The Philippine National Railway (PNR) Bicol, otherwise known as the South Long Haul Project, will employ over 5,000 people per year directly, during its construction.
“For our compatriots in the South who have dreamt of this project for so long, we are finally seeing the light of day," Department of Transportation (DOTr) Secretary Art Tugade announced in the Jan. 17, 2022 signing of the P142 billion Design-Build contract for the first 380 kilometers of the railway, from Banlic, Calamba to Daraga, Albay.
The DOTr clinched the deal with the Joint Venture of China Railway Group Ltd., China Railway No. 3 Engineering Group Co., Ltd., and China Railway Engineering Consulting Group Co., Ltd. (CREC JV)
It was the DOTr's single largest rail contract.
"This milestone is a huge leap towards realizing this long-awaited project," according to Tugade.
"We are grateful to our development partners from China for supporting us in this endeavor and believing that the Filipino people deserve an improved quality of life.”
The CREC JV is listed in both the Hong Kong and Shanghai stock exchange and ranked 35th on the Fortune Global 500 list and 5th among China's top 500 enterprises in 2021.
The first 380 kilometers of PNR Bicol from Banlic, Calamba to Daraga, Albay will span 39 cities and municipalities, 4 provinces, and 2 regions.
The JV will build 23 stations, 230 bridges, 10 passenger tunnels, and a 70-hectare depot in San Pablo, Laguna.
Along with its future segments, PNR Bicol will consist of a 565 kilometer railway connecting Metro Manila to the southern Luzon provinces of Sorsogon and Batangas.
Once fully operational, the railway will cut travel time between Metro Manila and Bicol from the current 12 hours by road to 4 hours.
Passenger trains will run at a speed of up to 160 kilometers per hour while freight trains will run at a speed of up to 100 kilometers per hour.
“We welcome this development full of enthusiasm as we will be working with rail experts known for their efficiency and speed in building long haul railways," says PNR General Manager Junn Magno.
"This, along with our goal to provide comfort and convenience to our commuters, will make this dream project a reality,” he concluded.