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Showing posts with label SCMB Railway. Show all posts
Showing posts with label SCMB Railway. Show all posts

08 June 2026

SBMA Grants BCDA Space to Advance Luzon Economic Corridor Projects

SBMA Chairman and Administrator Eduardo Jose L. Aliño (2nd from right) and BCDA President/ CEO Joshua M. Bingcang (2nd from left) together with SBMA Senior Deputy Administrator for Support Services Atty. Ramon O. Agregado and BCDA Senior Vice President for Conversion and Development Group Engr. Mark P. Torres show the Memorandum of Agreement (MOA) signed on June 3, 2026, for the use of an 800-sq.m. lot as part of the Luzon Economic Corridor (LEC) initiatives. (Photo c/o MPD-SBMA)



The Subic Bay Metropolitan Authority (SBMA) has allotted an 800-square-meter site to the Bases Conversion and Development Authority (BCDA), providing the agency with a base of operations within the Freeport.

The move positions BCDA staff to directly oversee Luzon Economic Corridor (LEC) projects, including the Subic-Clark-Manila-Batangas Railway and the Subic-Clark-Tarlac Expressway expansion.

Officials say the arrangement strengthens inter-agency cooperation and anchors Subic’s role in advancing national infrastructure priorities.

SBMA Chairman and Administrator Eduardo Jose L. Aliño and BCDA President/CEO Joshua M. Bingcang formalized the agreement in a Memorandum of Agreement (MOA) signed June 3 at the SBMA Administration Building, witnessed by senior officials from both agencies.

Aliño described the allocation as more than a land grant, calling it a commitment to provide a “vibrant, supportive, and sustainable home” for BCDA staff.

Bingcang said the prepositioning of personnel reflects BCDA’s thrust to accelerate investments and development activities in the Subic-Clark-Bataan growth corridor.

The designated lot, located between Lots 95 and 97 Corsair Street in Kalayaan Heights District, was approved by the SBMA Board of Directors through Resolution No. 25-07-1360.

Officials noted the move is expected to boost investment inflows, increase mobility, and enhance coordination across Luzon’s strategic development axis. (SNL)

03 June 2026

Ambassador Highlights Subic Role as Australia Enters Corridor

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Eduardo Jose L. Aliño and Australian Ambassador to the Philippines Marc Innes-Brown meet in a high-level discussion regarding the Subic Freeport’s role in the Luzon Economic Corridor at the SBMA Corporate Boardroom on June 2, 2026. (Photo c/o MPD-SBMA)


Australian Ambassador Marc Innes-Brown emphasized Subic Bay’s strategic importance in the Luzon Economic Corridor (LEC) during a meeting with Subic Bay Metropolitan Authority (SBMA) officials on June 2, following Australia’s formal entry into the regional partnership last month.

The LEC, launched in 2023 as a trilateral initiative among the Philippines, the United States, and Japan, connects four key hubs — Subic Bay, Clark, Manila, and Batangas — to strengthen supply chains and attract investment. Australia’s inclusion in May 2026 marks the first major expansion of the corridor, signaling broader international support.

SBMA Chairman and Administrator Eduardo Jose L. Aliño welcomed Innes-Brown and his delegation at the SBMA Administration Building, where discussions centered on Subic’s role as a logistics anchor. 

Senior Deputy Administrator for Port Operations Ronnie Yambao presented infrastructure plans, including a railway project linking Subic to the rest of the corridor to ensure seamless cargo handling.

Australia has pledged AUD 45 million (PHP 1.9 billion) under its bilateral initiative PROGRESS, alongside technical support through its Partnerships for Infrastructure program. A Manila-based “Deal Team” will spearhead financial mobilization strategies to channel investments into critical projects.

“The Subic Bay Freeport is the best option for companies investing in the corridor,” Yambao said, underscoring the Freeport’s potential to drive regional growth.

The ambassador’s visit reflects Canberra’s intent to expand its economic footprint in the Philippines while reinforcing ties with existing partners. His engagement also included lighter moments, such as receiving mangoes gifted by SBMA officials.

