Monday, July 14, 2025

Luzon Mega Railway goes full speed ahead

Transport tsar secures U.S. funding, tech support for freight network

In a milestone for Philippine transport infrastructure, the government has secured funding from the U.S. Trade and Development Agency (USTDA) to propel the long-awaited Subic-Clark-Manila-Batangas (SCMB) Railway—a game-changing freight corridor that promises to reshape logistics across Luzon.

The agreement marks a strategic partnership between the Department of Transportation (DOTr) and the USTDA, with both sides touting the project as a linchpin in modernizing the country’s transport backbone. The SCMB Railway aims to connect Subic Bay, Clark, Manila, and Batangas Port through a seamless rail network, relieving chronic congestion at the Port of Manila and redistributing cargo traffic to underutilized regional hubs.

“This is more than just a railway; it’s the backbone of our future logistics,” said DOTr Secretary Vince Dizon. “By improving Batangas and Subic’s roles in our logistics network, we are unlocking the true potential of our regional ports.”

At its core, the SCMB Railway is a flagship initiative under the Luzon Economic Corridor—a broader vision aimed at catalyzing investment and balanced growth throughout Central and Southern Luzon. The project also aligns with the administration’s mandate to streamline goods movement and bolster national competitiveness.

Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs, underscored the railway’s transformative impact: “This project enhances our strategy of linking major economic hubs. It will draw investments, create high-quality jobs, and directly benefit millions of Filipinos.”

Beyond funding, USTDA’s involvement includes technical assistance in transport modeling, port-rail integration, and institutional framework analysis—essential groundwork for what many consider one of the country’s most ambitious freight undertakings in decades.

The official agreement was signed on June 26  in Arlington, Virginia by Secretary Dizon and USTDA Acting Director Thomas R. Hardy, who hailed the partnership as a testament to the U.S.-Philippine commitment to sustainable, inclusive development in the Indo-Pacific.

As groundwork begins, the SCMB Railway is poised not only to redefine inter-port connectivity but to cement the Philippines’ position as a regional trade hub, where world-class infrastructure fuels inclusive growth from the ports to the provinces. – Ramon Tomeldan

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