Railway in the Northern Mindanao Development Corridor (NMDC)

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Before the Duterte administration, efforts to establish a Mindanao Railway were directed at Northern Mindanao, particularly the Cagayan de Oro - Iligan Corridor. Headquarters of the planned railway company would have been in Cagayan de Oro.

With the current administration, however, the focus has shifted to the Tagum-Davao-Digos segment of the railway -- now designated as Phase 1 -- with the rest of the Mindanao Railway System left up to future administrations.

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Pimentel wants PNR to manage Mindanao Railway Project
March 8, 2014

https://www.sunstar.com.ph/article/333611

SENATOR Aquilino Pimentel III on Friday asked President Benigno Aquino III to transfer supervision of the Mindanao Railway Project Office (MRPO) from the Land Transportation and Franchising Regulatory Board (LTFRB) to the Philippine National Railways (PNR).

Pimentel, representing various Mindanao leaders, said PNR has the technical know how to implement the project, a network of lines linking Cagayan de Oro to the cities of Iligan and Zamboanga, the provinces of Agusan and Surigao and the cities of Davao and General Santos.

He said the masterplan was already completed in 2010 and the feasibility study for the first phase of the project is also finished, linking the Cagayan de Oro industrial corridor from Jasaan, Misamis Oriental to Linamon, Lanao del Norte.

Pimentel said the opening segment of the proposed Mindanao Railway System will link two vital Mindanao gateways, the Languindingan International Airport and the Mindanao Container Port.

He said business in these areas, including the transfer of goods, trade and commerce, will enjoy an expected boon once the project is in full operation.

The project was started in the late 90s during the term of former President Fidel Ramos, but it was only in 2006 when the MRPO was created under the supervision of the LTFRB.

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Northern Mindanao Development Council supports corridors strategy

http://minda.gov.ph/news/136-northern-mindanao-development-council-supports-corridors-strategy

DAVAO CITY, Philippines – Northern Mindanao's Regional Development Council (RDC-10) recently expressed its support for the implementation of the Mindanao Development Corridors, citing it as an innovative strategy that responds to the development needs of the island-region.

In a resolution signed on March 19, 2015, RDC-10 members and stakeholders are enjoined to ensure complementation, synchronization, and convergence of resources with the existing development and physical framework plans, and other ongoing initiatives and emerging trends in the country that affect Mindanao.

"We are fully supportive of initiatives that promote sustainable development in Northern Mindanao, and anchoring our efforts to the Mindanao Development Corridors is one of the efficient ways of achieving our goals," said RDC 10 Chair and Lanao del Norte Governor Mohamad Khalid Dimaporo.

He added the Northern Mindanao Development Corridor (NMDC) has potentials of developing into a world-class industrial and services center, owing to its public infrastructure that is suited for industrialization.

"The presence of eco-zones and the location of industrial and agribusiness enterprises in the region, coupled with a strong agricultural sector and a budding business process outsourcing industry makes NMDC a key player in Mindanao's socioeconomic development," said Dimaporo.

The NMDC comprises the province of Misamis Oriental, Misamis Occidental, Bukidnon, Camiguin, Lanao del Norte, Lanao del Sur, Agusan del Norte, and Surigao del Norte. Among the major programs and projects identified under the NMDC are the Panguil Bay Bridge, which will provide uninterrupted access from Cagayan de Oro and Iligan cities to Tangub, Oroquieta, and Ozamiz cities and the rest of Misamis Occidental and the Zamboanga Peninsula; the development of the airports in Ozamiz, Surigao, and Laguindingan; the construction of the Northern Mindanao High Standard Highway, and the construction of the 1st segment of the Mindanao Railway System.

The Mindanao Development Authority (MinDA), through the Mindanao Peace and Development Framework Plan or the Mindanao 2020, adopts the Mindanao Development Corridors as a key spatial strategy aimed to improve infrastructure, establish connectivity, and spur the development of growth clusters within the island-region, allowing it to achieve balanced and inclusive growth among its regions.

The corridors approach divides the island economy of Mindanao into three development corridors namely the Northern Mindanao Development Corridor (NMDC), Southern Mindanao Development Corridor (SMDC), and Western Mindanao Development Corridor (WMDC).

"Our regional development councils and local government units know their territory better, which make them among our strongest allies in Mindanao's development planning and in integrating the corridors initiative," said MinDA Chairperson Luwalhati Antonino.