Australia’s participation is expected to accelerate investments across Luzon’s strategic hubs, bolstering connectivity and resilience in global supply chains. (SNL)

15 May 2026

FOCUS: Subic Bay Rising: The Strategic Heart of the Luzon Economic Corridor

The Luzon Economic Corridor (LEC) is rapidly transforming from an ambitious infrastructure vision into what could become one of the most important economic development programs in Philippine history.

Anchored on the strategic growth corridor linking Subic Bay, Clark, Manila, and Batangas, the initiative aims to modernize logistics, strengthen energy security, improve connectivity, and position the Philippines as a major manufacturing and supply-chain hub in the Indo-Pacific.

At the center of this transformation is the Subic Bay Metropolitan Authority and the broader Subic Bay Freeport Zone — a location increasingly viewed not only as a logistics center, but also as a strategic hub for energy, transportation, advanced manufacturing, aviation, and maritime industry.

From fuel infrastructure and freight railways to logistics, shipbuilding, and airport development, Subic Bay is becoming one of the Philippines’ most critical economic gateways.

Why Subic Bay Matters

Among the four major nodes of the Luzon Economic Corridor, Subic Bay possesses several strategic advantages that few locations in Southeast Asia can replicate.

The Port of Subic is one of the country’s deepest natural harbors, naturally protected from typhoons and positioned along vital regional shipping routes facing the West Philippine Sea and the broader Indo-Pacific region.

Subic Bay’s piers and deep-water harbor highlight the Freeport’s growing role as a premier logistics, maritime, and industrial hub in the Indo-Pacific region.


Unlike many developing industrial hubs, Subic already has a functioning Freeport ecosystem with modern roads, industrial estates, customs incentives, international port facilities, and direct access to major transport networks such as the Subic–Clark–Tarlac Expressway.

These advantages make Subic uniquely suited to serve as the western maritime gateway of the Luzon Economic Corridor.

Strengthening Energy Security Through Philippine Coastal Storage and Pipeline Corporation

One of Subic Bay’s most strategically important — yet often overlooked — assets is the facility operated by Philippine Coastal Storage and Pipeline Corporation.

Located within the Subic Bay Freeport Zone, the terminal is considered the largest independent petroleum import storage facility in the Philippines, with approximately 6.3 million barrels of storage capacity representing over 20 percent of the country’s total fuel import storage capability.

The facility plays a critical role in ensuring stable fuel supply for Metro Manila and Northern Luzon through its deep-water jetties, large-scale storage tanks, and fuel distribution infrastructure.

Seen from above, the PCSPC facility highlights the scale of Subic Bay’s expanding role in national energy security and infrastructure development.


Beyond its existing operations, PCSPC is also planning the development of a new Subic-Clark pipeline system that would further strengthen fuel transport and energy logistics between Subic Bay and Central Luzon. The proposed project is expected to enhance the long-term energy infrastructure supporting the Luzon Economic Corridor.

Once pursued, the planned pipeline would help improve fuel distribution efficiency, reduce dependence on congested road-based fuel transport, and support the growing industrial, aviation, and logistics requirements of the Subic and Clark growth areas.

As global supply chains face increasing geopolitical uncertainty, energy infrastructure has become inseparable from national economic resilience.

This is why the PCSPC facility is highly significant within the Luzon Economic Corridor framework.

The terminal provides the Philippines with strategic fuel storage capability that supports industries, transportation networks, aviation operations, manufacturing facilities, and emergency energy reserves. Its location in Subic Bay also allows large fuel tankers to dock efficiently outside the congested Manila area.

Recent international investments into the facility further demonstrate growing confidence in Subic Bay’s role in regional energy logistics and infrastructure development.

The Subic-Clark-Manila-Batangas Railway: The Backbone of the Corridor

Perhaps the most transformative project under the Luzon Economic Corridor is the proposed Subic-Clark-Manila-Batangas (SCMB) Railway.

The railway is envisioned to become the logistical backbone connecting Luzon’s major ports, airports, industrial zones, and manufacturing centers into one integrated freight network.

The SCMB Railway positions Subic Bay at the center of a future integrated freight network connecting Luzon’s major economic hubs.


