LRT1 operator seeks P5-P7 fare increase

Light Rail Manila Corp. (LRMC), the private sector operator of Light Rail Transit Line 1 (LRT1), is seeking a fare adjustment for Metro Manila's oldest mass rail transit system.

LRMC president and CEO Juan Alfonso said in a press conference in Pasay City on Tuesday that the company has applied for a fare hike last March.

Alfonso said LRMC is asking for an average P5 fare adjustment and P7 hike for end-to-end trip from Baclaran to Roosevelt. The fare increase is targeted to be implemented on August 1.

The fare increase is subject for public consultation and approval by the Department of Transportation.

Under the concession deal with the government, the fares could be adjusted by 10 percent every two years.

LRT1 fares were last adjusted in January 2015.

Commuters presently pay P15, P20, P30 per trip depending on the number of stations traveled.

Alfonso said the fare increase is for LRMC to "catch up" with the investments it made for the rehabilitation and other service improvements in the LRT1 for the past three years.

According to LRMC, its total capital investments for LRT1 amounted to P7.5 billion since September 2015.

If the government rejects the company's request for fare adjustment, the LRMC chief said other options are laid out in the concession agreement.

"If the fare increase is not granted... under the concession agreement, government ang magsa-subsidize... if hindi, may dispute resolution measure kami. I think the agreement is very clear," Alfonso said.

"I think we’re trusting na masusunod ang process based sa contract namin," he added.

Alfonso also cited several improvements LRMC made since it took over the operations and maintenance of LRT1.

For the first quarter of the year, train availability was at 109 cars, higher than 100 in March last year.

Daily ridership increased 4 percent to 459,400 year-on-year, while average daily trips increased 9.7 percent from 505 to 554 trips.

Alfonso added that there was zero failure notice on train availability, punctuality, and reliability.

"Lahat ng improvements namin may cost. And I think people are willing to pay for good service. With increased trips, safer, comfort and very good experience, people are willing to pay for that," he said.

LRMC is a consortium put up by Metro Pacific Investments Corp., Ayala Corp., and Macquarie Infrastructure Holdings, which took over the operations and management of LRT1 in September 2015. —KBK, GMA News