Status of the Consolidation Process and the Challenges of the Transport Service Entities in La Union

Abstract

This study examined the status of industry consolidation among Transport Service Entities (TSEs) under the Public Transport Modernization Program (PTMP) in La Union. Utilizing a mixed-methods sequential explanatory design, data were gathered from forty participants through surveys and semi-structured interviews to analyze operator profiles, identify challenges, and develop policy interventions. Findings revealed that the sector remains predominantly traditional and small-scale, with 95% of operators utilizing traditional jeepneys and earning subsistence-level incomes. Significant barriers to consolidation include a high fear of indebtedness, operational disruptions to daily earnings, and a lack of trust in cooperative governance. The study concluded that resistance is driven by structural vulnerabilities and livelihood security rather than opposition to modernization. Proposed interventions include equity-based financing, transparent cooperative management, and phased hybrid models. By aligning empirical evidence with adaptive strategies, this research provided a framework for more inclusive and sustainable transport reform at the provincial level.