Railroad Infrastructure and Transportation

[Edmundtanso]

i just want to share this, guys i had a weird dream last night, i was in a train in the philippines, funded by china. all of the trains were used with different type and color. the inside was refurbished but the chairs covering were all destroyed with holes. and at one time a part above the door even fell off. =) it was a really weird dream and i could relate it to this project. i hope it wont be a reality =)

[lumpia]

hahaha.. if maintanance is poor after the completion of the project then maybe it will look like that (remember LRT1 before..) maybe the dream is a warning.. send an email of this to the phils govt.. maybe only then will they begin to realise the value of maintenance ..

btw a question i can't stop pondering is why China would want to fund the Northrail project so enthusiastically?

[Edmundtanso]

hi lumpia! it think it would be hard to get the gov't to realize that importance of maintenence =)

yeah why china?

[ryanr]

Originally Posted by lumpia

hahaha.. if maintanance is poor after the completion of the project then maybe it will look like that (remember LRT1 before..) maybe the dream is a warning.. send an email of this to the phils govt.. maybe only then will they begin to realise the value of maintenance ..

btw a question i can't stop pondering is why China would want to fund the Northrail project so enthusiastically?

Maybe they wanna easen tensions from the Spratly conflict. Or maybe they wanna just get closer to the Philippines for future investment or alliances.

[renell]

yeah, i'd say this is politically motivated. so i'd reckon the spratlys are related to this.

[lumpia]

hahah.. so while the filipno govt is busy clearing squatters of nearly ALL of the proposed line. the chinese secretly annex the spratlys (they are just a few small island for goodness sake! haha), must be something over gaining a few philippine faces to show an undercurrent of support for China (if a spin can be made on the story in Beijing), thus heightening the US's tensions toward Asia (China and US as we all kno dont really get on well ).. china must now kno the value in global politics of making friends other than North Korea! i just think the govt shouldve been abit more cautious in accepting this.. one day the chinese govt or the US may ask the phils govt to take sides again (sigh.. maybe) and wher would the govt stand then?? China, its closest neighbour to the north west who had greatly boosted the Phils infrastructure? or the US, its old coloniser, who had helped in the Abu Sayyaf crisis??...

[renell]

they are just a few small island for goodness sake

i think you must be missing something from the picture. if these were "just a fewl small island", then China, the Philippines or any other country wouldn't care about it. there are huge potential gas reserves underneath these islands, therefore a big source of development. that's why numerous countries are claiming it.

[ryanr]

Exactly...those gas reserves are the most important thing in Spratly. No.1 reason why all those countries want it.

[SunKing]

Hmm, since we don't have a 'Southeasternrail' thread and we're on the topic of China as RP-financier, I'll just post this here:

Arroyo promises railway services for Bicolanos

The Philippine Star 04/24/2004

President Arroyo has vowed to extend the train services to several areas in Bicol should she win the presidential election, saying that she will fulfill the dream of her father, the late President Diosdado Macapagal, of having the "Bicol Express" in operation.

This was revealed by the President last Sunday at the Sorsogon City Gymnasium with her vice presidential running mate, Sen. Noli de Castro.

Mrs. Arroyo said her administration was doing all it can to improve the country’s transportation channels, especially in the rural areas.

She said the Chinese government, through the China National Technical Import-Export Corp. (CNTIEC) has granted a loan amounting to $900 million to finance the railway project.

The President said the loan was a result of the country’s solid and strong bilateral relations with China.

She added that the bidding for the construction of the railway project will be done as soon as the election ban imposed by the Commission on Elections (Comelec) expires.

However, Mrs. Arroyo asked the Bicolanos to support her bid for a fresh six-year term if they want to make sure the railway project pushes through. The railway services will pass through Legazpi and several other areas, and end at Sorsogon.

Meanwhile, top officials of Bicol showed their support for Mrs. Arroyo by joining her campaign sorties in the region. These included Sorsogon Gov. Raul Lee, Camarines Sur Gov. Luis Villafuerte, Albay Gov. Al Francis Bichara, Camarines Norte Gov. Jesus Typoco, Catanduanes Gov. Leandro Verceles and Masbate Gov. Antonio Kho.

[ryanr]

I'll make this the South and Northrail thread

Nice article..It should make the whole line complete. Looking forward to it.

[renell]

if one looks up a map of the philippines in an old encyclopedia, you might see rail lines in the map... that's the path of Northrail and Southrail i reckon..

[SunKing]

Has this been posted here before?

Philippines' Neda Studying Plan to Revive Panay Railways
ILOILO CITY, April 14 Asia Pulse - The National Economic Development Authority (NEDA) is studying the possibility of reviving the Panay Railways.

NEDA Assistant Regional Director Art Valero said they hope to come up with a recommendation after two months.

However, he said that if the budget for the project is too high, they might opt to have it elevated to their higher office for further study.

Valero said they will be putting weight on the financial consideration of the project, especially if the government will be shelling out some fund.

Plans to revive the Panay Railways have received various reactions both from the local officials and national officials who hail from Iloilo.

