Business World

Old is old

The government continues to operate old trains systems primarily out of necessity, given the high demand for their service.

- MARVIN A. TORT MARVIN A. TORT is a former managing editor of BusinessWo­rld, and a former chairman of the Philippine­s Press Council matort@yahoo.com

Athing that is old, is old. And along with it naturally comes whatever it is that comes with getting old. No ifs, no buts. It is the exception rather than the rule that some things, or people — an exceptiona­lly few — actually look, feel, or function younger than their actual age, or better than the average subject within the same age bracket.

Of course, age vis-à-vis functional­ity/ capability is always relative. Take dogs, for example. Many large breeds usually live for about 12-15 years. In this sense, a 10-year- old dog is actually a senior dog, said to be around 70 in human years. But, a child that is just as old — or young, as the case may be — is still considered a child, considerin­g human life expectancy of 85 years old.

For motor vehicles, beyond 10 years a car is considered “old,” and in books of accounts already labeled as “fully depreciate­d.” They no longer qualify for comprehens­ive insurance — except in a few cases — and have probably gone through some sort of repair curve, if not going towards it. It may have run roughly 100,000 kilometers, and no longer operates like when it was new. And in terms of resale value, it is down by at least 50% from its original showroom price.

It is typical for us to quickly blame cheap manufactur­ing or poor maintenanc­e every time a thing breaks. We do not normally point to its age and how we have used it. This applies to refrigerat­ors and air- conditioni­ng, microwave, and flat- screen TVs. Add to these cars. These are everyday things we see and use and own. And over time, they do break down.

But, do we actually know how they all work or function? Do we even bother to find out how? And, if we don’t know how they work, then how do we know if we are using them properly? And yet, we point to poor quality or lack of maintenanc­e as culprits when they break down? There is little considerat­ion for how old they are and how they have been used over time.

Take the case of the Light Rail Transit or LRT-1. It is the oldest light rail system in Southeast Asia at 32 years old. It started in December 1984, running initially from Baclaran to Central Terminal in Manila. Nearly as old is the Singapore MRT system that opened in 1987. LRT-1 was followed by the EDSA- MRT or MRT- 3, which opened in 2000, now almost 17 years old.

These three lines, despite their age, are still in operation — but not without their problems. And many of us who use these systems are quick to complain and assign blame when troubles arise. But, just like in the case of many other things, we have little understand­ing of how they work, and “yet” consider ourselves “experts” on what should be fixed every time the line stops.

Age, in my opinion, is always a factor. One cannot expect to own and use a 17-year- old car

and assume it to be trouble-free. Of course, there is a high probabilit­y that it will break down or require servicing more often than a brand-new, or even a 5-year-old car. This is also considerin­g usage, wear and tear, care and maintenanc­e, and original build quality, among others. And with frequent servicing or repairs come higher operating and maintenanc­e costs. In this sense, old is old, and old can be expensive, and this is a fact of life.

The same applies to public buses, jeepneys and taxis, and even train systems. This is why for public transporta­tion, considerin­g their importance, age restrictio­ns are usually imposed. This is to ensure the safety of the commuting public, first and foremost. There is usually a 10year limit to any state-franchised public utility vehicle, including school buses.

Such age restrictio­ns, however, do not apply to light and heavy rail systems, which are more capital intensive than other land transport systems. We operate rail systems for longer term, with our own Philippine National Railways being open since 1892. PNR used to operate a single- track system from La Union to Bicol, but its rail coverage has since declined significan­tly.

In the case of LRT-1 and MRT3, the two oldest light rail systems in the country, we continue to operate their aging fleets — almost always beyond rated capacity — primarily out of necessity, given the high demand for their service. MRT-3, for instance, carries about 500,000 passengers daily when it is rated for just roughly 350,000. To do this efficientl­y and safely, its maintenanc­e provider has had to overhaul cars, regrind tracks, and upgrade signaling systems, in addition to improving on daily maintenanc­e.

The MRT system’s condition is not perfect and not exactly ideal, but what can we do? To completely overhaul the system and to replace everything with new rails and rolling stock and signals will take a lot of money. But, the government is not in the position to foot the bill. And while the private sector may be willing to finance the project, this will mean raising fares significan­tly. Can the riding public afford that?

Meantime, without raising fares, and negotiatin­g lower costs for overhaul, repair, maintenanc­e, and upgrade, it has managed to keep the system running at a better pace and with fewer stoppages since January. Data also show that this has allowed it to carry more passengers, from over nine million in January to over 12 million in October.

I liken the situation to a middle-income household that owns and uses a 17-year-old car. Given its limited income, the household cannot afford to buy a new car. And, while it may choose to take out a loan, this will mean budgeting a portion of the household money for car payments, when the same money should instead be going to food, rent, education, etc.

So, the household will just have to make do with the 17-year-old car until it saves enough money to pay for a new one. Or, until it is ready to appropriat­e more of its limited budget to car loan payments. Meantime, it should look for an honest, and better but cheaper mechanic who can keep the car in best possible condition for the least amount of money. The household can make do with what it has meantime, it just needs to be wiser to get better value for its money. n

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