Once completed, the SCMB Railway would connect:

  • Subic Bay Port
  • Clark International Airport
  • Port of Manila
  • Port of Batangas

This would significantly reduce cargo congestion in Metro Manila while improving freight efficiency across Luzon.

For decades, one of the Philippines’ major economic weaknesses has been fragmented logistics infrastructure. Goods moving across Luzon have long depended heavily on truck-based transport, leading to congestion, high logistics costs, and delays.

The SCMB Railway seeks to fundamentally change that.

The United States government, through the U.S. Trade and Development Agency (USTDA), has already committed technical assistance support for the railway’s development, including transport modeling, port-rail integration analysis, and institutional planning.

The railway is expected to:

  • Improve cargo movement between major economic hubs
  • Support industrial growth zones
  • Strengthen supply-chain resilience
  • Reduce transport costs
  • Decongest Manila ports
  • Enhance export competitiveness

Most importantly, it firmly establishes Subic Bay as a central logistics gateway within the national economic system.

The Agila Facility and Subic’s Expanding Maritime and Industrial Role

Another key component reinforcing Subic Bay’s strategic importance within the Luzon Economic Corridor is the Agila Subic Multi-Use Facility.

The facility represents a major example of how international investment is helping transform Subic Bay into a modern industrial, maritime, and logistics hub.

American company Cerberus Capital Management led the rehabilitation of the former Hanjin shipyard into the Agila Subic Multi-Use Facility — now envisioned as a multi-purpose logistics and industrial complex supporting maritime and manufacturing activities within the Freeport.

A major milestone for the facility came through Agila’s partnership with HD Hyundai, which is expected to significantly enhance the Philippines’ shipbuilding and maritime industrial capabilities.

The Agila Subic Multi-Use Facility showcases how global partnerships are helping shape the future of Philippine maritime and industrial development.


The collaboration highlights Subic Bay’s growing role not only in logistics and trade, but also in regional shipbuilding, industrial services, and maritime support operations.

Inspired by the progress of the partnership, Cerberus Capital Management has reportedly expressed interest in exploring future expansion opportunities in the Philippines, signaling continued international confidence in Subic Bay’s long-term economic potential.

Beyond its industrial significance, the Agila facility has become an important economic and strategic landmark within the Subic Bay Freeport Zone. The project has helped generate employment opportunities, strengthen international economic partnerships, support local industries, and contribute to broader national and regional security objectives.

Together with Subic’s ports, transport infrastructure, and energy facilities, the Agila complex reinforces the Freeport’s growing role as one of the Philippines’ most important strategic and economic gateways under the Luzon Economic Corridor initiative.

The Subic International Airport Project: Expanding the Corridor’s Cargo and Logistics Capability

Another major development expected to strengthen Subic Bay’s role in the Luzon Economic Corridor is the proposed modernization of the Subic Bay International Airport through an unsolicited proposal submitted by Cerberus Asia Pacific Investments LLC.

The proposal involves the upgrade, expansion, operation, and maintenance of the airport under a long-term concession arrangement aimed at transforming the facility into a modern, efficient, and high-capacity cargo hub serving Luzon.

The proposed modernization of Subic Bay International Airport is expected to strengthen the Luzon Economic Corridor’s integrated air, sea, and land logistics network.


The project is expected to complement Subic Bay’s maritime infrastructure by integrating air cargo, port operations, logistics facilities, and industrial zones into a more connected regional supply-chain network.

Once developed, the airport could significantly enhance cargo movement efficiency, attract logistics and manufacturing locators, and support the growing demand for integrated transport infrastructure within the Luzon Economic Corridor.

The proposed airport modernization also aligns with Cerberus’ broader investments in Subic Bay involving shipbuilding, logistics, industrial development, and infrastructure modernization.

In recent years, the Subic Bay International Airport has primarily handled military and chartered flights, but the proposed redevelopment seeks to reposition the facility as a strategic commercial cargo gateway supporting both domestic and international trade.

The project is currently undergoing the comparative challenge or Swiss challenge process under the Philippine Public-Private Partnership framework after Cerberus was granted Original Proponent Status by the SBMA.

