Mrs. Arroyo was in Guimbal, a fourth-class town in Iloilo, to inaugurate the P11-million Guimbal multi-purpose gymnasium.
She described Guimbal as the most business-friendly, "greenest and cleanest" town in Western Visayas and said it should be added to the list of the best tourist destinations in the country.
"For tourists in Boracay to reach Guimbal, we need to put a railroad from Caticlan to the town of Guimbal," Mrs. Arroyo said.
She said opening up important routes to spur tourism and development in the country, including the rehabilitation and establishment of railway systems, is under the Medium-Term Development Plan.
"So let us all work together for that," the President said.
The rehabilitation of the Panay railway system, which covers existing tracks between Iloilo and Roxas City in Capiz, could start this year after Congress enacted the National Railways Act last year.
Built by the United States, the railway system ceased operating more than 15 years ago due to financial losses.
Iloilo Rep. Janette Garin had proposed to Mrs. Arroyo the inclusion of Guimbal in the route since it is strategically located in the central part of southern Iloilo.
Proponents said the project would provide the best alternative to road transportation, with ridership forecasts reaching 42,338 passengers daily. It could also carry 63,992 tons of cargo every day.
The construction period will run from 2006 to 2008, and the railway system is set to start operating in 2009. Construction will be in several phases: the railway from Iloilo to Roxas City will be the first to be laid out, followed by the segment from Roxas City to Kalibo, and then from Kalibo to Caticlan, the gateway to Boracay island.
Mrs. Arroyo said the bidding for a P20-million port in Guimbal would start soon. A port would provide residents a direct route to Negros Oriental instead of passing through Iloilo City, which is 40 minutes away.
Garin said Guimbal’s residents have been wishing for a port for a long time. This facility could be operational by the middle of next year.
She also thanked Mrs. Arroyo for the P17-million water system in Tubunga, Iloilo and the repair of the P4-million farm-to-market road in the town of Oton.