Local manufacturers seek support for transport modernization

The Automotive Body Manufacturers Association of the Philippines (ABMAP) asked the government to prioritize local manufacturing over importing completely built-up (CBU) units as the Department of Transportation (DOTr) pushes forward with the Public Transport Modernization Program (PTMP).

The plea from local manufacturers comes amid discussions on financing and technical hurdles that have slowed the transition from traditional jeepneys to modern public utility vehicles (PUVs).

ABMAP president Vicente Mills Jr. said Filipino manufacturers have made significant investments in plant capabilities to produce modern PUVs that comply with national standards.

The association recommended that the DOTr formally acknowledge the six approved Philippine National Standards (PNS) developed by the Bureau of Philippine Standards in its draft circular, noting that more than 80 percent of the technical specifications were based on these standards.

The DOTr, through Undersecretary Ramon Reyes, outlined the three main steps for the PTMP which include rationalizing routes nationwide, capacity building for transport cooperatives and signing a memorandum of understanding (MOU) with government financial institutions (GFIs), later to be extended to commercial banks.

Reyes announced that the Local Public Transport Route Plan (LPTRP) would now be managed directly by the DOTr, with local government units playing a supporting role.

The DOTr is piloting route rationalization in Baguio, Mandaue, General Santos, Bacolod and Antipolo, aiming for 50-percent completion by the end of the year and finalization of the remaining half next year. The program is supported by both the World Bank and the Japan International Cooperation Agency (JICA).

Reyes also noted that the extension of PUV franchising terms from seven to 10 years has allowed banks such as the Development Bank of the Philippines (DBP) to resume lending. Scrapping facilities for phased-out units are planned for Central Luzon and the southern regions.

ABMAP stressed the need for importers and distributors of modern PUVs to guarantee nationwide after-sales support, including readily available spare parts and competent technicians, to ensure long-term service reliability for operators.

Mills also reminded the DOTr that the PTMP’s smooth transition has been hindered by a slowdown in financial support from GFIs like DBP and Landbank.

He cited several contributing factors, including non-utilized automatic fare collection systems such as beep cards, unpaid loans leading to repossessions and mismanagement within some transport cooperatives, urging the government to address these issues promptly.