SCMAP Perspective: 18 July 2022

SCMAP Perspective is our fortnightly column on PortCalls, tackling the latest developments in the supply chain industry, as well as updates from within SCMAP. On this column, Henrik Batallones looks at the challenges of making rail transport viable for the Philippines.

Can we make rail work?

As discussion of a new “transportation crisis” continues to take hold in the public imagination, we will look at one form of transport that has, for the most part, been given little attention: rail.

Sure, there was a point when all we talked about was how many wagons were operating on the MRT at a given day, or how fast they’re traveling, or how long the lines are to get there. But in recent decades, investment in rail systems – both rapid transit and intercity rail – has been lacking. Metro Manila, home to 13 million people (plus roughly five million more commuting to work during the day) is served only by three rapid transit lines and one commuter rail system, none of which truly cover the whole region.

It wasn’t always this way. At its height the Manila Railroad Company, the predecessor to today’s Philippine National Railways, oversaw over 1,100 kilometers of track across Luzon, most of which was destroyed during the war. While the PNR was widely used in the 1960s and 1970s, lack of government support meant our rail network fell into disrepair, with routes to provinces in northern and southern Luzon reduced as the focus shifted to road networks – with the exception of the first LRT line, which opened in 1984. Similarly, the island of Panay had 117 kilometers of track connecting its major cities, but operations ceased in the 1980s.

There were many efforts to reopen our rail networks, but these plans – including the reopening of routes to central Luzon and the Bicol region – have been mired in political and legal trouble. Meanwhile, two new rapid transit lines were opened: the MRT has long been operating over its capacity, while the LRT-2 has suffered from low ridership, and was only recently extended to Antipolo. Only in recent years did our rail networks get a boost: as the Duterte administration doubled down on infrastructure investment, construction of the North-South Commuter Railway, MRT-7 and the Metro Manila Subway went into full steam. Plans for a cargo link connecting Clark and Subic, as well as a rail system in Mindanao, were also proposed.

Developing a modern rail network takes considerable time and resources, but the benefits are plain to see. Rail provides commuters with another option for commuting, whether within the city or between them. It’s a boon for workers and tourists alike, considering recent increases in fuel prices and their long-term effects on transport costs. There’s also the chance for lower carbon emissions, as individual trips via vehicles are reduced in favor of mass transit options – a critical consideration as we look to embrace more sustainable transport in light of climate concerns and our position as a disaster-prone country.

The same arguments also go for freight rail, which should follow suit once we have laid the groundwork for a modern rail network. It provides businesses with another option for moving goods, one that is perhaps more timely and reliable than trucks, which are subject to congestion in major roads as well as fluctuations in fuel prices. The biggest concern, however, is scale. Our current rail networks just don’t extend far enough to make transporting freight a viable and competitive option, at least outside of small packages that can go with passenger trips. Take the proposed Clark-Subic rail link: while it serves an emerging economic corridor and provides a link between a major airport and a major container port, it makes little sense unless you connect it to a wider rail network that serves major business destinations. Otherwise, the costs of transferring shipments to trucks would outweigh any benefits.

The Marcos administration has so far vowed to continue the increased investment in infrastructure started by its predecessor, looking to spend up to 6% of gross domestic product annually on such projects. Perhaps looking at rail would be a good start? For a start, revitalizing the rail links in Luzon and reintroducing freight services would go a long way in boosting the logistics sector and lowering costs. And then maybe we can consider rail links from Luzon to other islands in the Philippines. It’s not impossible. Japan’s shinkansen system is served by several railway tunnels and supplanted by other forms of transfer between its islands. But that’s a long-term goal, and global economic problems mean this may be difficult to even imagine at the moment… but one can’t help but dream, or at least watch YouTube videos of rail travelers going from one end of the country to the other in relative comfort and style.