More Than Infrastructure: A Strategic Economic Realignment

The Luzon Economic Corridor is not merely a collection of infrastructure projects.

It represents a broader strategic realignment of the Philippine economy.

For decades, economic activity has remained heavily concentrated in Metro Manila. The corridor seeks to redistribute growth across interconnected regional hubs while creating more resilient and globally competitive supply chains.

Subic Bay’s role in this transformation is especially critical because it already possesses the combination of:

  • Deep-water maritime access
  • Industrial capacity
  • Energy infrastructure
  • Logistics connectivity
  • Maritime and shipbuilding capability
  • Aviation and cargo potential
  • Available development space
  • Strategic geographic location

These characteristics position Subic as one of the country’s most important economic and strategic assets in the coming decades.

Four gateways. One economic corridor. A new future for Luzon.


A Defining Opportunity for the Philippines

As the Luzon Economic Corridor gains support from the United States, Japan, and a growing coalition of international partners, the Philippines finds itself at the center of a major shift in Indo-Pacific trade and infrastructure development.

For Subic Bay, this moment may prove historic.

The continued development of the PCSPC energy terminal, the planned Subic-Clark pipeline, the Subic-Clark-Manila-Batangas Railway, the Agila Subic Multi-Use Facility, the proposed modernization of Subic Bay International Airport, and the Freeport’s expanding logistics infrastructure could transform Subic into one of Southeast Asia’s premier logistics, maritime, aviation, and industrial gateways.

If sustained successfully, the Luzon Economic Corridor may ultimately redefine not only the future of Subic Bay — but also the Philippines’ role in global trade, energy security, manufacturing, and regional economic growth for generations to come. (SNL)

20 November 2025

Subic Freeport, Hermosa to be interlinked in proposed Subic-Clark-Manila-Batangas Railway Project

The SCMB Railway Project will link the Port of Subic, Clark International Airport, the Port of Manila, and the Port of Batangas, primarily aiming to serve as a freight cargo railway to ease congestion at the Port of Manila by ensuring the timely movement of products.


Subic Bay Freeport, along with Hermosa, Bataan, is being considered for interlinkage with the proposed Subic-Clark-Manila-Batangas (SCMB) Railway Project.  

In a meeting at the Subic Bay Metropolitan Authority (SBMA) corporate boardroom early this month, the SCMB Technical Working Group met with key officials from the Department of Transportation (DOTR) and The Cadmus Group, as well as Hermosa Mayor Anne Adorable-Inton.

SBMA Senior Deputy Administrator for Port Operations Ronnie Yambao said that the meeting focused on the creation of an eight-kilometre access road spanning from Hermosa to Subic Freeport’s Naval Supply Depot through two bridges. The access road would cost ₱ 1.8 billion.

The group also discussed the protection of the rights of Indigenous Peoples (IP) communities and their compensation packages. They also reviewed the logistics terminal between Hermosa and SBFZ, as well as trade volume, port statistics, and the alignment of the logistics roadmap and bypass road from SBFZ to Hermosa.

The SCMB Railway Project is a planned 250-kilometre freight railway project connecting four major economic hubs in Luzon, intending to decongest Manila's port and improve logistics. 

The project is in the development stage, with a feasibility study being jointly undertaken by the United States, Sweden, and the Asian Development Bank, with technical assistance being provided by the US Trade and Development Agency.

The said SCMB Railway Project will link the Port of Subic, Clark International Airport, the Port of Manila, and the Port of Batangas, primarily aiming to serve as a freight cargo railway to ease congestion at the Port of Manila by ensuring the timely movement of products.

