Japan's Sumitomo eyes control of massive Philippine railway project
(DOTr photo)
Japanese railway expert Sumitomo Corp. is seeking to expand its investments in the Philippines’ railway infrastructure through a potential collaboration to manage the country’s largest railway project, according to the Department of Finance (DOF).
The DOF said in a statement on Tuesday, July 7, that Sumitomo is pursuing opportunities to contribute to the operations and maintenance (O&M) of the North-South Commuter Railway (NSCR).
In particular, the conglomerate aims to support the project through the “development of a more integrated and efficient rail network.”
With more than four decades of experience in the country’s rail development, Sumitomo has played a key role in delivering major projects, including the rehabilitation of the Metro Rail Transit Line 3 (MRT-3).
The company currently maintains the MRT-3 and is involved in construction work for both the NSCR and the Metro Manila Subway Project (MMSP).
Meanwhile, the Department of Transportation (DOTr) is still seeking a railway operator for the ₱229-billion concession to operate and maintain the NSCR.
Based on the initial schedule, the DOTr plans to launch the bidding process this month, with the contract scheduled for award in October.
The winning bidder will oversee the 147-kilometer NSCR, including its trains, depots, stations, guideways, and interoperations with the MMSP.
In September last year, Transportation Undersecretary Timothy John Batan noted that Sumitomo was among several Japanese railway operators that had expressed interest in bidding for the project.
While it remains to be seen whether Sumitomo will officially participate, Special Specialist for Investment and Economic Affairs Frederick Go said the company’s interest demonstrates its confidence in the country’s economic prospects.
The DOF added that Sumitomo is also looking to invest in the country’s energy infrastructure, particularly in renewable energy projects that could power railway operations.
“We look forward to deepening this partnership through strategic investments in infrastructure and other key sectors that will strengthen our competitiveness and support our long-term economic development,” Go said.