The US government approved a $3.8 million loan to support the SCMB railway project study, a key infrastructure initiative connecting Subic, Clark, Manila, and Batangas ports. This is reported by the railway transport news portal Railway Supply.

The US government approved a $3.8 million loan to support the SCMB railway project study, a key infrastructure initiative connecting Subic, Clark, Manila, and Batangas ports
Photo from the Presidential Communications Office.

This amount exceeds the $2.5 million previously pledged by the US Trade and Development Agency. The increase followed discussions and the consultant selection process under the Luzon Economic Corridor framework.

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SCMB Railway Project to Link Major Philippine Ports

Frederick Go, Special Assistant to the President on Investment and Economic Affairs, confirmed that the USTDA delivered the formal agreement on April 28. The project will integrate three strategic ports handling over 80% of national cargo.

Officials from Go’s office will meet soon with the US Embassy and the Department of Transportation to finalize the signing. The study aims to move the SCMB railway project forward into implementation.

The SCMB railway project remains a top priority despite recent US foreign aid suspensions. The Luzon Economic Corridor continues to progress as a G7 Partnership for Global Infrastructure and Investment initiative.

Luzon Economic Corridor and Global Investment Strategy

The SCMB route will stretch 250 kilometers, extending the original 71-kilometer Subic-Clark Railway. That earlier segment stalled after the Philippines ended financing talks with China.

In response, the government is securing alternative funding, including a $1.2 million grant from Swedfund, Sweden’s development finance institution. These funds will help complete design and pre-construction work.

Former Trade Secretary Alfredo Pascual confirmed the design phase is on track for completion by 2026. Construction is scheduled to begin in 2027, advancing national trade and logistics goals.

The Philippines, US, and Japan launched the Luzon Economic Corridor in April 2024. It forms part of the G7’s plan to mobilize $600 billion by 2027 to close global infrastructure gaps.

Source: portcalls.com

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