By Francis Allan Angelo
An economic masterplan for Panay Island is necessary if the proposed revival of the defunct Panay Railways is to succeed, according to one of the business leaders in Iloilo.
Engr. Terence Uygongco, president of the Filipino-Chinese Chamber of Commerce of Iloilo, Inc., said the revival of Panay Railways should also consider the mass transit needs of the city and province of Iloilo.
“Railways systems specifically for goods transportation include these advantages: cost-effectiveness, energy efficiency, reliability, and reduced congestion. But there are also disadvantages, such as limited flexibility, accessibility, and infrastructure investment,” Uygongco said.
Since railways are on fixed lines, they should be located within road networks for easier access to ordinary travelers.
In terms of infrastructure investment, Uygongco said decision-makers should weigh in on the US$1.5-billion (PHP82.5 billion) proposed budget for Phase 1 of the project which can create more than 4,000 km of new roads.
“The old line of Panay Railways is for goods transport but since we already have good roads connecting Iloilo City and Roxas City, we can also consider it as a passenger train to increase tourism destination and easy access,” he added.
Cesar Capellan, director of the state-owned Panay Railways, Inc. (PRI)., said Phase 1 covers the 117 kilometers of railway tracks from Iloilo City to Roxas City.
Panay railway’s original route was 117 kilometers long and included 19 permanent and 10 flag stations. It connected La Paz and Jaro in Iloilo City, the towns of Pavia, Santa Barbara, New Lucena, Pototan, Dingle, Dueñas, and Passi City in Iloilo; and Dumarao, Dao, Panitan, Cuartero, and Loctugan up to Roxas City in Capiz.
Capellan said the revived railway system will have an expanded area of coverage. Phase 2 will see the construction of new railway routes from Roxas City to Kalibo, Aklan, going to Caticlan in Malay, Aklan.
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.
MASTER PLAN
Uygongco also stressed the need for a master plan for Panay Island that will integrate its economic potential with existing and proposed infrastructures.
The master plan should result in a seamless transportation network that integrates road networks with the air- and seaports, and the railway.
“The master plan for the whole island of Panay will have numerous benefits to the entire island and its inhabitants. Some potential advantages include improved connectivity, economic development, boost tourism, reduced road congestion, environmental benefits, enhanced regional integration, and improved quality of life,” he added.
DISPLACEMENT
The master plan could also address possible social costs or impacts of reviving the old railway like the displacement of residents on the old train line.
Uygongco said they expect “opposition to this railway plan and those that are residing in the old railway line would be the major opposition.”
“But they can be mitigated by carefully doing comprehensive planning and consultation. They need to be informed about the project and how they can be relocated and compensated. Partnering with non-government organizations NGO can help leverage their expertise and resources in addressing the social issues related to the railway project.”
Capellan said residents leasing PRI’s properties would be asked to vacate their premises within 6 months prior to construction if the rehabilitation is realized.
Since the railway’s closure in 1985, PRI has been leasing its properties to settlers with a two-year renewal period.
For one, residents of Barangay Railway in LaPaz, Iloilo City fear losing their homes the moment the revival of the integrated Panay Railway System kicks off.
Railway village is just one of the hundreds of barangays located on or along the old railroad that stretches more than 100 kilometers and passes through two provinces, three cities, and 11 municipalities in Panay Island
Punong Barangay Reynaldo Guillergan of Railway, LaPaz said he is worried about the displacement of informal settlers and residents in the area if the railway is revived.
“Many of our constituents will be affected, especially the informal settlers if the project pushes through,” he said.
But Guillergan acknowledged that the project would improve transportation in Panay the moment the railway system is revived.
Capellan said they have 1,336 legal lessees in three Iloilo City districts – Lapuz (38 houses), LaPaz (385), and Jaro (913 houses). These are just documented lessees, thus, the number could increase if illegal settlers are counted.
“These are lessees who rent [on Panay Railways property], so it’s going to be a big problem because they would have to look for land. How much does the land cost? You would have to then build a relocation site. The big bulk of the budget might be for relocation only,” he added.
Capellan said the relocation of the settlers can be solved by including it in the new feasibility study on the railway revival.
“The new study is necessary to update the cost of relocation, line rehabilitation, acquisition of locomotives, and other factors,” he added.
NOT IN THE CITY
Iloilo City Mayor Jerry Treñas suggested that the revival of Panay Railways should take place outside the city as it no longer needs a rail-based transport system.
Treñas said the city has so many roads already that it may no longer be feasible for the city to have a railway in its bustling districts.
He cited rural rail systems in other countries which are located near or on the outskirts of the city.
“We have so many roads in the city now, sometimes they have even doubled. Here in the city, we may not need it anymore. [Panay Railways] should be constructed outside the city. By doing that, we avoid displacing a lot of people,” Treñas said.
He added that reviving Panay Railways’ old line in the city would displace around 1,500 houses in La Paz and Jaro districts, creating a huge burden in relocating the affected residents.
STUDY
The proposed revival of the defunct Panay Railways is moving a bit with the possible conduct of a feasibility study on the project.
Capellan said the Department of Transportation has begun accepting offers from firms that are interested in reviving the rail system.
The study will be funded by over $6 million in loans to fund feasibility studies for three railway projects outside the National Capital Region – Panay railway, Bataan railway, and North Long Haul interregional railway.
Transportation Secretary Jaime J. Bautista disclosed the funding source during the launching of the Metro Manila Subway Project’s tunnel boring machine in Valenzuela City last January 9.
Bautista said the studies will commence in the next few months.
Capellan said the feasibility study will estimate and determine the funding for the Panay railway revival, the project’s timeline, the scope of work, and project benefits for the public, among other factors.
Based on the latest information he received, Capellan said six firms have offered to undertake the study, including those from Türkiye, the United States, Saudi Arabia, Japan, England, and China.
The revival of the Panay railway was included in the first State of the Nation Address of President Ferdinand Marcos Jr. in July 2022.
“Beyond NCR, larger-scale railway systems like the 102-kilometer Mindanao Railways Project, the Panay Railway project, and the Cebu railway system will be integrated as a vital part of our transport and communications systems,” Marcos said.
Right after Marcos’s pronouncement, China Railway Investment Group Ltd. (CRIG) wrote Panay Railway Inc. on July 29, 2023, expressing a reinvigorated interest to inject financing, loan, investment, logistics supply, and other forms of cooperation.
The company has fielded its business associate in China, the Shanghai EVER-DO International Logistics Co. Ltd., to support the logistical items for the development of the project.
CRIG is also one of the contractors of the PHP142-billion PNR South Long-Haul Project, also called the PNR Bicol Express. It formed a consortium with China Railway No. 3 Engineering Group Co. Ltd., and China Railway Engineering Consulting Group Co. Ltd. to undertake the project.
Capellan said the revival project is likely to be undertaken through the public-private partnership (PPP) build-operate-and-transfer (BOT) scheme, which will give the investor 25 to 50 years to operate the railways.
