Subic-Clark Railway Project endorsed for Luzon Economic Corridor

The Subic-Clark Railway Project (SCRP), expansion of the Clark International Airport, and the Clark National Food Hub are among the high-impact projects offered to American and Japanese investors in the proposed Luzon Economic Corridor, which forms part of the Group of Seven (G7) Partnership for Global Infrastructure and Investment (PGII). 

 

During the trilateral meeting of President Ferdinand R. Marcos Jr., US President Joe Biden, and Japanese Prime Minister Fumio Kishida in Washington DC early this month, it was unveiled that the G7 countries eye to develop the Luzon Economic Corridor. The Luzon Economic Corridor aims to establish connectivity in economic hubs in Luzon – Subic Bay, Clark, Manila, and Batangas. 

Bases Conversion and Development Authority (BCDA) President and CEO Joshua M. Bingcang said BCDA is optimistic that the inclusion of SCRP, expansion of Clark International Airport, and the Clark National Food Hub in the proposed Luzon Economic Corridor will help accelerate the implementation of these game-changing infrastructure projects, not just for the country but for the whole Indo-Pacific region. 

SCRP, a joint project with the Department of Transportation, is an integral part of the Philippine National Railways Luzon System Development Framework. Once completed, it will provide initial freight service between the Subic Bay Freeport Zone and the Clark Freeport and Special Economic Zone, linking Subic Port with Clark International Airport and other major economic hubs in Central Luzon, especially New Clark City. 

BCDA is also embarking on the expansion of Clark International Airport, which includes the construction of a second runway, taxiways, aprons, and landside access roads and utilities, intended to cater to major logistics firms locating in Clark. 

Meanwhile, the BCDA subsidiary Clark International Airport Corporation will also develop the 64-hectare Clark National Food Terminal hub aimed at making the Philippines a leading agricultural resource hub in the region and the world. 

These three high-impact projects are BCDA's contribution to the efforts of Special Assistant to the President for Investment and Economic Affairs Frederick Go to drive sustainable and inclusive economic growth in the country and make the Philippines a top investment destination. (SNL)

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Gov’t seeks bidders for ₱45-B Subic-Clark rail project

The government is seeking bidders for the ₱45.361 billion worth of EPC (engineering, procurement, construction and commissioning) contract for the Subic-Clark Railway Project (SCRP), which will be funded through loans from the People’s Republic of China.

In an invitation to bid for the SCRP posted on the Bases Conversion Development Authority (BCDA) website, the Department of Transportation (DOTr) through the Procurement Service of the Department of Budget and Management (PS-DBM) stated that any bids received in excess of the approved budget for the contract of ₱45,361,366,040.29 shall be automatically rejected at bid opening. The project is intended for completion 42 months from the commencement date of the contract.

It also said that the government of China will shortlist the bidders and only those shortlisted may obtain further information from the Special Bids and Awards Committee.

The SCRP spans approximately 71-kiometer rail freight connection between Subic Bay Freeport Zone and Clark Freeport Zone with three freight terminals containers handling and one depot at Clark Freeport Zone for maintenance and stabling of rolling stocks.

To qualify, bidders should have completed within 10 years a similar contract with the SCRP. The contract shall be awarded to the Lowest Calculated Responsive Bidder which was determined as such during the post-qualification in accordance with 2916 Revised Implementing Rules and Regulations of Republic Act (RA) No. 9184 otherwise known as the “Government Procurement Reform Act.”

For the detailed evaluation of the proposals, a two-step procedure shall be adopted by the Special Bids and Awards Committee. Only bids that passed the technical proposals criteria shall be subjected to the second step of evaluation or the opening of financial proposals.

A pre-bidding conference for the SCRP is scheduled on Friday, January 10 this year at 10 a.m. at the Procurement Service Conference Room of the Department of Budget and Management in Paco, Manila.

