LRT-1 operator projects P400M in lost revenue yearly
Credit to Author: Lisbet K. Esmael| Date: Tue, 19 Nov 2019 15:00:58 +0000
THE Light Rail Manila Corp. (LRMC), operator of the Light Rail Transit Line 1 (LRT-1), said it was seeing P400 million in foregone revenue annually on account of delays in fare increases.
On the sidelines of the launch of the ikotMNL mobile app on Tuesday, LRMC President and Chief Executive Officer Juan F. Alfonso said his company applied for a P5 increase in LRT-1 fares last year — the second time it did this, the first being in 2016 — but the Department of Transportation was yet to approve it.
The base fare for the 19.65-kilometer LRT-1 remains at P15.
According to Alfonso, the approval delays are already affecting on the company’s topline.
“[The] revenue impact on us was direct, so we have to look at different ways. We have to look at how to help ourselves manage our expenses, to how to make more money doing other things, so it’s a challenge,” he told reporters.
Asked if LRMC would pursue legal action against the DoTr, the executive said the firm was already talking with the agency for a possible “win-win” solution.
“We have a dialogue with the DoTr. I don’t think that’s necessary,” he said.
LRMC is backed by the Metro Pacific Investments Corp.’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp. and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) PTE Ltd.
LRT-1 has 20 stations, servicing about 500,000 commuters daily.