The United States has approved funding for the Subic-Clark-Manila-Batangas (SCMB) Rail project, a cornerstone of President Ferdinand R. Marcos Jr.’s infrastructure agenda aimed at significantly boosting trade by connecting ports that handle over 80 percent of the Philippines’ cargo.
The progress of this crucial initiative under the Marcos administration was confirmed during a recent press briefing at Malacañan Palace by Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go.
“The Luzon Economic Corridor is moving forward,” Secretary Go announced. “Many have been asking in the last two months about its status. We have received written confirmation from the US Trade and Development Agency (USTDA) that the loan for the Subic-Clark-Manila-Batangas Rail has been approved.”
He further emphasized the significance of this development, stating, “This is good news. We know that many American programs have been put on hold, but the Luzon Economic Corridor continues, which is why we are pleased to have received the letter from the USTDA.”
Secretary Go had just returned from Washington, D.C., where he met with US Trade Representative and Trade Secretary Cristina Roque and Philippine Ambassador to the US Jose Manuel “Babe” Romualdez.
Highlighting the project’s importance, Secretary Go explained that the SCMB Rail is vital for trade as it will directly link the Subic, Manila, and Batangas ports, which collectively manage over 80 percent of the Philippines’ total port traffic. This enhanced connectivity is expected to streamline logistics, reduce transportation costs, and accelerate the movement of goods across the country.
The Luzon Economic Corridor, a collaborative initiative launched in April of the previous year by the Philippines, the United States, and Japan, seeks to bolster connectivity between key economic hubs, including Subic Bay, Clark, Manila, and Batangas.
Through this strategic corridor, the three nations have committed to accelerating coordinated investments in high-impact infrastructure projects. These encompass a range of critical developments, including the SCMB Rail, port modernization efforts, clean energy initiatives, strengthening semiconductor supply chains and deployments, agribusiness advancements, and upgrades to civilian port facilities at Subic Bay. The U.S. backing for the SCMB Rail underscores the commitment of the partner nations to realize the economic potential of the Luzon Economic Corridor.
