{"id":9862,"date":"2020-06-27T08:03:51","date_gmt":"2020-06-27T00:03:51","guid":{"rendered":"https:\/\/www.ibon.org\/?p=9862"},"modified":"2020-06-27T08:12:02","modified_gmt":"2020-06-27T00:12:02","slug":"part-2-the-anomaly-of-transport-modernization","status":"publish","type":"post","link":"https:\/\/www.ibon.org\/tl\/part-2-the-anomaly-of-transport-modernization\/","title":{"rendered":"Part 2: The anomaly of transport modernization"},"content":{"rendered":"

Last of a two-part series<\/em><\/p>\n\n\n\n

Government\u2019s misplaced scheme <\/em><\/strong><\/p>\n\n\n\n

In many instances, the\nsolution to the complex transport problems of Metro Manila lies in the physics\nof the problem, in the same way that dealing with COVID-19 requires medical\nscience. But the Duterte administration has simply picked up its pre-COVID proposal\nof \u201cjeepney modernization\u201d and used the pandemic to justify finally pushing for\nit, amid protestations by jeepney drivers and the adverse impact on millions of\ncommuters.<\/p>\n\n\n\n

The government is a signatory\nto the Bangkok Declaration on Sustainable Transport Goals (Bangkok 2020) on\n\u201cenvironmentally-sustainable\u201d transport policy. This is also in relation to the\nADB\u2019s\nSustainable Transport Initiative that is ultimately premised on the\ncontinuation of \u201cfree market\u201d and \u201cinclusive\u201d economic growth. The Duterte\ngovernment\u2019s accomplishment in fulfilling Bangkok 2020 rests on the jeepney\nmodernization program. Ultimately, this is important for the Duterte\nadministration to attract transport infrastructure investments as well as to\npush for the sale of brand new, imported, so-called environment-friendly, and\nmodern jeepneys.<\/p>\n\n\n\n

Through the Omnibus\nFranchising Guidelines (OFG) that the DOTr issued on 19 June 2017, the\ngovernment is requiring the make of the body and engine of the traditional\njeepney to be compliant with the requirements set by the Land Transportation\nFranchising and Regulatory Board (LTFRB). These requirements definitely\nprioritize electric jeepneys (e-jeep), while pushing away the traditional\njeepneys which need to go through numerous hurdles to get licensed to operate.\nThese hurdles include: upgrading combustion engines to comply with Euro IV and\nsimilar emissions standards; complying with the LTFRB-set age-limit of oldest\nvehicle part; refurbishing and rebuilding that should pass the type approval system\ntest; and still finally going through the Land Transportation Office (LTO) for\na roadworthiness test to get registration renewal. <\/p>\n\n\n\n

Concerned automotive\nengineers, scientists and mechanics contest the need to phase out traditional\njeepneys and argue that the government should support locally manufactured environmental\nsolutions. They also question the availability of the parts of the imported\nmodern jeepneys in case of repairs, unlike with the traditional jeepneys that\ncan be replaced easily. They also claim that the body engineering of the modern\njeepneys is not suited to Metro Manila\u2019s narrow roads and more prone to\naccidents. Environmentalists have also criticized the government\u2019s going\nelectric or Euro IV as hypocritical when its own energy program is reliant on\ncoal and other fossil fuels.<\/p>\n\n\n\n

But the OFG just keeps on\nnarrowing the chances for traditional jeepneys to survive. The OFG also\nrequires a fleet size of 15 units for any type of PUV for six months for new\nroutes, which prevents small operators from applying for new franchises.\nActually, even medium-scale operators \u2013 if they exist \u2013 are constrained and\nmarginalized under the modernization program. The modern jeepney costs about\nPhp1.6 million to as high as Php2.5 million, which means that an operator needs\nat least Php24 million to get a franchise. <\/p>\n\n\n\n

The DOTr has stated that the\ngovernment is not phasing out jeepneys but simply modernizing. However, the government\nplays with words. The jeepney modernization program will ultimately kill the\nlivelihoods of thousands of jeepney drivers and complete the corporate capture\nof the \u2018last-mile\u2019 resort of millions of Filipino commuters. <\/p>\n\n\n\n

Still pushing for Build, Build, Build\nand foreign ownership<\/em><\/strong><\/p>\n\n\n\n

