Projects to revive train travel: derailed
By Jonathan L. Mayuga
(I wrote this article sometime in mid 2004 when I was a correspondent
of the defunct Today. It was the first lengthy article I wrote for the
paper where I started my journalism career. I remember that I have to
sift through tons of documents and interview a lot of people to come up
with this report. I am posting it here in my blog for future reference.
I retrieved this from a daily news bulletin of Quadencor. I hope they
don’t mind me picking it up.)
After decades of neglect, the country’s railway system is getting the rightful
attention from the government.
Undeniably, the country’s railways are right now in the brink of extinction. The intervention of the government to rehabilitate and modernize the railways is needed, just as the Philippine National Railways (PNR) needs nursing back to life.
The PNR is currently financially distraught, hemorrhaging from huge losses over the past years because of poor management, which can even barely maintain a decent office to do business and run its day-to-day operations. Railway facilities continue to deteriorate owing to waning public patronage. Commuters shun the PNR train, taking instead air-conditioned buses or the modern, elevated trains for convenient, comfortable and faster transportation. The PNR trains are being avoided because of the unsightly view of squatters’ shanties along both sides of the tracks and the long, boring ride inside the PNR’s decrepit, smelly commuter trains.
Professional squatters have put up businesses along the PNR properties, maintaining eateries, barber shops, vulcanizing shops, slaughterhouses, auto-repair shops and almost all sorts of establishments. Some even turn train stations into a flea markets.
Meanwhile, looters continue to bug the PNR’s operations, stealing the trains’ spare parts, the steel railings, the crushed rocks and gravel that firmly hold the rails, and just anything of value.
Today, only the Main Line South is left operational. Of the 940-km stretch, only 479 km are actually used. The Northrail Project, which would make use of the Main Line North of the PNR, was stalled by the squatters’ problem. The PNR is now in shamble, so to speak, and this mirrors the state of government efficiency.
A symbol of Filipino nationalism
The birth of the PNR is a result of Filipino patriotism, and the toiling in Spain of our heroes in the 19th century.
The first railway was constructed in Luzon, but was actually conceived in Spain by Filipino patriots like Dr. Jose Rizal, Antonio and Juan Luna, and many others, who were then fighting for political and social reforms thousands of miles across the sea.
A royal decree of King Alfonso XII of Spain authorized the preparation of the general plan of a railroad in Luzon on June 26, 1875, because of the fight waged by the Filipinos for their motherland.
They were then mocking Spain with this commentary, which awakened the king of Spain: “…While Spain meant well in her colonial policies as demonstrated by her benevolent Laws and Royal Decrees, unfortunately these decrees were seldom enforced by colonial officials, and abuses committed by officials of the Philippines were not known by the King of Spain.”
The construction of the railway itself was already a sign of progress, as the construction required thousands of workers that gave jobs to Filipinos whose work then revolved mostly around agriculture.
While it created jobs and spurred business activity in many parts of Luzon, the construction of the railway also had its adverse effect. People lost their homes as the construction also required some middle-class Filipinos to sell their properties for the construction of the railroad tracks.
Andres Bonifacio, whose birthplace was Tutuban, had to sell their small property in that swampy place in Tondo to give way for the construction of the railways.
On July 31, 1887, the railroad project had its cornerstone laying at the Tutuban main station.
The concession for the construction of the railway from Manila to Dagupan, Pangasinan, was awarded to the Manila Railway Co. Ltd., London.
The work went on until November 24, 1892, which saw the inauguration of the Manila-Dagupan Line, the first railroad in the Philippines. The 195-km line thus started transporting passengers.
The railway was damaged during the Philippine Revolution until it was placed under the control of the United States Army, which repaired and restored traffic on August 13, 1898. On April 20, 1900, the United States Army returned the railroad to Manila Railway Co. Ltd., London.
The US Congress, on July 1, 1902, authorized the Philippine Commission to grant franchises and concessions for construction of public utilities and services. During the same year, the Manila Railroad Co. Lt., London was transferred to the Manila Railroad Co., New Jersey.
In January 1917, the Philippine government acquired the Manila Railroad Co., New Jersey, and took over the railroad operation.
It was on January 31, 1938, when the first Bicol Express train became operational. On May 8, the same year, the unified system of railroad from San Fernando, La Union, to Legazpi, Albay, was inaugurated.
During the Japanese Occupation from 1942 to 1945, the railroad was under the control of the Japanese Imperial Army. It was only in February 1945, when the US Army took control and in turn transferred it to the Commonwealth Government on February 1, 1946.
