July 26, 2017

HON. ARTHUR P. TUGADE

Secrefa4r
Department of Transportation {DOTr}
"f!:=n -! t._ rif , -t tA, I
r ne uorumora - r ower. Drgy. vvacK-vvacK,
Ortigas Avenue, 1555 Mandaluyong City

CTAP PCSITION PA
(Re: lmplementation of 15
Maximum age limit on TH T

The Confederation of Truckers Associaticn of the Pniffines, lnc,

(CTAP) is a registered national organization of various local associations of
lrrrnkinrr
Lr Lt\,i\rr rV nnal'atnrc
\rI.JeI Erlvr e al!
(;rlr ,.!rr4!.
iJVEi lho
La iE
r-nlrnln,
LriJLia afi J, anr.l
cii ivi rvraryrhar
i i iEi i iijEi a4 *ha
l.ri AQEAhI
i.i iE fi\)EiaiT

Trucking Federation (ATF) primarily established to protect and uphold the

legitimate concerns and interest of the Philipplne Trucking lndustry, with
the following member organ izations:

1. Phitippine Ports and Transport Council lnc. (PPTC)

2. Manila North Harbor Truckers Assocraflon lnc. (MNHTA)

.3. iv|aniia Searr Truckers Assocrafrb n (ivir.STe)

4 Aduanas Busrness Club lnc. (ABCI)

5 Truckers Association for Philippine Economic Zone (TRAPEZ)

6, Truck Operators Associatlon of the Phifippines" lnc. (TAP)

7. Haulers for lnternational Liners Associafian (HILA)

8. lfontalban - San Mateo Truckers Associafion, lnc. (MSMTAI)

9. Foad Haulers Associaf ion of the Philippines (FHAP)

tu. Cviiu ir*uirers Assouiarir or t irtu. iCTAii

11. United Hauler and Arms Assocration of th* Phits., lnc. {U-HAAPI}

12 rfront Truck Operators af the Philippines, tnc"

:Yr*
cb
llPage
 13" Phitippine /nfegrated Haulers and lrurckers organization (PlFlTo)
/l
,4
t+. Subic lntegrated Truckers Associatian - Phitippines. {ne " {SITAP)
f5" lntegrated Truckers Assocration of the Philippines (INTAPHIL)

As a rule, CTAP supports and extends assistance to all its member

associations and their member trucking operators in whatever capacity the
confederation can offer that accounts for 9,100 truck units as per CTAP
available record.

Verily, CTAP supports and in unity with the DOTr in its salutary
endeavor of elevating and modernizing the standard of trucking services in
our country. Besides, in this era of free market and globalization along with
the advent of Asian lntegration, it is actually to our advantage that the
quality and standard of trucking service shall take off initially to a higher
notch for us to be competitive with our neighboring countries.

Henceforth, in acquiescen@ of our bounden duty to our member, we

hereby submits this Position Paper as our formal opposition and objection
to the implementation of the maximum 15 years age limit on TH Trucks as
per DOTr Department Order No. 2017-009 issued on April 27,2017, copy
of which is hereto attached and marked as ANNEX "A".

PREFACE

"Defense is a much more importance than opulence."

Adam Smith

At the heart of this controversy, stand two cardinal questions: Firsf,

which should we protect as being of prior and paramount importance-the
protection of the right of the Citizens to engage into the trucking business
which the Constitution wholly reserved to Filipino or allowed foreign control
over critical area of public transporl to the prejudice of national security and
defense? Second, when lhe regulatory body somewhat encroach unto the
property rights of the Filipino Citizens that they are supposed to regulate,
are the latter to be left unaided, bereft of all redress in law or to borrow
-
the words of the .Economist Adam Smith, "defense is a much importance
than opulence "Ld
2lPage
 Corollary thereto, the Preamble of the 1987 Constitution, as the
foreword to the fundamenta! law of the land, embodies the ideals that the
Constitution intends to aehieve, viz

"We, the sovereign Filipino pffiple" imploring the atd of Almigh\ God, in
order to build a just and humane society, and establislt a Gavernment that
shaii embody our ioeais anci aspirations, promote the common gooa)
conserue and develop our patrimony, and secure to ourcelves and our
pasterity, the blessings of independence and democracy under the rule of
law and a regime of truth, justice, freedom, loue, equality, and peace, do
anrl u,nrnrttrrlnafa fhic fnncfiftrfinn '/
nn'lain v"e

Fufther, in giving life and force to the afore-quoted policy in the

Preamble, the 1987 Constitution specifically ordains:

Section 11. No franchisen ertificate, or any other form of

authorization for the operation of a public utility shall be granted
except to citizens of the Philippines or to corporations or
associations organized under the laws of the Philippines, at least
sixly per centum of whose capibl is owned by such citizens; nor
shall such franchisq ceftificate, or authsrization be exclusive in character or
for a longer period than fifty years. Neither shall any such franchise or right
be granted except under the condition that it shall be subject to
amendmenl alteration, or repeal by the Congress when the common good
so requires. The State shall encourage equity pafticipation in public utilities
by the general pubtic. The pafticipation of foreign investors in the governing
body of any public utility enterpise shall be limited to their proportionate
share in its capital, and all the executive and managing officers of such
corporation or association must be citizens of the Philippines. (Emphasis
supplied)

