SMC plans MRT Loop to link Bulacan airport

Food-to-infrastructure conglomerate San Miguel Corp. (SMC) plans to build an MRT Loop with an airport express – similar to Hong Kong’s much-touted MTR – that would seamlessly connect Metro Manila to its planned aerotropolis in Bulacan.

The planned elevated train system will span some 200 kilometers and will connect SMC’s proposed New Manila International Airport (NMIA) in Bulakan, Bulacan to EDSA and various points in between, SMC president and COO Ramon Ang told reporters in an interview in his office.

While the stations are still being finalized, the MRT Loop is envisioned to include a non-stop high-speed train that would allow fast connection between EDSA and the Bulacan Airport.

“In 20 minutes, you will be at the airport,” Ang said.

He said this would be something like Hong Kong’s famous MTR which connects the airport and the city, and gives passengers the option for faster travel through the airport express line.


SMC is still finalizing the cost of the MRT Loop, but Ang said this would already be part of the total cost of the massive airport project estimated at $15 billion.

Aside from the mass transport system, SMC will also construct a $1 billion spillway for excess water from Angat and Ipo Dams to drain directly to the Manila Bay.

This, he said, would solve the perennial flooding problem in Bulacan.

“We need to finish the spillway in five to six years. Otherwise, it will destroy what we are building,” Ang said.

All these new infrastructure projects namely the MRT Loop, the Airport Express and the spillway are all intended to enhance the viability of SMC’s proposed Bulacan Airport and are targeted to be ready in five to six years.

“What we have is a complete masterplan,” Ang said.

He said the company could start operations of its proposed Bulacan Airport as early as six years upon approval of the $15-billion project, making it the fastest and most viable solution to the worsening problem at the Ninoy Aquino International Airport (NAIA).

SMC’s strong balance sheet, he said, also shows that it has the financial muscle to fund the project on its own.

“Funding is not a problem. We have a strong balance sheet,” Ang said.

Ang trumpeted the proposal, saying that NMIA “will be the most modern airport in the country and would be a real game changer.”

Based on its blueprint, NMIA has the capability to have a total of four runways, with the first two already operational on the fifth year upon approval of the project, according to company documents. The last two runways will be operational by 2024.

To be developed on a 2,500-hectare property in Bulakan, Bulacan, NMIA can accommodate 100 to 200 million people, a far cry from NAIA’s capacity of 30 million passengers.

Furthermore, NMIA will be capable of handling 60 aircraft movements per hour per runway compared to NAIA’s current runway capacity of 45 movements per hour, the project’s blueprint further showed.

More importantly, SMC said its proposal cuts the construction timeline by half as it would not require sea reclamation compared to the proposal to develop a new airport off Sangley Point in Cavite.

For the funding, SMC said the project would be entail no cost to the government.

In terms of contribution to the economy, SMC estimates that NMIA can contribute as much as P395 billion to the economy by 2025 and can generate 1.8 million jobs by that time.

Last April, the National Economic and Development Authority board gave the green light for SMC’s Bulacan airport project. But the project still needs to be subjected to a Swiss challenge.

Calls for a new premier international airport in the country are mounting after NAIA was marred by flight disruptions for at least 200 flights and at least 100,000 passengers were stranded after a Xiamen Airlines carrier veered off the runway last Aug. 16.

DOTr eyes deployment of 48 Dalian trains this year

The Department of Transportation (DOTr) targets to deploy the 48 trains that were purchased from Chinese firm CCRC Dalian Co. for the Metro Rail Transit Line 3 (MRT-3) within the year.

This developed as Dalian agreed to absorb the costs for the adjustments of the trains following the results of a study conducted by independent audit and assessment (IAA) consultant TUV Rheinland earlier this year.

The consultant's findings showed that the weights and measurements of the Dalian trains did not comply with DOTr's terms of reference.

The department is currently conducting negotiations with Japanese company Sumitomo-Mitsubishi Heavy Industries Ltd to take over MRT system's maintenance and rehabilitation.

“Our target for the deployment of the trains is within this year. We are also having ongoing talks with Sumitomo,” DOTr communications director Godess Hope Libiran said in a text message to the Philippine News Agency (PNA) Thursday.

In a business forum earlier this week, Transportation Secretary Arthur Tugade disclosed that Dalian has agreed to pay for the modifications that will be done on the trains during its meeting with Chinese government officials last week.

Tugade earlier said remedies to be done on the Dalian trains should not be shouldered by the Philippine government.

The issue on the Dalian trains must also be addressed as the DOTr prepares for the entry of a maintenance provider that will repair the train coaches and other facilities of the MRT.

The DOTr is eyeing Sumitomo to take over the maintenance operations of the MRT by the end of this month or September at the latest.

The National Economic and Development Authority (NEDA) Board Investment Coordination Committee-Cabinet Committee has approved earlier this month the PHP22.061-billion MRT maintenance project.

The rehabilitation will increase the number of train sets in operation from 15 to 18 train sets per hour, increase the maximum speed to 60 kilometers per hour and decrease headway to 200 seconds. (PNA)

http://www.pna.gov.ph/articles/1046484

LRMC to push through with Cavite extension despite fare hike delay

THE LIGHT RAIL Manila Corp. (LRMC) said it will push through with the construction of the Light Rail Transit Line 1 (LRT-1) Cavite extension project despite possible delays in the implementation of a fare hike.

“We are already committed to building the Cavite Extension. We have already issued the Notice to Proceed to the EPC (engineering, procurement and construction) contractors Bouygues and Alstom,” LRMC President Juan F. Alfonso told BusinessWorld in a text message on Thursday.