The year 1956, saw the dieselization of the trains being operated by Manila Railway Co. On June 20, 1964, Republic Act 4156 was approved, creating the Philippine National Railway, absorbing all the assets, liabilities and personnel of the Manila Railroad.
The railway symbolizes the people’s dream for progress and development after the war, the same dream that paved the way for its construction more than a hundred years ago. The dream faded, and decades of neglect conquered the sense of nationalism that started it all.
Ups and downs
Like most government-owned corporations, the PNR has its ups and down. And for several times, it was nearly given up by the government. In 1999, the PNR board of directors entertained the idea of privatizing the PNR because of the huge losses it had been incurring.
Today, the PNR is heavily indebted and it now stands to lose its Tutuban property, which PNR management intends to sell to pay its huge debt to the Government Service Insurance System (GSIS). Employees’ salaries and workers’ wages are delayed at times, and top-level management cannot even maintain a decent office.
The PNR has lost many properties during its long period of financial distraught, including the Manila Hotel and the Pines Hotel in Baguio City, which it had to sell to maintain its operations. It also lost its own bus line servicing its employees and workers.
Some properties in Mindanao have also been sold to cover its huge losses and to be able to maintain operations.
As there were periods of distress, there were also times when the PNR employees and officials held their noses up in the air. An employee of the PNR said that 30 years ago, the PNR was competing with San Miguel Corp. in recruiting the brightest fresh graduates from the best universities and colleges. Utility personnel of the PNR during those times earned more than what a teacher earned.
The 1960s, the decade when the PNR was put to work, witnessed an all-time high, with trains from as far as Bicol transporting people and goods to as far as San Fernando, La Union and vise versa.
The 1970s and early 1980s witnessed the waning public patronage. It was also during this period that the facilities slowly deteriorated. The operation from Sangandaan, Caloocan City, to San Fernando, La Union, was also stopped because of poor revenues.
Service innovation was introduced in an effort to attract more commuters, most of whom were already riding buses instead of the train, by launching the Peñafrancia Express. Thirty-five newly refurbished coaches and divided into four trains offered amenities such as piped-in music and train stewardesses who offered personalized service and free snacks. Air-conditioned coaches were also introduced, and travel time was cut by less than half to eight hours.
There was also the Kaunlaran Express, which featured video movies at a minimal fee and air-conditioned dining coach in addition to other amenities.
But these innovations did not last long, as the competition with bus service along the same route lost steam for management, so it decided to switch attention with the launching of the PNR. Cargo Express for faster, efficient and safer transport of goods from the Bicol Region.
Again, these innovations were not meant to last, as the operational cost was more than what the PNR could make with poor patronage. Because of the huge losses it had incurred, it had to retrench more than two-thirds of its employees. Thus, from 10,000 the PNR only has only some 2,000 employees.
Wrong policies
PNR employees who have toiled over the decades of neglect blame the government for what the country’s railway firm has become. The country was the first in Asia to have its own railway, but now it has the worst in terms of railway facilities and even technology.
Our train service is also the worst, with squatters being a pain in the neck to PNR management and an irritation to commuters, who sometimes get stoned.
Commuters have long been complaining against people living along the railroad tracks for throwing at them stones or filthy garbage, sometimes human and animal excrement wrapped in paper. The local police could not do anything about it.
There are around 80,000 squatter families living along the PNR railroad tracks from San Fernando, La Union, to Legazpi, Albay. The mere presence of their shanties is severely affecting its operation and delaying ongoing projects to rehabilitate and modernize the railway.
While other countries have trains that can run as fast as 150 kph, our long-distance trains run at a speed of only 50 to 60 kph, while our short-distance trains or commuter trains run at only 10 to 20 kph.
With such speed, the PNR cannot compete with other faster modes of transportation such as the bus and elevated trains.
Engineer Edgardo Remonte, the PNR assistant general manager for operation, admitted that the government itself is to be blamed for the PNR’s bankruptcy.
He said the government concentrated more on the construction of more roads than more railroad tracks to reach far-flung areas and other destinations, and failed to introduce innovations to improve the service it offers to commuters.
Besides, he continued, the government constructed the expressway that runs parallel to the railroad track of the PNR.
“Instead of running perpendicular to the railroad, the expressway runs parallel to our railway. The government also issued franchises to provincial buses, which compete against the PNR,” he said. “Fortunately,” he added, “the government has realized the importance of the railway as a means of transportation, and it is now trying to rehabilitate and modernize our railway system.”
