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Metro Manila Transit Corporation
The Metropolitan Manila Transit Corporation (MMTC) was a government-owned transport company in Metro Manila, the Philippines. At its peak, the MMTC operated several bus routes in Metro Manila. It was most well known for its Love Bus and double-decker bus routes. HistoryAfter World War II, the pre-war tranvía streetcar system in Manila was left destroyed, leaving a gap in the city's public transport infrastructure that was subsequently filled by buses and jeepneys. Loose regulations, however, resulted in a fragmented public transportation system in Manila and its suburbs dominated by independent transport operators who competed against each another, resulting in inadequate services.[3][4] During the martial law period under Ferdinand Marcos, efforts were made to address the problem, as Marcos issued Presidential Decree No. 492 on June 27, 1974, which established a government-owned and controlled corporation called the Manila Transit Corporation (MTC). The MTC would serve the role of integrating all public transportation operations in the region under a single corporate entity, thereby streamlining services and eliminating the issues caused by the proliferation of independent transport operators. It was created with a capital stock of ₱10 million (equivalent to ₱282,419,326 in 2021) divided into 3 million shares. Of these shares, one million shares may be sold to individuals or entities operating public transport vehicles in Metro Manila.[4] On November 7, 1975, Marcos issued Presidential Decree No. 824, establishing Metro Manila and the Metropolitan Manila Commission.[5] Following this, on December 25, 1975, the MTC was renamed as the Metropolitan Manila Transit Corporation (MMTC) and its focus was expanded to cover the newly created metropolitan area through the issuance of Presidential Decree No. 860. The decree also exempted the MMTC from regulation under the Public Service Act.[6] On January 26, 1976, the Love Bus was launched by the MMTC.[7]: 182 It was popularized as the first air-conditioned bus service in the country, as well as its strict observance of timetables.[3] By May 1977, the Love Bus had carried over 5.34 million passengers, with a study in February 1976 stating that 19 percent of its passengers used to commute by car.[8]: 62, 64 On June 27, 1977, Marcos issued Presidential Decree No. 1168, increasing MMTC's corporate stock to ₱25 million (equivalent to ₱706,048,315 in 2021) divided into 6 million shares.[9] The number of shares was then increased to 26 million shares through the issuance of Presidential Decree No. 1465 on June 11, 1978.[10] Around this time, the MMTC reportedly had over 2,500 bus drivers and conductresses and 491 employees in its administration and maintenance departments.[11]: 38 On July 23, 1979, Marcos issued Executive Order No. 546, creating the Ministry of Transportation and Communications (MOTC) and designating the MMTC as an attached agency of the MOTC.[1] By 1980, the MMTC shifted from its original role in monopolizing all public transport operations in Metro Manila to supporting private operators through integrating fewer but larger bus consortiums, acting as a government tool for achieving broader social and developmental goals, such as pioneering new services and routes.[12]: 38–39 [3] In 1982, the MMTC reported its first profitable year. This would be the only year it generated a profit during its first ten years of operation.[12]: 39 On March 20, 1985, Marcos issued Executive Order No. 1011, creating the Land Transportation Commission (LTC) as an attached agency of the MOTC. The order removed MMTC's exemption from regulation, placing it under the authority of the LTC.[13] At some point in the 1990s, the Love Bus was discontinued due to significant losses incurred by MMTC.[citation needed] Privatization and dissolutionFollowing the People Power Revolution, which led to Marcos' resignation, the subsequent Aquino administration shifted the government's focus towards deregulating and privatizing the transport sector and disposing of state-owned bus operations, particularly those of MMTC.[14] During the Ramos administration, a study group was created in 1994 to formulate a plan to privatize the MMTC.[15] After multiple unsuccessful attempts to liquidate MMTC, the company was eventually sold to its blue-collar employees on April 10, 1995. Its remaining 155 buses were then acquired and operated by four groups formed by the former employees:[16][2]: 7-3 [17]
MMTC retained a skeletal workforce of 12 employees and focused on asset liquidation, auditing the four groups operating its former buses, and collecting outstanding payments from prior obligations.[2]: 7-3 After the company had completely ceased operations, its remaining assets were sold and auctioned off. The northern terminal and garage on the corner of North Avenue and Mindanao Avenue in Quezon City was demolished and returned to the National Housing Authority (NHA).[2]: 7-3 The area of that property was then developed in a joint venture between Ayala Land and the NHA into Vertis North. On the other hand, the 3,593-square-meter (0.3593 ha) southern terminal in Taguig[11]: 62, 64 was demolished and returned to Food Terminal Inc. (FTI), which leased the lot and much of the area to the Shoppers Paradise FTI Corporation in the 2000s,[18] then sold most of the area to Ayala Land in 2012, developing most of the area into Arca South.[19] FaresIn 1984, both ordinary buses and double-decker buses had a fare of ₱0.80 (equivalent to ₱8 in 2021) for the first 4 kilometers (2.5 mi) and ₱0.21 (equivalent to ₱2 in 2021) for each succeeding kilometer. Limited buses operated on a flat rate system with a fare of ₱0.70 (equivalent to ₱7 in 2021) per zone with a special fare of ₱1.85 (equivalent to ₱18 in 2021) per zone.[20]: 6-2 The Love Bus also similarly operated on a flat rate system. In 1979, the fare was set at ₱2.50 (equivalent to ₱56 in 2021).[21] By 1984, this amount had increased to ₱5.50 (equivalent to ₱52 in 2021).[20]: 6-2 By 1990, it had risen to ₱8.50 (equivalent to ₱44 in 2021).[22]: 88 RoutesIn 1984, MMTC operated 54 ordinary bus routes, 28 air-conditioned bus (Love Bus) routes, five limited bus routes, and three double-decker bus routes.[23]: 78-82