Deadline of submission and receipt of bids is set on February 6, 2020 at 10 a.m. at the same venue to be followed immediately by the opening of bids for both eligibility and technical documents.

Bids will be opened in the presence of bidders’ representatives.

The DOTr through the PS reserves the right to accept or reject any bid, to annul the bidding process and to reject all bids at any time prior to contract award, in accordance with Section 41 of RA No. 9184 and its IRR, without thereby any liability to the affected bidder or bidders. (Bernie Cahiles-Magkilat, Manila Bulletin)

https://business.mb.com.ph/2020/01/06/govt-seeks-bidders-for-%E2%82%B145-b-subic-clark-rail-project/

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Subic-Clark cargo rail line construction seen starting in early 2020, DoTr says

THE China-funded Subic-Clark Railway Project is set to begin construction by the first half of 2020, the transportation department said.

Transportation Secretary Arthur P. Tugade said last week the Philippines may receive from China the shortlist of contractors for the cargo train project within the month. From this list, the government will choose, through a competitive bidding process, the firm that will build the project.

Mr. Tugade said the auction may be finished before the year ends.

“We are expected to commence the process wherein we will be able to connect cargo operations between Clark and Subic by rail… by the first quarter next year earliest, or at the latest, second quarter,” he said.

Because the P50.03-billion Subic-Clark railway is financed through a China loan, the Philippines is required to select a contractor from a list of three Chinese nominees.

The Philippines initially targeted to start building the Subic-Clark railway this year, but the delay in receiving the shortlist of contractors from China pushed the project beyond the timeline.

The railway was originally scheduled to be completed by 2022 — the last year of President Rodrigo R. Duterte’s six-year term.

The cargo line is among the government’s 75 flagship infrastructure projects. It will run 71.13 kilometers divided into two sections: a 64.19-kilometer main line connecting Subic Bay Freeport Zone and Clark Freeport Zone, and a 6.94-kilometer link to the Subic Bay Port’s New Container Terminal.

The rail line is part of the Philippine National Railways (PNR) Luzon System Development Framework, which intends to integrate the logistics network in Central Luzon. (Denise A. Valdez, Business World)

https://www.bworldonline.com/subic-clark-cargo-rail-line-construction-seen-starting-in-early-2020-dotr-says/

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Rail to enhance Subic port’s attraction

Subic port is increasingly becoming an important trade center pushed by and its attraction will be enhanced with government’s plan to build a P57-billion railway connecting the Freeport with Clark.

In a report, the Subic Bay Metropolitan Authority (SBMA) said exports going out of Subic port rose 38 percent to $2.3 billion in 2017 from $1.7 billion in 2016.

Imports that passed through the port similarly rose 11 percent to $1.77 billion from $1.6 billion in 2016.

The report shows containerized cargo volume jumped 13 percent to 140,938 twenty-foot equivalent units (TEUs) from 124,707 TEUs in 2016.

In contrast, non-containerized cargo volume fell 6 percent to 6.6 million metric tons from 7 mmt in 2016.

Ship calls improved in the international front, outstripping domestic calls.

Foreign ship calls stood at 1,526, up 12 percent from 1,365 in 2016. Domestic ship calls however declined 27 percent to 1,252 from 1,704 in 2016.

As a result of these activities, port revenues in Subic in 2017 rose 6 percent to P1.21 billion from P1.14 billion in 2016.

Government is planning to build a railway connecting Subic with Clark airport, initially as a cargo and eventually as a passenger service.

Joshua Bingcang, vice president for business development and operations of the Bases Conversion and Development Authority (BCDA) said a new alignment would be set up between Subic and Clark passing through Dinalupihan in Bataan and Floridablanca, Porac and Angeles City in Pampanga.

Bingcang said the establishment of the cargo rail will incentivize business to shift from Manila and decongest public roads.

He said hauling goods via rail could be cheaper by 25 to 50 percent than by land.