A comparative study of transport fares charged by the PNR as against that charged by private bus companies show that using the train is more economical. From Manila to Legazpi, for instance, the train fare is only P383, while bus fare is P712, or a difference of P392. Both offer air-conditioned accommodation, although the bus offers much faster travel.
Remonte blames the existence of squatters along the sides of the railroad tracks of the PNR for the slow train-travel time. “How can we go faster when people are all over the sides of railroad tracks?” he said.
“Relocate the squatters, clear the danger-zone and 90 percent of our maintenance problem is solved, and 50 percent of our rehabilitation project is done,” Remonte said.
According to Remonte, the PNR also has limited number of rolling stocks, which would carry passengers to their destination.
Remonte noted that there was a dramatic increase in ridership after the recent oil-price hike because bus fares also increased. However, the PNR lacks rolling stocks to make frequent travel as possible and to accommodate the passengers.
The PNR has only 14 locomotive engines to pull the trains. At present, the PNR only has two trains for daily long-distance routes from Manila to Legazpi and vice versa. The rest, composed of at least four coaches, are used as commuter trains plying short-distance routes from Manila to Calamba in Laguna and Batangas and vice versa.
According to Remonte, the PNR is not making enough money from its operation. He admitted that the PNR is incurring a loss of at least P20 million a month, considering that for the employees’ salaries alone, the PNR has to spend P22 million a month. The PNR is spending P3 million a month for diesel plus the usual maintenance cost to keep the trains running.
“We also need to spend for spare parts, some of which are destroyed or stolen. Our income from passengers is around P6 million to P 7 million a month, so what do you expect? The PNR is incurring huge losses every year. But still, we manage to survive,” he said. The PNR is getting support from the national government amounting to P30 million every year, until it was stopped in 2002.
The PNR is earning P72 million a year from its lease of the Tutuban property, which is now supporting the day-to-day operation of the PNR.
Remonte said that in order to save the PNR, the government should privatize the train’s operation to let investment flow in and help the company regain its strength and compete with private bus companies.
Or better yet, he said, the government should subsidize the operation of the PNR and allot budget for its modernization to bounce back and regain its lost glory.
Mismanaged?
Disgruntled employees, however, blame graft and corruption more than simple mismanagement as the reason for the collapse of the railway system under the PNR.
Armando Cruz, president of the Bagong Kapisanan ng mga Manggagawa sa PNR-ITF, said that since the government took over the Manila Railway Corp., the condition of the railway system worsened.
He said squatters multiplied year after year, and the government did not do anything to prevent them from encroaching on government property.
“Government and PNR officials only took advantage of their position and turned the PNR into a milking cow. They did nothing but to enrich themselves while in power,” Cruz said.
According to him, PNR officials are “systematically” draining the resources of one of the richest government-owned corporations and allowing the rank-and-file employees to suffer the consequences of incurring huge losses year after year.
“There is definitely a problem somewhere. Where does the PNR’s money go? Before, the PNR owned the Manila Hotel, the Pines Hotel in Baguio. We had lots of properties that were lost because those at the helm were doing nothing but sell the PNR’s property to cover up for the losses. But did they do anything to maintain these trains, to upgrade the technology? Where did they spend the money, then?” he said.
PNR officials, Cruz said, are facing several cases of graft and corruption at the Ombudsman. While the PNR is already incurring losses, some officials were accused of purchasing overpriced spare parts, materials and even office supplies.
The government could have at least stopped corruption perpetrated by those at the helm by removing them from office, he said.
While Cruz said he and members of the train workers’ union welcome any move on the part of the government to rehabilitate the railways system, he expressed doubt that it would, in general, save the institution and the people who have toiled during its decades of neglect.
According to Cruz, PNR employees are always the least of the worries of the government.
“We have been waiting for those promised changes, but nothing happened. If they want to rehabilitate the railway, so be it, but I hope this grand plan includes us, those who have been working hard to make these trains run despite its poor condition,” he said.
The PNR, according to him, owns real estate properties, which the government can use for its rehabilitation, to pay the huge debt it owes the GSIS, and to grant employees benefits they deserve.
But he said the government never had the political will to do what was right. In fact, he said, instead of driving away squatters, Philippine presidents even gave away the property of the PNR to illegal settlers, instead of relocating them to other areas to allow the smooth flow of traffic.
There are at least 1,800 regular employees at the PNR, half of whom would be retiring in the next five years, according to Cruz, but all of them are facing a bleak future owing to the huge debt of the PNR to the GSIS.
