US backs Subic-Clark-Manila-Batangas Railway after China exit
MANILA, Philippines — The Philippine government has secured a new partner for the Subic-Clark-Manila-Batangas (SCMB) Railway project, originally planned with Chinese support.
The Department of Transportation (DOTr) announced that the U.S. Trade and Development Agency (USTDA) has signed a formal agreement to provide funding for technical assistance to the freight railway.
“This project underscores the U.S.-Philippine alliance’s vital role in maintaining a free and open Indo-Pacific region,” USTDA Acting Director Thomas Hardy said in a DOTr statement.
“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 added.
“Our partnership with the Philippines exemplifies the strength of American leadership in the Indo-Pacific and underscores our commitment to advancing our shared interests,” he said.
Boost to logistics, trade. Transport Secretary Vince Dizon said the project is expected to help decongest the Manila Port and expand the transport capacity of both the Batangas Port and Subic Bay.
“As a freight cargo railway, the SCMB Railway is seen to solve port traffic and congestion in Manila Port, while ensuring the timely movement of products to and from adjacent major transport hubs,” Dizon said.
Special Assistant to the President for Investment and Economic Affairs Frederick Go, meanwhile, said the railway would have broader economic impact in the area.
“Once operational, the SCMB Railway will attract investments, create new opportunities for businesses, and most importantly, generate quality jobs that will benefit millions of Filipinos,” Go said.
A shift away from China. The SCMB project was first proposed during the administration of former President Rodrigo Duterte, alongside plans for the Philippine National Railways South Long Haul and the Mindanao Railway Phase 1.
However, negotiations failed to advance after China pulled out of the deals.
Relations between Manila and Beijing have since deteriorated under President Ferdinand Marcos Jr., particularly over ongoing tensions in the West Philippine Sea. Marcos has maintained that the Philippines holds sovereign rights over its exclusive economic zone.
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