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Jeepney modernization may mean higher fares, fewer routes: Think tank

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A modern jeepney traverses along Buendia Avenue in Makati City on March 1, 2023. Mark Demayo, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/life/03/05/20230301-modern-jeepney-md-8.jpg"/><figcaption>A modern jeepney traverses along Buendia Avenue in Makati City on March 1, 2023. Mark Demayo, ABS-CBN News</figcaption></figure></div>MANILA — The consolidation of public utility vehicle franchises under cooperatives and corporations could lead to higher fares and fewer options for commuters, an economist said Tuesday, the second day since a government deadline to join the scheme.Speaking on ANC&#x27;s &quot;Headstart&quot;, IBON Foundation Executive Director Sonny Africa said that fares will likely rise in coming years, based on the Philippines&#x27; experience when it privatized water and power.&quot;Fares will be kept low at maybe P15-P20 — P25 — for the first 3 to 5 years. But we fully expect that in 5 years or more, it will hit about P45-P50,&quot; he said. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/video/news/01/01/24/exemptions-on-puv-consolidation-deadline-caused-confusion-piston">PISTON says &#x27;exemptions&#x27; on Dec. 31 PUV consolidation deadline caused confusion</a></li></ul>He said that the transport corporations and cooperatives will need to make enough money to pay off loans for the modern jeepney units and to pay for garages and other expenses under the government&#x27;s PUV Modernization Program.Currently, he said, fares are low — the minimum fare is P13 — because &quot;drivers are willing to accept that low a fare and provide the transport service.&quot; Higher costs will mean operators will be forced to raise fares, he said.&quot;There is also the increased profit motive, the profit premium being added to fares on top of that,&quot; he also said.The profit motive will also mean that lower-revenue routes might disappear since operators would focus on the routes where they will make the most money, Africa said. Aside from being too expensive for most Filipinos, ride-hailing app services will not be enough to fill the gap in public transportation that jeepneys are already filling, he said.<div>JEEPNEY DRIVERS&#x27; CONCERNS VALID</div>Africa also stressed that jeepney operators and drivers opposed to franchise consolidation have valid reasons for protesting the scheme.Apart from the cost of the modern units, groups like PISTON and Manibela oppose the requirement to consolidate franchises, saying drivers would be left with nothing if a cooperative fails or is mismanaged.PISTON president Mody Floranda said in December that their members are willing to form cooperatives but want to be allowed to keep the individual franchises and individual ownership of their units.The Land Transportation Franchising and Regulatory Board has said that consolidating into cooperatives would mean drivers would not have to compete with each other for passengers and would get fixed salaries.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/12/20/23/piston-asks-sc-to-block-franchise-consolidation">Piston asks Supreme Court to block franchise consolidation</a></li></ul>&quot;If the PUV Modernization Program really was in their interest, they would jump on board completely,&quot; Africa said, adding that &quot;government has to do so much more to convince jeepney drivers and operators that this is in their interest.&quot;He added that government must acknowledge that it has to increase subsidies for mass transport. &quot;If government wants to improve genuinely... they have to put out for it,&quot; he said.

IBON Executive Director Sonny Africa said fares will likely rise in coming years, based on the Philippines' experience when it privatized water and power.