Dramatic changes seen in transport sector

Bus operators will be invited to join the project and provide the bus units based on specifications.

It seems dramatic change is happening in the public transport sector.

The Department of Transportation recently signed its Omnibus Guidelines on Route Identification and Franchise issuance, upending long-standing rules on how the government assigns service areas to public transport operators.

Under the old practice, franchises were handed out on a private sector-initiated basis. For example, if a bus operator deems a route viable, it approaches the DOTr (then Department of Transportation and Communications) for approval and would then be granted a license.

It was an inefficient method to begin with, more so these days with road congestion issues considered by many to be a national crisis. A moratorium on the acceptance of new franchise applications has been in place for 13 years now.

Under the DOTr’s new guidelines, local government units will determine route planning within their respective areas from buses, jeepneys to UV Express units. Franchises will still be issued by the DOTr.

A three-year transition period has been set, after which existing franchises will be canceled—assuming there are no hiccups along the way.

The DOTr said the rules would also pave the way for the new bus rapid transit (BRT) systems planned in Metro Manila and Cebu.

So far, Biz Buzz sources said the bus group of former congressman Homer Mercado is getting ahead of the game, moving to consolidate about half of all Metro Manila bus operators into one mega consortium. This is to prepare for such changes.

Consolidation is part of the DOTr plan as this will allow the groups to pool resources and modernize their services. The DOTr also wants a more hi-tech way of dispatching buses, so dealing with less players is an advantage.

Overall, this is an interesting and welcome development, given its vision to include LGUs. But three years is either a long time or an eternity in an environment where things are far from certain. We imagine multiple fingers are crossed at the DOTr. —MIGUEL R. CAMUS