Transportation Deployment Casebook/2023/Philippine Islands

Introduction to Streetcar

Technological Characteristics

The streetcar, which is also called a tram or a trolley, is an urban rail transit mode traversing on tramway tracks on the public streets. In the Philippines, the first streetcar system that was implemented during the Spanish colonial period were horse-drawn cars. This was eventually supplemented by steam-powered cars then by electricity-powered cars during the American Colonial period.

Advantages of Streetcar

Intramuros as the center of economic activity in Manila during the Spanish Colonial Period.

The main advantages of streetcar system in the Philippines during its operation are as follows:

• Higher passenger capacity than horse-drawn carriages (e.g., calesa, carruaje, and carromata);

• Longer distance travelled for steam-powered and electric-powered streetcars as compared to horse-drawn carriages; and

• Cheaper fare rate due to economies of scale given that streetcar can carry more passengers.

Market

The main market of the implementation of streetcar system in Manila were passengers and commuters traveling from the areas surrounding the Manila area going to the Intramuros, which was the center of economic activity during the Spanish Colonial period.

History

Transportation Mode Before The Streetcar System

Calesa (1840-present)

During the 1800s, that was before the introduction of streetcars system in the Philippines, there existed (although some are still plying the streets of Manila to this day) other urban transportation modes that were used to carry people around the streets of Manila. These transport modes were mostly horse-drawn, consisting of the following:

Mode	Description
Calesa	Calesa (1840-present) is a horse-drawn two-wheeled carriage. Currently, this mode is being used as one of the tourist attractions in the Philippines. This can still be seen in the streets of Binondo, Manila.
Carromata	Carromata [1840-1940] was a simple two-wheeled carriage pulled by a pack of animals and used to transport goods. This was poorly maintained vehicles that charged the lowest fare rate.
Carruaje	Carruaje (1820-1940) was the most expensive mode of transport, which consisted of a four-wheeled carriage pulled by two horses.

The animal-drawn carriages were only able to transport and carry goods and passengers for short distances. Cubeiro (2018) made a comparison of the carriage transport fare rates and found that carriages were more expensive than the streetcar. This is considering that riding the carriage, specifically the carruaje, catered passengers with highest social status. Moreover, streetcar fares were charged per distance travelled while horse-drawn carriages were charged per time travelled.

Carromata (1840-1940)

Carruaje (1820-1940)

Technological Life Cycle of the Streetcar System in the Philippines

Birth Stage

Early Market Development

Calle Sebastian Calle Hidalgo Manila Streetcar

The summary of the conception of the Philippine mass transit during the Spanish Colonial Period (1875-1896), particularly on the birth of railways system, is summarized in the timeline below:

Year	Events
1875	The royal decree of King Alfonso XIII of Spain initiated the railway planning in the Philippines.
1876	As a result of the royal decree of King Alfonso XIII of Spain, Inspector Don Eduardo Lopez Navarro of then Public Works in the Philippine government formulated the the Memoria Sobre El Plan General de Ferocarilles en la Isla de Luzon, which contained his plan and design for the establishment of the first railway system in Luzon (i.e., the largest island in the Philippines).
1878	In connection with Inspector Navarro’s railway system plan, a streetcar system in Manila was proposed by Spanish official León Moussour of then Department of Public Works to the Ministerio de Ultramar in Madrid, Spain in 1878. The proposed streetcar system was planned as a network of five streetcar lines, which was based on the streetcar system in Paris and New York. The proposed lines are as follows, with the central station to be located outside the Intramuros wall: Plaza San Gabriel in Binondo, Manila to Intramuros via Puerte de Espania (now Jones Bridge); Plaza San Gabriel in Binondo, Manila to Malate Church; Plaza San Gabriel in Binondo, Manila to Malacañang; Plaza San Gabriel in Binondo, Manila to Sampaloc, Manila; and Plaza San Gabriel in Binondo, Manila to Tondo, Manila.
1882	As a result of the demand for better mass transit to accommodate the growing population in the country, Filipino entrepreneur Jocobo Zobel de Zangroniz formed and founded the La Compañia de Tranvías de Filipinas together with Spanish engineer Luciano M. Brenon, and Spanish banker Adolfo Bayo.
1883	King Alfonso XIII approved the Memoria Sobre El Plan General de Ferocarilles en la Isla de Luzon by Inspector Navarro. This opened the gate to the implementation of the first tranvía system in the Philippines.