“We have completed the clearing operations for the pre-cast yard to give way to the plant where we will be fabricating the viaduct beams,” he added.

This comes after Transportation Secretary Arthur P. Tugade told reporters on Tuesday that he hopes the private concessionaire for the LRT-1 wouldn’t let construction of the Cavite extension rely on the approval of its fare hike.

“Dapat ‘wag nilang sabihin na yung extension sa LRT-1 depende sa rate increase [They shouldn’t say that the LRT-1 extension will depend on the rate increase],” Mr. Tugade said.

In July, the LRT-1 operator said the fare hike “will assure the construction of (the train’s) extension to Sucat, Las Piñas and Bacoor,” as banks would be more open to lend funds for the company if it can recover its investment.

But Mr. Alfonso noted its concession agreement indicates the government should allow a 5% increase in LRT-1 fares every two years.

LRMC filed an application to the Department of Transportation (DoTr) in March for a P5 to P7 hike in LRT-1 fares. It was supposed to be implemented within August, but Mr. Tugade said no public hearing has been conducted yet.

“Pinag-uusapan pa po yan, may public hearing pa po yan. Pagkatapos ng public hearing may publication, and then the decision making [It’s still under discussion, there will be a hearing. After the public hearing, it will be published, then the decision making],” Mr. Tugade said.

The Transportation secretary also said the government is not open to subsidizing any LRT-1 fare increase.

“Kasi hindi kami naniniwala sa subsidiya. Kung ikaw mag-nenegosyo sa gobyerno, dapat walang guarantee, walang subsidiya, walang contractual commitment [We don’t believe in subsidies. If you’re doing business with the government, they should be no guarantee, no subsidies, no contractual commitment],” Mr. Tugade said.

For his part, Mr. Alfonso said, “As far as fare hike is concerned, we are still applying and hoping to secure approval within the year.”

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Tugade: LRT 1 should not make infrastructure construction dependent on fare increase

COMPANIES—particularly those engaged in big-ticket projects—should stop making the government a “hostage” by saying the construction of vital infrastructure is dependent on tariff increases under their concession agreements.

This was how Transportation Secretary Arthur P. Tugade answered a question pertaining to updates on the fare-hike petition submitted by Light Rail Manila Corp. (LRMC) for the Light Rail Transit (LRT) Line 1.

“It is being discussed. But they should not say the extension of the LRT is dependent on the rate increase. They should not make us a hostage,” he said on the sidelines of a recent forum hosted by the Economic Journalists Association of the Philippines.

He was alluding to a July 12 statement made by LRMC President Juan F. Alfonso, who said the rate increase will “assure” the construction of the first phase of the Cavite extension of the train line, as this will “give banks the confidence to lend the company funds” for the project.

Sought for comment, Alfonso noted his group will move forward with the construction of the extension even without the tariff adjustment.

“We are already committed to building the Cavite extension. We have already issued the notice to proceed to the engineering, procurement and construction contractors Bouygues and Alstom,” he told the BusinessMirror.

He added his group has completed the clearing operations for the pre-cast yard to give way to the plant where the company will be fabricating the viaduct beams.

The yard is located in Sucat, Parañaque.

“As far as fare hike is concerned, we are still applying and hoping to secure approval within the year,” Alfonso said.

The company is seeking an increase of about P5 to P7, resulting in P25 in average fares, or about the same price as bus rides.

Currently, fares for LRT 1 rides range from P15 to P30. Since it took over the train line in 2015, no fare adjustment has been implemented so far.

The provision for a 5-percent tariff adjustment every two years is spelled out in the concession agreement signed between the transportation department and the private company.

The current fare in LRT 1 is P15, P20 and P30, depending on distance traveled.

Based on the concession agreement, Alfonso said earlier, the government may provide for subsidy if it will not approve the fare adjustment.

Tugade noted this group is not keen on giving any form of subsidy for the fare increase.

“No. Not at this time. We don’t believe in subsidy. If you will do business with the government, there should be no form of subsidy and guarantee,” he said.

For now, Tugade said stakeholders should “wait” for the process to be completed. It is currently soliciting comments from the public as to the fare adjustment.

Alfonso said the company is keen on starting the full-blast construction of the extension by October.

Targeted for completion in about four years after the delivery of easement, the 11.7-kilometer Cavite extension will connect into the existing system immediately south of the Baclaran Station and run in a generally southerly direction to Niyog, Cavite.

It will consist of elevated guideways throughout the majority of the alignment, except for the guideway section at Zapote, which will be located at grade.

Eight new stations will be provided with three intermodal facilities across Pasay City, Parañaque City, Las Piñas City and Cavite. The new stations are Redemptorist, MIA, Asia World, Ninoy Aquino, Dr. Santos, Las Piñas, Zapote and Niyog. The intermodal facilities shall be located at Dr. Santos, Zapote and Niyog.

The new stations will be accessible to and from nearby community facilities, such as shops, schools, stadium and park, and will be located to suit passenger-flow routes from residential areas.

Pedestrian access to all new stations will be direct, safe and easy. Details, such as lighting to distinguish access points, pedestrian-cross striping and curb cuts for handicapped access, will be provided.

The company has invested P7.5 billion in the railway system so far since it took over in 2015.

LRMC is a company led by conglomerates Metro Pacific Investments Corp. and Ayala Corp. in partnership with Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.

https://businessmirror.com.ph/tugade-lrt-1-should-not-make-infra-construction-dependent-on-fare-increase/