IT STINKS—Pasig ferry services went bankcrupt

By CARLOS DAVE B. GARCIA
Posted by Online on Aug 26th, 2012

Manila, Philippines – Rodelon Ramos used to take the ferry service from Pasig to Lawton, Manila in 2008. The boat ride took only 30 minutes and the cost was less than P40, relatively cheap in those days.

“The river was dirty but its odor from the ferry boat was tolerable,“ said Ramos, then a student.

Unfortunately, not everybody shared Ramos’ enthusiasm as the ferry service did not catch fire as an alternative mode of transportation.

Since its launch in 1990, there have been three operators, not one of them earning profits.

Magsaysay Lines fielded two boats, dubbed as “Metro Ferry,“ in 1990 plying the route from Guadalupe to Sta. Cruz, a short 30-minute ride.

The service lasted only a year because of bankruptcy.

Five years later, on Nov. 15, 1996, Starcraft Ferry opened its own transport system. It initially operated four units of “waterbus“ boats.

Again, the ferry service had to be discontinued because it was not making any money.

Government planners were puzzled why the ferry service could not get off the ground when neighboring Thailand has a highly-successful ferry transportation that alleviates its chaotic traffic conditions in Bangkok.

In 2007, then President Gloria Macapagal-Arroyo revived the Pasig River Ferry Service Project (PRSFP).

The national government built the terminals and managed the operations, while Nautical Transport Services, Inc. (NTSI), a private firm, owned and operated the six 150-seater air-conditioned ferry boats.

Each ferry stations cost between P8 and P20 million to build, according to each Penaflor, executive director of the river rehabilitation body.

Again, like in two previous attempts, the ferry service was stopped because it was operating at a loss.

A Commission on Audit’s (COA) report in 2010 revealed that since starting operation, the ferry service’s overall expenses totaled P101.4 million with a generated income of only P7.33 million ­ a significant loss of P94.07 million.

“The PRSFP had been operating at a loss, thus, entailing a big subsidy from the government, which the latter could have otherwise used to finance other priority projects,“ COA said.

The agency also noted that only 11 of the planned and approved 14 ferry stations, were constructed and became operational.

The NTSI suspended its operations in January of 2011 due to lack of passengers, according to the government’s river rehabilitation Project Development officer Allan Mendoza.

Because of this, Mendoza said the Maritime Industry Authority (MARINA) cancelled the Certificate of Public Convenience of NTSI.

Peñaflor said the franchise of NTSI was supposed to end in 2012.

It has become apparent that efforts to use Pasig River as an alternative mode of transportation are saddled by poor planning, lack of information drive and less passengers.

Despite these, the Department of Transportation and Communication (DoTC), the agency mandated for transportation concerns, together with the government river rehabilitation body and the Metropolitan Manila Development Authority (MMDA), is in the process of studying a possible resumption of the ferry service,“ according to Mendoza.