The impoft of the above-quoted provision, that public utilities shall be

granted only to citizens of the Philippines or to corporations or associations
organized under the laws of the Philippines at least sixty per centum of
-- l-^- !L= l !.- J I-_
wltose cdpltdl !s owlleu
-==---:
Dy suclr
-__-I-
Citazetl5
-!r!
____ : _--_:_r!_, _a Ll-_
WaS ln appreciatlorl OI tne Crattcai
: ir!-_!

position of public utilities both in the national economy and for national
security.

Thus, CTAP General Membership, in taking the above-mentioned

adage into heart, hopes that this Honorable Department (DOTfl would find
it in itself to do the same.

DTSCUSSfOftIS

CTAP oppcsition to the in'T plementation of the15 year's age limit on

TH Trucks hiqOe{ on the foilowing submissions and considerations, to wit.

3l
o
The Rsadwarffirness of ffie vehicle
should be the determining factor in the
proper registration and issuance of the
Certificate of Puhlic Convenience for
TH Trucks and not ifs year model
and/or age with the LTO and LTFRB.

It appears that the DOTr Policy on the 15 years age limit on TH

Trucks blurs all the distinction between a roadworthy vehicle yr's-d-vis
dilapidated vehicle by focusing primarily on the age of trucks commence
from the Cate ot its manutaetured. Lest we torget, that more or tess E0% ot
the cargo trucks that are currently being used to transport various types of
goods and commodities are second hand refurbished units which are
already 15 years old and above.

Noteworthy to mentioned, that by the innate Filipino ingenuity, though

majority of our trucks are second hand units, nevertheless in term of its
roadworthiness it remains practically equal with a brand-new trucks.
Evidence of which is the continued trust and confidence reposed upon
them by their respective clientele.

To that end, it behooved upon on the part of the qovernment to revive

the Motor Vehicle lnspection Service (MUS) that would determine the
roadworthiness and current status of the vehicle for the proper Registration
and issuance of CPC for TH Trueks.

The Government must have a

comprehensfye pragram far the
modernization of Trucking lndustry
urru ute
!4.--- ar--
grant
-,-- -a
oi
-I frr=, ' ' .-,
7rfiancfii
AssrsfancdLaan by Government
Financial lnstitution andlor allowed
duty free importation of Truck units for
the industry.

lronically, the trucking industry which was the government's prime

partner in its pursuit for a robust economic progress remains to be a
neglected sector in terms of government aid, support and assistance"
lndubitably, the trucking industry constitute the very lifeblood of the
economy, it services vital sector of our society that played an important role
in our economy such as: transport of raw materials to manufacturing plants
and finished products to local markets, delivery of export and import
4tPar- D
products, delivery of agricultural products to farms/markets, delivery of
constrt-tetion mater-ials tcr various infrastrr-reture projects sites, delivery of
industrial materials/products to various end-users and provide services to
different industries,

Releti'-'e theretc, it is incumbent upon on the part cf the government,

to conduct a comprehensive plans/programs and consultation to all sectors
affected by this 15 Years age limit policy of the DOTr. Candidly, our
members are still in the state of bewilderment on how to properly dispose
th^!e -!J r-..^l-
Llrtill ullJ ,:-;+-
Llut/r\ ullll"D. T!l"-
ltlUD, ;J:-..!-----..-{
i, iilUiiiru +h--. +^.,"+q+q^^l:^
i.IIe gUVEInmeilI iS SgIi0ijsiy
---l-..^1., ^-:^-r^J
Oi-ienieCi
r^
iO
phase out the old truck units, then it must create the proper plans and
programs in assisting the owners for its proper disposition or suitable
utilization thereof. Moreover, it is our ardent hope, that the government
shouicj provicie our respeciive members the necessary financiai aici anci
assistance through the government financial institution for them to be able
to acquired new truck units. Similarly, the government should allow a 3 to 5
years duty free importation of brand new truck units for selected accredited
importer in order to deter the incredibly expensive cost of brand new trueks
in the Philippine market.

a:!t--rr+4 qa;l **eial im*faaaata4ias

, ,tv
-7-lt^ Gttil Lrrca ctriltd crarrt t iii,trlrt:irieFiiT<iaruii
af the '15 years age limit on TH tracks
wauld definitely kill the Philippine
Trucking tndustry and would open the
floodgates for foreign corparate giants
to control the logisfrcs and transpart
industry.

