LTFRB: No new franchises to be issued to bus operators

MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) said on Friday, July 11, that no new Certificate of Public Convenience (CPC) or franchises will be issued to bus operators.

Bus operators will instead be allowed to file a petition to modify existing authorized routes, either by shortening or lengthening them, depending on the passenger demand, the LTFRB said.

Bus operators must meet requirements as stated in the memorandum circular (MC) to be issued by the agency.

Under the guidelines, bus operators must maintain its own passenger terminal or common passenger bus terminal in the origin and destination points of their proposed modified routes.

In amending their routes, the bus operator must not totally abandon its authorized routes. The modification of routes shall be subject to the establishment of Integrated Transport System (ITS) of the government.

Bus operators have 180 days to substitute their phased-out units from the date of the decision approving the modification of their rationalized routes, LTFRB said.         

The agency is also addressing the issue of out-of-line operations of provincial buses by rationalizing the routes and ensuring that there are enough number of authorized units in a particular route.

“With this rationalization of routes, we will be able to solve the out-of-line issues that has been illegally practiced by some PUB (public utility buses) operators,” LTFRB chairman Winston Ginez said.

The MC is also implementing the “prior operator” rule. This means that before permitting a new operator to invade the territory of another operator, the prior operator must first be given the opportunity to extend its service in order to meet public need.

However, where public interest would be better served by admitting a new operator – as when the prior operator has failed to render adequate, sufficient, and satisfactory service – the “prior operator” rule shall not apply, LTFRB explained. – Rappler.com