Compliance Assessment for Fleet Modernization Under Public Transport Modernization Program (PTMP) of Selected Transport Service Cooperatives in Rizal, 2026

Date

6-2026

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ruby Jane C. Estadilla

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

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Abstract

The Public Transport Modernization Program (PTMP), formerly known as the Public Utility Vehicle Modernization Program (PUVMP), was introduced to improve the country's public transportation system through fleet modernization and other related institutional reforms. This study assessed the compliance of selected Transport Service Cooperatives (TSCs) in Rizal with the fleet modernization component of the PTMP. Specifically, the study aimed to: (1) profile the selected transport service cooperatives in terms of size, operational years, number of members, and maturity level; (2) discuss the documentary, operational, and financial requirements for fleet modernization; (3) identify the compliance barriers for fleet modernization; and (4) provide policy recommendations on institutional reforms to support sustainable modernization.

The study covered four selected transport service cooperatives in Rizal, namely: Metro Rizal UV Transport Service Multi-Purpose Cooperative (MRTSMPC), Aguila Group Transport Services and MPC (AGTSMPC), Kasiglahan Transport Cooperative (KTC), and Cogeo Padilla Transport Service Cooperative (CPTSC). Compliance with fleet modernization was assessed through the average age of fleet and the proportion of modernized to old or intended units. The Decision-Making Trial and Evaluation Laboratory (DEMATEL) method was utilized to analyze the causal relationships among identified barriers to fleet modernization compliance.

Results showed that newer cooperatives generally exhibited higher proportions of modernized fleets compared to older cooperatives. In contrast, older cooperatives faced greater challenges in replacing large numbers of traditional units. Financial analysis revealed varying levels of profitability, liquidity, and solvency among selected TSCs, indicating differences in financial readiness and sustainability. The study also found that fleet modernization compliance is influenced by interconnected documentary, operational, and financial barriers. Key constraints identified include delays in LTFRB document processing, capitalization constraints, dependence on high-cost financing, leadership turnover, and limited access to government financial institutions. DEMATEL results further revealed that documentary and organizational barriers belonged to the cause group, while financial barriers largely belonged to the effect group, indicating that financial difficulties are often outcomes of broader institutional and operational inefficiencies.

The findings suggest that compliance with fleet modernization should not only be viewed as a regulatory obligation but also as an economic issue affecting the long-term sustainability and competitiveness of TSCs. The study recommends strengthening institutional coordination among government agencies, streamlining documentary requirements, expanding accessible financing mechanisms, and enhancing cooperative management and governance capacities. These measures may improve the ability of TSCs to comply with fleet modernization requirements while ensuring sustainable operations and economic viability.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2026 A14 P37

Notes

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Award: ICOOP-PCAARRD Best Thesis in Cooperatives Award

Document Type

Thesis

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