Proposed Panay railways revival attracts another Chinese firm

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BY GLENDA S. TAYONA
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January 31, 2018
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ILOILO City – Another Chinese firm has expressed interest to revive the Panay railway system.

According to Panay Railways, Inc. (PRI) director and treasurer Cesar Capellan, China First Highway Engineering Co., Ltd. based in Malaysia submitted a letter of intent.

PRI agreed to enter into a Memorandum of Understanding and Cooperation (MOUC) with this company.

The signing is on Feb. 12 in Makati City. Capellan said the Chinese ambassador to the Philippines was invited to witness it.

China First Highway Engineering Co., Ltd. is the third Chinese group to express interest in the rehabilitation of Panay railways.

The other two were China Railways International Ltd. and TRUCK Pacific Development Corp.

Capellan said PRI also had MOUCs with these two last year but both failed to meet the requirements which included, among others, the submission of a feasibility study and financial schemes on the project.

The requirements should have been submitted to the PNRI Board and to the National Economic Development Authority (NEDA) within three months after the signing of MOUC.

“So we are about to cancel those MOUCs. We gave them only three months and it is already more than one year nga wala gid response sa ila,” said Capellan.

Capellan said the estimated cost of the railways revival is P16 billion.

The Panay railways cover a land area of 3,900,000 square meters including right-of-way from Iloilo City to Roxas City.

Capellan said the railway may be expanded to Caticlan in Malay, Aklan and Kalibo in Aklan.

The Panay railway system was constructed in 1906 by the Americans. During World War II, this was damaged by bombings.

In his first State of the Nation Address in 2016,Duterte revealed he was eyeing the revival of Panay Island’s railway system.

Before the joint session of Congress, Duterte said he would pursue this project within his six-year presidential term.

The railway’s revival will be a big boost to Western Visayas’ tourism, said Department of Tourism (DOT) regional director Helen Catalbas.

“(It) would be adding much to our already existing transportation facilities and connect the provinces of Western Visayas,” said Catalbas.

The 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.

In Iloilo City, the trains ended at the passenger terminal along the wharf next to the Customs House and near where the current fast ferry terminal and the Iloilo City Hall. 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.

In 1980s, a 12-kilometer spur was constructed from Dueñas to Calinog, Iloilo to serve a sugar refinery in Iloilo.

Operations ceased in 1983./PN
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