Politics & Government

Reviving the Rails: The Marcos Era's Bold Bet on Philippine Railways and the Lives It Could Transform

by Louie Biraogo '79

Published August 31, 2025

In the sweltering heat of a Bicol morning, Maria Santos, a 52-year-old farmer from Camarines Sur, loads her baskets of fresh pineapples onto a rickety bus bound for Manila's markets. The journey takes eight grueling hours over potholed roads, where delays from landslides and traffic are as predictable as the monsoon rains. By the time she arrives, much of her produce has spoiled, forcing her to sell at a fraction of its worth.

Maria's story is emblematic of the millions of low-income Filipinos in rural areas who remain cut off from economic opportunities, their livelihoods stunted by inadequate transport. Yet, under President Ferdinand R. Marcos Jr.'s administration, a "railway renaissance" is underway, with ambitious projects like the restoration of the Bicol Line and the North-South Commuter Railway (NSCR) promising to reconnect Luzon and beyond. Led by Philippine National Railways (PNR) Chairman Michael Ted Macapagal, these initiatives could bridge the urban-rural divide, but they also carry risks of overambition, debt burdens, and uneven benefits.

Infrastructure is never just steel and concrete; it is a force that can uplift the vulnerable or, if mismanaged, brutally exacerbate existing inequalities. The Philippines stands at a crossroads: Can these rails deliver inclusive progress, or will they echo the unfulfilled promises of past eras?

A System Reborn from Neglect

The revival of Philippine railways is not just about steel and tracks; it's a narrative of redemption for a system that once symbolized colonial ambition and post-war promise but devolved into neglect. At its peak in the 1930s, the network spanned over 1,100 kilometers, ferrying passengers and goods from La Union in the north to Legazpi in the south. World War II bombings, typhoons, and chronic underinvestment reduced it to a shadow of itself—by 2025, only about 130 kilometers remain operational, mostly in urban Metro Manila and the Bicol region.

The 2019 Global Competitiveness Report ranked the Philippines dead last in Asia for train service efficiency, a stark contrast to neighbors like Vietnam and Thailand, where rail networks have surged ahead under integrated regional plans. Marcos Jr., invoking his father's legacy of initiating the Light Rail Transit Line 1 (LRT-1) in 1984, has positioned railways as a cornerstone of his "Build Better More" (BBM) agenda, aiming for 5-6 percent of Gross Domestic Product (GDP) in infrastructure spending. With 207 flagship projects worth $178 billion as of mid-2025, railways are central, backed by a mix of Official Development Assistance (ODA), Public-Private Partnerships (PPPs), and domestic funding.

Leadership and Vision

At the helm is Michael Ted Macapagal, appointed PNR Chairman in April 2023. A former corporate executive in San Francisco who broke glass ceilings as the first Filipino to lead a major United States (U.S.) title insurance firm, Macapagal brings a blend of business acumen and public service zeal—honed as a community advocate in Olongapo during the COVID-19 pandemic. He has dubbed Marcos the "father of the Philippine railway system," crediting the president's vision for an "unprecedented push" toward a comprehensive network.

Macapagal's leadership emphasizes not just passenger services but integrated cargo operations, as seen in his recent advocacy for freight alongside the NSCR. In a press release from the PNR, he stated, "Integrating a cargo train parallel to the North-South Commuter Railway (NSCR) project is an important step towards creating a comprehensive logistics network that will enhance economic efficiency, improve the livelihoods of farmers and fisherfolk, and significantly lower food prices." This pragmatic approach—drawing on U.S. and Japan partnerships—signals a shift from past isolationist failures, fostering coordination with the Department of Transportation (DOTr) and international allies like Japan, South Korea, and the European Union (EU).

Navigating Complex Stakeholder Dynamics

Yet, Macapagal's vision must navigate a labyrinth of stakeholders. Coordination between PNR, DOTr, and foreign partners has improved under Secretary Vince Dizon, who echoes Marcos's call to shift from a "car-centric" system. The recent U.S. funding boost for the Subic-Clark-Manila-Batangas (SCMB) Freight Railway exemplifies this, linking ports and economic zones to slash logistics costs. Frederick Go, Special Assistant to the President for Investment and Economic Affairs, noted, "This milestone demonstrates that Republic of the Philippines-United States (RP-US) economic ties are stronger than ever under President Marcos Jr."

Still, challenges persist: Right-of-Way (ROW) acquisitions remain mired in legal disputes, as highlighted by a 2024 Department of Justice (DOJ) opinion prioritizing Philippine laws over donor guidelines from the Japan International Cooperation Agency (JICA) and Asian Development Bank (ADB). Political interventions at local levels and natural disasters further complicate execution, underscoring the need for robust inter-agency mechanisms like the Inter-Agency Committee for Right-of-Way Activities, established in 2024.

Flagship Projects and Ambitious Timelines

The crown jewel of this renaissance is the NSCR, a 147-kilometer elevated line from Clark in Pampanga to Calamba in Laguna, set for partial operations by 2027 and full completion by 2029. Funded by a $3.4 billion JICA loan and ADB support, it will accommodate 800,000 daily passengers, slashing Clark-to-Calamba travel from four hours to under two. Macapagal's push for cargo integration here could revolutionize freight, complementing the $3.2 billion SCMB project.

Other key initiatives include the Metro Manila Subway Project (MMSP), a 36-kilometer underground line from Valenzuela to Sucat with a Ninoy Aquino International Airport (NAIA) spur, targeting partial operations in 2028 and full by 2029. JICA's 2018 study estimated Metro Manila's daily traffic cost at ₱3.5 billion ($60 million), projected to rise to ₱5.4 billion ($92 million) by 2035 without intervention—these projects aim to alleviate that.

