An EV alternative

The jeepney modernization program that is hotly debated these days is a program inherited from the previous administration. It is half baked. It talks of modernization but still involves the use of diesel engines. That means it doesn’t address air pollution, a big health problem for us.

Also, using diesel keeps our dependence on the temperamental Middle Eastern oil sheiks who control fuel pricing and stability of supply. Using electricity for public transportation gives us more energy independence because locally available renewable energy resources are now more price competitive in power generation.

There are over 300,000 jeepneys in the Philippines, our primary means of transport. But these are so outdated, polluting, disorganized, inefficient, and oftentimes unsafe. Diesel jeepneys account for 48 percent of the particulate matter released into the atmosphere. In addition, each jeepney spews out 1,000 kgs of CO2 a month adding into the country’s carbon footprint.

Jeepneys are also expensive to operate. Traditional jeepneys consume 10,000 liters of diesel per year, while the air conditioned Euro4 versions consume 18,000 liters of diesel per year. The national oil bill hovers at around $20 billion per year (end 2022) with 80 percent of that going to transport (including gasoline). Converting 300,000 jeepneys to EVs will save 5.4 billion liters of diesel a year. That works out to $6.5 billion per year in savings forever.

The good news is, EV technology and engineering can now outperform the internal combustion engine (ICE). EVs have three to seven times the life of an ICE vehicle. This makes the wide scale replacement of jeepneys with EVs an attractive economic proposition.

If we are going through the trauma of changing the structure of our public transportation system, we might as well make the effort worthwhile by taking the EV option. Aboitiz-owned Davao Power in cooperation with a group led by Freddie Tinga have been successfully demonstrating the viability of using EV in public transportation. They are doing pilot runs in a number of areas in the country. Because of the favorable experience, it makes no sense to still force the use of diesel engines if we are serious about modernization.

The other good news is, Transportation Secretary Jimmy Bautista has issued an order that makes jeepneys converting to electricity as part of the PUV modernization program.

In his Department Order 2023-003, Sec Jimmy pointed out that DOTr recognizes the need to reduce pollution and decongest traffic by promoting the use of fleets of clean, sustainable, comfortable, and efficient electric vehicles integrated with a passenger and fleet management system. It notes that Republic Act 1697 or the Electric Vehicle Industry Development Act (EVIDA) aims to provide an enabling environment for the development of electric vehicles (EVs) as an attractive and feasible mode of transportation to reduce dependence on fossil fuels.

The pilot programs on the use of EVs by Freddie and Aboitiz Power allows for a more efficient use of electric transport as they are not forced to run on fixed routes. The vehicles can be moved based on demand. Freddie explains that micro routes are the future of mass transport, eliminating the need for a second or third ride that is a major turn off to taking public commute.

Freddie cites this example: a route like Alabang to Makati. Currently this would be Alabang town center to Greenbelt. But if someone worked at Makati Med or Buendia or Poblacion then he or she would need to take a second or even a third ride to get to the final destination.

“What if there were route variants (ATC to Buendia, ATC to Makati Med, ATC to Poblacion etc...). and the system would be smart enough to learn how many passengers need a ride to each location (and who they are) and how many vehicles are needed for each route. This would eliminate the need for transfers or additional rides, making public transport feel like a dedicated VIP shuttle - like a shared taxi but at jeepney fares. Furthermore, the vehicles can be repurposed for other destinations mid-day and even serve BPO workers on other routes during the night shift. This means the same vehicle is used for longer hours, while at the same time providing a much better customer experience for the passengers.”

Freddie’s COMET Group now runs 60+ electric minibuses. Most of them are serving as shuttles for industrial estates and corporate clients allowing them to comply with their sustainability goals, while at the same time providing them a cost-effective transport solution. They also have signed up several transport organizations who now have over 1000 jeepneys ready to be converted to electric power, pending the release of their loans from the government banks.

Freddie’s COMET Group has an interesting business model that makes adoption easier to afford. It is a cost sharing and revenue sharing arrangement (instead of merely selling the vehicles) that makes electric mass transport more affordable than the Euro 4 diesel alternative, and ensures the vehicles are in constant running condition (since COMET manages the fleets and are responsible for service and maintenance). More on this business model in a future column.

The experience with the government rollout of the PUV modernization program has not been encouraging. The government banks have financed over 3,000 vehicles, mostly Euro4 diesels. Loan repayment has been dismal. Since Euro4 engines are being phased out or banned in most of the world, a lack of spare parts is a problem. The vehicle dealers are not concerned with servicing them because they already made their profit from the vehicle sale.

Replacing jeepneys with “modern” diesels has been the big mistake of the PUV modernization program. With no fleet management system, the vehicles run uncoordinated like the old jeepney situation. There is no automatic fare collection system. We are constantly disrupted by diesel price increases mandated by oil sheiks.

It is easy to see why EVs are the future of public transportation. Electricity as “fuel” cost is just 25 percent of the cost of diesel used by the Euro 4 jeepneys. To the credit of Sec Jimmy, he wants real jeepney modernization and that means an EV system that addresses our traffic, environmental and oil price issues.

Boo Chanco’s email address is [email protected]. Follow him on X or Twitter @boochanco