“This system will further bring down cost of movement of goods, an alternative to truckers especially those using Gapan-Olongapo road and the Subic-Clark Tarlac expressway,” said Bingcang.

The project, awaiting approval of the National Economic and Development Authority board, is one of the projects under official development assistance from the government of China.

Bingcang said the BCDA hopes to finalize the loan support this year and start construction next year.

Construction could take three years.

Subic-Clark railway is part of the Greater Luzon Railway System being planned by government. Malaya Business Insight)

http://www.malaya.com.ph/business-news/business/rail-enhance-subic-port%E2%80%99s-attraction

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NEDA panel gives Subic-Clark Railway project the green light

The Investment Coordination Committee-Cabinet Committee (ICC-CabCom) of the National Economic and Development Authority (NEDA) has approved the P57.6-billion Subic-Clark Railway Project connecting Subic Bay and the Clark Freeport Zones.

The rail line will provide freight connection between Subic Bay and the Clark to address the infrastructure needs for a freight railway system in Luzon.

It will link Subic Port with Clark International Airport and other major economic hubs in Central Luzon such as the planned New Clark City.

“This joint project of the Department of Transportation (DOTr) and the Bases Conversion Development Authority (BCDA) is one of the Duterte administration’s 75 flagship projects,” NEDA said.

The initial stages of the project— conceptualization and feasibility studies—started in October 2016. It is targeted to be completed in April 2021, according to the government’s Build, Build, Build website.

It was approved on Friday, January 26, NEDA said in a statement Monday. The project is now up for approval of the NEDA Board headed by President Rodrigo Duterte.

The ICC-CabCom also approved a higher cost for the Metro Manila Subway Project (MMSP)-Phase I at P356.96 billion or P1.375 billion more than the earlier estimate of P355.58 billion.

“The increase in the project cost of the MMSP was based on the appraisal of the Japan International Cooperation Agency (JICA), which will finance the said project through an Office Development Assistance (ODA) loan package,” NEDA said.

The Mega Manila Subway is a 25-kilometer underground mass transportation system connecting the major business districts and government centers in the metropolis.

The government plans to spend over P8 trillion until 2022 on the golden age of infrastructure, largely funded by tax revenue.

This year alone, the Philippines plans to roll out 76 big-ticket projects cumulatively valued at $35.5 billion or P1.1 trillion. (Jon Viktor Cabuenas/VDS, GMA News)

http://www.gmanetwork.com/news/money/economy/641386/neda-panel-gives-subic-clark-railway-project-the-green-light/story/

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Senate panel OKs proposed 2018 budgets of BCDA, SBMA

The Senate finance subcommittee approved on Tuesday the proposed 2018 budgets of the Bases Conversion Development Authority (BCDA) and Subic Bay Metropolitan Authority (SBMA).

During the deliberations, BCDA president and chief executive officer Vivencio Dizon bared their priority projects which include the expansion of Clark International Airport, construction of the New Clark City, BGC-NAIA Bus Rapid Transit System, and the Subic-Clark Cargo Railway.

SBMA Administrator and CEO Atty. Wilma Eisma, for her part, said they are proposing for a P3.548 billion budget for 2018.

Eisma said that they are eyeing to build an SBMA Corporate Center with a total estimated cost of P3.2 billion.

Meanwhile, the following are the proposed projects of SBMA with its estimated cost:

• New Magsaysay bridge - P390,780,000

• Piers And wharves rehabilitation - P2,459,610,000

• Port dredging - P83,389,950

• Building of SBMA/Olongapo Museum - P80,000,000

• Continuous upgrading of the Subic Bay International Airport (SBIA) Facilities - P45,400,000

• Subic Bay Freeport Zone (SBFZ) concreting And repair of roads - P489,300,000

The BCDA is seeking a P6.686 billion budget for 2018, of which P4.017 billion will be allotted for the construction of the New Clark city Access Road.