Love Bus routesIn 1984, MMTC operated 28 Love Bus routes, where 27 routes were within Metro Manila limits while one route was between Metro Manila and Rizal.[25] The first Love Bus route was launched between Escolta and the Makati CBD in 1976 and was its most profitable route.[3]
At some point, the Love Bus routes were complemented by Pag-Ibig Bus routes. By 1989, MMTC was only operating four Love Bus and Pag-Ibig Bus routes.[26]: 10, 20 [27]: 6, 11 FleetThe MMTC operated several types of buses, each with varying specifications. The ordinary and limited buses were 2.5 m (8.2 ft) wide, 3.3 m (11 ft) high, and 11.0 m (36.1 ft) long. The ordinary buses had a seating capacity of 59, while the limited buses had 58 seats. The double-decker buses measured 2.5 m (8.2 ft) in width, 4.7 m (15 ft) in height, and 11.0 m (36.1 ft) in length, and had 100 seats. The Love Bus measured 2.5 m (8.2 ft) wide, 4.7 m (15 ft) high, and 10.0 m (32.8 ft) long, with a seating capacity of 54.[20]: 6-2 The Love Bus formerly ran on a fleet of air-conditioned buses that had a monocoque body design, which was considered a significant milestone at the time as before 1975, all buses in the Philippines were flatbed trucks mounted with wooden bodies. Its former fleet initially consisted of buses made by industry giants Hino, Mercedes-Benz, and Volvo, then expanded into then-lesser known brands such as Ford, Fiat, and four other companies. The Love Bus had also operated double-decker buses, being the first company to do so in the Philippines.[3] In May 1977, the MMTC operated a fleet of 609 buses, consisting of 100 Hino Ordinary units, 50 Volvo B57 units, 162 Fiat 331A units, and 147 Ford B-1617 units. The fleet also included 60 Mercedez-Benz buses and 10 Berliet buses of unspecified models. The Love Bus service at the time was served by 100 Hino buses of an unidentified model.[11]: 44–45 The 1984 JUMSUT report estimated that there were 40 double-decker bus units, 370 Love Bus units, and 100 limited bus units in operation as of February of that year.[20]: 6-2 The MMTC was also known for maintaining bus operations even during heavy rains or flood. During the curfew under the martial law period, the MetroCom would also direct the MMTC to deploy buses to rescue stranded commuters.[11]: 67 Taxi operations In 1975, to address a shortage of taxis, the MTC ventured into taxi operations with an initial fleet of 50 Harabas Taksi taxicabs manufactured by the Francisco Motors Corporation.[28] Taxicab drivers were given a chance to own their vehicles through daily installments for a period of two years. Once the installments are paid in full, drivers are invited to join a semi-cooperative plan, where the driver could avail bulk purchases of spare parts and maintenance services from MTC.[8]: 21 At its peak, the MMTC operated 248 taxicab units of various models. The MMTC eventually shut down its taxicab operations in 1982 and sold the units to private operators.[7]: 173 Board of directorsThe MMTC was governed by a board of directors consisting of six ex-officio cabinet members. The board was chaired by the general manager or governor of Metro Manila, who also served as the MMTC chairman. The other board members included the Secretary of Transportation and Communications, who acted as Vice Chairman, the Secretary of National Defense, the Secretary of Industry, the Secretary of Finance, the Secretary of Public Highways, and one additional member appointed by the President of the Philippines, with a term limited to two years.[11]: 37, 40 [4] Notable incidents
MMTC v. D.M. Consortium, Inc.In the aftermath of the 1989 Philippine coup attempt against the Aquino administration, bus operators JD Transit, Inc. and DM Consortium Inc. ceased operations, causing disruption to bus services. In response, President Corazon Aquino issued Memorandum Order No. 267 on December 7, 1989, directing the Department of Transportation and Communications to temporarily direct or take over the operations of the two transport companies.[32][33] On December 9, 1989, MMTC repossessed DMCI's buses, occupied its offices, and attempted to auction off 228 repossessed buses that it was leasing from MMTC, alleging that DMCI had defaulted on its amortization payments. DMCI responded by filing for a temporary restraining order against the public auction, which was granted on April 11, 1990.[33] MMTC filed a motion for reconsideration of the restraining order and a petition for certiorari, but these were denied by the courts. In 1995, the Regional Trial Court ruled in favor of DMCI, finding no legal basis for MMTC to repossess the buses or sell them at auction. Both MMTC and DMCI filed motions for reconsideration, with MMTC arguing it was justified to do so under a lease-purchase agreement, while DMCI argued that MMTC did not ensure just compensation as required by MO No. 267. DMCI also sought damages, claiming the buses had deteriorated during the prolonged legal battle.[33] In 2001, the Court of Appeals upheld the decision against MMTC and ordered additional compensation, including ₱2 million for DMCI's offices. MMTC appealed to the Supreme Court, contesting the ruling on the repossession and the ₱2 million compensation. The Supreme Court denied MMTC's appeal in 2007, affirming the Court of Appeals’ decision.[33] See also
Similar state-owned enterprises References
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