Transport Philippines and US Team Up on Major Cargo Railway Project

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The Philippines and the United States have entered a significant partnership to advance a cargo railway initiative aimed at bolstering economic growth. Transportation Secretary Vince Dizon and US Trade and Development Agency (USTDA) Acting Director Thomas Hardy signed the agreement during a bilateral meeting in Arlington, Virginia, on June 26.

 

This project focuses on constructing the 155-kilometer Subic-Clark-Manila-Batangas (SCMB) Cargo Railway, a crucial component of the Luzon Economic Corridor (LEC). The railway intends to connect vital industrial and trade zones across Subic Bay, Clark, Manila, and Batangas, facilitating smoother transport and boosting economic development.

 

Philippine Ambassador Jose Manuel Romualdez hailed the railway as a "game-changer" for the region, highlighting the deepened economic collaboration between the Philippines and the US. “This project showcases our shared commitment to strengthening ties and enhancing economic opportunities,” he said.

The collaboration involves USTDA providing technical support, which includes transport model development, a port-rail integration study, and an analysis of the legal and institutional framework.

 

Thomas Hardy emphasized the significance of the venture, stating, "Supporting the SCMB Railway development ensures vital infrastructure growth, enhancing collaboration for a trade route beneficial to both American and Philippine citizens." He added, "Our partnership with the Philippines highlights American leadership in the Indo-Pacific and our dedication to our shared goals."

 

Frederick Go, Special Assistant to the President for Investment and Economic Affairs, expressed gratitude to the US for its critical support. He noted the railway’s potential to draw investments, spurring new business opportunities and creating quality jobs for millions of Filipinos.

 

Secretary Dizon explained that the SCMB Railway aims to decentralize the Manila Port and provide essential transportation capacity at the Batangas Port and Subic Bay. This aligns with President Ferdinand R. Marcos Jr.'s directive to maintain uninterrupted goods movement. "The railway is expected to alleviate port congestion in Manila and ensure timely product movement to major hubs," Dizon said.

 

The Luzon Economic Corridor, launched by the Philippines, US, and Japan in April 2024, prioritizes high-impact infrastructure projects like the SCMB Cargo Railway. This initiative also includes port modernization, clean energy, semiconductor supply chains, agribusiness, and port upgrades at Subic Bay.

 

The partnership marks a significant milestone in the Philippines-US relations, underscoring their commitment to collaborative economic growth and development in the region.

 

  Adapted by ASEAN Now from PNA 2025-06-27