The Land Transportation Franchising and Regulatory Board (LTFRB) will meet with the Department of Transportation and Communications (DOTC) this month to discuss the age requirement for trucks to secure a franchise.
In a text message to PortCalls, LTFRB executive assistant III Arnel Del Rio said the agency scheduled the meeting with Transport Secretary Joseph Emilio Abaya to “hopefully try and finalize age requirement of trucks.”
Del Rio said LTFRB will present to DOTC suggestions outlined in position papers submitted by industry stakeholders, but clarified the agency “has no final position” yet on the proposed policy.
He noted the agency is on status quo, still approving franchises depending on the age of the truck based on year model as reflected in the Certification of Registration.
Earlier, LTFRB Chairman Atty. Winston Ginez told PortCalls the agency hoped to present a recommendation based on suggestions received from stakeholders last March.
Ginez said the final verdict on the fate of the proposed policy lies in the hands of DOTC, LTFRB’s mother agency.
The proposed policy, which provides that the issuance of a certificate of public convenience be based on the age of trucks, has gathered opposition from several trucking and industry associations.
According to truckers, more than P50 billion will be needed to replace the 19,000 units for phaseout starting this year until 2019 if the policy is implemented. It will be ironic, CTAP said in a position paper, if demand for trucks increased due to the growing economy and ASEAN integration, but supply decreased due to the proposed policy.
Trucking organizations contend that road-worthiness of a truck, not age, should be the basis for securing a franchise. Most trucks on the roads are more than 15 years old because they were purchased second-hand.
The Confederation of Truckers Association of the Philippines, in a position paper, said most truckers are not financially capable of buying brand-new ones. CTAP and the Integrated North Harbour Truckers Association (INHTA) earlier argued a second-hand refurbished truck is as good, if not better, than a new one.
Truckers have therefore asked LTFRB for a moratorium on the implementation of the 15-year age limit for trucks. CTAP requested for a five-year moratorium, while INHTA asked for a moratorium until such time the policies and guidelines for the phaseout are drafted and approved. – Roumina Pablo
Image courtesy of Naypong at FreeDigitalPhotos.net