The GSIS, through its president, Winston Garcia, has asked Jose Maria Sarasola III to remit the employees’ contributions. Employees complained that because the GSIS has not received any contribution from the PNR, their request for salary loans and other benefits as government employees had been denied.
Last year four PNR employees retired from government service, and their only hope to get their retirement benefits is for the PNR management to settle its obligation.
According to Cruz, even without subsidy from the national government, the PNR can use some of its resources to improve the train facilities. It is the second richest government corporation, agency or department in terms of real estate property, next to the Armed Forces of the Philippines.
It owns 48 million square meters of land all over the country, but much of them have been occupied by squatters, and some were actually given up for the purpose of human settlement, among others.
Such resources, he said, could be used to resuscitate the dying institution and nurse it back to health and start a good employee-employer relationship by remitting the GSIS contributions of the employees.
Strong Republic Transit System
The Strong Republic Transit System (SRTS), envisioned by President Arroyo, aims to maximize the use of the existing and new railways for fast, safe and effective means of transportation to compliment the envisioned MRT and LRT loops.
The Department of Transportation and Communications (DOTC) also plans to implement a single-journey ticketing system to improve its services to the riding public.
Under the SRTS, a modern railway system will be built almost simultaneously in Luzon, Visayas and Mindanao to serve the people, move cargo, link and fuse economies and societies, while building new communities along the railways for the people living in Metro Manila.
Like the LRT and MRT projects, the railways rehabilitation and modernization projects are all part of a strategy geared toward development. The grand plan is expected to affect those in the transport sector, particularly those who depend on the operations of Metro Manila passenger buses and jeepneys, tricycles and pedicabs. Ironically, however, there’s no grand plan for those who, sooner or later, would lose their livelihood.
Among the government’s proposed projects to improve the railways system are the Northrail Project, the South Manila Commuter Rail Project, the PNR Main Line South, the Panay Railways Rehabilitation Project and the Mindanao Railways Project. They cover a total amount of P40 billion and were personally endorsed by Speaker Jose C. de Venecia Jr. through a letter dated October 8, 2001.
President Arroyo issued Memorandum Order 46 on December 10, 2001, directing the Housing and Urban Development Coordinating Council (HUDCC) to relocate and provide alternative housing sites for the informal dwellers within the PNR right-of-way in areas to be affected by the PNR rehabilitation and modernization.
She also issued Memorandum 48 directing the DOTC to oversee the projects’ implementation. Three years after, however, not much has been done and accomplished.
Some 600 squatter families living along the PNR tracks in Sangandaan, Caloocan, have been relocated, after the HUDCC demolished the shanties. Residents offered little resistance, and soon cooperated with the government. But not for long. The relocation of the squatters in Malabon was stopped early last year, apparently as the election drew near. No local official or the sitting President, who aspired for an extension of her term dared act to displease a voter.
The problem of squatters
The Northrail Project, funded by the Export-Import Bank of China and the Chinese government, has been delayed again for more than a year owing to the problem brought about by the squatters. The project’s proponent, the North Luzon Railways Corp. is already fretting because of the financial losses it has incurred, owing to the delay.
The concerned government agencies once again failed to relocate the squatters in Malabon City and Valenzuela City. The government also failed to relocate squatters in other areas to be affected by its various projects, apparently because of its inefficiency.
A relocation site, a 12-hectare property in Tanza, Navotas, which was acquired by the local government of Malabon in partnership with the HUDCC and the National Housing Authority (NHA), was found to be unfit for human settlement, as the place is flood-prone and sinks at the slightest fall of rain or during high tide.
The property is near a river, and was a fishpond sold at an overpriced amount to the local government by a friend of the mayor.
The anomalous land deal led to the 90-day suspension last year of the mayor of Malabon, Amado Vicencio, which was imposed by no less than President Arroyo.
Newly elected mayor Canuto Oreta has created a committee to look into the problem and find a suitable relocation site for the Malabon PNR squatters. There are around 2,800 squatter families in four Malabon barangays who would be affected by the project.
In Valenzuela City, newly elected mayor Sherwin Gatchalian is also faced with the problem of looking for an in-city relocation site for its more than 7,000 squatter families who would be affected by the project.
At least 10,000 to 15,000 more are expected to be relocated from seven Bulacan towns, who would be displaced by the project’s Phase I, which covers work from Sangandan in Caloocan to Calumpit, Bulacan.
