Slex expansion to lift Calabarzon economic growth

San Miguel Corp. (SMC) said on Thursday the ongoing South Luzon Expressway (Slex) expansion project is now approximately 70 percent complete, according to a report by BusinessMirror.

With a target completion date set for December, SMC President Ramon S. Ang said the project will enhance the experience of motorists traversing the vital thoroughfare during the holiday rush.

Aside from this, the project is also expected to contribute to the growth of the Calabarzon Region.

“The SLEX expansion will be a significant boost to the Calabarzon Region, which currently generates almost 20 percent of the country’s GDP,” he said.

The expansion project aims to widen the expressway from the current three to four lanes to six lanes on each side.

Ang noted that the expanded expressway is anticipated to offer faster, safer, and more convenient travel for residents of the southern provinces, including those commuting to Metro Manila. Moreover, it is expected to attract investments to the region while aiding in decongesting the capital.

Addressing concerns over temporary traffic slowdowns resulting from construction works, Ang acknowledged the inconvenience faced by motorists but emphasized the long-term benefits.

“We apologize for any inconvenience caused during this period. However, the long-term benefits, including improved traffic conditions and regional economic support, will be substantial,” he said.

Despite the overall cooperation of most landowners affected by the expansion, challenges have arisen from a minority seeking disproportionate compensation for alleged disruptions. Notably, a property owner in San Pedro City has demanded excessive fees, posing potential hurdles to the project’s timely completion.

Ang assured, however, that the company is committed to resolving such issues promptly and fairly, ensuring minimal disruption to all stakeholders and maintaining the project’s schedule. Last March, the conglomerate reported that its income in 2023 jumped by 67 percent to P44.69 billion from the previous year’s P26.76 billion.

Consolidated revenues slipped 4 percent to P1.44 trillion from the previous year’s P1.5 trillion due to the double-digit decline registered by its power unit.

“We had a strong finish to 2023, which was marked by a healthy operating income and EBITDA [earnings, before interest, depreciation and amortization] thanks to our continuous efforts to maximize operational efficiencies, aligned with our sustainability agenda,” Ang said.

“Our robust performance again reflects our resilience and ability to deliver a strong bottom line despite macroeconomic uncertainties, and our commitment to continue investing on nation-building projects.”

Ang said SMC’s infrastructure business will sustain its growth trajectory with the continued traffic growth across its network, along with increased travel throughout the country.

“Meanwhile, with its increased capacity, the cement business is expected to benefit from both private and public sectors’ push for economic and infrastructure development.”