The City of Manila as the capital of the Philippines turned out to be the center of Spanish government that started in the 1500s. As such, the economic growth of Manila City increased significantly that resulted in the rapid growth in its population. This movement of people from the surrounding areas to the city was supported by the implementation of the streetcar system.

Government Policy

To realize the implementation of the streetcar system in Manila, the Philippine government, on April 22, 1881, awarded the concession to the La Compañia de Tranvías de Filipinas, which was formed thereafter in 1882 by a Filipino entrepreneur Jocobo Zobel de Zangroniz, Spanish engineer Luciano M. Brenon, and Spanish banker Adolfo Bayo. From 1885 to 1889, the proposed five streetcar lines were constructed. However, in 1882, the La Compañia de Tranvías de Filipinas modified the proposal to pass through Binondo bridge thus replacing the Malacañang route to Malabon route. Moreover, it was determined that the Malacañang route would not meet the projected ridership demand, hence the modification to Malabon Line.

Rolling Stock

The total length of the first tranvías line was 16.3 kilometers (km) long and comprised of 4 horse-drawn lines and 1 steam-powered line. The tramway length and the tram engine design for each line of the first tranvías were as follows:

Line	Rolling Stock Description
Plaza San Gabriel in Binondo – Plaza de Tondo	The Binondo-Tondo was a 1.8-km long, double-track tramway, which was inaugurated on opened to commuting public on December 9, 1883. The cars for this tramline were powered by horses with a seating capacity of 12 passengers and 8 standing passengers.
Plaza San Gabriel in Binondo – Intramuros via Puerte de Espania (now Jones Bridge)	The Binondo-Intramuros was a 1.4-km long, central station, which opened and started operation in 1886. The cars for this tramline were powered by horses with a seating capacity of 12 passengers and 8 standing passengers.
Plaza San Gabriel in Binondo – Sampaloc	The Binondo-Sampaloc was a 3.1-km long tramway going to the east station, which opened and started operation in 1887. The cars for this tramline were powered by horses with a seating capacity of 12 passengers and 8 standing passengers.
Plaza de Tondo – Plaza de Malabon Line	The Malabon-Manila Line was 8.25-km long tramway, which was the only steam-powered line that linked the commercial port area of Tondo, Manila to the town of Malabon and Navotas where agricultural products were transported from Central Luzon. This line was opened to the public commuters on October 20, 1888, and was divided into three sections from Plaza del Águila in Tondo, Manila to Plaza de la Iglesia de San Bartolomé in Malabón. The Malabon steam-powered tram used a German-made locomotive car with two second class carriages (street level) and one first class carriage on top.
Plaza San Gabriel in Binondo – Malate Church	The Binondo-Malate was a 4.4-km long tramway going to the south station, which opened and started operation in 1889. The cars for this tramline were powered by horses with a seating capacity of 12 passengers and 8 standing passengers.

Growth and Maturity Stages during the Spanish Colonial Period

Private Sector Contribution in the Streetcar System Capacity Expansion

Malabon-Manila Tranvías Line

The Malabon-Manila Line, a steam-powered line, became more successful and profitable than the horse-drawn lines. The success of this line was due to its high patronage and usage rate from transporting goods from the industries that existed in its surrounding cities and municipalities (e.g., Navotas). This included industries such as the cigar-making shops, milkfish farms, and sugar mills. Subsequently, in 1889, the Malabon-Manila Line expanded its capacity and served three classifications of passengers: i) passengers paying 20 cents; ii) passengers paying 10 cents; and iii) passengers paying 5 cents. During the Spanish administration, the Malabon-Manila Line operated 4 trains with 2 cars in each line (both direction). Aside from the capacity expansion, the frequency of trips also increased to serve the increase in the number of passengers travelling by streetcars. The lines operated in an hourly service each direction. Meanwhile, the operating hours of the Malabon-Manila Line coming from the Tondo station started at 5:30AM until 7:30PM while trips from Malabon station began at 6:00AM until 8:00PM.

