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Inquirer Northern Luzon
Luzon’s biggest bus firm now sputters

By Delmar Cariño
Philippine Daily Inquirer
First Posted 20:52:00 11/03/2009

Filed Under: Road Transport, history

MINI-BUSES, JEEPNEYS AND vans now lord it over the Cordillera?s dangerous roads, but old-timers still relish the memories of old Dangwa Tranco buses plying the rugged terrain to become the biggest transportation company in northern Luzon.

Born out of farmers? investments in the 1920s, Dangwa Tranco became the people?s transport system before and after the World War II?ferrying students and vegetables to Baguio City and transporting the equipment of American-owned mining companies.

Today, only the Baguio-Cervantes (Ilocos Sur) line and a few short routes remain, leaving a mere shadow of the company that amazed even the Americans and former Presidents Elpidio Quirino and Ramon Magsaysay.

Benguet Rep. Samuel Dangwa, chair of the company?s board of directors since 1976, said the signature buses gave in to competition and high costs of maintenance for imported parts.

The distress signal came in the 1980s, when high costs of operations ate up a big chunk of company income, Dangwa, a lawyer, said.

?We felt the spiraling cost of fuel, lubricants, tires and spare parts, not to mention the costs imposed by the government in terms of taxes, licenses and supervision fees,? he said.

The problem confronted the company until 2004. This forced the board of directors to enter into a lease agreement with businessman Jack Dulnuan, also a stockholder, in a bid to revive its operations.

Dulnuan would take over management of the remaining franchises for Banaue (Ifugao), Bontoc (Mt. Province), Lepanto (Mankayan, Benguet) and others on a yearly basis, Dangwa said.

But the buses? history remains very much part of the Cordillera landscape.

Beginnings

Dangwa Transportation Co. was founded in April 1928 by Bado Dangwa, Samuel?s uncle, who would later become governor of the old Mt. Province, which included Benguet and Baguio.

Bado, one of Baguio?s ?Centennial Builders? awardees, became fascinated with junk machines and motor vehicles while in high school at the Trinidad Agricultural School (now Benguet State University) in La Trinidad, Benguet.

At that time, the town was being groomed as the country?s vegetable bowl. Bado saw a bright future in starting a transport industry.

Heeding the advice of James Wright, his teacher, Bado took five dilapidated Chevrolet cars from a garage in La Trinidad and refurbished their engines with a P10 loan from his principal.

Three of the cars became the popular mode of transportation from La Trinidad to Baguio.

The cars became buses. From Baguio, the buses reached as far as Mt. Province.

When World War II broke out, Dangwa Tranco had 173 buses, many of them plying Baguio-Manila.

But war interrupted the company?s operations. The US government had to commission 130 of the buses for transport during those turbulent years.

In 1972, the company had 264 buses, 66 cargo trucks, two ?baby? buses, 77 taxicabs and eight garage cars in its fleet.

In its roster were 1,963 employees, 1,698 stockholders and 36 destinations all over northern Luzon.

The company branched out to nine other business ventures that involved electric distribution and animal and poultry raising.

Bado died in March 1976. He was 71.

More franchises

When Samuel Dangwa took over, the company rallied to grow more. More franchises and certificates of public convenience were obtained.

The company managed to reach the Ilocos, Cagayan Valley and Central Luzon with its 350 buses, 70 freight trucks and about 60 taxicabs and 13 garage cars.

But the increasing costs of operations caught up with the company.

Dangwa said one factor that contributed significantly to the slowdown in operations was Bado?s vision before he died that it was high time others were given the chance to start their own transport businesses.

?This resulted in a reduction of our routes,? he said.

The company though felt it was its corporate social responsibility to rehabilitate the buses since the investors were mostly farmers who bought stocks at P50 per share.

That?s why the company had to re-fleet by acquiring new diesel-fed buses to replace old models, Dangwa said. ?The buses were bought through loans where some company properties had to be used as collateral,? he said.

Thus, Dangwa said, the company managed to survive. The old ?hardinera? (buses with one side open) were replaced.

Financial costs

But financial costs ballooned as the years passed.

Dangwa said that in 1997, at the height of the Asian financial crisis, the board of directors had to confront the issue if it was wise to continue operations.

The sentiment was to pursue the business. But 10 years later, the deal with Dulnuan was forged.

The few remaining buses now bear the name ?Jack Industrial Transport System.? But the people knew those red-yellow buses were their beloved Dangwa Tranco.



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