The New Clark City, according to Dizon, is a 120-hectare one-stop shop land which will be located at the Central Business District.

A 46-hectare Philippine Sports City includes facilities such as athletics and outdoor football stadium, aquatics center and athlete's village that will be built within the proposed New Clark City.

Dizon emphasized the need for the national government to provide funding for the construction of roads, as the Philippines will be hosting the 30th Southeast Asian Games in 2019.

He said Foreign Affairs Secretary Alan Peter Cayetano has chosen New Clark City as one of the venues for the SEA Games.

Finance subcommittee F chaired by Senator JV Ejercito, who saw "very big potential" over the proposed projects of BCDA, suggested that the agency should also come up with a master plan that will last for at least 20 to 50 years.

"Instead of the 3-year and 6-year plan that based on the political term. Kasi ganon ang nangyari sa atin, wala tayong long term plans so I think this is very exciting and Clark will play a big role in decongesting Metro Manila and other cities," Ejercito said.

Dizon, for his part, assured that they have a masterplan that is up until 2065.

Ejercito has also suggested that SBMA should create a long-term master plan.

Ejercito has approved the proposed budget of BCDA and SBMA which will be moved to the Senate plenary for final approval. (RSJ, GMA News)

http://www.gmanetwork.com/news/news/nation/626412/senate-panel-oks-proposed-2018-budgets-of-bcda-sbma/story/

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Subic-Clark railway project feasibility study now underway

The feasibility study for the Subic-Clark railway project being conducted by China Harbor Engineering Co. Ltd. (CHEC) is now underway.

The multi-billion-peso railway project was proposed to the national government by the Subic Bay Metropolitan Authority (SBMA).

CHEC is a world-renowned international contractor and provider of full services in engineering-procurement-construction (EPC), Build-Operate-Transfer (BOT), and Public-Private-Partnership (PPP) for both public and private sectors, providing prestigious services globally and becoming a world-renowned brand in the field of engineering.

SBMA Seaport general manager Jerome Martinez said the Subic-Clark Railway Transit project is part of the P100-billion elevated coastal highway and railway system that would link Subic to Clark Economic Zone and the Port of Manila.

Martinez said the multi-billion project is currently on its data gathering stage: counting the number of cargo trucks passing through, where the cargos are being sent or collected, and the rates.

Aside from CHEC, the official said that there are other proponents that expressed interest in funding the Subic-Clark Railway Transit project.

“There are, actually, many proponents that would like to join in the project. However, the project is still in its conceptual stage where they do data gathering related to the volume, rates and destinations of the cargoes, the range, elevation and other technical issues,” Martinez said.

Aside from the Seaport Department, other SBMA offices (Engineering Department, Project Development Office, Land Asset Management Department, Ecology Center, and Public Works and Transportation Services Group) are members of the technical group that are coordinating with the Bases Conversion and Development Authority (BCDA) in coming up with the feasibility study with engineering consulting firm Atkins.

Meanwhile, PDO manager Vicente Evidente, Jr. explained that the railway development project is one of the priority projects of President Rodrigo Duterte under the “Build, Build, Build” Program that includes Mindanao and Visayas.

For Subic, Evidente said, the railway system will be aligned to the Subic-Clark-Tarlac Expressway. This would save the government from right-of-way issues. There are also plans to connect it with the Clark-Manila Railway up to the Port of Manila. When finished, the rail system will open new investment opportunities and improve container and passenger traffic, as well as help decongest other ports, especially Manila.

The feasibility study is expected to complete by the third semester of the year, while the Subic-Clark Railway Transit project is expected to be finished before the end of the President’s term. (RAV/MPD-SBMA)

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Proposed Subic-Clark Railway project listed in forthcoming PHL-Japan trade, infrastructure talks

The Philippines and Japan are set to begin a new round of discussions on trade and infrastructure late this month, according to the National Economic and Development Authority (Neda).

