Philippines renews romance with rail: $30-billion projects underway (after decades of neglect, under-investment)

Manila: The Philippines is undergoing a sweeping transformation in its rail infrastructure, with up to $30 billion worth of railway projects now in motion.

It marks one of the country’s most ambitious transportation overhauls in decades, away from road transport.

The biggest, the ₱488.5-billion ($8.78-billion) Metro Manila subway seeks to address chronic traffic congestion and enhance public transportation in the capital, known for its worst-in-the-world traffic. 

Ambitious projects

These projects are ambitious not only in scale and cost, but also in vision — seen as potential "game-changers" in the push to modernise the country’s long-neglected rail transport system.

They’ve been met with tough challenges – mainly right-of-way (ROW) issues. These have impacted their timelines and budgets.

Still, no project zips along without a few bumps — that’s democracy for you.

In the Philippines, it’s often the lawyers in courtrooms, not the engineers in hard hats, calling the shots on timelines.

But let’s be real: trains don’t run on paperwork and legal jargon — they run on tracks, steel, and sweat.

The government has leaned on both private and public partnerships (i.e. no taxpayers' money used for public projects), as well as development loans, to ramp up rail.

Following are the current projects, cost, challenges and expected rollout in the sector: 

MRT-7 is a 22.8-km railway line connecting North Avenue in Quezon City to San Jose del Monte in Bulacan, with 14 stations.

The MMSP is the Philippines' first underground railway system, designed to span 36 kilometers with 17 stations from Valenzuela City to Parañaque.

Once completed, it aims to serve up to 370,000 passengers daily, significantly reducing travel time across Metro Manila. 

The NSCR is a 147-kilometer railway project connecting New Clark City in Tarlac to Calamba in Laguna, with 35 stations. It is expected to serve over 800,000 passengers daily, providing a faster and more efficient alternative to road travel. 

The LRT-1 Cavite Extension adds 11.7 kilometers to the existing line, extending it from Baclaran to Bacoor, Cavite. This expansion aims to accommodate up to 800,000 passengers daily, easing congestion in southern Metro Manila. 

The PNR South Long Haul project aims to revive the railway line from Manila to Legazpi City in Albay, spanning over 560 kilometers. This project is expected to boost economic activity in the Bicol region and provide a more efficient transportation option for passengers and freight, as per the Philippine Information Agency.

Right-of-Way (ROW) Acquisition: Securing land for railway construction has been a persistent issue, leading to delays and increased costs.

Funding and budget constraints: While some projects receive official development assistance, others rely on public-private partnerships, which can be affected by economic fluctuations.

Construction delays: Unforeseen technical difficulties, natural disasters, and supply chain disruptions have impacted project timelines.

Despite these challenges, the Philippine government remains committed to improving the country's railway infrastructure.

These projects are expected to significantly enhance connectivity, reduce traffic congestion, and promote economic growth once completed.

Lack of Maintenance and Investment

The Philippines had a long romance with rail. It started with the 195-km line rolled out in 1892 during the Spanish colonial period and operated by the Manila Railway Co (from Manila to Dagupan).

The railway system was heavily damaged during World War II, particularly the main lines.

And over the decades, due to neglect, wars and natural disasters — as well as the expansion of road-based transport — the Philippine railway system suffered from chronic underfunding and neglect.

Aging infrastructure, outdated trains, and insufficient upgrades led to frequent breakdowns and declining service quality.

In the post-war years, many of these lines were not fully restored. Morever, government policies favoured road infrastructure, which further marginalised rail development.

Under the new public-private partnership rules, approved in the early 1990s and updated recently, things are starting to change for the country's rail sector.