Senate President Franklin Drilon in one of his visits here said he has no concrete idea about the revival of the railway, but he believes that the plan requires a lot of money.

Former Trade Secretary and now senatorial candidate Mar Roxas has been consistent with his opposition to the project.

Sharing the view of Drilon, Roxas said that passengers would instead take the bus or other forms of transportation than take the train.

Local officials here also raised concern on relocation issues.

Based on record, the rehabilitation of the railway would affect more than 4,000 families all over Panay.

Despite these, Panay Railways Inc. General Manager Hannibal Lipardo expressed optimism that the plan will push through. In fact, a ground breaking ceremony was already set sometime in March but was postponed due to some reason.

Last 2003, the Department of Transportation and Communication also signed an agreement with a European consortium, Systra Philippines, Inc., Voest Alpine Schienen Gmbh and Siemens AG, that will undertake the rehabilitation.

The project covers a 122-kilometers stretch from Iloilo down to Aklan. It is expected to become operational in 2009.

[renell]

i think the gov't should first concentrate in the Northrail and the Southrail projects. then if any problems arise in those projects, they should be considered and therefore we can avoid them in the next rail project, wherever in the counry they may be

[ryanr]

I agree with renell. I think Northrail and Southrail should be the priority as they are vital links to the Metro. The government should make them as good as they can with the funds available. but nonetheless, the more infrastracture outside MM the better as it will boost commerce in those areas.

[ryanr]

BCDA plans to sell stake in North Rail Transit System
By Marianne V. Go
The Philippine Star 04/26/2004

The Bases Conversion Development Authority (BCDA) plans to divest its stake in the North Rail Transit System, a top BCDA official said.

BCDA president and chief executive officer Rufo Colayco said the project has been downgraded from its original concept of a high-speed railway system connecting the Diosdado Macapagal Airport in Clark to Metro Manila, to a slower commuter transit system serving the Central Luzon area.

It is well-known that while a commuter system offers more social benefits, it requires continuing government subsidy as it not always profitable and is capital-intensive, Colayco explained.

From the start, Colayco clarified that the National Government and BCDA already had an understanding that BCDA would set up the project but that it would eventually be turned over to a more appropriate entity such as the Department of Transportation and Communication (DOTC), the Philippine National Railways (PNR) or to a totally new railway corporation.

In fact, the borrower for the loan extended by the Chinese government for the revised North Rail project is the Department of Finance and not the BCDA, Colayco pointed out.

The estimated cost for the new railway system is P32 billion, of which P6 billion would be allocated for the squatter relocation and P26 billion for the railway system.

The Chinese loan would cover 80 percent of the project cost, while the remaining 20 percent would be sourced from a consortium of lenders.

To date, Colayco reported that BCDA has contributed P720 million for the project.

It is now waiting for government’s decision as to which entity would take over the railway project.

The PNR, while the logical choice is largely inoperative and still has many financial problems of its own to resolve, Colayco said.

The planned North Rail Transit System would start from Caloocan City, to Malolos, Bulacan.

----------------------------------
Mercado pushes Northrail project

K-4 senatorial candidate Orly Mercado urged yesterday the government to begin the construction of R26.1-billion Northrail project that would provide an efficient transit transport between Metro Manila and Central Luzon.


"Let us not waste time in starting this project because there are reports that the trains donated by the Japanese government are exposed to the elements and starting to rust at the maintenance yard and motor pool of the Philippine National Railways," Mercado said.

He said that the Phase I of the project covers the rehabilitation of the railroad from Sangandaan in Caloocan to Calumpit in Bulacan but it has encountered difficulties due to the lack of in-city relocation site for the squatters from Malabon and Valenzuela.

"The trains were donated three years ago and were used by the PNR for regular trips from Caloocan to Bicol but some of these coaches were already beyond repair," he said. "They can’t stop the trains from rusting because of our mean and changing weather."

The project is the second biggest Philippine-China venture that has been described as a proof of the strenghtened bilateral relations between the two countries despite their political differences involving the South China Sea.

"We are wasting time and resources in not implementing the project as soon as possible because this project will enhance the growth potential of Metro Manila and Central Luzon," Mercado said. "If this project will be completed in three year time, it will provide an effective transport service for passengers and goods between Metro Manila and Central Luzon, connecting former military bases such as Fort Bonifacio, Clark Air Base, Subic Bay Naval Station and Poro Point," he added.

[ryanr]

BCDA draws up NorthRail exit plan
By BERNIE CAHILES-MAGKILAT

The Bases Conversion Development Authority, (BCDA) is devising an exit plan over its ownership of the North Luzon Railways Corp. (NorthRail) saying it has not enough financial muscle to sustain a usually subsidized commuter train service.


BCDA president and general manager Rufo Colayco said they have several options for NorthRail including a spin off to an appropriate agency whether under the Department of Transportation and Communication, Philippine National Railways or a new rail company that will be created by Congress.

Colayco said that BCDA can no longer take care of Northrail after it has been converted into a commuter train service from the original high-speed transit.

