JEEPNEY groups have opposing positions on transport modernization and on tax reforms, resulting in fuel-price hikes and demands for fare hikes, which are now triggering speculation from opportunists and fear and confusion from the riding public that could escalate, unless the Department of Transportation (DOTr) steps in to pacify mounting uncertainties by exhausting all solutions to the inter-locking issues.
Onerous jeepney fare hikes? When the Tax Reform for Acceleration and Inclusion was enacted, some transport groups, led by Obet Martin of Pasang Masda demanded irresponsibly a P4, or 50-percent increase in minimum fare from P8 to P12. Piston demanded a P6 per liter discount.
These demands are grossly unacceptable and untenable based on facts. Jeepneys consume about 30 liters a day, and at P2.50 per liter excise tax on diesel for 2018, that amounts to P75 a day. At a minimum of 200 passengers per jeepney per day, drivers will generate P800 in additional fares, or almost 1,000 percent more than the P75 in diesel excise taxes.
This windfall is conservative as most jeepneys carry 20 passengers per trip so 200 passengers is easy being equivalent only to five roundtrips per day. Jeepneys make more than five roundtrips at 14 hours of operations.
Although spare-part prices may have increased, the share of spare parts to total costs per jeepney are insignificant compared to fuel costs. Fuel is a consumable expense, while spare parts are not replaced or purchased daily.
Piston’s P6 per liter discount amounts to a P180 fuel subsidy, which is again untenable as it means a daily doleout of P180 per driver, or P4,680 a month. This cannot gain sympathy from the government and the riding public as it is not doable and acceptable.
Piston has been holding strikes opposing modernization by calling it a phaseout. Stop and Go Coalition also opposed modernization through tigil pasada. Both may have legitimate concerns on some onerous features, but they have neither offered viable and affordable alternative solutions.
Turning problems into benefits. Fortunately, there are jeepney groups that have embraced modernization and have willingly organized into cooperatives, which is the only logical choice for jeepneys to consolidate.
Leading these groups are the Cubao Rosario Sta. Lucia Transport Service Cooperative, led by Rodrigo Padrigo; Pasig LRT Marikina SM Transport Service Cooperative chaired by Crescenciano Lingaya and Pasig Mandaluyong Quiapo Operators and Drivers Alliance Transport Service Cooperative (Pamaqoda), led by Ponciano Letrodo and Ruben Vasquez. Two of these groups are still undergoing registration difficulties owing to tedious procedures and stringent requirements that are delaying final approval by over six months now.
Despite these problems, they are forming alliances along with the more organized 350,000-strong NCR Toda Coalition of 17 Metro Manila Tricycle Federations, and have been conducting their own air-pollution control research at their expense, and without government help.
While other jeepney associations are wary of cooperativism, calling it a ”scam,” these groups see the opportunities and benefits from cooperativism. Instead of the seven-year financing offered by DOTr, they are eyeing the Credit Surety Fund (CSF) of the Bangko Sentral ng Pilipinas (BSP), which also courses it through the banks but offers 10-year amortization, concessional rates and no collaterals.
Emission impossible now possible. They have discovered that even a 30- or 40-year-old jeepney engine can attain a 0.16 opacimeter reading, way below the 1.0 emission standards for 2017, by adopting simple maintenance techniques, said Engr. Dave Garcia, a consultant of these transport groups. “But with a combination of a package of technologies, including those verified by the Department of Science and Technology, we can attain almost-zero emissions,” he added.
This has significant implications as jeepneys can just modernize bodies and make their existing old engines emissions-free, or go for cheaper P120,000 engine rebuilds or “re-mans” (re-manufacturing or bringing back engines to their brand new state), thus bringing total costs down to P350,000 to P500,000, much lower than the P1.6 million being offered.
Pamaqoda also increased mileage from 5 to 6 kph to 8 kph, or a fuel savings of 33 percent to 50 percent, lowering effective amortizations. No single technology can completely solve everything as emissions, particularly black carbon or particulate matter (PM), are caused by dirty fuel owing to the sludge or waste by-product of refining blended into diesel; poor lubrication, poor air-to-fuel ratio, etc.
These technological interventions make it possible to even surpass emission standards and assure maintenance conditions are maintained 100 percent from the start to the end of financing.
The DOTr’s missing link? Appropriately, it addresses what is missing between the three-year warranties of vehicles and the seven-year financing period.
As jeepneys undergo 14 hours of operating time and high passenger loads, breakdowns are likely without maintenance, which is worrying government banks as it could affect amortizations.
Costs of warranties can be lowered to be limited only to the “friction zones” like engine wear and tear. The body, even if exposed to rain, sun and wind, will not break down, more so the under-chassis that can last 50 to100 years, so focus must be on engine maintenance.
In short, the cost of maintenance can be inputted into the financing to guarantee the ideal conditions all the way, even beyond the amortization periods.
The DOTr must incorporate maintenance into its modernization equation as Section 21 of the Clean Air Act mandates it to implement emission standards through inspection and maintenance. It already has the Motor Vehicle Inspection Service, but has no policy or program yet on maintenance.
Can’t have modernization without consolidation. But maintenance service centers cannot effectively happen without industrial consolidation, through cooperatives, which can run their respective clean fleet management.
The 5-percent equity or P80,000 offered by the DOTr will not really assure the success of the program, but even if a portion of this amount is spent and consolidated into the cooperatives to fund their periodic clean fleet management systems through their vehicle maintenance centers, it can guarantee top-shape daily maintenance.
E-mail: michael_alunan@yahoo.com.