The U.S. Trade and Development Agency (USTDA) has announced it will finance the Philippines in developing the Subic-Batangas freight railway, which will cross Manila and run along the west coast of Luzon Island.
The Philippines’ Secretary of the Department of Transportation (DOTr), Vince Dizon, and USTDA Acting Director, Thomas Hardy, signed the agreement in Arlington, Virginia, on 26 June 2025.
The financing will support technical assistance for the development of the Subic–Clark–Manila–Batangas (SCMB) railway, a proposed 132-mile (212.4 km) line connecting three of the Philippines’ most critical ports, including Subic Bay.
“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,” said Thomas R. Hardy, USTDA’s Acting Director.
Accordingly, the USTDA is partnering with the Philippines’ Department of Transportation (DOTr) to provide U.S. technical expertise in areas such as transport modelling, rail-port integration analysis, and legal and institutional planning. This preparatory work will help mobilise financing for the railway’s implementation by addressing lending requirements set by the Asian Development Bank (ADB). The SCMB railway is also expected to create significant U.S. export opportunities, particularly in providing advanced rail technologies, equipment, and services. Virginia-based firm The Cadmus Group LLC will deliver the technical assistance.
“The Subic–Clark–Manila–Batangas railway is a transformative project that will modernise our logistics infrastructure, decongest Metro Manila, and stimulate economic growth in the Philippines. As a freight cargo railway, the SCMB line is seen as a solution to port traffic and congestion at Manila Port, while ensuring the timely movement of goods to and from major nearby transport hubs,” said Philippine Secretary of Transport, Vince Dizon.
The railway will also decentralise port activity, reduce freight congestion, and potentially enable future passenger services. The project complements wider initiatives under the Luzon Economic Corridor to enhance connectivity and economic resilience across key logistics hubs, with contributions from regional allies and partners such as Japan.
The Subic-Batangas freight railway is envisioned to become the backbone of the Luzon Economic Corridor, accelerating vital infrastructure investment and driving economic transformation in the Philippines.
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