The Iloilo City Council has allowed the private sector, primarily the Megaworld to establish a transport hub and operate a premium Point-to-Point (P2P)bus transport services from its township in Mandurriao to the major airport terminals in Caticlan, Kalibo, Roxas, and the Iloilo International Airport in Cabatuan town.

As anticipated, taxi and jeepney transport groups expressed opposition on this new addition to transport services in spite being aware of government’s Public Utility Vehicle Modernization Program (PUVMP).

The Dept. of Transportation (DOTr) introduced the ambitious modernization program in 2017. I call it ambitious because based from my judgement, the national government was ill-prepared for the roll-out of the long-term program. It was made evident in the numerous road safety fora that I have attended wherein the program was presented by agency officials.

Among the major issue is the transition period for public transport groups considering a phase-out of old units and an introduction of mid-size buses that are Euro 4 fuel compliant. But a more important factor in the transition is the issue of readiness in general of the public transport sector to connect to the program and adopt the change.

Ten years ago, the concept of modernization has emerged among the discussions related on the urbanization of Iloilo City in the next 5 years or from 2010 to 2015. Leaders of transport and labor groups were among selected participants in a focus group discussion facilitated by one of the university from Manila.

Having recognized modernization as inevitable, I raised some issues on the preparedness of the public transport sector to comply with the prerequisites as a step which will allow them to seize the opportunity at the first instance that government will offer a modernization package.

I shared with the local transport groups that these ideas is something that they must not take lightly. Focus group discussions is part of a structured research process which will conclude with an analysis and recommendations. Hence, they need to discuss it with the grassroots associations in order for them to develop a long term programmatic approach and prepare for engagement with government and other sectors.

Initially, the requirements is for transport groups to consolidate membership and collectivized and register as a cooperative. It was also required of them that they assess the financial resources from which they hold in order to address the needed capital requirement. These requirements demanded unity among the ranks for the next phase necessitates a strong organizational and financial backing.

Fast forward to 2017, DOTr introduced the program and implemented its initial phase both with private and public sector participation. The commuters realized that the modernization of public transport is possible and that it is beneficial for them. It served its purpose of providing comfort and convenience in spite of cost that comes with it.

Obviously, groups who were not ready for modernization felt the pressure of competition and they panicked. On the other hand, groups who were prepared and became a cooperative are now enjoying public support. The competition will for sure intensify as the next phases of the modernization program will be operationalized.

Modernization is like a race and there will be winners and losers. Winners will now enjoy the opportunity and gather its benefits while losers will continue to raise opposition and resist the effort with the end view that the preservation of the status quo will ensure their survival.

I take an opposite view from those who are opposed to modernization using the perspective of creative destructionand by means of a more realistic view that modernization of transport services have never reached the blueprint of public transport groups. Through the years, the attitude of transport groups were more like a beneficiary from progress rather than proactive players for progress.

What went wrong with the groups who are opposed to transport modernization? 

First, most of the groups do not possess a collective mindset to modernize. Like an old dilapidated jeepney running on the road, their leaders lack the ability to rally their members and unite them behind the idea. Hence, they failed to organize their associations into one solid cooperative. 

Organizing the transport association or federation into a cooperative is a requirement for modernization for it establishes legitimacy, a vital element which will allow them to access financing or grants, either from government banks or other funding agencies, who are supportive ofthe modernization program.

A cooperative establishes the needed regulatory and accountability mechanism which is vital in monitoring the management and financial soundness of the organization who is operating transport services as an enterprise. The cooperative economy is not a new model. It has been adopted and provenfunctional in the public transport sector in various countries in Europe, Japan, Vietnam, and Thailand.

Transportation is a facility that stimulate the day-to-day economic activity by bringing people and goods from one place to the other. To become a cooperative provides a logical direction for the public transport sector, because, whether we like it or not, they play a critical role in the economy.

If there are groups who are now formed as a transport cooperative, what prevented others from becoming one?(To be continued)