Metro Pacific Investments Corp and Malaysian firm Hartasuma Sdn Bhd signed a collaboration agreement aimed at driving the development of rail infrastructure in the Philippines
Both parties look to participate in projects with an indicative investment value of RM250 mil (around P3 billion)
The partnership will pave the way for diverse initiatives, including development of rolling stock refurbishment projects in the Philippines and exploration of cable car systems for tourism and urban transport
Metro Pacific Investments Corp. (MPIC) and Malaysian firm Hartasuma Sdn Bhd have signed a collaboration agreement aimed at driving the development of rail infrastructure in the Philippines.
The agreement, signed on September 4, marks a notable step towards fostering economic growth through joint ventures and cooperation, MPIC said in a statement.
For starters, the parties are looking to participate in projects with an indicative investment value of RM250 mil (around P3 billion), Hartasuma said in a separate statement. The agreement comes as Hartasuma, an integrated rolling stock and rail services company, seeks to penetrate the Philippines railway engineering and maintenance market.
“We look forward to learning from the expertise of Hartasuma’s over 28 years in the rail engineering and transport industries, and to applying these lessons to our operations in the Philippines,” MPIC chairman, president and chief executive officer Manuel Pangilinan said.
“There is a lot for us to share. Together, we intend to explore innovations that can help us build the transport infrastructure of the future,” Pangilinan added.
For his part, Hartasuma’s group executive director Tan Sri Ravindran Menon said: “We look to value add our collaboration and assist MPIC in achieving its goals. The construction market in the Philippines is expected to grow by some 7% in 2023 following a growth of 12.1% in 2022. There is a lot of demand and interest in rail infrastructure projects as the government looks to improve regional connectivity through the development of transport infrastructure. We look forward to participating in some of this growth.”
MPIC said the strategic partnership will pave the way for diverse initiatives, including the development of rolling stock refurbishment projects in the Philippines and the exploration of cable car systems for tourism and urban transport.
“These ventures will not only transform the transportation landscape of the country but will also create a thriving industry that will support economic progress by fostering skill development, creating numerous employment opportunities for Filipinos, and enhancing local manufacturing and supply chain capabilities,” MPIC said.
MPIC, through its subsidiary Light Rail Manila Corp, operates and maintains 20 Light Rail Transit stations. It is expanding with the construction of five new stations for the Cavite extension project.
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