U.S., PH Ink Deal for Luzon Freight Rail Project

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The United States and the Philippines have formalized a new infrastructure partnership to develop the Subic-Clark-Manila-Batangas (SCMB) Railway, aimed at improving freight transport and boosting regional trade.

The agreement was signed on June 26 in Arlington, Virginia, by the U.S. Trade and Development Agency (USTDA) and the Philippines’ Department of Transportation (DOTr).

The SCMB Railway is a strategic transport corridor designed to link three major seaports—Subic Bay, Manila, and Batangas—while easing congestion at the Port of Manila.

Frederick D. Go, special assistant to President Ferdinand Marcos Jr. for investment and economic affairs, said the project supports the broader Luzon Economic Corridor initiative.

“We are grateful for the support in advancing this crucial infrastructure project, which will drive economic growth by improving connectivity between major ports and industrial hubs along the Luzon Economic Corridor,” Go said.

“Once operational, the SCMB Railway will attract investments, create new opportunities for businesses, and most importantly, generate quality jobs that will benefit millions of Filipinos,” he added.

USTDA Acting Director Thomas R. Hardy emphasized the project’s importance to regional stability and shared prosperity.

“This project underscores the U.S.-Philippine alliance’s vital role in maintaining a free and open Indo-Pacific region,” Hardy said.

“By supporting the development of the SCMB Railway, we are ensuring that key infrastructure will flourish, increasing economic cooperation to develop an essential trading route that will mutually benefit American and Philippine citizens,” he added.

USTDA’s technical assistance will include transport modeling, port-rail integration analysis, and an assessment of legal and institutional frameworks.

Philippine Transportation Secretary Vince Dizon said the SCMB freight rail line will decentralize cargo flow away from Metro Manila.

“The Philippine government extends its gratitude to USTDA for their technical assistance in developing the Subic-Clark-Manila-Batangas Railway,” Dizon said.

“This railway will not only decongest the Manila Port but will also connect the seaport to Subic Bay and Batangas Port,” he added.

The SCMB project aligns with President Marcos’ directive to secure uninterrupted movement of goods across Luzon, the country’s primary economic island.

“As a freight cargo railway, the SCMB Railway is seen to solve port traffic and congestion in Manila Port, while ensuring the timely movement of products to and from adjacent major transport hubs,” Dizon said.

The signing ceremony was attended by high-level officials including Deputy Assistant Secretary Andrew R. Herrup of the U.S. State Department and Philippine Ambassador Jose Manuel “Babe” Romualdez.

The railway is expected to complement future public-private investments in transport and logistics, contributing to enhanced supply chain resilience across the Indo-Pacific.