MANILA, Philippines – The Philippine National Railways (PNR) postponed the signing of the freight train track usage agreement with MRAIL Inc., a subsidiary of Manila Electric Co., amid issues which need to be resolved with the Philippine Ports Authority (PPA).
PNR general manager Joseph Allan Dilay told reporters the agency expects to sign the deal in one to two weeks, after the right of way issues with PPA are addressed.
“There are no legal impediments to this agreement,” he said.
Dilay said the postponement would also give PNR time to inform the PPA about the agreement.
“This way, when we do the actual signing, representative of these offices will be here to witness this historic accord,” he said.
The agreement, when signed, will allow MRAIL to operate a freight train service in the existing PNR tracks or a minimum of eight round trips per day with an average daily container transfer of 600 twenty foot equivalent units (TEUs) from the Manila International Container Terminal to the Laguna Gateway Inland Container Terminal of International Container Terminal Services Inc. (ICTSI) and vice versa.
MRAIL president and chief executive officer Ferdinand Inacay said MRAIL and ICTSI are planning to spend about P1 billion for three train sets for the freight service, to meet the projected demand.
There is a need to get the approval of PPA for the agreement as the agency has jurisdiction over ICTSI’s concession area.
The freight train service is intended to support the manufacturing industry and ease road congestion by serving as an alternative to trucks for transporting goods.
The service has been offered before but was removed due to major challenges.
MRAIL and ICTSI want to revive the service due to traffic congestion and the lack of new roads.
Dilay said the freight train service, when in place, would not interfere with the operations of the PNR commuter service plying the Tutuban to Alabang route as it would be using different tracks.
MRAIL is focused on rail investments, operations and maintenance as well as providing rail technical services.