The said project is part of the broader Luzon Economic Corridor Initiative, and is intended to drive investment and economic growth. (MPD-SBMA)

25 October 2025

Subic-Clark-Manila-Batangas railway project gets grant from Sweden

Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go (5th from left) and Swedish Ambassador to the Philippines Anna Ferry (6th from left) lead the group during the presentation of the grant agreement for the Luzon Economic Corridor’s flagship Subic-Clark-Manila-Batangas railway project. The Swedish government, through the Swedfund International, extended a 12 million Swedish Krona (about PHP74 million) grant for the project’s feasibility study. (Photo courtesy of OSAPIEA)


The Swedish government has extended a 12 million Swedish krona (around PHP74 million) grant for the Luzon Economic Corridor’s (LEC) flagship Subic-Clark-Manila-Batangas (SCMB) railway project.
The Office of Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), in a press release on Wednesday, said the agreement was signed between the Government of Sweden, through Swedfund International, and the Department of Transportation (DOTr), and the document for the grant was presented at the Malacañang Palace on Wednesday.
“Swedfund’s grant will fund a feasibility study on signaling systems and operational models for the SCMB railway - the anchor infrastructure initiative of the LEC that will connect the major ports of Subic, Manila, and Batangas, strengthening logistics and trade across Luzon,” it said.
It said the Manila-based “Asian Development Bank will oversee procurement of the consultant for the main feasibility study.”
They were joined by Sweden’s Ministry of Foreign Affairs Department Head for Asia, the Pacific and Latin America Daniel Wolvén, Sweden’s Trade Commissioner to the Philippines Johan Lennefalk, DOTr officials led by Acting Secretary Giovanni Lopez, and representatives from the Department of Finance and the Department of Foreign Affairs.
“This partnership between the Philippines and Sweden advances the President’s vision of developing globally competitive logistics infrastructure that will drive investment and inclusive growth,” Go said in his keynote address during the event.
Ferry, in turn, welcomed the partnership, saying: “This additional agreement with the Department of Transportation is a remarkable example of synergies and cooperation between public and private efforts.”
“We are proud to support the Philippines’ development goals with Swedish technology and expertise in transportation and provide a boost for sustainable growth and opportunities,” she said.
OSAPEIA said the Swedfund International’s support “complements the June 2025 funding from the U.S. Trade and Development Agency, which supports parallel studies on transport modeling, port–rail integration, and institutional planning.” (PNA)

27 June 2025

PH, US sign deal to develop the Subic-Clark-Manila-Batangas freight railway

U.S. Trade and Development Agency (USTDA) Acting Director Thomas R. Hardy and the Philippines’ Department of Transportation (DOTr) Secretary Vince Dizon lead the signing ceremony of the Subic-Clark-Manila-Batangas Railway Agreement in Arlingon, Virginia, on June 26. (photo c/o the US Embassy, Philippines)


The Philippines and the United States have signed an agreement to pursue the development of the proposed Subic-Clark-Manila-Batangas (SCMB) freight railway, a strategic infrastructure project designed to alleviate port congestion in key trade hubs and foster broader economic growth and connectivity.
Department of Transportation (DOTr) Secretary Vince Dizon and US Trade and Development Agency (USTDA) Acting Director Thomas Hardy signed the agreement in Arlington, Virginia, on Wednesday (June 26).
In a statement released by the DOTr, the USTDA said that its technical assistance for the SCMB Railway involves transport model development, a port-rail integration study, and an analysis of the legal and institutional framework, among other activities.
Hardy said the project “underscores the US-Philippine alliance’s vital role in maintaining a free and open Indo-Pacific region. By supporting the development of the SCMB Railway, we are ensuring that key infrastructure will flourish, increasing economic cooperation to develop an essential trading route that will mutually benefit American and Philippine citizens.”
Dizon said the 155-kilometer railway is designed to connect three of the country’s major ports—Manila, Subic Bay, and Batangas—enhancing logistical efficiency and regional connectivity.
“As a freight cargo railway, the SCMB Railway is seen to solve port traffic and congestion in Manila Port, while ensuring the timely movement of products to and from adjacent major transport hubs,” Dizon said.
Special Assistant to the President for Investment and Economic Affairs Secretary Frederick D. Go said the project enhances the initiative to link major economic hubs under the Luzon Economic Corridor.
“Once operational, the SCMB Railway will attract investments, create new opportunities for businesses, and most importantly, generate quality jobs that will benefit millions of Filipinos,” Go said. (SNL)

06 May 2025

US backs Luzon Economic Corridor, hikes funding for Subic-Clark-Manila-Batangas railway study

Office Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go (courtesy of PCO)



MANILA – The United States has reinforced its commitment to the Philippines’ infrastructure modernization efforts by continuing the support and raising funding for the Luzon Economic Corridor (LEC) despite the Trump administration halting some US government financing programs in different countries. 

