ILOILO City – Reviving Panay Island’s railway system should not be a problem even if it needs gargantuan funding, according to state-owned Panay Railways, Inc. (PRI).
The revival, estimated to cost US$1.5 billion, may be done through the public-private partnership scheme, said PRI chief operations officer Cesar Capellan.
Recently, Undersecretary Cesar Chavez of the Department of Transportation (DOTr) said, “There is no funding source for that project so far, and there is no guidance from the DOF (Department of Finance) where to get the budget.”
According to Capellan, however, the project is achievable.
“Anyway ang proponent will provide the funding. Maybe they will secure a loan, or sila mismo or ang company nila can afford,” he said.
Capella said the US$ 1.5 billion is just for Phase 1 of the Panay railway system’s revival. It covers the rehabilitation of 117 kilometers of railway tracks from Iloilo City to Roxas City.
“Phase 1 includes civil works, locomotives, human resources, relocations, among others,” said Capellan.
Panay railway’s original route was 117 kilometers long and included 19 permanent and 10 flag stations. It connected the then towns of La Paz and Jaro (now districts of Iloilo City), Pavia, Santa Barbara, New Lucena, Pototan, Dingle, Dueñas, and Passi in Iloilo, and Dumarao, Dao, Panitan, Cuartero, and Loctugan in Capiz. It reached Roxas City.
The proposed revival of Panay Island’s railway system will expand its area of coverage, thus Phase 2 will see the construction of new railway routes from Roxas City to Kalibo, Aklan going to Caticlan in Malay, Aklan, said Capellan.
Phase 3 will cover the new railway route from Caticlan, Malay, Aklan to San Jose, Antique; and Phase 4 will cover the new route from San Jose, Antique to Iloilo City via Iloilo province’s San Joaquin and Miag-ao towns.
“Ang first phase lang muna ang pagtutuunan ng pansin. Yan ang recommendation ng NEDA (National Economic and Development Authority),” said Capellan.
Once the old railway route becomes operational, the second, third and fourth phases, may be started, he added.
The PRI chief revealed that London-based Global Wealth Centres recently sent a letter of interest, and PRI responded positively by inviting it to the Philippines and discuss a memorandum of understanding (MOU) outlining the responsibilities of both the proponent and PRI in the project.
As of this writing, PRI has yet to receive a response from Global Wealth Centres, which would be required to conduct a feasibility study.
Capellan said the Philtrak consortium, a Philippine-based company, has also expressed interest. It proposed a modern public transport system using the electric road train (ERT) technology developed by the Department of Science and Technology (DOST).
The Panay railways started operating in 1907. In Iloilo City, its the trains ended at the passenger terminal along the wharf next to the Customs House and near where the current Iloilo City Hall stands. Trains ran across what is now the Drilon Bridge from La Paz and down the bank of the Iloilo River to Muelle Loney at the Port of Iloilo.
However, operations ceased in 1983 due to mounting losses.
President Ferdinand “Bongbong” Marcos. Jr. ordered the revival of the railway system in Panay Island, among other roads and transportation systems in the country, in his first State of the Nation Address (SONA) on July 25.
The President lamented that in recent years the country missed some great opportunities to develop its rail transport system.
“It is clear in my mind that railways offer great potential as it continues to be the cheapest way of transporting goods and passengers,” said Marcos whose SONA centered mainly on revitalizing the country’s economy.
“We can build upon already existing lines by modernizing these old railway systems,” said Marcos.
The Panay railway system will be integrated as a vital part of the country’s transport and communications systems, he said, also mentioning, the 102-kilometer Mindanao Railway Project and the Cebu railway system.
He described them as “larger-scale railway systems”.
“I’m very happy,” said Capellan. “Malaking bagay yan sa economy. Instead na farm-to-market roads, sa railway na lang padadaanin ang products.”/PN