The high-level meeting, which will take place in Tokyo, is part of the commitments of Japanese Prime Minister Shinzo Abe when he visited the country in January.

The Subic-Clark Railway Project is part of the #BuildBuildBuild program of the Duterte Administration

Neda Secretary Ernesto M. Pernia said the discussions will include finalizing the projects to be funded by the Japanese government.

One infrastructure project that could be discussed in the meeting is the hotly contested Subic-Clark Railway project, which is being eyed for funding by both the Chinese and Japanese governments.

The P35.044 billion worth project involves the construction of a 65-kilometer cargo and passenger standard gauge railway.

Envisioned to be a “speed train”, the project will traverse the Subic-Clark-Tarlac Expressway and the Subic Freeport Expressway.

“The project will connect Subic to the major economic hubs in Central Luzon. The project can decongest Metro Manila by transferring portions of business activity to Clark and Subic,” the Neda documents stated.

On the trade side, it is known that the Philippines has a bilateral trade agreement with Japan, the Japan–Philippines Economic Partnership Agreement (Jpepa).

The Jpepa agreement was signed in Helsinki in 2006 and was ratified by the Philippine Senate in 2008.

In 2015 the Department of Agriculture (DA) said the Philippines is seeking to bring down tariffs for sugar once a review of the Jpepa begins.

Based on figures from Japan Customs, tariffs for cane sugar range from 18.9 percent to 26 percent.

Agriculture Undersecretary Segredo R. Serrano said the Philippine government is also asking Japan to lower tariff for other agricultural products, such as processed food, fish products and tropical fruits, including bananas, mangoes and pineapples.

In 2007 the DA estimated that the Philippines would earn some $419 million in potential revenues from farm exports under the Jpepa. The department said the amount represents the tariff cuts due that will be implemented under the free-trade scheme. (Cai Ordinario, BusinessMirror)

http://www.businessmirror.com.ph/proposed-subic-clark-railway-project-listed-in-forthcoming-phl-japan-trade-infrastructure-talks/

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Subic-Clark cargo railway sees fruition under Duterte's massive infra push

The Subic-Clark corridor will finally have its cargo railway system that will link the port of Subic to Clark's international airport, boosting cargo transport efficiency in the two free ports and at the same time decongest traffic in Metro Manila.

This, as the Duterte administration is set to launch the biggest infrastructure push in Philippine history to propel economic growth in the next five-and-a-half years.

The Subic-Clark Cargo Railway Project under the Duterte administration's infrastructure plan

Big-ticket infrastructure projects, specifically roads and bridges, mass urban transport and alternative green city solutions are among the key investments to be made by the Philippine government. These will solve the problems brought about by traffic congestion, inadequate mass transport facilities, air pollution, and the lack of healthy, green liveable community spaces.

The development mantra is: build, build and build.

The Duterte administration sees increased infrastructure spending as key to move the country forward and improve the lives of the Filipino people by generating massive investments, creating millions of jobs and lowering prices of commodities.

The country's lead infrastructure agencies are working in close coordination to build new facilities. The National Economic Development Agency (NEDA), Department of Transportation (DOTr), Department of Public Works and Highways (DPWH) and the Bases Conversion and Development Authority (BCDA) are crafting the Duterte Infrastructure Plan. In three to five years, new and better roads, bridges, railways, rehabilitated airports and a new metropolis are envisioned to benefit the Filipino people.

According to the Philippine Institute for Development Studies (PIDS) 2017 National Expenditure Program, in the first year of the Duterte presidency, infrastructure spending will represent 5.4 percent of the country's Gross Domestic Product. This will be the highest since the Marcos era spanning 21 years when infra spending was at 3.2 percent of GDP.

Among the "game-changing solutions" of the DOTr that guarantee better transport and passenger experience are the Metro Manila Clark Railway which will assure one-hour travel from Metro Manila to Clark International Airport; the Metro Manila Bus Rapid Train System which will yield on-time trips along EDSA; and the Mindanao Railway which will provide the much-needed connection of people and goods across Mindanao.

