Financial Struggles May Prompt LRT-1 Sale

Photo courtesy of PhilStar

Business tycoon Manuel V. Pangilinan announced the Metro Pacific Group's potential withdrawal from the LRT-1, citing significant financial losses. The Light Rail Manila Corp. (LRMC), which operates LRT-1, continues to see reduced passenger numbers post-COVID-19, resulting in annual losses of hundreds of millions. "We continue to lose money on LRT-1," Pangilinan stated, indicating a possible sale of their investment.

Metro Pacific Investments Corp. holds a 35.8% stake in LRT-1. LRMC has pushed for fare increases over the years; however, the Department of Transportation (DOTR) has sparingly approved these due to public backlash. The train serves over 400,000 people daily, with 2024 ridership surpassing 115 million commuters.

Experts suggest that limited fare hikes and decreased public transport usage post-pandemic have contributed to these financial struggles. The reluctance of the DOTR to approve fare increases amidst public opposition further complicates the profitability of the LRT-1 operations. The potential sale could impact the investments and operations of the rail system.

Looking forward, the possible withdrawal by the Metro Pacific Group could prompt a reassessment of LRT-1’s management and financial strategies. Prospective buyers or stakeholders may need to consider alternative revenue models or operational adjustments. The future of LRT-1 remains uncertain as discussions of sale and management reshuffle continue.

Key Takeaways

• Manuel V. Pangilinan is considering selling Metro Pacific's stake in LRT-1.
• LRT-1 faces financial losses due to reduced ridership and limited fare hikes.
• The future management and structure of LRT-1 remain uncertain.

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  Adapted by ASEAN Now from PhilStar 2025-11-12