Metro Pacific Investments Corp. (MPIC) is considering selling its stake in the private operator of the Light Rail Transit Line 1 (LRT-1) as losses continue to mount, according to business titan Manuel V. Pangilinan.

“We continue to lose money on LRT-1, and I think we’re considering selling it,” Pangilinan said in an interview.

MPIC, which Pangilinan heads, holds a 35.8 percent stake in Light Rail Manila Corp. (LRMC), the rail line's operator, through its subsidiary Metro Pacific Light Rail Corp. (MPLRC).

Pangilinan did not disclose specific figures but noted that MPIC’s investment in the LRT-1 continues to hemorrhage money because ridership has not yet returned to pre-pandemic levels.

Before the Covid-19 pandemic, the railway averaged 500,000 passengers per day. Last year, the average daily ridership was 323,987, an increase from 298,740 in 2023 and 219,772 in 2022.

In its annual report last year, MPIC stated that while “all public transportation systems are now allowed to operate at 100 percent, these capacity restrictions resulted in a significant decline in LRMC's ridership and farebox revenue for year 2020 and to date.”

MPIC also observed that during the height of the pandemic, competing transportation providers, such as the EDSA Carousel bus system and ride-hailing apps like Angkas and Grab, gained popularity.

Pangilinan noted the plan to divest from LRMC is still in the exploratory phase, with no final strategy in place.

“We just talked about it yesterday. People were complaining that it’s losing money, why do we need this,” he added.

The decision to sell marks a major shift for MPIC. Last year, the company signaled its intention to increase its ownership in LRMC after co-owner Ayala Corp., which holds a 35 percent stake, floated the idea of divesting. MPIC had expressed interest in buying Ayala’s share to become the majority owner with over 70 percent of the railway, though Ayala has since shelved its own divestment plan.

Other stakeholders in LRMC include Sumitomo Corp. with 19.2 percent and the Philippine Investment Alliance for Infrastructure’s Macquarie Investments Holdings (Philippines) Pte. Ltd. at 10 percent.

LRMC took over the operations and maintenance of the LRT-1 in 2015 via a 32-year concession agreement valued at ₱65 billion with the Philippine government.

The Department of Transportation (DOTr) earlier confirmed that LRMC has submitted an unsolicited proposal to complete the construction of the long-delayed common station designed to link Metro Manila’s main railways. DOTr Undersecretary Timothy John Batan said the agency aims to finalize the contract with LRMC this year for the continuation of the Unified Grand Central Station project.