Three private companies are excited about helping to build the Mindanao Railway Project. This new railway is expected to improve travel and boost the local economy of Mindanao.
At a press event during the Mindanao Development Forum at Acacia Hotel, Secretary Leo Tereso Magno from the Mindanao Development Authority (MinDA) shared that two firms from South Korea and one from Japan are interested in funding the project. Originally started under former President Rodrigo R. Duterte, the project is now getting a major upgrade.
President Ferdinand Marcos Jr.’s administration is making changes to the project. Instead of a diesel-powered system, the railway will now use modern electric technology. This change will make the railway more efficient and environmentally friendly.
Why is the Railway Important?
The new railway won’t just be for passengers. It will also carry cargo, which is great for moving goods from farms and businesses across Mindanao. This is expected to help the region’s agriculture and many other industries, including food processing, exports, and tourism.Previously, the railway was only planned to transport people. Now, it will support various needs in Mindanao and help the local economy grow.
Kim Dong Man, chairman of Mindanao Oriental Rail Technology, has already shown strong interest in the project. In a letter to President Marcos dated July 12, he said his company has checked out potential routes and major economic areas in Mindanao. He’s excited about the project’s potential to boost the local economy.
The entire Tagum-Davao-Digos (TDD) line will cost around PHP 81.7 billion. It will make travel between Tagum and Digos much faster, cutting the travel time from 3.5 hours to just 1.3 hours. The railway is expected to serve 134,000 passengers a day by 2022, with numbers growing to 237,000 by 2032, and 375,000 by 2042.
The Philippine government is looking at different ways to fund the railway, including its own money, partnerships with private companies, and foreign loans. In October 2023, Transportation Secretary Jaime Bautista announced that talks with the Chinese government for financial help have ended, and they are now looking for other funding options.
The Mindanao Railway Project is a major step forward for the region. It will connect key cities, make travel easier, and support the local economy!
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