No matter how many of the squatters are relocated by the government, more of them would mushroom in a continuing cycle. Obviously, people need work and where there is work there people would go.
Somehow, the government needs to find a formula to stop this vicious cycle if it is to keep the railway projects in the right track and return the glory days of the train transportation.
Undeniably, the country’s railways are right now in the brink of extinction. The intervention of the government to rehabilitate and modernize the railways is needed, just as the Philippine National Railways (PNR) needs nursing back to life.
The PNR is currently financially distraught, hemorrhaging from huge losses over the past years because of poor management, which can even barely maintain a decent office to do business and run its day-to-day operations. Railway facilities continue to deteriorate owing to waning public patronage. Commuters shun the PNR train, taking instead air-conditioned buses or the modern, elevated trains for convenient, comfortable and faster transportation. The PNR trains are being avoided because of the unsightly view of squatters’ shanties along both sides of the tracks and the long, boring ride inside the PNR’s decrepit, smelly commuter trains.
Professional squatters have put up businesses along the PNR properties, maintaining eateries, barber shops, vulcanizing shops, slaughterhouses, auto-repair shops and almost all sorts of establishments. Some even turn train stations into a flea markets.
Meanwhile, looters continue to bug the PNR’s operations, stealing the trains’ spare parts, the steel railings, the crushed rocks and gravel that firmly hold the rails, and just anything of value.
Today, only the Main Line South is left operational. Of the 940-km stretch, only 479 km are actually used. The Northrail Project, which would make use of the Main Line North of the PNR, was stalled by the squatters’ problem. The PNR is now in shamble, so to speak, and this mirrors the state of government efficiency.
A symbol of Filipino nationalism
The birth of the PNR is a result of Filipino patriotism, and the toiling in Spain of our heroes in the 19th century.
The first railway was constructed in Luzon, but was actually conceived in Spain by Filipino patriots like Dr. Jose Rizal, Antonio and Juan Luna, and many others, who were then fighting for political and social reforms thousands of miles across the sea.
A royal decree of King Alfonso XII of Spain authorized the preparation of the general plan of a railroad in Luzon on June 26, 1875, because of the fight waged by the Filipinos for their motherland.
They were then mocking Spain with this commentary, which awakened the king of Spain: “…While Spain meant well in her colonial policies as demonstrated by her benevolent Laws and Royal Decrees, unfortunately these decrees were seldom enforced by colonial officials, and abuses committed by officials of the Philippines were not known by the King of Spain.”
The construction of the railway itself was already a sign of progress, as the construction required thousands of workers that gave jobs to Filipinos whose work then revolved mostly around agriculture.
While it created jobs and spurred business activity in many parts of Luzon, the construction of the railway also had its adverse effect. People lost their homes as the construction also required some middle-class Filipinos to sell their properties for the construction of the railroad tracks.
Andres Bonifacio, whose birthplace was Tutuban, had to sell their small property in that swampy place in Tondo to give way for the construction of the railways.
On July 31, 1887, the railroad project had its cornerstone laying at the Tutuban main station.
The concession for the construction of the railway from Manila to Dagupan, Pangasinan, was awarded to the Manila Railway Co. Ltd., London.
The work went on until November 24, 1892, which saw the inauguration of the Manila-Dagupan Line, the first railroad in the Philippines. The 195-km line thus started transporting passengers.
The railway was damaged during the Philippine Revolution until it was placed under the control of the United States Army, which repaired and restored traffic on August 13, 1898. On April 20, 1900, the United States Army returned the railroad to Manila Railway Co. Ltd., London.
The US Congress, on July 1, 1902, authorized the Philippine Commission to grant franchises and concessions for construction of public utilities and services. During the same year, the Manila Railroad Co. Lt., London was transferred to the Manila Railroad Co., New Jersey.
In January 1917, the Philippine government acquired the Manila Railroad Co., New Jersey, and took over the railroad operation.
It was on January 31, 1938, when the first Bicol Express train became operational. On May 8, the same year, the unified system of railroad from San Fernando, La Union, to Legazpi, Albay, was inaugurated.
During the Japanese Occupation from 1942 to 1945, the railroad was under the control of the Japanese Imperial Army. It was only in February 1945, when the US Army took control and in turn transferred it to the Commonwealth Government on February 1, 1946.
The year 1956, saw the dieselization of the trains being operated by Manila Railway Co. On June 20, 1964, Republic Act 4156 was approved, creating the Philippine National Railway, absorbing all the assets, liabilities and personnel of the Manila Railroad.
