DOTr launches sea-based service contracting program

MANILA, Philippines — The Department of Transportation (DOTr) on Monday said it has launched the sea-based service contracting program, which grants fare subsidies to participating operators and vessels.

Dubbed the “Lakbay Alalay ng Gobyerno” or Layag program, the initiative aims to assist shipping companies and ferry passengers by providing subsidies on 11 high-demand, short-trip shipping routes affected by fare hikes.

READ: Marina to roll out sea-based SCP, giving fare subsidies across 11 routes

With a budget of P200 million, the program may provide passengers with fare discounts of up to P195, depending on the ferry route, benefiting an estimated 1.16 million passengers per day over a 12-day period, the DOTr said.

Senior Undersecretary for Road Transport and Infrastructure Mark Steven Pastor said shipping lines would be able to continue maintaining inter-island connectivity, especially for passengers trying to save on transportation costs.

“The rise in global oil prices caused by tensions in the Middle East has significantly increased the operating costs of marine transport vehicles, threatening affordable fares and the continued delivery of services by shipping lines,” Pastor said in Filipino.

Maritime Industry Authority Administrator Sonia Malaluan, for her part, expressed hope that the program would ease the burden on daily commuters, especially as the maritime sector remains among the industries hardest hit by the oil crisis. /mcm