The Duterte administration is\nalso not compromising its Build, Build,\nBuild<\/em> (BBB) infrastructure projects, despite their questionable viability\neven before COVID-19 struck and their diminishing relevance now. Of the 100\ninfrastructure flagship projects (IFPs) worth Php4.3 trillion, 73 are for\ntransport and mobility. The government does not have plans to strengthen\neconomic production so the projects will just end up reinforcing a service\neconomy dependent on import-export trade, foreign investments and tourism. Much\nof the construction materials used are even imported rather than produced\nlocally. <\/p>\n\n\n\n

The transport sector is\nreflective of how the government has lost its capacity to govern and manage\npublic services because of privatization. This raises questions therefore on\ngovernment\u2019s absorptive capacity for such a grand infrastructure program. Four\nyears into the ambitious BBB, there are only two (2) completed and nine (9) ongoing\nprojects to date. The Duterte administration has even increased the IFPs from\n75 to 100 to make BBB \u201cmore feasible\u201d. But it appears that only 38 projects will\nbe finished by the end of its term.<\/p>\n\n\n\n

The future of BBB in the time\nof COVID-19 is precarious. But like a beaten beast, the Duterte administration\nrefuses to yield. The pandemic is posing serious challenges to the continuation\nof BBB, apart from the program\u2019s innate weakness of simply being aimed at\nattracting foreign investments and momentarily stimulating a slowing economy.<\/p>\n\n\n\n

The most obvious challenge for\nthe construction industry is physical distancing because  masses of workers need to gather to finish a\nproject. The IATF suspended construction at the start of the lockdown but later\nallowed it, while passing on to the construction companies the responsibility of\nensuring that workers comply with health protocols. <\/p>\n\n\n\n

The next challenge is how\ntravel restrictions and physical distancing will certainly dampen transport,\ntravel and tourism businesses, and foreign trade and investment for a long\ntime. These are the sectors that BBB wishes to be relevant for \u2013 but they are less\nand less important for the economy\u2019s survival in the time of COVID-19. <\/p>\n\n\n\n

Another challenge is the\ncommercial viability of the projects on which they are all premised. Instead of\ncatering to genuine public service, the completed projects are designed to be\nrun by private transport corporations who will collect user-fees for their\nprofitability and sustainability. The most expensive BBB projects are mass\ncommuter railways whose viability depends on expensive fares that will be beyond\nthe reach of the majority of the poor and working people.<\/p>\n\n\n\n

But the greatest challenge is\nhow BBB\u2019s socially inappropriate orientation can be shifted to support the\nproper health response to COVID-19. The pandemic has revealed how weak our\nhealth system is \u2013 lacking facilities and equipment, lacking health personnel,\nand even lacking the means to transport health personnel. Not a few health\nfrontliners have had fatal road accidents biking to work due to lack of\ntransport support from the government. There is not even a single health\ninfrastructure facility in the IFP lineup. The administration has made\npronouncements that it would reorient BBB to respond to the health crisis but has\nyet to release a new IFP list.<\/p>\n\n\n\n

Meanwhile, one priority\nlegislation of the administration is the amendment of the Public Services Act\n(PSA). On March 10, just before the lockdown, the House of Representatives\npassed on final reading House Bill (HB) 78 to amend the PSA. It is now at the\nSenate for deliberation and approval. These amendments include narrowly\ndefining public utilities to bypass Constitutional restrictions on foreign\nownership. Sectors considered public services, transportation included, can be\nopened up to complete foreign ownership. This further undermines public interest\nand national development. The PSA amendments will pave the way for the full\nforeign ownership of the mass transport system and government\u2019s eventual\nsurrender to private transport and transport infrastructure corporations.<\/p>\n\n\n\n

The right direction<\/em><\/strong><\/p>\n\n\n\n

The Duterte government can\naddress the transport crisis in the time of COVID-19 and in fact can look at\nthe pandemic as an opportunity to overhaul the system. The health protocols may\nbe followed indeed if only the government recognizes and addresses the transport\ncrisis in a scientific manner. <\/p>\n\n\n\n

