Chinese firm to deliver 48 trains in 2 yrs – DOTC

MANILA, Philippines - The Department of Transportation and Communications (DOTC) yesterday said Dalian Locomotive and Rolling Stock Co. of China has vowed to expedite the delivery of 48 brand new trains for the Metro Rail Transit line 3 (MRT3) by one year.

This as the agency turned the tables on the major shareholder of Metro Rail Transit Corp. (MRTC) for failing to improve the mass transit system by purchasing additional light rail vehicles (LRVs) resulting to poor service to millions of passengers.

Michael Arthur Sagcal, DOTC spokesperson, said the government managed to secure the assurance from the Chinese company that it would speed up the delivery of the brand new trains.

 â€œBefore the court stopped the project, the DOTC managed to secure Dalian’s assurance that it would exercise all efforts to complete the delivery of all 48 LRVs within two years, ahead of the three-year period allowed in the contract,” Sagcal said.

The DOTC awarded the P3.8-billion MRT3 capacity expansion project to China’s Dalian Locomotive and Rolling Stock Co. last Jan. 16.

The project would result in significant improvements in the railway’s services as four-car trains would arrive every 2.5 minutes from the current three-car trains arriving every three minutes.

Earlier, Makati City RTC Branch 66 presiding judge Joselito Villarosa granted the petition of MRTC and Metro Rail Transit Holdings Inc. II stopping the DOTC from implementing the contract with the Chinese firm concerning the acquisition of 48 brand new trains for MRT3.

By virtue of the build-lease-transfer agreement with the DOTC in 1999, MRTC said it has the right to construct and maintain MRT3 and that the DOTC usurped the rights of MRTC to build the MRT3 system as well as to add trains or lines connected to the mass transit system.

MRTC wanted to provide additional trains for MRT3 at no cost to government and in the true spirit of public private partnership (PPP). It argued that the DOTC did not seek its consent and approval on the proposed capacity expansion project.

Infrastructure giant Metro Pacific Investments Corp. (MPIC) has a 48 percent interest in MRTC after it entered into a cooperation agreement with the Sobrepena-owned Fil-Estate Corp. in November 2010 regarding its interests and rights in Metro Rail Holdings Inc., Metro Rail Transit 2 Inc., and Monumento Rail Transit Corp. It has yet to exercise its option over the shares.

MPIC offered to spend $300 million to expand the capacity of MRT3 and another $350 million to acquire equity and bonds issued by MRTC.

Sagcal said the company should explain to the public why it has not improved services at the MRT3 system despite the badly-needed additional trains for many years.