Restoring the Bicol Line, a 500-plus kilometer lifeline from Laguna to Legazpi, addresses rural neglect head-on. Following Marcos's fourth State of the Nation Address (SONA) directive, PNR reaffirmed its commitment to full restoration by 2026, with major works by late 2025. Milestones include the Binahan Bridge rehabilitation in June 2025 and Sipocot-Ragay sector operations by the third quarter of 2025. Operational commuter lines like Calamba-Lucena and Naga-Sipocot form the backbone, with extensions to Sorsogon planned.

The SCMB Freight Railway, backed by U.S. funding, links Subic Bay, Clark, Manila, and Batangas, promising to cut logistics costs and boost exports. Light Rail Transit (LRT) and Mass Rapid Transit (MRT) upgrades—LRT-1 Cavite extension by 2026, MRT Line 3 (MRT-3) rehabilitation by 2025, MRT Line 7 (MRT-7) by 2026—target urban congestion. The Mindanao Railway Project's Phase 1 feasibility study for Tagum-Davao-Digos signals southern expansion.

Reality Check: Learning from Past Failures

These timelines, while ambitious, invite scrutiny against historical precedents. Past projects like the Northrail (canceled in 2010 amid corruption allegations) and South Long Haul (Chinese funding withdrawn in 2023 due to delays) were plagued by overruns—often 5-10 years behind schedule. The NSCR's 2029 target, per ADB reports, risks slippage from ROW issues and pandemics, mirroring Duterte-era delays.

Yet, Marcos's administration has accelerated via PPPs and ODA, with 70 of 207 flagships ongoing. A 2025 Philippine Institute for Development Studies (PIDS) report notes only three of 16 SONA infrastructure promises fulfilled, but recent progress—like LRT-1 South Extension's 2024 inauguration—suggests momentum. Compared to Southeast Asia, where Thailand's high-speed lines and Vietnam's North-South upgrades advance steadily, the Philippines lags but shows promise through diversified funding.

Transformative Potential for the Poor

For low-income Filipinos, these rails could be transformative. The NSCR and Bicol restoration promise affordability—fares projected at ₱20-50 per ride—enhancing accessibility for the 15.5 million in poverty (2023 World Bank data). Job creation is immediate: NSCR alone will generate 23,900 construction jobs, many for unskilled rural workers. A JICA study forecasts reduced logistics costs, boosting regional GDP by 2-3 percent, with rural Bicol farmers like Maria gaining direct Manila access, potentially raising incomes 400 percent via cargo integration.

Urban planning benefits include decongesting Manila's ₱3.5 billion daily traffic toll, freeing time for education and health, critical for the 16.6 percent poverty rate drop targeted by 2022. Environmentally, electrification cuts emissions by 60,000 tonnes annually, aligning with climate goals.

Equity Concerns and Uneven Benefits

Yet, socioeconomic impacts demand equity focus. Low-income riders may face fare hikes post-subsidy, exacerbating inequality if rural extensions lag. The 2018 Tax Reform for Acceleration and Inclusion (TRAIN) law's excise taxes initially worsened poverty by 0.03 percent of GDP, per PIDS, underscoring the need for targeted cash transfers.

Rural communities stand to gain from market access but risk displacement—ROW issues have stalled projects, affecting 1.5 million indigenous households in past initiatives. A 2022 PIDS study highlights uneven benefits: urban elites capture more from congestion relief, while rural poor need complementary roads. Globally, lessons from Kenya's standard-gauge rail (high costs, low ridership) warn against overreliance on loans; the Philippines' diverse partners mitigate this.

Financial Sustainability and Debt Management

Funding sustainability is pivotal. Reliance on ODA—40 percent of flagships from Japan, U.S., EU—avoids "debt traps" seen in Sri Lanka, where Chinese loans led to asset concessions. Marcos canceled three Chinese rail projects in 2023 amid South China Sea tensions and funding shortfalls, redirecting to JICA/ADB. Debt-to-GDP at 60.4 percent (2024) is manageable, but the International Monetary Fund (IMF) urges fiscal prudence.

PPPs, like the 2024 NAIA rehabilitation, share risks, but past anomalies (e.g., Northrail overpricing) demand transparency. Equity-wise, women and vulnerable groups benefit most from access—Integrated Mass Transit (IMT) programs in similar projects boosted female school enrollment 20 percent in India—but patriarchal norms limit uptake.

A Critical Assessment

What sets this initiative apart? Unlike Duterte's China-heavy pivot, Marcos emphasizes diversified partnerships and integration (e.g., cargo with NSCR), learning from Association of Southeast Asian Nations (ASEAN) peers like Thailand's dual-gauge success. Timelines seem realistic given 49 percent Malolos-Clark progress (2024), but ROW and disasters pose risks—past typhoons delayed Bicol by years.

Benefits for ordinary Filipinos? Faster commutes (40 minutes Quezon City-NAIA vs. two hours), job growth (1 million from BBM), and rural empowerment. Risks? Delays inflating costs to $870 billion for NSCR; uneven equity if urban bias persists; sovereignty erosion if loans tie hands—though U.S./Japan ties bolster resilience.

Conclusion: Stakes Are Human



About the Author

Louie Biraogo '79

Louis C. Birago '79 is a media practitioner, newspaper columnist and writer known for his bombastic exposés on social and political issues in the Philippines. Writing under the pseudonym "Citizen Barok," his prolific pen covers a wide range of topics and issues, and his particular brand of social advocacy endears him to his fans and followers, to the chagrin of those who find themselves in the receiving end of his honest but sometimes brutal commentaries. Mr. Biraogo studied law in the University of the Philippines and was a former illustrious fellow of the Upsilon Sigma Phi.

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