For its part, the DPWH will build new linkages to ensure better connectivity between key destinations. These include the Santa Monica-Lawton-BGC Viaduct which will directly link BGC going to Ortigas; the UP-Miriam-Ateneo Viaduct which will cut down travel by 80 percent in Katipunan Ave at CP Garcia; and the NLEX-SLEX Connector Road which will reduce travel time to 30 minutes going to Alabang from Balintawak.

BCDA also eyes big-ticket projects in Central Luzon and Metro Manila. The Clark International Airport New Terminal Building is envisioned to be a world-class airport which will reduce traffic at the NAIA. BCDA also will continue to build a new city proximate to Metro Manila, a 9,450-hectare smart, green and disaster-resilient city that will be a long-term solution to traffic congestion in main urban centers.

Another project is the BGC to NAIA Bus Rapid Transit that will facilitate a 15-minute travel time from Fort Bonifacio to NAIA, preventing delays for passengers rushing to catch their flights whether for leisure or business.

The Philippines has been lagging behind its Asian neighbors in attracting foreign direct investments due to poor infrastructure, which has been traced to government underspending on such projects.

The International Monetary Fund (IMF) reported: "At 21.8 percent of GDP [gross domestic product] in 2014, the investment rate in the Philippines is well below regional peers, as reflected in its low capital stock and infrastructure quality.”

Given the Duterte administration's development platform, a complete turnaround is expected in the next six years with bold solutions and swift action in responding to the pressing needs of the public through massive infra spending.

At present, feasibility studies are being done for the infra projects of the DPWH, DOTr and BCDA. These projects will be subject to public tender following stringent Philippine government procurement rules. In two years, these are envisioned to break ground, with a launch eyed in three to five years. (MARO-PCO)

http://news.pia.gov.ph/article/view/2131478178859/build-build-build-duterte-to-launch-biggest-infrastructure-program-in-ph

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Government eyes Subic-Clark cargo railway system

The Department of Transportation will pursue a dedicated cargo railway line between Subic and Clark as part of reforms in the cargo sector that would help resolve the country's traffic crisis.

Transportation Secretary Arthur Tugade, who was guest speaker at an event Tuesday organized the World Trade Center in Metro Manila, revealed the Subic-Clark railway line as among his plans for the transportation sector.

Tugade said connecting Subic port to Clark via a railway for carrying cargo, which he said has President Duterte's approval "in principle," will also be able overcome trucking costs.

The transport chief also vowed to build a passenger train line linking Metro Manila and the Clark freeport zone in Pampanga, where the alternative gateway Clark International Airport is located. The train line would connect Clark to Metro Manila either in the Trinoma Shopping Mall in Quezon City or the Ninoy Aquino International Airport in Pasay City, Tugade said.

These plans are among the campaign promises of President Duterte which form part of a massive effort to increase connectivity and cut road and air congestion via mass railway systems.

As part of a longer term goal, Tugade said all freight vehicles would travel around the country only via railway and roll-on/roll-off, or Ro-Ro, shipping systems, helping decongest roads.

Tugade said plans would still need to be studied by the National Economic and Development Authority, but it was the government’s intention to move swiftly. Tugade said his department would formalize plans within 90 days.

“The train will be there,” Tugade said.

Clark International Airport, despite excess capacity, has struggled to lure passengers due to the lack of mass transit options. By contrast, Manila’s Ninoy Aquino International Airport, where expansion options are limited, is operating beyond its intended capacity.

The need for railway systems has been identified under previous administrations. The difficulty has been getting these projects off the ground, typically due to their complexity, high-cost and right-of-way issues. (Inquirer.net)

PHOTO:
Transportation Secretary Arthur Tugade

http://business.inquirer.net/212193/transport-chief-vows-train-line-to-clark

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