On September 26, 1889, Zobel designed a new steam-powered streetcar line that would link Binondo, Manila to Santa Ana, Manila and applied for a 60-year concession under La Compañia de Tranvías de Filipinas. This was inspired by the success of Malabon-Manila Line. In 1890, Zobel presented the proposed line, which was drawn by Architect Joaquín Barraquer Puig, to the government. Moreover, a proposed extension of the Malabon-Manila Line to the Plaza of Old Tambobong Tobacco Factory was also presented to the Government. Moreover, in 1893, due to the rise in tram ridership from Sampaloc to Tondo, Zobel requested an expansion and extension in the tramway line, which was later approved by the government in 1895 by granting the concession. The concession involved the extension of the line from the Plaza de la Iglesia de Tambobong Tobacco Factory connecting to the Plaza of Old Tambobong Tobacco Factory.

Growth and Maturity Stages during the American Colonial Period

American Colonial Period (1900-1945)

The Philippines proclaimed and declared its independence from the Spanish administration on June 12, 1898. However, this also marked the arrival of new colonizers that instigated the transformations of the tramway system in the Philippines. The forces of the Unites States of America (USA) arrived in the Philippines after it won the conflict and claimed the country under the Treaty of Paris. In 1902, the aftermath of the war between the Filipinos and Americans significantly impacted the operations of the tranvía system.

The La Compañia de Tranvías de Filipinas discontinued the expansion of improvement of the tranvía network due to the uncertainty for a possible extension of the concession to operate the tranvía system. Furthermore, the control over the operation of the Malabon-Manila Line was taken over by the US Army. The US Army changed the Line’s name to “Kansas & Utah Short Line” which was used to control the movement of its troops in Manila and its surrounding cities. Aside from this, the number of streetcars that plied the five lines drastically decreased from the hourly services to an average of 10 streetcars operated per day.

Government Policy

In 1902, a law was created by the Philippine Commission to alleviate the rising environmental concerns regarding the outdated horse-car system and the declining economic growth. The law allowed winning bidders to take over the construction and operation of the tramway facilities of the La Compañia de Tranvías de Filipinas. Under the Ordinance 44 passed by the Municipal Board of Manila on March 24, 1903, the concession was granted to Charles M. Swift of Detroit, and American investor. Subsequently, Swift, and other American investors created the Manila Electric Railroad and Light Company (MERALCO) and acquired the assets of the La Compañia de Tranvías de Filipinas to take over the streetcar operations. In 1904, the Malabon-Manila Line was demilitarized then managed under MERALCO’s concession.

Development of a Completely Electric Streetcar System

In 1905, MERALCO operated a streetcar system that was completely run by electricity with a length of 63 km (39 miles). The streetcar networks were operating in a standard gauge, double-tracked system with a maximum of 500 Voltage for its overhead catenary to power the vehicles. Under the concession contract granted under the Ordinance 44, MERALCO had to construct an additional 12 rail lines within two years starting from the signing of the contract to expand the company’s transport services from the already existing five tranvía lines.

By 1925, the whole streetcar network was operating while navigating other areas within Metro Manila, including, among others, streets in Manila (Escolta, San Nicolas, Binondo, Quiapo, Tondo, Santa Mesa, Sampaloc, and Nicolas), Malabon, and Caloocan. To accommodate and complement the increasing transport needs, fleets with bigger streetcars (closed sides and double-wheeled trucks) were added to the system. To salvage the 15-year-old railway system, the government, together with MERALCO, undertook a five-year reconstruction program to design and manufacture streetcars. The fleet consisted of 170 cars.

