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Showing posts with label Department of Transportation and Communications. Show all posts
Showing posts with label Department of Transportation and Communications. Show all posts

Friday, June 21, 2013

Stock News 2013: MRT, LRT fares may go up in August

Manila MRT Ayala Station in Makati City
Manila MRT Ayala Station in Makati City (Photo credit: Wikipedia)
A long-overdue fare increase at Metro Manila’s three elevated rail systems could take effect as early as August as the government seeks to recover part of its operating costs from the heavily subsidized train lines, according to Secretary Joseph Abaya of the Department of Transportation and Communications (DoTC).

But Abaya said in a round-table discussion with INQUIRER editors and reporters on Wednesday that the planned P10 average increase for the Light Rail Transit (LRT) Lines 1 and 2 and the Metro Rail Transit (MRT) Line 3 would be done in two equal stages through 2014.

This means fares, which were last adjusted in the early 2000s, will increase by P5 in 2013 while the second P5 increase will kick in next year.

“This increase has been long delayed so we are about to execute it. The matrix for LRT 1 requires us to catch up,” Abaya said.

“It was discussed a year ago in the budget hearing and it was taken as a set, all three railway lines,” he added.

“It should happen planning-wise in August or within the year.”

The announcement of the fare increases comes amid severe criticism of the LRT-MRT operations—coaches with passengers woefully packed like sardines most times of the day and long queues to the stations during rush hours.

For example, MRT 3 was designed to serve 350,000 passengers per day, but some 600,000 people cram the system daily.

A 1.3-kilometer stretch of the line on north Edsa—from Muñoz to Trinoma—has yet to be connected, three years into the Aquino administration.

Former Transportation Secretary Mar Roxas proposed a fare increase earlier in 2011, but it was met with opposition from critics who pointed out that managing public transport was a government function.

Critics say that no mass transportation system anywhere in the world makes money, quite apart from Hong Kong. But in this Chinese enclave, revenues come mainly from shop rentals in the mass transit railway stations, they add.

Reports showed earlier that the entire P10 average fare hike will happen this year but the DOTC secretary said the agency decided to “break it up” into two parts over two years.

Even with the fare increase, the LRT lines and MRT 3 come out “cheaper” than rates charged by bus operators, which are pegged at P40 per passenger, Abaya said.

The government is calculating that ridership at the train lines, which serve over 1.3 million passengers daily, will not be substantially affected by the rate increase.

The current fare at MRT, which runs through Edsa, Metro Manila’s main highway, is pegged at a maximum of P15 per passenger. For LRT 1, passengers are charged up to P20 each for a single journey; for LRT 2, the rate is pegged at P15.

http://business.inquirer.net/128269/mrt-lrt-fares-may-go-up-in-august-abaya
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Wednesday, January 16, 2013

Stock News 2013: MPIC eyes int’l partner for Cebu airport

Photo of Manny
Photo of Manny (Photo credit: Wikipedia)

Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC), a unit of First Pacific Group of Hong Kong, is talking with a potential foreign partner to boost its bid for the P17-billion Mactan Cebu International Airport project.

MPIC chairman Manuel V. Pangilinan said in an interview with reporters that the conglomerate is scouting for a foreign partner with expertise in airport operations in line with the scheduled bidding for the contract to undertake the airport project.

“Yes, we are talking to potential partner for the technical or what you call an airport operator,” Pangilinan stressed.

MPIC has expressed interest in the country’s second largest international airport.

“We have to have the right partner that will qualify with respect to our bid,” he added.

According to him, the company would form a special purpose vehicle including other members of a consortium that would bid for the airport project.

The Department of Transportation and Communications (DOTC) decided to stick to its earlier decision barring owners of airlines to bid for major airport projects such as the Mactan-Cebu International Airport due to conflict of interest.

DOTC Secretary Joseph Emilio Abaya earlier said the agency would push through with the public bidding for the airport project based on the guidelines issued late last month.

According to terms of reference issued by the DOTC last month, “an individual, partnership, corporation, or any other juridical entity, and if the prospective bidder is a consortium, any consortium member or such consortium members’ affiliates for the duration of the bidding process cannot be an entity providing air transport services in the Philippines, be they domestic or international.”

Also, the bidders cannot have any interest, direct or indirect, in such entity; or cannot be owned by such entity.

http://philstar.com/business/2013/01/17/897730/mpic-eyes-intl-partner-cebu-airport-bid

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Saturday, December 22, 2012

Stock News 2012: Palace OKs proposed gov’t takeover of MRT-3

Manila MRT-3 Train (type Tatra RT8D5) approach...
Manila MRT-3 Train (type Tatra RT8D5) approaching Ayala Station in Makati City. Self-taken. (Photo credit: Wikipedia)

President Aquino has approved the Department of Transportation and Communications’ plan to take over the Metro Rail Transit Line 3, which was estimated to cost the government roughly $1 billion.

“It was approved yesterday (Monday) by the President and consented by the concerned Cabinet secretaries present in the meeting,” Transportation Secretary Jose Emilio Abaya said in a briefing on Tuesday.

Abaya said the President and the members of his Cabinet discussed and approved in principle the DOTC’s plan to buy out the private sector’s stakes in the commuter train system. Abaya said the “de-privatization” plan would cost the government about $1 billion.

The DOTC said the state takeover of the facility would spare the government from covering the 15-percent return on investment guaranteed to the MRT concessionaire.

MRT concessionaire Metro Rail Transit Corp. (MRTC), the consortium that built MRT-3, is controlled by Metro Pacific Investments Corp., the listed holding company in the Philippines of Hong Kong-based First Pacific group.

Although the government owns 80 percent economic interest in MRTC, through Land Bank of the Philippines and Development Bank of the Philippines, its voting rights are less than those held by the private concessionaire.

The consortium operating MRT-3, through special purpose vehicle MRT II Funding Corp., earlier raised funds via the issuance of MRT bonds. The bonds were bought by private corporations but were later bought back by DBP and LBP.

“We will be buying the bonds from DBP and LBP. It’s like retiring the bonds,” Abaya said. He added that the $1 billion estimated cost included the cost of buying back the bonds.

The buyout will take place next year, he said.

In the meantime, Businessman Manuel V. Pangilinan said his group would not stand in the way of the government’s planned buyout of the MRT line.

In an interview, Pangilinan said he would respect the government’s decision and would continue to support the administration’s infrastructure program.

The Pangilinan group, through Metro Pacific Investments Corp. (MPIC), owns the majority of the voting shares in MRT Corp., the private sector consortium that holds the train line’s concession contract. Despite controlling MRTC’s board, MPIC only holds a fraction of the MRT line’s economic benefits.

http://business.inquirer.net/98791/palace-oks-proposed-govt-takeover-of-mrt-3

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