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Manila Bulletin devider Business devider Trade & Industry devider Sweden injects $1.3 million into Luzon cargo railway development

Sweden injects $1.3 million into Luzon cargo railway development

Published Oct 22, 2025 06:03 pm
The government’s ambitious cargo railway project, which will serve as the primary transportation infrastructure along the Luzon Economic Corridor (LEC), continues to gain traction, with the government of Sweden injecting $1.3 million to advance its development.
In a statement on Wednesday, Oct. 22, the Department of Transportation (DOTr) said Sweden—through its development finance arm Swedfund—will extend a grant of $1.3 million to the Philippine government.
The grant will fund a new feasibility study for the Subic-Clark-Manila-Batangas (SCMB) railway project, which is a major component of the LEC.
The DOTr said the study will focus on the SCMB Railway’s signaling systems and operational models.
Acting Transportation Secretary Giovanni Lopez said Sweden’s support in the project is critical in realizing its objective of decentralizing Luzon’s port operations.
The 250-kilometer freight cargo railway will seamlessly connect the Port of Subic, Clark International Airport, the Port of Manila, and the Port of Batangas. Combined, these facilities account for 80 percent of the country’s total port traffic.
“This project will strengthen the country’s logistics and supply chain by providing a dedicated freight transport system connecting major ports with industrial and economic zones,” said Lopez.
“Once realized, it will reduce logistics costs, improve trade efficiency, and advance the administration’s goal of building a more competitive and connected economy,” he added.
As part of the LEC, the SCMB Railway is envisioned to foster fresh investments and trade across Luzon and its major economic hubs.
The LEC was conceptualized during a trilateral summit between the Philippines, the United States (US), and Japan last year.
At its core, the LEC aims to enhance infrastructure connectivity, promote sustainable industrial development, and drive inclusive economic growth.
Swedish Ambassador to the Philippines Anna Ferry said the grant reflects the strengthened cooperation between both countries, noting that it is an ideal model of cooperation between public and private efforts.
“We are proud to support the Philippines’ development goals with Swedish technology and expertise in transportation and provide a boost for sustainable growth and opportunities,” said Ferry.
The Swedish grant complements the $3.8-million funding from the US Trade and Development Agency (USTDA) for technical assistance for the project.
Specifically, the USTDA grant will fund parallel studies on the SCMB Railway’s transport modeling, port–rail integration, and institutional planning.
The DOTr said the Asian Development Bank (ADB) will oversee procurement of the consultant for the main feasibility study.
The North-South Commuter Railway (NSCR), which connects the provinces of Pampanga and Laguna, will complement the SCMB Railway by transporting passengers along a 147-kilometer rail line.
Spanning 35 stations, the NSCR seeks to accommodate 750,000 passengers daily at full operations.
The DOTr has opened the bidding for the operations and maintenance (O&M) contract of the NSCR valued at ₱229 billion.
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