US to boost funding for Luzon Economic Corridor railway project
USTDA Acting Director Thomas R. Hardy (left) and DOTr Secretary Vince Dizon | Photo from USTDA
WASHINGTON – The US Trade and Development Agency (USTDA) has signed a formal agreement with the Philippine Department of Transportation (DOTr) to fund technical assistance for the Subic-Clark-Manila-Batangas (SCMB) Railway.project.
“This project underscores the US-Philippines alliance’s vital role in maintaining a free and open Indo-Pacific region,” said USTDA Acting Director Thomas R. Hardy. “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.”
Hardy said the US is strengthening its strategic partnership with the Philippines by supporting the development of the railway project – a major component of the Luzon Economic Corridor (LEC).
The proposed 132-mile line connecting major economic hubs in Luzon – Clark International Airport and the Subic, Manila and Batangas ports – is envisioned to be the backbone of the LEC, which is expected to accelerate critical infrastructure investment in the country.
“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 said.
USTDA will provide technical expertise related to transportation modeling, port-rail integration analysis and legal and institutional planning.
This project preparation work will help mobilize financing for the railway’s implementation by addressing Asian Development Bank lending requirements.
The SCMB Railway is expected to generate significant US export opportunities by providing secure high-tech rail technologies, equipment and services. Virginia-based The Cadmus Group LLC will provide the assistance.
The SCMB Railway will also decentralize port activity, ease freight congestion and enable potential passenger services in the future.
The project complements broader efforts under the LEC to enhance connectivity and economic resilience across key logistics hubs, with contributions from regional allies like Japan.
“The Subic-Clark-Manila-Batangas Railway is a transformative project that will modernize our logistics infrastructure, decongest Metro Manila and stimulate economic growth in the Philippines,” said Philippine Secretary of Transportation Vince Dizon.
“We appreciate USTDA’s support in advancing this critical initiative, which exemplifies the strong cooperation between the Philippines and the United States in developing high-impact infrastructure and preserving a free and open Indo-Pacific region.”