The railway symbolizes the people’s dream for progress and development after the war, the same dream that paved the way for its construction more than a hundred years ago. The dream faded, and decades of neglect conquered the sense of nationalism that started it all.
Ups and downs
Like most government-owned corporations, the PNR has its ups and down. And for several times, it was nearly given up by the government. In 1999, the PNR board of directors entertained the idea of privatizing the PNR because of the huge losses it had been incurring.
Today, the PNR is heavily indebted and it now stands to lose its Tutuban property, which PNR management intends to sell to pay its huge debt to the Government Service Insurance System (GSIS). Employees’ salaries and workers’ wages are delayed at times, and top-level management cannot even maintain a decent office.
The PNR has lost many properties during its long period of financial distraught, including the Manila Hotel and the Pines Hotel in Baguio City, which it had to sell to maintain its operations. It also lost its own bus line servicing its employees and workers.
Some properties in Mindanao have also been sold to cover its huge losses and to be able to maintain operations.
As there were periods of distress, there were also times when the PNR employees and officials held their noses up in the air. An employee of the PNR said that 30 years ago, the PNR was competing with San Miguel Corp. in recruiting the brightest fresh graduates from the best universities and colleges. Utility personnel of the PNR during those times earned more than what a teacher earned.
The 1960s, the decade when the PNR was put to work, witnessed an all-time high, with trains from as far as Bicol transporting people and goods to as far as San Fernando, La Union and vise versa.
The 1970s and early 1980s witnessed the waning public patronage. It was also during this period that the facilities slowly deteriorated. The operation from Sangandaan, Caloocan City, to San Fernando, La Union, was also stopped because of poor revenues.
Service innovation was introduced in an effort to attract more commuters, most of whom were already riding buses instead of the train, by launching the Peñafrancia Express. Thirty-five newly refurbished coaches and divided into four trains offered amenities such as piped-in music and train stewardesses who offered personalized service and free snacks. Air-conditioned coaches were also introduced, and travel time was cut by less than half to eight hours.
There was also the Kaunlaran Express, which featured video movies at a minimal fee and air-conditioned dining coach in addition to other amenities.
But these innovations did not last long, as the competition with bus service along the same route lost steam for management, so it decided to switch attention with the launching of the PNR. Cargo Express for faster, efficient and safer transport of goods from the Bicol Region.
Again, these innovations were not meant to last, as the operational cost was more than what the PNR could make with poor patronage. Because of the huge losses it had incurred, it had to retrench more than two-thirds of its employees. Thus, from 10,000 the PNR only has only some 2,000 employees.
Wrong policies
PNR employees who have toiled over the decades of neglect blame the government for what the country’s railway firm has become. The country was the first in Asia to have its own railway, but now it has the worst in terms of railway facilities and even technology.
Our train service is also the worst, with squatters being a pain in the neck to PNR management and an irritation to commuters, who sometimes get stoned.
Commuters have long been complaining against people living along the railroad tracks for throwing at them stones or filthy garbage, sometimes human and animal excrement wrapped in paper. The local police could not do anything about it.
There are around 80,000 squatter families living along the PNR railroad tracks from San Fernando, La Union, to Legazpi, Albay. The mere presence of their shanties is severely affecting its operation and delaying ongoing projects to rehabilitate and modernize the railway.
While other countries have trains that can run as fast as 150 kph, our long-distance trains run at a speed of only 50 to 60 kph, while our short-distance trains or commuter trains run at only 10 to 20 kph.
With such speed, the PNR cannot compete with other faster modes of transportation such as the bus and elevated trains.
Engineer Edgardo Remonte, the PNR assistant general manager for operation, admitted that the government itself is to be blamed for the PNR’s bankruptcy.
He said the government concentrated more on the construction of more roads than more railroad tracks to reach far-flung areas and other destinations, and failed to introduce innovations to improve the service it offers to commuters.
Besides, he continued, the government constructed the expressway that runs parallel to the railroad track of the PNR.
“Instead of running perpendicular to the railroad, the expressway runs parallel to our railway. The government also issued franchises to provincial buses, which compete against the PNR,” he said. “Fortunately,” he added, “the government has realized the importance of the railway as a means of transportation, and it is now trying to rehabilitate and modernize our railway system.”
A comparative study of transport fares charged by the PNR as against that charged by private bus companies show that using the train is more economical. From Manila to Legazpi, for instance, the train fare is only P383, while bus fare is P712, or a difference of P392. Both offer air-conditioned accommodation, although the bus offers much faster travel.
