Wikipedia

Metro Manila Transit Corporation

The Metropolitan Manila Transit Corporation (MMTC) was a government-owned transport company in Metro Manila, the Philippines.

Metro Manila Transit Corporation
ParentMetro Manila Council (1975-1979)
Ministry of Transportation and Communications (1979-)[1]
Founded1974; 50 years ago (1974) (as the Manila Transit Corporation)
Commenced operation1975; 49 years ago (1975)
Ceased operation1995; 29 years ago (1995)[2]
Defunct1997; 27 years ago (1997)[2]
HeadquartersNorth Avenue corner Mindanao Avenue, Diliman, Quezon City
Service areaMetro Manila
Service typeBus service
OperatorMMTC; private operators

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.

History

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After 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. This, 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 the Manila Transit Corporation (MTC), a government-owned and controlled corporation. 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.[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 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]

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.[7]

Privatization and dissolution

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Following 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.[8]

During the Ramos administration, a study group was created in 1994 to formulate a plan to privatize the MMTC.[9] After multiple unsuccessful attempts to liquidate MMTC, the company was eventually sold to its blue-collar employees in March 1995. Its buses were then acquired and operated by four groups formed by the former employees:[10][2]: 7-3 

  • United Workers Transport Corporation
  • Drivers, Conductors, Mechanics (DCOMMP) Multi-Purpose Transport Service Cooperative
  • Filcomtrans
  • Fastrans

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 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.

Its 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,[12] then sold most of the area to Ayala Land in 2012, developing most of the area into Arca South.[13]

Board of directors

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The 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 

Incidents

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MMTC v. D.M. Consortium, Inc.

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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.[14]

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.[14]

MMTC filed a motion for reconsideration 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.[14]

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.[14]

See also

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Similar state-owned enterprises

Notes

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References

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  1. ^ a b Executive Order No. 546 (July 23, 1979), Creating a Ministry of Public Works and a Ministry of Transportation and Communications
  2. ^ a b c d e "Technical Report No. 5 - Transportation Terminals". Metro Manila Urban Transportation Integration Study. Japan International Cooperation Agency. 1999.
  3. ^ Santiago, Rene (December 2021). "The Rise and Fall of the Love Bus (and the Ghosts of Bus Reforms Past)" (PDF). Philippine Transportation Journal. 4 (1). National Center for Transportation Studies.
  4. ^ a b Presidential Decree No. 492 (June 27, 1974), Creating The Manila Transit Corporation, Appropriating Funds Therefor And For Other Purposes
  5. ^ Presidential Decree No. 860 (November 7, 1975), Creating the Metropolitan Manila and the Metropolitan Manila Commission and for Other Purposes
  6. ^ Presidential Decree No. 860 (December 25, 1975), Amending the Title and Certain Sections of Presidential Decree Numbered Four Hundred Ninety Two, Entitled "Creating the Manila Transit Corporation, Appropriating the Funds Therefor and for Other Purposes"
  7. ^ Executive Order No. 1011 (March 20, 1985), Establishing the Land Transportation Commission in the Ministry of Transportation and Communications, and for Other Purposes
  8. ^ Rimmer, Peter J. (May 1989). A Tale of Four Cities: Competition and Bus Ownership in Bangkok, Jakarta, Manila and Singapore (PDF). Thredbo – via Thredbo.
  9. ^ Memorandum Order No. 218 (July 13, 1994), Creating a Study Group to Prepare a Strategic Action Plan for the Privatization of the Metro Manila Transit Corporation (MMTC)
  10. ^ Juico, Philip Ella (August 3, 2022). "Fidel V. Ramos: A man dedicated to peace and his people". BusinessWorld. Retrieved September 25, 2024.
  11. ^ a b Sutadisastra, Effendi (1978). A critical study of Metro Manila Transit Corporation (MBA thesis). De La Salle University.
  12. ^ G.R. No. 153925 (August 10, 2006), Food Terminal, Inc., et al. vs. Shoppers Paradise FTI Corporation
  13. ^ Burgonio, TJ (November 13, 2012). "Ayala buys FTI for P24.3B". Philippine Daily Inquirer. Archived from the original on November 15, 2012. Retrieved September 30, 2024.
  14. ^ a b c d G.R. No. 147594 (March 7, 2007), [hhttps://lawphil.net/judjuris/juri2007/mar2007/gr_147594_2007.html Metro Manila Transit Corporation vs. D.M. Consortium, Inc.]
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