The
I I tv nnr-rernmen! ret taka
YV rvt I rr. rv. ra rmr
Lg,1= intn
I lsua
ai-\j nnncir{arafinn
_v-\ri irEi-La-a :a.i-rri ir
aa fha
Li i- annnnrnin
-irv_i i'vri i iiir

feasibility of this radical action of implernenting the 15 years age iimit on TH

Trucks, over and above, the long term macro-economic effect to our
fledgling economy. Let us be reminded, that more or less 71alo of truck
---+--*-Fa+-a4 444 -1!.44?4 +,C ra t^ rl ,=*!4+ +r- F-t:* ^ f:-**^;^l *^^:f;** 1^
'.rh!^L

purchase a brand-new trucks due to its incredibly expensive price. Hence,

majority of truck operators decided to purchase a second hand surplus unit
from Japan which already in used for ten years or more. Hence, the return
oi investrnent (ROi) ior the cost of the uniis is highiy improbabie if oniy to
be granted a CPC of less than 5 years. Even granting arguendo, that
someone in his right frame of mind, would be willing to purchase the old
trucks units of our own members despite the 15 years age limit policy
implemente(on old trucks, nevertheless, the aggregate value of 4 old
\^)
5lPage W
truck units is not sufficient to purchase a single brand new truck. Besides, if
the operators Fre forced to purehase hrranrJ new trrreks as a Gonseqr_renee of
this Policy and in order to continue its business operation, it will cause a
stiff rise in the cost of almost every commodity in the market because the
truckers may just pass on the acquisition cost of these units to their
reencntir--re nlienfela
rveFrvvrryv vrrvlr(vrv, r-r-rhinh
rtrr!\rii in
iii lrrrn
tvaia naee
lrsvv
tha
aiiv
qama
vHaiiV hrrrr{an
ijirii-\i=ii tn
i-\i fha
iiiE nrina nf
piSvE vi ile
iiE

comrnodity. In the final analysis, it is the general public who will shoulder
this government-tolerated, if not sponsored, problem.

To date, foreign owned logistics company controlled the trucking

activity in the various PEZA Zone depriving Filipinos to operate there at
which the constitution fittingly reserved the trucking business/activity to the
Filipino Citizens. Thus, Filipino truckers that
never deserted the
commitment of providing the public with the needed trucking services even
in the most trying circumstances during the lmplementation of the Day
Time Truck Ban by the City Govemment of Manila, Port Congestion
problem, lllegal apprehension of Towing Companies and the issuance of
DQTC', !-TO and t -IFRB Joint Admlnistrative Qrder (JA.Q 2014-01, would
be displaced in the industry due to their lack financial capacity as compare
to their foreign counterpart.

Resultantly, influx of foreign owned or subsidized trucking company would

necessarily prejudice our national security and defense.

lf the policy in
implementing the 15
yuarn dgv ,trtt7. lJai =Lt
!_,_-_+ts- igqEl
T*, "^t-*
a F1 , ru(.rr-S
!_
i5
primarily intended for Road safefir and
tominimize road accident, then, it
would not attain l'fs noble aim and
_purpose because private trucks
transporting their own carg/oes are not
covered by the above-mentioned
policy.

Statistically, in the year 2013, as per Land Transportation Office

(LTO) records, there are 310,000 trucks registered nationwide. And it is
estimated that 80o/o was classified as Trucks for Hire (TH) or at least
.-TtO nnn
Q/f Th^n
rLr\rtJ. r rl9rl
a- ysr
clo ^Ar *aaarz{
rgwvrLt af *h^
vt LrtI, Ir-clllLl
^^.{ Tpan^^^.*^*i^^
r rclrlopLrtLstltL,lt ^nz{ E.^-^}-i^i^^
qtiLt i icliireiiiDiaiv
Regulatory Board (LTFRB), that as of June 2014, there are only 38,000
units that have an issued franchises nationwide. Therefore, there are more
or less 22A,0OO Trucks nationwide without franchise, although, to date, this
number was aireaciy cirop off ciue to the open invitation anci encouragemeni.
of LTFRF{or trucks to secure their respective Franchise and the fear and
6rpa-"Lb
apprehension by truck operators to the penalty provided under JAO 2014-
o1

To put things in its proper perspective, the 1S-year age policy covers
only Trucks for hire and exempts those that are private in nature hauling
th-eir
(rlvrr nr-l-rn
vryrr a!nnr{e-
lrvvve
enr{
qrrv nAr^nae
vurvvvsr thrrc
(i.ve, nlr{
v,u and/nr
qii\,iiiii r{il:rnidalar{
-\aiiqiiiLi-riEi-\i trrralze
iiLivi-\i rr,rnrrld
yuiiijiii e*lll
-iLiii

be visible in the major thoroughfares that would continuously cause danger

to the riding public.

PRAYER

WHFRFFORE, oremises eonsidered. CTAP respecffullv prays to this

hionorable Offiee, that the impiernentatisn of the 15 Years age lirnit on Tti
Trucks shall be discontinued and the registration and issuance of the
Certifieate of Public Convenience must be based on the Roadworthiness of
the vehieie;

Respectfully submitted.

City of Manlla, July 26, ZAfi.

: YAP

PDGen. AY, PNP (ret.)

'rneritus

TlPage