There should be a first-step\nlong-term modal shift from road to rail. The government can start by upgrading\nand adding rolling stock and rails to the train system. The corporations and\nofficials of government agencies who forged lopsided privatization contracts\nshould be held liable for poor service including breakdowns and accidents. The\nPhilippines is among the first countries in Asia to have an urban rail system\nand has a long history of government running rail transport systems. These\nassets can be nationalized again and returned to public control. Rail transport\ncan then be central to urban planning as well as to the dispersal of economic\nactivities to the rural areas.<\/p>\n\n\n\n

An efficient rail transport\nsystem, not to mention fully linked and accessible, will be the basis of an\nequally efficient route rationalization plan for PUBs and PUVs. The government\nshould seriously conduct its own study to identify where the mass of commuters\ncan have the most optimal travel time, including number of stops, from their\nworkplaces to their homes. This should also include designation of walkways and\nbike lanes. It should not rely on self-interested privatization stakeholders to\nmake such studies.<\/p>\n\n\n\n

For a route rationalization\nplan to be truly systematic, PUBs and PUVs along with rail should be publicly\nrun. Government can start by organizing PUBs and PUVs into cooperatives rather\nthan allowing only single or corporate proprietorship of large fleets. It can\nalso incentivize cooperatives to improve their service and compliance. Then,\ngovernment can move on to careful consolidation of fleets through joint\nventures and eventual nationalization. Such crucial steps will finally make PUB\nand PUV modes more economical and fares more affordable.<\/p>\n\n\n\n

The DOTr is proposing to\nintroduce service contract arrangements with private transport operators for\nthe \u201cnew normal\u201d. It also aims to shift from the \u201cboundary system\u201d to daily\nfixed wage for drivers and conductors so they can have steady incomes\nregardless of reduced ridership. This sounds acceptable, especially if we\nconsider that transport groups have long been clamoring for government to\nabolish the \u201cboundary system\u201d to avoid competition-driven stresses, road\nhazards, and transport unpredictability.<\/p>\n\n\n\n

However, the DOTr proposal\nremains outside the vision of living wages for transport workers, promoting\ntheir welfare and strengthening their unions, subsidizing commuters and\ncontrolling fares, and diminishing competition among the private contractors\nwith stronger public control. In short, the current proposal should be within\nthe framework of nationalization, lest it end up being another privatization\ncontract. <\/p>\n\n\n\n

The proposal is welcome if it\nis not being done in the context of the government\u2019s jeepney modernization\nprogram. The Duterte administration cannot even give sufficient social\namelioration to displaced drivers and conductors during a pandemic.<\/p>\n\n\n\n

Moreover, government should\nonce and for all restrain the explosive private car sales that defies all\npublic mass transport logic. These just give the automotive corporations\nmaximum returns on their businesses.<\/p>\n\n\n\n

Finally, the pandemic gives us the vast opportunity to rethink sustainable development perspectives. The need for agrarian development and national industrialization cannot be overemphasized. But the government can start with arresting the anarchic building of offices especially for business process outsourcing and online gambling, shopping malls, hotels and leisure structures, residential and private subdivisions, and condominiums. Metro Manila\u2019s urban development Is geared to increasing real estate profits and the wealth of the country\u2019s economic oligarchs at the expense of public mobility and welfare. <\/p>\n\n\n\n

Government can start by planning an economy that genuinely addresses severe inequalities existing pre-COVID-19 that, without corrective steps, will persist even far beyond. <\/p>\n\n\n\n

Read the first part of this series<\/a><\/em><\/p>","protected":false},"excerpt":{"rendered":"

FEATURES<\/p>\n

The Duterte government can address the transport crisis in the time of COVID-19 and in fact can look at the pandemic as an opportunity to overhaul the system. The health protocols may be followed indeed if only the government recognizes and addresses the transport crisis in a scientific manner. <\/p>","protected":false},"author":10,"featured_media":9866,"comment_status":"open","ping_status":"open","sticky":false,"template":"single-withbanner.php","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":"","_expiration-date-status":"saved","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"categories":[2048,3],"tags":[1041,2218,347,2291,1105,2093,2098,2060],"acf":[],"_links":{"self":[{"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/posts\/9862"}],"collection":[{"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/comments?post=9862"}],"version-history":[{"count":2,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/posts\/9862\/revisions"}],"predecessor-version":[{"id":9868,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/posts\/9862\/revisions\/9868"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/media\/9866"}],"wp:attachment":[{"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/media?parent=9862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/categories?post=9862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/tags?post=9862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}