LTFRB gives truckers 30-day moratorium to secure franchise

Categories: Business Updates

Date Posted: 03 Jul 2014

THE transportation and franchising regulatory body implemented on Saturday a monthlong suspension of apprehension on all trucks-for-hire to allow those with green plates to apply for a franchise and provisional permit.

The 30-day moratorium for trucks-for-hire will be implemented until July 28.

“We want to address the concerns of truck operators on the possible delays of delivery of goods that could also potentially affect the prevailing prices of goods and commodities,” Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Winston M. Ginez said.

Under the “No Apprehension Policy,” trucks-for-hire that use the Port of Manila and bearing the authorized Philippine Ports Authority stickers will not be apprehended by LTFRB and Land Transportation Office enforcers for a period of one month.

Within the moratorium period, these truck operators must apply for their franchise and provisional authority to legally operate and travel roads leading to the port.

“We will give them one month to complete their permits and franchise before we impose the penalties under the recently issued Joint Administrative Order against colorum trucks,” Ginez explained.

The implementation of order prevented trucks-for-hire with green plates from plying the national roads for fear of being caught and fined for failure to present permits.

“We don’t want to halt their operations, especially since these trucks facilitate the trade of consumer goods, but they need to have a valid permit to operate. Our aim is to ensure that our roads are safe and free of illegal operations, as it is our duty to support the land transportation-modernization campaign of our government,” the chairman said.

The order, which took effect on June 19, imposes a fine of P50,000 on public-utility jeepneys plying the routes without franchise; P6,000 for motorcycles; P120,000 for sedans; P200,000 for vans; and up to P1 million for buses.

An operator’s certificate of public convenience and registration will also be revoked in case his vehicles were found plying routes other than those specified in his franchises.

Vehicles caught operating as for-hire units without franchise will also be impounded for three months. In addition, these will be blacklisted and will no longer be qualified for franchising.

But the adjusted fines, transport groups said, are “excessive, unreasonable and oppressive, and is offensive to the due-process clause of the Constitution.”

Petitions were filed before the Supreme Court to bar the agency from imposing the revised fines, saying that the fees are exorbitant and curtail the right of the drivers to make a living.
Written by: Lorenz Marasigan

Source: http://www.businessmirror.com.ph/index.php/en/news/top-news/34569-ltfrb-gives-truckers-30-day-moratorium-to-secure-franchise

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