PSA data shows subsidy to Metro rail systems reach P8 billion in 2012

Although they benefit mostly Filipinos who live in Metro Manila, the Light Rail Transit (LRT), the Metro Rail Transit (MRT) and the Philippine National Railways (PNR) received the biggest subsidy from the government in 2012 out of all transport industries in the country. 

 

Final results of the 2012 Census of Philippine Business and Industry-Transport and Storage released by the Philippine Statistics Authority (PSA) showed the railway transportation sector receiving P8.4 billion in subsidies from the government. 

 

The figure represents 99.8 percent of the total subsidies given by the government for the transportation sector for the year.

 

In contrast, sea and coastal water transport and warehousing and storage facilities received paltry subsidies of P13.5 million and P4.5 million, respectively.

 

Despite the government’s multi-billion peso subsidies to the mass rail transport system, LRT, MRT and PNR managed to eke out P71 billion in revenues in 2012.

 

This compares with the P132 billion contributed by the passenger air transport industry, while firms involved in support activities for the transportation industry earned a combined P124.1 billion.

 

Income from sea and coastal water transport was the lowest at P46 billion. 

 

Citing the burden of subsidizing the railway system, the Department of Transportation and Communications (DOTC) announced last month it will implement a P1 increase in the base fare and fare per succeeding kilometer of the MRT-3 and LRT Lines 1 and 2 starting Jan. 4.

 

DOTC and Malacañang have defended the increase, saying the estimated P2 billion the government will save annually from its subsidy will be used to fund other projects that will benefit a greater number of Filipinos.

 

Despite raking in low profits, the railway industry ranked second among the most labor productive employees in terms of value added per worker with P1.3 million. 

 

The passenger air transport industry still ranks first in labor productivity, with each worker adding a value of P1.9 million. 

 

Support activities for transportation, and sea and coastal water transport surpassed the national average by registering the value added per worker at P1 million and P800,000, respectively.

 

PSA computes the value added per worker based on gross output, less the intermediate input. 

 

Gross output for transport and storage is the sum of the total revenue, capital expenditures of fixed assets produced on own account and change in inventories while the intermediate input is equal to the sum of cost items such as purchased materials and fuels, and other related costs. –  Xianne Arcangel/VS, GMA News