Office Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick Go said in a statement on Sunday that the US Trade and Development Agency (USTDA) has increased its grant funding for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Cargo Railway from USD2.5 million (PHP138.8 million) to USD3.8 million. 

Go said the expanded grant was conveyed to the Philippine government on April 28, following a competitive process for the selection of a US consultancy firm. 

The OSAPIEA, Department of Transportation, and the US Embassy in Manila are scheduled to meet in the next few days to finalize and sign the Beneficiary Agreement for the SCMB project. 

“(This is a) great positive news,” the Palace official said. “This milestone demonstrates that the Philippines-US economic ties are stronger than ever.” 

He added that the increased USTDA grant for the SCMB study reflects growing investor confidence and is expected to lead to more employment opportunities along the corridor. 

Despite the scaling back of some US foreign aid programs, the recent funding increase underscores Washington’s continued support for the Philippines’ development priorities, particularly in infrastructure and economic connectivity. 

In addition to the US funding, discussions are ongoing with Sweden’s development financier Swedfund, which is considering a separate USD1.2-million grant to complement the railway initiative. 

The SCMB freight rail is the LEC's flagship project. It seeks to link key industrial and trade zones in Subic Bay, Clark, Manila, and Batangas provinces. 

Once operational, the freight rail system is expected to improve logistics operations, reduce transport costs, and enhance regional competitiveness while creating jobs for thousands of Filipinos. 

The LEC is an offshoot of the trilateral meeting of the Philippines, the US and Japan in April 2024. 
 
Go earlier said the United Kingdom, Sweden and Australia signified their intents to join the LEC.

France’s Minister Delegate for Foreign Trade and French Nationals Abroad Laurent Saint-Martin, who visited Manila last month, conveyed to President Ferdinand R. Marcos Jr. the European country’s interest to also join the project. (PNA)

28 May 2024

New cargo rail line from Subic to Batangas is flagship project of the Luzon Economic Corridor

Economic czar Secretary Frederick Go (center) discusses investment opportunities in the country at the Philippine Economic Briefing at Philippine International Convention Center in Pasay City on Monday (May 27, 2024). Among these opportunities is the Luzon Economic Corridor.



The Luzon Economic Corridor steering committee has identified the cargo railway directly connecting Subic Bay in Zambales and Batangas province as the flagship project of the new corridor. 

During the Philippine Economic Briefing at the Philippine International Convention Center in Pasay City, Special Adviser to the President for Investment and Economic Affairs Secretary Frederick Go called the project the Subic-Cargo-Manila-Batangas (SCMB) railway. 

Transportation Secretary Jaime Bautista confirmed that the SCMB railway is a new train line aimed at spurring investment opportunities along the corridor. 

This project supersedes the previously stalled 71-km Subic-Clark Railway Project (SCRP) which aimed to link Subic Bay with the Clark International Airport. 

“The only line we approved is only Subic to Clark, but we will extend it to Manila and to Batangas -- one line,” Bautista said. 

Bautista told reporters that the DOTr is preparing a new feasibility study for the SCMB cargo railway.  

“We’re in the process of procuring the consultant who will prepare the feasibility study. Hopefully, in a few weeks or a few months, we will already start the procurement,” Bautista said. 

Meanwhile, Go, who co-chaired the inaugural meeting of the Luzon Economic Corridor steering committee in Manila last week, noted that the SCMB cargo railway will open up significant investment opportunities. 
 
The steering committee consists of United States Senior Advisor to the President for Energy and Investment Amos Hochstein and Japan Ministry of Foreign Affairs Director-General for International Cooperation Bureau Ishizuki Hideo. 
 
Go said that aside from the United States and Japan, the United Kingdom government also wants to get involved in the development of the Luzon Economic Corridor. 

“The UK just came up to me, from the UK Embassy, they said they been wanting to get in touch because they want to get involved in this Luzon economic growth corridor,” Go said. 
 
