Guidelines on the Inclusion of Vans as Shuttle Service

September 13, 2021

LTFRB MEMORANDUM CIRCULAR NO. 2021-056

 

WHEREAS, on 19 June 2017, Department Order No. 2017-011, otherwise known as "Omnibus Guidelines on the Planning and Identification of Public Road Transportation Services and Franchise Issuance" was issued by the Department of Transportation (DOTr), prescribing the rules and procedures on the issuance of franchises for public transport routes and services;

WHEREAS, Section 2.2.10 of the Omnibus Franchising Guidelines (OFG) provides for exceptions to Rules 2.2.1 to 2.2.10 (sic) and Issuance of Subsequent Memorandum Circulars by the LTFRB, to wit:

"Any exception to the rules under 2.2.1 to 2.2.10 (sic) shall be granted expressly and in writing by the LTFRB through a formal unanimous resolution.

Furthermore, a Memorandum Circular shall be issued by the LTFRB to provide further specifications and details to determine the classification, body make, and other requirements of the vehicles being registered, as well as the hierarchy of a vehicle class in relation to the route concerned."

WHEREAS, in responding to the request of the Board to include vans as authorized units for shuttle service, the DOTr issued Memorandum dated 16 July 2021, requesting the Land Transportation Franchising and Regulatory Board (LTFRB) to issue corresponding implementing guidelines to ease the restrictions on the specifications required for the modes identified in 2.2.1 to 2.2.9, apart from the requested shuttle service;

WHEREAS, amidst the pandemic, the IATF had issued Resolution encouraging business establishments to provide shuttle service for their employees necessary for the convenience and safe movement of their employees, and at the same time, preventing the risk of spread of COVID-19 virus;

WHEREAS, over time, the public transportation industry in the country has been constantly evolving, where aside from factories and other industrial companies, ordinary business establishments with lesser number of employees, including those adopting office/working shift hours for their employees have also engaged the services of a shuttle service provider, which demands vehicle with lesser passenger capacity compared to buses and mini-buses, taking into consideration that some road access have limitations in terms of size and capacity, which renders smaller vehicles the only means fit and/or allowable;

NOW THEREFORE, for and in consideration of the foregoing, the Board hereby includes VANS to be authorized as Shuttle Service, subject to the following guidelines:

1. Type of Vehicle to be Authorized

The units to be authorized under this MC shall include Vans which are front-facing. It shall exclude FB Van.

2. Year Model

During the transition period of six (6) months from the effectivity of this MC, only units which are not more than three (3) years old at the time of the filing of the Application shall be accepted.

After the transition period, only brand-new units shall be accepted.

3. Fleet Requirement

A minimum of ten (10) units per Application shall be accepted. The units to be applied for must be registered under the name of the applicant. A single or consolidated/juridical entity may file and apply under this MC.

Consistent to the OFG, each unit must be equipped with GNSS receiver, free Wi-fi, CCTV (4 cameras, continuous recording of past 72 hours of operation), speed limiter, and dashboard camera (at least 24 hours of recording) compliant with LTFRB specifications; compliant with DENR emissions standards or better; with lay-over or garage with sufficient space for all units, plus additional space of at least 30% of the total PUV space requirement.

4. Documentary Requirements for the Application

The list of documentary requirements enumerated under the 2020 Citizen's Charter, particularly on the Application for the Issuance of New Certificate of Public Convenience (CPC) to operate Shuttle Service shall apply.

5. Fare

The fare shall be based on the contract agreed upon by the operator and the client, subject to the oversight function by the LTFRB.

6. Filing Fee

The filing fee of each application shall be Five Hundred Ten pesos (P510.00) for the first two (2) applied units and Ten pesos (P10.00) as Legal Research Fee. An additional Seventy pesos (P70.00) per unit shall be paid in excess of the first two (2) applied units.

An additional amount of Two Hundred Sixty pesos (P260.00) shall be paid by the applicant if he/it prays for the issuance of Provisional Authority in the Application or in a separate motion.

7. Provisional Authority (PA)

After the filing of the Application, and pending the issuance of CPC, a Provisional Authority (PA) may be issued with a validity period of Ninety (90) days, which is renewable for another period of Ninety (90) days.

8. Vehicle Markings

All units authorized under this MC shall bear the proper markings as required under Memorandum Circular No. 2012-008, as amended by Memorandum Circular No. 2015-025.

Previous and subsequent issuances of the Board relating to Shuttle Service, and Applications for New Certificate of Public Convenience shall be applicable herein as may be deemed appropriate.

All other issuances or parts thereof inconsistent herewith are hereby modified, amended, or superseded accordingly.

This Memorandum Circular shall take effect immediately following its publication in a newspaper of general circulation and the filing of three (3) copies hereof with the UP Law Center pursuant to Presidential Memorandum Circular No. 11, dated 09 October 1992.

SO ORDERED.

APPROVED AND ADOPTED THROUGH TELECONFERENCE on September 13, 2021, Quezon City, Philippines.

Effectivity Date: September 15, 2021.

(SGD.) ATTY. MARTIN B. DELGRA IIIChairman

(SGD.) PCOL. JOEL C. PERNITO (Ret.)Board Member

Attested by:

(SGD.) JOEL J. BOLANOChief, Technical Division/OIC, Office of the Exec. Director