A major step toward transforming Luzon’s transport landscape was taken as the United States and the Philippines formally signed an agreement to begin work on the Subic-Clark-Manila-Batangas (SCMB) Railway — a strategic freight line that will link three of the country’s busiest ports.

The partnership, made official through the U.S. Trade and Development Agency (USTDA) and the Philippine Department of Transportation (DOTr), involves the U.S. government funding technical assistance for the project, which aims to ease congestion at the Port of Manila while strengthening logistics and trade infrastructure across Luzon.

“This project is a game-changer for the Luzon Economic Corridor,” said Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs. “It will drive connectivity between our economic hubs, draw in more investments, and most importantly, create quality jobs for millions of Filipinos.”

USTDA’s assistance will include transport modeling, a port-rail integration study, and a legal and institutional framework analysis to ensure the project’s viability and sustainability.

“This initiative reflects the strength of the U.S.-Philippine alliance and our shared vision for a free and open Indo-Pacific,” said USTDA Acting Director Thomas R. Hardy. “The SCMB Railway represents not only vital infrastructure but also stronger economic ties and expanded trade opportunities for both our nations.”

Transportation Secretary Vince Dizon echoed this, highlighting the freight railway’s critical role in decentralizing the Port of Manila and strengthening capacity at Subic Bay and Batangas ports.

“In line with President Marcos Jr.’s directive to ensure the smooth movement of goods, this railway will provide a reliable, efficient alternative route for cargo, helping us reduce traffic in Manila and boosting trade flow across Luzon,” Dizon said during the Beneficiary Agreement signing held in Arlington.

Once completed, the SCMB Railway is expected to be a vital logistics backbone, enhancing the Philippines’ competitiveness in global trade while reshaping the country’s freight movement across the Luzon corridor.