Remonte blames the existence of squatters along the sides of the railroad tracks of the PNR for the slow train-travel time. “How can we go faster when people are all over the sides of railroad tracks?” he said.
“Relocate the squatters, clear the danger-zone and 90 percent of our maintenance problem is solved, and 50 percent of our rehabilitation project is done,” Remonte said.
According to Remonte, the PNR also has limited number of rolling stocks, which would carry passengers to their destination.
Remonte noted that there was a dramatic increase in ridership after the recent oil-price hike because bus fares also increased. However, the PNR lacks rolling stocks to make frequent travel as possible and to accommodate the passengers.
The PNR has only 14 locomotive engines to pull the trains. At present, the PNR only has two trains for daily long-distance routes from Manila to Legazpi and vice versa. The rest, composed of at least four coaches, are used as commuter trains plying short-distance routes from Manila to Calamba in Laguna and Batangas and vice versa.
According to Remonte, the PNR is not making enough money from its operation. He admitted that the PNR is incurring a loss of at least P20 million a month, considering that for the employees’ salaries alone, the PNR has to spend P22 million a month. The PNR is spending P3 million a month for diesel plus the usual maintenance cost to keep the trains running.
“We also need to spend for spare parts, some of which are destroyed or stolen. Our income from passengers is around P6 million to P 7 million a month, so what do you expect? The PNR is incurring huge losses every year. But still, we manage to survive,” he said. The PNR is getting support from the national government amounting to P30 million every year, until it was stopped in 2002.
The PNR is earning P72 million a year from its lease of the Tutuban property, which is now supporting the day-to-day operation of the PNR.
Remonte said that in order to save the PNR, the government should privatize the train’s operation to let investment flow in and help the company regain its strength and compete with private bus companies.
Or better yet, he said, the government should subsidize the operation of the PNR and allot budget for its modernization to bounce back and regain its lost glory.
Mismanaged?
Disgruntled employees, however, blame graft and corruption more than simple mismanagement as the reason for the collapse of the railway system under the PNR.
Armando Cruz, president of the Bagong Kapisanan ng mga Manggagawa sa PNR-ITF, said that since the government took over the Manila Railway Corp., the condition of the railway system worsened.
He said squatters multiplied year after year, and the government did not do anything to prevent them from encroaching on government property.
“Government and PNR officials only took advantage of their position and turned the PNR into a milking cow. They did nothing but to enrich themselves while in power,” Cruz said.
According to him, PNR officials are “systematically” draining the resources of one of the richest government-owned corporations and allowing the rank-and-file employees to suffer the consequences of incurring huge losses year after year.
“There is definitely a problem somewhere. Where does the PNR’s money go? Before, the PNR owned the Manila Hotel, the Pines Hotel in Baguio. We had lots of properties that were lost because those at the helm were doing nothing but sell the PNR’s property to cover up for the losses. But did they do anything to maintain these trains, to upgrade the technology? Where did they spend the money, then?” he said.
PNR officials, Cruz said, are facing several cases of graft and corruption at the Ombudsman. While the PNR is already incurring losses, some officials were accused of purchasing overpriced spare parts, materials and even office supplies.
The government could have at least stopped corruption perpetrated by those at the helm by removing them from office, he said.
While Cruz said he and members of the train workers’ union welcome any move on the part of the government to rehabilitate the railways system, he expressed doubt that it would, in general, save the institution and the people who have toiled during its decades of neglect.
According to Cruz, PNR employees are always the least of the worries of the government.
“We have been waiting for those promised changes, but nothing happened. If they want to rehabilitate the railway, so be it, but I hope this grand plan includes us, those who have been working hard to make these trains run despite its poor condition,” he said.
The PNR, according to him, owns real estate properties, which the government can use for its rehabilitation, to pay the huge debt it owes the GSIS, and to grant employees benefits they deserve.
But he said the government never had the political will to do what was right. In fact, he said, instead of driving away squatters, Philippine presidents even gave away the property of the PNR to illegal settlers, instead of relocating them to other areas to allow the smooth flow of traffic.
There are at least 1,800 regular employees at the PNR, half of whom would be retiring in the next five years, according to Cruz, but all of them are facing a bleak future owing to the huge debt of the PNR to the GSIS.
The GSIS, through its president, Winston Garcia, has asked Jose Maria Sarasola III to remit the employees’ contributions. Employees complained that because the GSIS has not received any contribution from the PNR, their request for salary loans and other benefits as government employees had been denied.