Decline Stage

End of the Manila Tranvia System

Manila jeepney

In the 1940s, the World War II caused severe damages to the services and facilities of the Manila Tranvia System. This left the streetcars poorly serviced and maintained. Then, in the Battle of Manila in February 1945 against the Imperial Japanese Army, Manila became one of the cities that were severely devastated and destroyed.  The war severely affected the Metropolitan Manila that resulted in the complete termination of the operations and services of the Manila Tranvia System. The onslaught of World War II and Battle of Manila left the Manila Tranvia System into an irrecoverable state. The cost for the repair of the damaged facilities of the tranvia system immensely exceeded the construction and procurement of a new infrastructure, thus, the state of the tranvia system became beyond economical repair. MERALCO then scrapped the remaining fleets and dismantled the tracks. Thus, the tranvia was out of business.

Alternative Transportation Mode in Manila

Due to the termination and dismantlement of the services and operation of the tranvia system, the demand for transportation within the Metropolitan Manila during the war was served by army jeeps, which became the existing public utilitily vehicles (PUV) or the jeepneys in the Philippines. Currently, the jeepneys traverse the route of the old tranvia system serving the commuting public in Manila and its surrounding cities.

Opportunity to "Re-invent" the Mode

While the revival of tranvia system or similar technology (i.e., streetcar and tramway) did not materialize, the government implemented better mass transportation systems to service the increasing travel demand in the country. This includes the construction and operation of light rail transit systems and commuter rail services that traverse different cities and provinces. Moreover, to complement the jeepney services, other types of PUVs also operate in the streets of Manila such as buses, taxis and other ride hailing services, tricycles, among others. In comparison to the cost of the revival of tranvia system or the construction of a new tramway, the implementation of PUVs require cheaper investment cost. Thus, the rapid growth of a more convenient and cheaper mode of transport, such as PUVs, magnified the cost of reestablishing the tranvia system.

Quantitative Analysis

Using the track length data of the Manila Tranvías System that were constructed under the Spanish Colonial Period (1875-1896) gathered from various journals and websites as well as the track length data constructed during the American Colonial Period (1900-1945) recorded in the "McGraw electric railway manual - the red book of American street railway investment," the S-curve is generated to identify the life cycle stages (i.e., birth, growth, maturity, and decline) of the development of streetcar as a transportation mode in Manila, Philippines. The three-parameter function fitted to the data is presented in the equation below:

$${\displaystyle S(t)=K/[1+exp(-b(t-t_{i}))]}$$

Wherein:

Variable	Description
${\displaystyle S(t)}$	This is the predicted system in year t. In this case, the calculated variable that reflects the level of deployment of the Manila Tranvías System is the miles of track.
${\displaystyle K}$	This is the saturation status level or the final market size. This is estimated.
${\displaystyle b}$	This is the coefficient. This is estimated.
${\displaystyle t}$	This is the time. In this case, the time is in terms of years.
${\displaystyle t_{i}}$	This is the inflection time. In this case, this is the year in which ${\displaystyle (1/2)K}$ is achieved.

To estimate the saturation status level/final market size, ${\displaystyle K}$, and the coefficient, ${\displaystyle b}$, the Ordinary Least Squares Regression is used. The coefficients are calculated using the slope intercept formula:

$${\displaystyle Y=bX+c}$$Wherein:

Variable	Description
${\displaystyle Y}$	This is the dependent variable. In this case, Y is calculated using the natural log normal [i.e., ${\displaystyle Y=LN(tracklength/(K-tracklength))}$] with various values for K starting from the final market size.
${\displaystyle X}$	This is the year.