He explained that history has proven that all commuter trains in the world whether in Japan, Europe or the US are not self-sustaining because aside from being capital intensive, the management are constrained from raising fares as commuter trains serve as mass transport system for the common masses.

As a result, most commuter trains are not selfsufficient and are therefore subsidized by the government,.

But in terms of social cost benefit, commuter trains have played a major role that the benefits created offset and far outweighed the subsidies extended by the government, Colayco sdaid.

But BCDA does not receive funding from the national government because based on its mandate, this agency is supposed to be self-sustaining from the proceeds of the privatized former military basis in the country.

BCDA then has no money to sustain the subsidy for NorthRail, Colayco noted.

Initially, Phase 1 will be opening commuter but world class train services with upgrading, potentials for higher speeds and capacities.

For now, Colayco said, BCDA was chosen as the vehicle to launch NorthRail because other agencies are not ready to handle the project. In the first place, PNR is also undergoing rehabilitation program.

There will be four phases of the NorthRail project wherein Phase 1 will be developed first.

Phase 1 involves an 80kilometer rail line between Caloocan City in Metro Manila and the Diosdado Macapagal International Airport in Pampanga.

Already, financing for Section 1 (Caloocan to Malolos) of Phase 1 has been secured by the Department of Finance from the Chinese government.

Section 1 has a total project cost of P32 billion of which P6 billion would be used for the relocation of squatters along the PNR’s Main Line North.

The bulk of the P26 billion financing is composed of an 80 percent loan financing from the Chinese government which supply the rolling stock and the remaining 20 percent to be borrowed from the private sector.

For this year, BCDA has allocated P720 million for the Section 1 project construction, which should be constructed first to complement the development of the Diosdado Macapagal International Airport in Clark.

Construction of Section 1 will also coincide with the construction of the Subic-Clark-Tarlac Expressway, which is supposed to start this month.

Construction of Section 1 of Phase 1 has been prioritized as it is also part of the Subic-Clark Alliance for Growth (SCAD), which is an integral component of the W-Growth Corridor concept for North Luzon.

[renell]

hmm.. this is gonna take a while, with all this red tape and shit. i'd say it'll be over 2008 the least, and 2011 the most, just right after a new president comes to power.

we had forgotten that it was downgraded to a commuter-rail system, meaning endorsing DMIA as the new int'l terminal for Metro Manila would be harder.

[Jerico_08]

Mindanao rail project study finished
From Manila Bulletin
Vol. 376 No. 29
April 29, 2004



The dream Mindanao rail project is just a step away from realization after the Philippine National Railways (PNR) turned over yesterday the P55-million feasibility study to leaders in the region to complete the final phase of preparations for the historic Cagayan de Oro-Iligan City rail line.


The turnover is the final gesture indicating that the start of the construction on the first of four planned new rail lines that will criss-cross Mindanao will push through as scheduled.

It came on the heels of the groundbreaking two weeks ago of the Chinese government-financed North Luzon Railway Project, which runs north from Caloocan City to San Fernando City, La Union.

Considered as the first rail project in the South in over a hundred years, the Cagayan de Oro-Iligan City rail line will be built by a consortium, backed by the Thai and German governments.

House Speaker Jose de Venecia Jr., the highest government official who witnessed the turnover, said the $1-million feasibility study is a gift of Thaipicon Industrial Co., a major rail developer in Thailand, at no cost to the Philippine government.

Thaipicon’s Mindanao rail project will be financed by the Thai Export-Import Bank owned by the Thai government.

The project is also supported by the German Siemens Group, which is backed by the German government’s KFV soft-loan financial institution.

Mayors Vicente Emano of Cagayan de Oro City and Franklin Quijano of Iligan City received the feasibility study from the PNR and the coordinator of the Mindanao Railways, Gene Mamondiong.

President Gloria Macapagal Arroyo, who gave the go-signal in mid-2003 to build the long-awaited rail line that would extend to the Misamis Oriental Export Processing Zone, had appointed Mamondiong for the project.

Also on hand to witness the turnover were Congressmen Constantino Jaraula of Cagayan de Oro City, Alipio Badelles and Abdullah Dimaporo of Lanao del Norte, and Oscar Moreno and Augusto Baculio of Misamis Oriental.

De Venecia and Baculio were instrumental in promoting the 2,000-kilometer Mindanao rail, whose first phase is the Cagayan de Oro-Iligan line.

The Speaker had proposed for the modernization of the country’s rail system, including the Mindanao Rail and Luzon North Rail projects, while Baculio witnessed the signing of the Mindanao-wide rail agreement in New Delhi, India last month.

“This will open Mindanao to a whole new era of economic development and social transformation,” De Venecia said. (Edmer F. Panesa)

[ryanr]

Thats great! Mindanao desperately needs reliable mass transportation to move goods and people. If it wasnt for all the security threats down there, Mindanao has tons of potential. It doesnt get hit by Typhoons often, and the land there is quite fertile.

[bagel]

Ooo neat. THis has been in the planning for a long time now. I saw conceptual plans for this when I was working in the Philippines in 1999.