Antonino added the initiative also aims to position Mindanao as a single, integrated economy that is able to leverage and fully participate in economic groupings such as the BIMP-EAGA, ASEAN, and the rest of the global economic communities.

"This strategy will transcend regional boundaries in terms of commodity flow and industry integration which will make regions in Mindanao more commercially viable," she said.

RDC 10 joins Region 9, 12, and the Autonomous Region in Muslim Mindanao in supporting the Mindanao corridors program.

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MiNDANAO 2020
Peace and Development Framework Plan
(2011 - 2030)

http://minda.gov.ph/resources/Publications/Mindanao_2020/m2020_full_doc_for_web.pdf

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Mindanao does not have a railway system. There is widely expressed desire to build a Mindanao circumferential railway system, but this has not been realized due to its substantial investment requirement that puts to question its economic feasibility.

Nonetheless, short run railways in high traffic areas are being seriously considered. A feasibility study for an 82.5 km railway from Cagayan de Oro to Iligan has been completed and is undergoing review for possible external financing.


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Study on Infrastructure Development in
Mindanao, Philippines
Final Report
March, 2017

https://www.meti.go.jp/meti_lib/report/H28FY/000056.pdf

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Northern Mindanao Regional Development Plan Midterm Update 2013-20169
[Transport]

The infrastructural items of highest priority in the Northern Mindanao Region are starting commercial service at Laguindingan International Airport (airport opened on June 15, 2013) and expanding the Mindanao Container Terminal (MCT). The Operation of Laguindingan Airport-Mindanao Container Terminal Allied Projects (OLA-MCTAP) was designed to combine these two for increased convenience and efficiency. Both Laguindingan Airport and the MCT are located on the Cagayan-Iligan corridor and would have an economic ripple effect within Northern Mindanao Region.

Also, a highway and the Mindanao Railway System (MRS) are planned for development in order to support growth in the Cagayan-Iligan industrial trade corridor.

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Nograles lauds P-Noy's push for RORO, Mindanao rail system
Writer: Office of Rep. Karlo Alexei Nograles
10 May 2011 03:02:10 PM

http://congress.gov.ph/press/details.php?pressid=5080

House Assistant Majority Leader and Davao City Congressman Karlo Alexei Nograles today lauded President Aquino for his full support for an increased nautical linkages among ASEAN (Association of

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Nograles noted that the Mindanao Railway is already in the advanced stage of its feasibility study and the state-run Saudi Fund for Development has expressed interest in providing as much as $1.3 billion in cheap financing to fund the project.

The planned Mindanao railway is made up of a network of lines linking Cagayan de Oro to Iligan, Iligan to Zamboanga City, and Cagayan de Oro to Agusan and Surigao, as well as extensions to the cities of Davao and General Santos.

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Mindanao Railways Cagayan-Iligan Corridor Line Stations Identified
By CDODev Admin - September 5, 2009

http://www.cdodev.com/2009/09/05/mindanao-railways-cagayan-iligan-corridor-line-stations-identified/

The proposed Cagayan-Iligan Corridor Line of the Mindanao Railways project will have main terminals at Linamon and Jasaan. According to the proposal, Express Stations will be put up at Iligan Port, Laguindingan Airport, and Agora Terminal in Cagayan de Oro City. Intermediate stations will be constructed in each municipality along the corridor.

In previous gatherings, Cagayan de Oro City Mayor Constantino Jaraula said the proposed project will construct elevated railways in both Iligan and Cagayan de Oro because of space limitations. In Cagayan de Oro City, from Opol, it will pass beside Westbound (Bulua) Terminal acorss Ayala Property then proceed towards and along the 5th bridge then another elevated railway up to Agora Terminal similar to the MRT/LRT system in Metro Manila.

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Gov't to prioritize Mindanao Railway
By CDODev Admin - November 23, 2010 296 0

http://www.cdodev.com/2010/11/23/govt-to-prioritize-mindanao-railway/

The government is exploring the possibility of prioritizing the development of the proposed Mindanao Railway, a proposal which was originally hatched during the Estrada administration and was pushed by then ARMM chairman Nur Misuari.

