US, Philippines sign agreement for Subic-Clark-Manila-Batangas railway

The United States government, through the U.S. Trade and Development Agency (USTDA) and the Philippines’ Department of Transportation (DOTr), announced funding for technical assistance for the construction of the Subic-Clark-Manila-Batangas (SCMB) Railway, which is designed to link three major ports in Luzon and decongest traffic at the Port of Manila.

Secretary Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs, said the railway project boosts the initiative of linking major economic hubs under the Luzon Economic Corridor.

“We are grateful for the support in advancing this crucial infrastructure project, which will drive economic growth by improving connectivity between major ports and industrial hubs along 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,” Secretary Go said.

USTDA said its technical assistance for the SCMB Railway involves transport model development, port-rail integration study, and legal and institutional framework analysis, among other areas.

“This project underscores the U.S.-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,” said Thomas R. Hardy, USTDA’s Acting Director. “Our partnership with the Philippines exemplifies the strength of American leadership in the Indo-Pacific and underscores our commitment to advancing our shared interests.”

Transportation Secretary Vince Dizon said the freight cargo railway aims to decentralize Manila Port and provide the additional transport capacity needed at the Batangas Port and Subic Bay, in line with President Ferdinand Marcos Jr.'s directive of ensuring uninterrupted movements of goods.

"The Philippine government extends its gratitude to USTDA for their technical assistance in developing the Subic-Clark-Manila-Batangas Railway. This railway will not only decongest the Manila Port but will also connect the seaport to Subic Bay and Batangas Port," Secretary Dizon said during the Beneficiary Agreement signing ceremony in Arlington, Virginia.

"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," Secretary Dizon added.