorized to ply designated routes as PUVs.

This extension follows the approval by President Ferdinand Marcos Jr. of the recommendation made by Transportation Secretary Jaime Bautista, allowing a three-month grace period for the Industry Consolidation Component of the PTMP.

The LTFRB memorandum also provides guidelines for the consolidation process. For routes covered by the Local Public Transport Route Plan (LPTRP), consolidation is permitted on existing rationalized routes with no consolidated entity as of December 31, 2023.

Additionally, routes not yet covered by LPTRP can undergo consolidation if the number of unconsolidated units in a particular route is at least 40% of the total number of authorized units. Consolidated entities are required to adhere to common fleet management practices to ensure organized dispatch and avoid competition conflicts.

The memorandum specifies that consolidation will not be allowed if the number of unconsolidated units falls below 40% of the total authorized units. However, unconsolidated individual operators have the option to join existing Transport Service Entities (TSEs) on the route, subject to their conformity.

For routes with fewer than fifteen units, consolidation is allowed if the application covers the majority of the existing authorized units. Individual operators limited by prior board issuances may form their own TSE or join existing TSEs in overlapping routes until April 30, 2024, with the latter's conformity.

The memorandum further extends the period for completing the required number of units for pending consolidation applications and allows individual members to withdraw from cooperatives and TSE corporations under certain conditions.

This new LTFRB memorandum, identified as MC 2024-001, takes effect immediately upon its publication in a newspaper of general circulation. The guidelines aim to provide a smooth transition for operators and streamline the consolidation process within the specified timeframe.