“Explore the possibility of prioritizing the Mindanao Railway,” stated an aide memoire of the National Economic and Development Authority following the recent consultation on the chapter on infrastructure under the 2010-2016 Medium-Term Philippine Development Plan.

Most recent project estimates have placed the total project cost at P66.5-billion, approximately $1.33-billion.

It is envisioned to be implanted in four phases: initially from Laguindingan to Cagayan de Oro City; second from Laguindingan to Iligan City ; third from Cagayan de Oro to Phividec area in Tagoloan, Misamis Oriental and the fourth phase from Iligan City to Linamon town, Lanao del Norte. The project aims to cut the present 90-minute travel time by buys between Cagayan de Oro and Iligan to 15-20 minutes.

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A feasibility study for the project is being reviewed and deliberated by the NEDA Regional Office 10, but a more detailed FS still need to be determined. Initial timetable points to a phased project implementation through PPP to be undertaken in 2011.

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Phase 1 calls for the construction of a 124-km railway line from Iligan City to Cagayan de Oro City in Mindanao.

It will traverse ten coastal municipalities in Misamis Oriental, namely: Lugait, Manticao, Naawan, Initao, Libertad, Gitagum, Laguindingan, Alubijid , El Salvador and Opol.

Earlier, the project was scheduled to start in 2011 with the initial spur of the first phase between Cagayan de Oro City and the new airport in Laguindingan, Misamis Oriental.

But the entire project would take 5-7 years to complete.

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Conduct of the Feasibility Study (F/S) of the Mindanao Railway Project

http://www.neda.gov.ph/wp-content/uploads/2015/04/TOR-for-the-Conduct-of-the-FS-of-MRP-23-04-15-LATEST.pdf

BACKGROUND/RATIONALE

1.1. Contracting Authority

The General Appropriations Act (GAA) for FY2014 has allocated the amount of PhP400,000,000.00 for the conduct of feasibility studies (F/S) to be administered by the National Economic and Development Authority (NEDA).

For this Terms of Reference (TOR), NEDA shall be the Executing Agency while the Department of Transportation and Communications (DOTC) shall be the Implementing Agency. The proposed Project is consistent with DA’s major programs/projects/activities (PPAs).

1.2. Relevant Country/Sector Context

The proposed Mindanao Railway Project (MRP) is supportive of the thrust of the Updated 2011-2016 Philippine Development Plan (PDP), specifically under Chapter 10 (Accelerating Infrastructure Development). Said Plan recognizes that the major shortcoming of the transportation sector is the lack of integrated and coordinated transport network. Global assessments of the country’s transport infrastructure network indicate that its quality and capacity remain low. The lack of integration between national and local government plans and programs/projects is also a major problem that results in gaps in the transport network, contributing to the low capacity and quality of infrastructure facilities.

1.3. Current State of the Transport Sector

Mindanao shares the same constraints in transport infrastructure improvements. To improve physical connectivity within Mindanao, a fast, safe, reliable, efficient, convenient, dependable, environment-friendly and alternative mode of transport will provide the people of Mindanao the benefits of reduced travel time and increased opportunities for economic activities.

The development of MRP has long been planned but never realized. Mindanao is the second largest island group with an area of 106 thousand square kilometers and has a 22 million population with an annual population growth rate of 1.9 percent from 2000 to 2010.

The proposed railway transport service will play a major role towards improvement of Mindanao’s intra island accessibility, linkages and seamless multimodal transport networks. The island is strategically located and has potential as a major transshipment point and center of trade in the Brunei DarussalamIndonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) region.

Enhanced interconnectivity and linkages through passenger and freight railway transport development will further boost tourism, trade and commerce in the island; bring opportunities for the acceleration of local area development; and expansion of local markets for more efficient movement of goods and people to promote productivity and trade competitiveness.

It is deemed to complement/integrate programs/projects that will address the lingering problem on poor quality of roads and incomplete road networks in some parts of Mindanao, e.g., interconnectivity between rail, maritime and aviation transport infrastructure facilities.

1.4. Related Project/Programs and Other Donor Activities

To assess the viability of implementing the MRP, the following studies were previously undertaken:

• Strategic Railway Development Plan (SRDP);
• Cagayan De Oro-Iligan Corridor (CIC) from Linamon to Jasaan;
• Pre-Feasibility Study for Tagum-Davao-Digos Corridor; and
• Technical Assessment for Iligan-Pagadian City-Zamboanga.

