There’s a tempest a-brewing over at the Light Rail Transit 1 (LRT-1).
Whether it’ll turn out a mere tempest in a teapot or a real storm that will test the incoming administration’s mettle at resolving disputes with private sector partners will reveal its policies and priorities for the light rail transport sector.
According to news reports, the Light Rail Transit Corporation (LRTC) has filed a request for arbitration with the International Chamber of Commerce over its disputes with the Department of Transportation (DOTr) and its attached agency, the Light Rail Transport Authority (LRTA) which granted the 32-year concession agreement (CA) for the LRT-1.
The reports cited disclosures to the stock exchange made by Metro Pacific Investment Corp. (MPIC) that said LRMC is seeking to recover around P2.67 billion in compensation for losses resulting from delays in the implementation of fare adjustments in 2016, 2018, and 2020 as stipulated in the schedule specified in the concession agreement.
In the disclosure, the MPIC also indicated it wanted to be compensated for losses, cost and expenses incurred by LRMC because the LRTA failed to deliver the required numbers of light rail vehicles that meet the stipulated technical requirements under the concession agreement.
The reports added that despite best efforts to “amicably discuss” its claims for compensation, the LRMC has yet to receive any offer from the DOTr and the LRTA.
An LRTA representative was reported to have said the agency has yet to receive a copy of the request for arbitration. When it does it will confer with DOTr and the Government Corporate Counsel.
There are still weeks to go before the new administration assumes office.
This tempest a-brewing will surely be one of the first it may have to face.
It should be of interest to everyone in the light rail transit sector—and perhaps those in the tollways trade—to see how the incoming administration will treat this storm.
After all, light rail transits and tollways have long been dealing with the problem of delayed fare and toll adjustments.
Summer test drive
It’s summertime and test driving is easy.
That is because the Auto Focus Summer Test Drive Festival is making its return after a 2-year absence caused by the Covid-19 pandemic.
If you’re having difficulty picking the perfect vehicle to buy, head on over to the SM Mall of Asia Concert Grounds come May 26 to 29.
There you can test drive and compare various models and variants from 10 automotive brands participating in the test drive festival, which by the way, is presented by Motul.
Participating brands include Changan, GAC, Geely, Isuzu, MG, Mitsubishi, Nissan, Subaru, Suzuki and Toyota.
Nissan’s top honcho
We’d like to welcome Juan Manual Hoyos to our friendly corner of the global automotive trade.
He’s the new president of Nissan Philippines, Inc., replacing Atsushi Najima, who we’d like to wish well on his new assignment as Chief Financial Officer at Nissan India.
Nissan enjoyed a resurgence of sorts under Najima even under the difficulties brought about the the Covid-19 pandemic.
Najima-san believes Hoyas will continue Nissan’s return to prominence, saying: “His vast experience in the automotive industry will help him sustain the growth that we have established in the last three years, as the country steadily recovers from the COVID-19 pandemic.”
Under Najima’s leadership, Nissan strengthened its hold on the No. 3 spot in the local automotive rankings, added four new dealerships, and launched five new models including the LEAF, the first fully electric vehicle in the country.
We hear that Hoyos joined Nissan in 2017 as Marketing Director for the Latin America region and later on played a role as the General Manager for Global Engagement Brand out of Nissan’s global headquarters in Yokohama.
And we expect Hoyos, now responsible for steering the company’s direction to drive product innovation and business improvements, to do well.
He promises to “strengthen the Nissan brand in the country to improve its competitiveness” and “continue to provide excellent aftersales service to its customers.”
New Kia Gateway
There’s another Kia gateway towards growth in Batangas.
It’s the upgraded Kia Sto. Tomas in Batangas which has become the second showroom in the country to manifest the new “Opposite United” Kia design philosophy for vehicles and dealerships.
Kia Sto. Tomas is one of five dealerships operated and managed by Gateway Dealership.
The Gateway Kia dealership has been among those responsible for building the Kia brand in the country, according to Kia Philippines president Manny Aligada.
Says Aligada: “Gateway is a significant business partner and valued dealer group owner. They are exemplars in terms of executing the Kia mission and vision to provide quality products and services to the Filipino consumers.”
Markane Goho, chairman of the Gateway Group, sees a greater significance for the partnership with Kia.
Says Goho: “I trust in the Kia brand and I am positive about the value that it can bring to Filipinos through Kia Philippines. Together, we can greatly contribute in uplifting the country’s transportation industry.”
Happy Motoring!!!
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