S-Curve and Life Cycle Stage of the Manila Tranvia System

The resulting s-curve and life cycle analysis graphs as well as the output of the regression analysis are as follows:

Manila Tranvia System S-Curve and Life Cycle Stage (1883-1920)

The figure (below) illustrates the S-Curve and the life cycle stages of the Manila Tranvia System based on the track length completed and operated from 1883 to1920. In comparison with the predicted track length, the actual total track length of the Manila Tranvia System presents a good fit while reflecting the growth and maturity life cycle stages.

Manila Tranvia System S-Curve (1883 to 1920)

The birth stage started during the conception of the Manila Tranvia System, which was before 1883 as mentioned earlier in the birth stage of this page. Meanwhile, there are numerous growth stages (i.e., when the actual mileage is above the s-curve line) that can be observed in the S-Curve that happened from 1885 to 1889 when all the five lines were completed and opened. Also, there was a steep growth from 1901 to 1904 when the government started transitioning horse-powered tram lines to electric-powered. The maturity stages (i.e., the actual mileage intersects and under the s-curve), on the other hand, entered after 1889 and 1903 when there were no expansion for several years. The maturity stage also coincides with the inflection point at 1903 as calculated using the regression analysis (see Table 1). The decline stage was beyond the time frame with available data. However, the system ceased its operation after the World War II due the severe damage in its facilities. The S-curve is sliced into two graphs to reflect the stages during the Spanish colonial period and American colonial period.

Table 1. Regression statistics results

Variable	Description	Value
${\displaystyle K}$	Saturation status level	58
${\displaystyle b}$	Coefficient	0.16162
${\displaystyle R^{2}}$	R-squared or the coefficient of determination	0.90407
${\displaystyle t_{i}}$	Inflection time (year)	1903

Manila Tranvia System: Life Cycle Stages during the Spanish Colonial Period.

The birth stage started during the planning stage of the tranvia system. The tranvia system started operation in 1883 as can be seen in the graph (below).

The prediction has a good fit. Moreover, the growth stage started in 1885 when the lines started opening to the public as mode of transport in Manila. The maturity stage, on the other hand, started in 1887, i.e., the year where the inflection point coincides (See Table 2). The length of the tranvia system remained the same until the arrival of the Americans in 1900.

Table 2. Regression statistics results

Variable	Description	Value
${\displaystyle K}$	Saturation status level	12
${\displaystyle b}$	Coefficient	0.45403
${\displaystyle R^{2}}$	R-squared or the coefficient of determination	0.71772
${\displaystyle t_{i}}$	Inflection time (year)	1887

Manila Tranvia System: Life Cycle Stages during the American Colonial Period

The prediction has a good fit. The growth stage started in 1901 when the horse-powered lines were converted to electric-powered trams due to environmental concerns brought about by the outdated technology. Moreover, electric tramways accommodated large areas, thus, the increase in ridership and patronage.

The maturity stage started in 1903, i.e., the year where the inflection point coincides (See Table 3). The length of the tranvia system remained the same until 1912 then it expanded which went beyond the predicted length as can be seen in the graph (above). The decline stage is not reflected as data was not available. After the World War II, the tranvia system was closed and then stopped operating.

Table 3. Regression statistics results

Variable	Description	Value
${\displaystyle K}$	Saturation status level	57
${\displaystyle b}$	Coefficient	0.18084
${\displaystyle R^{2}}$	R-squared or the coefficient of determination	0.77169
${\displaystyle t_{i}}$	Inflection time (year)	1903

Conclusion

The Manila Tranvia System underwent all the stages of its technological life cycle. From the conception and planning of the construction and implementation of the tranvia system, the growth of the system through the expansion of its services to serve the increasing ridership demand in Manila during the Spanish and American colonial periods as well as the transition to the new technology (i.e., from animal-drawn carriages to electric tramway lines), and the termination of operation after the World War II. Moreover, the revival of the system was deemed financially and economically infeasible that resulted in the shift to PUVs such as the rise of the jeepney system and other mass transit system (e.g., light rails, heavy rails, buses, among others).