Under this TOR, the F/S must examine and take into consideration the proposed MRP’s contribution to the Southeast Asia regional integration process, the Master Plan on ASEAN Connectivity, which includes a proposal for the development of a regional nautical highway that would essentially expand the Philippine Roll on/Roll off (RORO) system. Said Plan, which will serve as the main vehicle of the planned economic integration by 2015, intends to enhance the physical, institutional and people-to-people interconnectivity across Southeast Asia and the BIMP-EAGA region.

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Mindanao railway seen spreading development outside Metro Manila
Posted on June 04, 2015

http://www.bworldonline.com/content.php?section=Economy&title=mindanao-railway-seen-spreading-development-outside-metro-manila&id=109063

CAGAYAN DE ORO CITY -- Businesses in this city, the economic hub of Northern Mindanao, have renewed their efforts to get the Mindanao Railway System (MRS) back on track amid hopes that it will spur economic development outside the capital region.

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The first segment of the MRS that could be placed under the PPP covers the Northern Mindanao Region -- running from Laguindingan where a new international airport is located, to Cagayan de Oro City; Laguindingan to Iligan City, another major urban center; Cagayan de Oro to the Philippine Veterans Investment Development Corporation Industrial Authority district of Tagoloan, Misamis Oriental; and from Iligan City to Linamon, Lanao del Norte.

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Earlier this week, MinDA Executive Director Janet M. Lopoz said in an interview in Davao City that the agency is also planning to revive the MRS as conceptualized under the administration of former President Fidel V. Ramos, which is composed of six segments that will link the major cities in Mindanao.

The Mindanao railway system was first proposed in a bill filed by then Misamis Oriental Rep. Augusto Baculio in the 1990s. Later on, former President Gloria Macapagal-Arroyo created the Mindanao Railways Office under the Department of Transportation and Communications, which was abolished by the current government.

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http://open_jicareport.jica.go.jp/pdf/12253654_01.pdf

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Mindanao’s Railway Plan

There is a wide clamor to build a Mindanao circumferential railway system, but it has not been realized due to its substantial investment requirement that puts to question its economic feasibility. Nonetheless, short run railways in high traffic areas are being seriously considered such as the Cagayan–Iligan corridor. A feasibility study on an 82.5 km railway from Cagayan de Oro to Iligan has been completed and reviewed for possible external financing.

The Mindanao Development Authority (MinDA)-initiated plan, Mindanao 2020 Peace and Development Framework Plan (2011–2030), envisions that construction of Mindanao’s first railway will start by 2016 and operation will commence in 2020. Phase I is expected to run between Cagayan and Iligan with an estimated budget of PHP 57,733 million and to be financed through PPP.

Since the priority lines are outside Bangsamoro and financing and implementation plans are not yet clear, the impact of this project on the Bangsamoro development seems to be minimal. The planned railway route and stations are shown in Figure 4.4.

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In 2010, Rufus Rodriguez filed House Bill 03607 which sought to generate money for the Mindanao Railway by selling the decomissioned Lumbia Airport, which had been replaced by the Laguindingan Airport. The same bill was filed again in 2014 in the form of House Bill 04059.

As shown below, the Mindanao Railway they were referring to was the Cagayan de Oro-based railway system.

However, with the 15th Strike Wing transferred to Lumbia airport, the future of this proposal is questionable.

Bill seeks airport privatization proceeds to fund Mindanao Railway System
Published July 14, 2014 11:18am

https://www.gmanetwork.com/news/money/companies/370125/bill-seeks-airport-privatization-proceeds-to-fund-mindanao-railway-system/story/

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House Bill 4059 seeks to appropriate the proceeds of the privatization and sale of the old Lumbia Airport in Cagayan de Oro City to finance the MRS project.
 
“With the opening of the Laguindingan International Airport in Laguindingan, Misamis Oriental in June last year, the old Lumbia Airport is not being used anymore,” the lawmakers said in the bill’s explanatory note.
 
The Lumbia Airport used to be the second busiest gateway in Mindanao, after the Francisco Bangoy International Airport in Davao City, until it closed in 2013 due to safety issues.
 
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For the brothers Rodriguez, the money from the airport’s privatization should be “devoted exclusively” to finance the first phase of the MRS – the Cagayan de Oro-Iligan Railway project.