“And in fact, we were informed by the United States steering committee that the UK indeed has been calling to ask how they can participate in this Luzon economic growth corridor. It can now be potentially be three countries,” the economic czar said. 

Go also pitched renewable energy projects within the growth corridor to support future requirement in the area. (SNL)

13 April 2024

PH, US, Japan tie up to boost Luzon Economic Corridor, connectivity between Subic Bay, Clark, Manila & Batangas

The leaders of Japan, the US, and the Philippines in their first trilateral summit in Washington, and announced the launch of the Luzon Economic Corridor. The project is aimed at improving connectivity between the key economic areas of Subic Bay, Clark, Manila & Batangas. (photo c/o PCO-Malacañang)


The Philippines, United States and Japan have partnered on a venture that will boost connectivity between the key economic hubs of Subic Bay, Clark, Manila, and Batangas comprising the Luzon Economic Corridor.
According to a joint statement of the leaders of the three nations following a trilateral meeting in Washington, D.C., the Luzon Economic Corridor is the latest economic corridor of the G7 Partnership for Global Infrastructure and Investment (PGI) and the first in the Indo-Pacific region.
“Today we are launching the Luzon Economic Corridor, which will support connectivity between Subic Bay, Clark, Manila, and Batangas in the Philippines,” the joint statement said.
Through this corridor, Japan, the Philippines, and the United States commit to accelerating coordinated investments in high-impact infrastructure projects.
These projects include rail, ports modernization; clean energy and semiconductor supply chains and deployments, agribusiness and civilian port upgrades at Subic Bay.
Japan has long been supporting connectivity in this area, including rails and roads, through the Japan International Cooperation Agency (JICA).
“We plan to work with multilateral organizations and the private sector to attract quality, transformative investments,” the statement said.
“Together we intend to hold a trilateral event promoting investment in the Luzon Corridor on the margins of the Indo-Pacific Business Forum in Manila in May—the premier U.S. commercial event in the region,” it added.
The U.S. International Development Finance Corporation also intends to open a regional office in the Philippines to facilitate further investments across the Philippines.
According to the statement, the Luzon Corridor is a demonstration of the three nations’ enhanced economic cooperation, focused on delivering tangible investments across multiple sectors.
Japan, the Philippines, and the United States are also partnering to expand cooperation and investments in other areas of the Philippines. (SNL)

23 November 2010

NEDA makes new push for logistics corridors

The National Economic and Development Authority (NEDA) is making a new push to develop logistics corridors, starting with the Subic-Clark-Manila-Batangas (SCMB) corridor as part of a national transport plan.

Initial discussions on the infrastructure planning under the 2010-1016 Medium Term Philippine Development Plan (MTPDP) recommend the creation of "strategic logistics corridors," initially starting off with the SCMB then extending the same northward and then southward.

The MTPDP envisions these corridors as having intermodal transport network system to obtain efficiency.

"The SCMB must be developed to become a seamless intermodal logistics corridor," documents on the initial results of the infrastructure planning subcommittee said.

The documents show how an integrated multi-modal logistics and transport system could not only decongest Metro Manila but also create linkages between business centers and nearby provinces.

This, the NEDA papers said, would help facilitate the efficient flow of commodities and inputs to economic and industrial zones.

"The development of seamless intermodal transport and logistics systems along strategic corridors will promote productivity and competitiveness," the documents said.

The NEDA points to inadequate and unstable funding for the construction and development of facilities as the culprit in the deficiencies in our transport system.

"Assessment of the country’s transport infrastructure network indicates that its quality and capacity remain low, even if the quantity of transport compares favorably with most Asean countries," the papers said.

Subic and Clark are the nearest economic industrial zones to Metro Manila, one offering a port and the other an airport. Metro Manila is linked to the two zones through road networks, the North Luzon expressway and the Subic-Clark-Tarlac expressway.

Linked to Metro Manila by the South Luzon expressway down south is Calabarzon, home to specialized industries and processing activities. The corridors complement each zone’s strengths in agriculture and manufacturing.

The corridor now accounts for 80 percent of the national cargo and about half of yearly economic output. (Malaya Business Insight)