New MRT/LRT fare rate effective January 4, 2015

LRT 1 - Single Journey

LRT 1 - Stored Value

LRT 2 - Single Journey

LRT 2 - Stored value

MRT Line 3

from DOTC Press Release:

Transport Agencies Vow Service Improvements in 2015

Manila, Philippines – The Department of Transportation and Communications (DOTC) has finally set the date for implementing the P 11.00 (base fare) + P 1.00 (per kilometer) formula for fares at the Light Rail Transit Lines 1 and 2 (LRT-1 and LRT-2) and the Metro Rail Transit Line 3 (MRT-3) after several years of deferring its implementation.

“It’s a tough decision, but it had to be made. It’s been several years since an increase was proposed. We delayed its implementation one last time until after the Christmas season. While 2015 will see increased fares, it will also see marked improvements in our LRT and MRT services,” said DOTC Secretary Jun Abaya.

Despite inflation and rising operational costs over the years, the last fare increase for LRT-1 was in 2003. LRT-2’s fares, on the other hand, have never been increased. For MRT-3, not only have its fares never been increased, they were in fact lowered: from the original range of P 17.00 to P 34.00 in 1999, fares were decreased to P 12.00 to P 20.00 in 2000. Currently, it is even lower at a range of P 10.00 to P15.00.

This failure to match fare adjustments with increasing operating costs have resulted in practically break-even finances for all three lines. In turn, this crippled their ability to invest in large-scale improvements for their facilities, since revenues have only been enough for day-to-day operational requirements.


Adoption of the User-Pays Principle in Philippine Development Plan

The increase, which will take effect on January 4, 2015, is in line with the 2011-2016 Medium-Term Philippine Development Plan (PDP). The PDP directs the adoption of the “user-pays” principle in the pricing of transportation services. Currently, LRT and MRT operations are subsidized by government in the amount of approximately P 12 Billion per year.

Under the “user-pays” principle, riders will shoulder more of the cost for their own trips. In the case of LRT and MRT, this will entail a shift from the current zonal fare scheme to a distance-based system. As such, riders will be charged based on the distance they travel.

Since government subsidizes around 60% of the cost for each LRT-1 and LRT-2 passenger and around 75% of each MRT-3 passenger, an estimated P 2 Billion will be freed up for development projects and relief operations in other parts of the country.

Equitable Distribution of Funds to non-LRT and MRT Riders

“We must emphasize that around P 10 Billion will still go to subsidizing LRT and MRT passengers. But the premise of the user-pays principle is this: if what each rider pays is closer to the actual cost of his or her own trip, the P 2 Billion savings can be used for development projects and relief operations to benefit those who never even get to use the LRT or MRT,” Abaya explained.

“I’m referring to the vast majority of Filipinos outside of Metro Manila – those in other parts of Luzon, in the Visayas, and in Mindanao, most especially those whose lives have been severely affected by typhoons and calamities. They will be the real beneficiaries of a more equitable distribution of these savings,” he added.

The projected P 2 Billion savings is equivalent to 8,240 classrooms, 82 kilometers worth of farm-to-market roads, or 11,440 hectares’ worth of irrigated farmlands.

Improvement Projects in 2015 and Beyond

Meanwhile, the DOTC, LRTA, and MRT-3 continue to push hard for improvement projects at the train facilities, with several rehabilitation and upgrading works set in 2015.

The primary solution to long lines at the MRT-3, for instance, is in progress as new light rail vehicles (LRVs) are already being manufactured. The prototype unit will be delivered in August 2015, and after one month of testing, 3 to 4 additional LRVs or train cars will be delivered until all 48 units are operational.

Once completed, this will improve the current 3-car configuration to a 4-car configuration, allowing more passengers to board for each arrival. Headway or the gap between train arrivals will also be faster, from the current 3 minutes down to 2.5 minutes.

Other MRT-3 improvement projects in 2015 include 6 kilometers’ worth of rail replacement for better safety and faster trips, upgrading of its signaling system and a new radio communications system also for safety, upgrading of elevators and escalators for convenience, and traction motors replacement for service reliability. Train overhauling is scheduled for completion in 2016.

A new 3-year maintenance contract is also being procured for award in the 1st quarter of 2015, in order to improve MRT-3’s reliability, and the new tap-and-go ticketing system for all 3 lines will be operational by September 2015 at the latest.

This new common ticketing scheme or Automatic Fare Collection System (AFCS) will lessen queuing time and will allow for seamless transfer between each line.

For LRT-1, operations are set to be turned over to the Light Rail Manila Consortium on or before October 2015, at which time civil works for the 11.7-kilometer Cavite Extension may begin. The LRT-2 line will also be extended by 4.2 kilometers to Masinag by 2017, and its operations and maintenance requirements are currently being bid out.

The new fares are set out in Department Order No. 2014-014 which was published in the Philippine Daily Inquirer and the Philippine Star today, December 20. This is based on the approval and recommendation of the Light Rail Transit Authority (LRTA), with due concurrence of the Land Transportation Franchising & Regulatory Board (LTFRB). The MRT-3 Office likewise proposed a similar increase.