Railway economics

Critical railways such as the North-South Commuter Railway (NSCR) open many opportunities. The economic benefits they bring are not confined to a particular region-they are national in scope.

The 147-kilometer NSCR, for one, will generate economic opportunities beyond Luzon by strengthening the country’s manufacturing and logistics networks. It is expected to improve the movement of people and goods and support businesses linked to major economic and industrial centers.

Businesses, workers and producers from Luzon to the Visayas and Mindanao, per Executive Secretary Ralph Recto, stand to benefit from a stronger manufacturing sector, better logistics and greater access to markets.

The economic benefits that railways bring can be likened to the 47,000-mile US Interstate Highway System that opened in the ’50s. The Dwight D. Eisenhower National System of Interstate and Defense Highways, commonly known as the Eisenhower Interstate System, is a network of controlled-access highways that forms part of the national highway system in the United States.

The system extends throughout the contiguous United States and has routes in Hawaii, Alaska and Puerto Rico.

The transportation investments of the US connected communities, expanded opportunity, strengthened national defense, improved safety and fueled growth. They transformed the United States into the world’s most dynamic economy.

In NSCR’s case, it would support industrial zones along the Luzon Economic Corridor by improving passenger mobility and connectivity among major economic hubs.

Mr. Recto sees the NSCR as an additional leg in our stool for the economy.

A stronger industrial and logistics network in Luzon could create opportunities for producers and businesses in the Visayas and Mindanao that supply raw materials, agricultural products and other inputs to processing and manufacturing centers.

Mindanao’s mineral resources could support the country’s push toward higher-value manufacturing.

An infrastructure in one part of the country, like the NSCR, can create opportunities in another. It will connect resources, industries, workers and markets so that growth is not confined t o one region but shared across the Philippines.

The Malolos-Valenzuela segment of the NSCR is expected to be operationally ready by 2028, followed by the Malolos-Clark section in 2029.

The railways system could provide the link to helping and developing Mindanao and pave the way for government assistance following the magnitude 7.8 earthquake that struck parts of the island on June 8.

As I’ve said in this column before, recovering from a disaster of this magnitude is not easy. We are dealing here with lost lives, injured persons, destroyed properties and disrupted livelihoods that may take a while to resume.

Our young generation is also suffering from this natural disaster. Thousands of schools and learning centers in Mindanao either collapsed or were rendered inoperable by the strong earthquake.

The earthquake, one of the strongest to hit Mindanao in recent years, caused widespread destruction across several provinces, damaging homes, government buildings, schools, hospitals, roads and commercial establishments.

The earthquake has left a lasting damage on infrastructure that will require more time to rehabilitate. The earthquake, like strong typhoons, ruins or weakens infrastructure facilities like roads, bridges, schools, hospitals and other concrete buildings.

Improving the transportation experience in other parts of the country is equally important. The Davao Public Transport Modernization Project (DPTMP) is an example of a road infrastructure that creates a more inclusive economy.

The government is implementing an accelerated construction schedule to ensure the ‘DavaoBus’ system remains on track for its 2027 launch. Completing the DPTMP or ‘DavaoBus’ as soon as possible is strategic because it would serve as the model for other provinces.

Once the entire 672-kilometer DPTMP is operational, the project is expected to serve 800,000 commuters daily. The DPTMP is also expected to operate with 386 electric buses, 531 regular buses and 188 mini-buses.

Upgraded railways, improved footbridges and pioneering roads in the countryside are parts and parcels of a modern economy. They provide comfort to our weary Filipino commuters and make the economy more responsive and resilient.

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