US, PH ink funding deal for Subic-Clark-Manila-Batangas Railway
The United States and the Philippines have signed an agreement for the funding of technical assistance for the construction of the Subic-Clark-Manila-Batangas (SCMB) Railway, which is designed to link three major ports in Luzon.
United States Trade and Development Agency (USTDA) Acting Director Thomas Hardy and 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, 2025. (Photo courtesy of the US Embassy in the Philippines)
According to the US Embassy in Manila, the US Trade and Development Agency (USTDA) and the Department of Transportation (DOTr) inked the deal on June 26.
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 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,” USTDA Acting Director Thomas Hardy said.
“Our partnership with the Philippines exemplifies the strength of American leadership in the Indo-Pacific and underscores our commitment to advancing our shared interests,” Hardy added.
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.
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, Dizon said during the Beneficiary Agreement signing ceremony in Arlington, Virginia.
Dizon underscored that the SCMB Railway—a freight cargo 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.
Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go 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,” Go said.
Once operational, the SCMB Railway will attract investments, create new opportunities for businesses, and most importantly, generate quality jobs, he added.