By Jelly F. Musico
MANILA, March 12 (PNA) – Senator Joseph Victor Ejercito has filed a bill seeking to modernize and rehabilitate the cash-strapped Philippine National Railway (PNR).
Ejercito, chairman of the Senate committee on economic affairs, proposed under his Senate Bill No. 2690, or the PNR Modernization Act, to amend Republic Act No. 4156 or the PNR Charter.
Though the PNR’s corporate life has been extended for another 50 years, Ejercito said the PNR continued to run a ‘loss leader’ operation that the more trips the train runs, the more losses it incurs.
”This can be attributed to its purely manual operations as well as its aged and obsolete train system equipment and facilities, resulting to poor operating potentials and high leakage rate,” he said.
Ejercito said in the first half of 2014 alone, the PNR suffered a cash deficit amounting to Php 85.5 million or a monthly loss of Php 13.24 million despite serving 12.2 million passengers during the same period.
The PNR serves commuters traveling from Tutuban to Sta. Rosa/Mamatid Commuter Line in Laguna and Naga/Sipocot Commuter Line in Camrines Sur.
The proposed measure aims to increase the PNR’s authorized capital stock to Php50 billion; and, for the Philippine government to guarantee unconditionally all loans, credits and indebtedness contracted by the PNR in local currency.
The 8-point proposed amendment also allow the PNR to enter into a Joint venture with qualified private sector partner that will provide the operation & maintenance; Reaffirmation of the PNR’s tax exemption; and, to allow the PNR’s established sinking fund to be used for the development of tracks and new railway routes.
Ejercito also proposed to amend the allowable term of the general manager to six years; for the PNR to be granted the power and authority to deputize/obligate LGU’s to enforce and implement the restoration of PNR’s right of way; and, to strengthen the PNR’s charter by inclusion of a provision that penalizes criminally and/or civilly any person/s that will cause interference with the train’s free flow. (PNA)