Constitution of a Transportation Management Advisory Group

November 15, 1974

LETTER OF INSTRUCTIONS NO. 225

WHEREAS, it is the declared policy of the State to rationalize and integrate public transportation services in the Metropolitan Manila area by eliminating destructive competition, service duplication among different transport modes and obtaining maximum utilization of existing public services motor vehicles thereat, in order to satisfy commuter demand; cd i

WHEREAS, the Manila Transit Corporation was created under Presidential Decree No. 492 dated June 27, 1974, the primary function of which is to carry out such national policy;

WHEREAS, under Presidential Decree No. 101 dated January 19, 1973, the Board of Transportation is given the power, among others, "to prescribe, redefine or modify the lines, routes, or zones of service of operator" operating public utility vehicles;

WHEREAS, the rationalization and integration of the public transport system can be best attained through the joint and complimentary efforts of existing transport agencies and bodies; aisa dc

NOW, THEREFORE, in order to implement more expeditiously and effectively the above-declared policy of the State, you are hereby constituted into a Transportation Management Advisory Group, with the Secretary of Public Works, Transportation and Communications as Chairman, to do and perform the following functions:

1. Prepare and implement a master plan rationalizing and integrating public transportation services in the Metropolitan Manila area that is responsive to commuter needs upon approval by the President. Such plan shall be prepared in such a way that it will -

a)  eliminate destructive competition and service duplication among different commuter transport modes and firms;

b)  rationalize route allocations and provide proper balance of commuter service in all routes on the basis of the "route responsibility" concept; and,

c)  effect economies in operations and overhead facilities and logistics support.

2.  Provide, through the Manila Transit Corporation financial and/or technical assistance to existing bus operators within the area in order to assure efficient and effective operations;

3.  Encourage integration of ownership and operations of transportation operating along a single route in order to minimize if not eliminate destructive competition.

4.  Provide, through the Manila Transit Corporation, bus units along lines where the number of existing units are not enough to supply commuter demand.

The Board of Transportation is hereby directed to suspend immediately the granting of Certificates of Public Convenience and/or franchise to operators within the Metropolitan Manila area pending the final determination by the Transportation Management Advisory Group of bus allocations along each route.

Within six (6) months from date hereof, the Transportation Management Advisory Group should accomplish its mission as herein provided and the Board of Transportation shall effect the re-allocation of route in accordance with the findings and recommendations of the Group. Henceforth, the Board of Transportation shall not approve applications for the issuance of Certificates of Public Convenience or change of lines of existing operators for the Metropolitan Manila area without the recommendation of the Manila Transit Corporation. Any Certificate of Public Convenience or change of line which may be issued by the Board of Transportation in violation hereof shall be of no force and effect. cd i

For immediate compliance.

DONE in the City of Manila, this 15th day of November, in the year of Our Lord, Nineteen Hundred and Seventy-Four. casia