Government to fast-track transport modernization amid fuel price spikes

THE PHILIPPINE government will fast-track its modernization program for public utility vehicles amid rising global oil prices due to the war between Israel and Iran, according to its Transportation chief.

But structural economic challenges continue to hinder the transition from traditional fuel-powered vehicles to electric and modern fleets, Transportation Secretary Vivencio B. Dizon told reporters at a virtual news briefing on Thursday.

“We’re trying our best to implement this as fast as we can,” he said in mixed English and Filipino. “But as we have already said in the past, there are too many issues that need fixing before we can fast-track the program.”

“We cannot just fast-track this without addressing those very basic problems, which essentially involve economic viability,” he added.

The push to modernize the country’s aging transport fleet has taken on fresh urgency amid volatile oil prices because of the Middle Eastern war.

Brent crude briefly spiked to $79 per barrel amid geopolitical jitters but fell back to about $69 after US President Donald J. Trump announced a cease-fire, easing concerns over potential disruptions to the critical Strait of Hormuz shipping corridor, Reuters reported.

The transport modernization program, launched in 2017, seeks to replace old jeepneys and buses with environmentally friendly, fuel-efficient models, many of which run on electric or hybrid power.

The plan seeks to professionalize the sector, while promising to make it more profitable, by calling on more than 30,000 drivers and operators in Metro Manila to consolidate.

Critics say the plan is anti-poor, and the new business model that it seeks to spawn is a case of corporate capture.

The modernization program seeks to establish a state-of-the-art public transport system that induces operators to renew their fleets using higher-capacity vehicles that are also more efficient.

It also lays the groundwork for the electrification of the public transport fleet toward full decarbonization.

Mr. Dizon cited high vehicle costs, scarce spare parts and maintenance options and limited financing.

“Many of our modernized operators are now struggling to pay their debts,” he said. “That just means they are losing money.”

A modern jeepney could cost P900,000 to P3.3 million, compared with traditional ones that are worth P150,000 to P400,000.

The agency is planning to roll out “major changes” in the coming weeks, Mr. Dizon said, without elaborating.

He said there would be funding support next year.

“There is space there, there are subsidies in place,” he said. “But the problem is we cannot rely on subsidies alone to modernize our public utility vehicles.”

He said a market-driven approach is needed to ensure the sustainability of the modernization plan, adding that operators and drivers must have an incentive to modernize.

“If they don’t make money, no matter what we do, it will be difficult to incentivize transport groups to modernize,” he added.

The modernization drive has been repeatedly delayed amid criticism from transport groups, many of which argue that the costs and loan terms are unaffordable for small-scale jeepney and bus operators.

The government had set multiple deadlines for compliance, but these have been pushed back amid consultations and protests.

The Philippine jeepney operates under a “boundary system,” where the driver, usually male, pays the jeepney owner called the operator a fixed daily amount called the boundary.

Jeepneys have been known as the king of the road, mainly due to the aggressive driving behavior of their drivers.

They have been called both a public convenience and nuisance because they suddenly stop in the middle of the road to load and unload passengers. — Chloe Mari A. Hufana