Last year four PNR employees retired from government service, and their only hope to get their retirement benefits is for the PNR management to settle its obligation.
According to Cruz, even without subsidy from the national government, the PNR can use some of its resources to improve the train facilities. It is the second richest government corporation, agency or department in terms of real estate property, next to the Armed Forces of the Philippines.
It owns 48 million square meters of land all over the country, but much of them have been occupied by squatters, and some were actually given up for the purpose of human settlement, among others.
Such resources, he said, could be used to resuscitate the dying institution and nurse it back to health and start a good employee-employer relationship by remitting the GSIS contributions of the employees.
Strong Republic Transit System
The Strong Republic Transit System (SRTS), envisioned by President Arroyo, aims to maximize the use of the existing and new railways for fast, safe and effective means of transportation to compliment the envisioned MRT and LRT loops.
The Department of Transportation and Communications (DOTC) also plans to implement a single-journey ticketing system to improve its services to the riding public.
Under the SRTS, a modern railway system will be built almost simultaneously in Luzon, Visayas and Mindanao to serve the people, move cargo, link and fuse economies and societies, while building new communities along the railways for the people living in Metro Manila.
Like the LRT and MRT projects, the railways rehabilitation and modernization projects are all part of a strategy geared toward development. The grand plan is expected to affect those in the transport sector, particularly those who depend on the operations of Metro Manila passenger buses and jeepneys, tricycles and pedicabs. Ironically, however, there’s no grand plan for those who, sooner or later, would lose their livelihood.
Among the government’s proposed projects to improve the railways system are the Northrail Project, the South Manila Commuter Rail Project, the PNR Main Line South, the Panay Railways Rehabilitation Project and the Mindanao Railways Project. They cover a total amount of P40 billion and were personally endorsed by Speaker Jose C. de Venecia Jr. through a letter dated October 8, 2001.
President Arroyo issued Memorandum Order 46 on December 10, 2001, directing the Housing and Urban Development Coordinating Council (HUDCC) to relocate and provide alternative housing sites for the informal dwellers within the PNR right-of-way in areas to be affected by the PNR rehabilitation and modernization.
She also issued Memorandum 48 directing the DOTC to oversee the projects’ implementation. Three years after, however, not much has been done and accomplished.
Some 600 squatter families living along the PNR tracks in Sangandaan, Caloocan, have been relocated, after the HUDCC demolished the shanties. Residents offered little resistance, and soon cooperated with the government. But not for long. The relocation of the squatters in Malabon was stopped early last year, apparently as the election drew near. No local official or the sitting President, who aspired for an extension of her term dared act to displease a voter.
The problem of squatters
The Northrail Project, funded by the Export-Import Bank of China and the Chinese government, has been delayed again for more than a year owing to the problem brought about by the squatters. The project’s proponent, the North Luzon Railways Corp. is already fretting because of the financial losses it has incurred, owing to the delay.
The concerned government agencies once again failed to relocate the squatters in Malabon City and Valenzuela City. The government also failed to relocate squatters in other areas to be affected by its various projects, apparently because of its inefficiency.
A relocation site, a 12-hectare property in Tanza, Navotas, which was acquired by the local government of Malabon in partnership with the HUDCC and the National Housing Authority (NHA), was found to be unfit for human settlement, as the place is flood-prone and sinks at the slightest fall of rain or during high tide.
The property is near a river, and was a fishpond sold at an overpriced amount to the local government by a friend of the mayor.
The anomalous land deal led to the 90-day suspension last year of the mayor of Malabon, Amado Vicencio, which was imposed by no less than President Arroyo.
Newly elected mayor Canuto Oreta has created a committee to look into the problem and find a suitable relocation site for the Malabon PNR squatters. There are around 2,800 squatter families in four Malabon barangays who would be affected by the project.
In Valenzuela City, newly elected mayor Sherwin Gatchalian is also faced with the problem of looking for an in-city relocation site for its more than 7,000 squatter families who would be affected by the project.
At least 10,000 to 15,000 more are expected to be relocated from seven Bulacan towns, who would be displaced by the project’s Phase I, which covers work from Sangandan in Caloocan to Calumpit, Bulacan.
No matter how many of the squatters are relocated by the government, more of them would mushroom in a continuing cycle. Obviously, people need work and where there is work there people would go.
Somehow, the government needs to find a formula to stop this vicious cycle if it is to keep the railway projects in the right track and return the glory days of the train transportation.
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