Light Rail Manila Corporation

Last updated

Light Rail Manila Corporation
Company type Private
FoundedJuly 22, 2014;9 years ago (2014-07-22)
HeadquartersEngineering Building, LRTA Compound, Andrews Avenue, Pasay, Metro Manila, Philippines
Key people
  • Jose Ma. K. Lim (President & CEO)
  • Enrico R. Benipayo (General Manager)
Website lrmc.ph OOjs UI icon edit-ltr-progressive.svg
Light Rail Manila Corporation
LRMC logo.svg
Overview
Franchise(s) LRT Line 1
Stations operated20
HeadquartersEngineering Building, LRTA Compound, Andrews Avenue, Pasay, Metro Manila, Philippines
Locale Metro Manila
Dates of operationSeptember 12, 2015 (2015-09-12)–present

Light Rail Manila Corporation (LRMC) is a rail service company based in Pasay, Metro Manila, Philippines. It is a consortium of companies engaged in the operation and maintenance of the Manila Light Rail Transit System Line 1 (Line 1) since September 2015. The consortium is composed of Metro Pacific Investments Corporation and Sumitomo Corporation's Metro Pacific Light Rail Corp. (MPLRC); AC Infrastructure Holdings Corp. (a subsidiary of Ayala Corporation); and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. [1] [2]

Contents

History

Background

The privatization of the entire maintenance and operation of the Manila Light Rail Transit Line 1 was the first infrastructure project under the Public-Private Partnership (PPP) program of the Benigno Aquino III administration announced by the Department of Transportation in May 2011. The project's objectives were to attract billions of pesos of investments from the private sector in order to improve the system's severely deteriorated condition, as well as to relieve the government of its obligation to spend more than ₱7 billion in annual subsidies just to keep the fares within reach of commuters. [3]

In 2012, an extension of the LRT Line 1 to Cavite was announced. The project also includes an operations and maintenance contract. [4] The project was approved by former President Benigno Aquino III in March 2012. [5] Meanwhile, the bidding for the project started on June 4, 2012. [6]

Development

On April 24, 2012, Metro Pacific Investments Corporation (MPIC) and Ayala Corporation launched a partnership after both companies signed a memorandum of understanding. [7]

In November 2012, the consortium was cleared to proceed with the bidding process along with three other companies. [8] However, in 2013, the three other companies withdrew from the bidding. In August 2013, Ayala Corporation also dropped out of the consortium, leaving Metro Pacific as the lone bidder. [9] MPIC's bid was later declared as non-compliant, causing the bidding process to fail. [10]

The consortium once again submitted a bid on May 28, 2014. [11] Despite public opposition that the privatization may result in an increase in fares for the LRT Line 1, [12] on September 12, 2014, the Department of Transportation and Communications and the Light Rail Transit Authority awarded the project to the consortium. [13] The concession agreement was signed on October 2, [14] and the consortium took over the Line 1 operations on September 12, 2015. [2] [1] [15] Under the ₱65 billion 32-year concession agreement with the Department of Transportation and Light Rail Transit Authority, the company is mandated to carry out the rehabilitation of Line 1 as well as to provide 120 new train coaches to the system. [2] The concession also includes the ₱35 billion South Extension Project or Cavite Extension Project of the Line 1 to Niog station in Cavite which officially begun construction on May 7, 2019, after several years of delay due to right-of-way issues, as well as the north extension to the North Avenue Grand Central station in Quezon City whose exact location was settled in 2016 and which broke ground in September 2017. [1] [16] [17]

Light Rail Manila Corporation's parent companies Metro Pacific Investments Corporation and Ayala Corporation have earlier been awarded the tap-and-go fare payment system project for all three rail transit lines in Metro Manila, the Beep smart card rolled out in July 2015 through another joint venture in AF Payments Incorporated, as well as the automated fare collection system project which was rolled out in December 2015. [2] The parent companies also proposed a bid for the operations and maintenance of the LRT Line 2, and the ₱171 billion North–South Railway Project of the Philippine National Railways which included the rehabilitation and operation of the 478-kilometer (297 mi) railway. [2] The Line 2 privatization would later be shelved, while the North–South Railway Project would later be funded by foreign loans as two separate projects: the North–South Commuter Railway and the PNR South Long Haul.

Entry of Sumitomo and contemporary history

On May 29, 2020, Sumitomo Corporation acquired a 34.9% stake in the subsidiary of Metro Pacific Investments Corporation that holds an effective 55 percent stake in Light Rail Manila Corporation (LRMC). [18]

On April 21, 2021, the company signed a memorandum of understanding with the Metals Industry Research and Development Center of the Department of Science and Technology for the repair of the LRT Line 1 trains, and the re-engineering, fabrication, and repair of train parts that are obsolete and/or no longer available in the market. [19]

On April 25, 2024, the Japan International Cooperation Agency (JICA) and Hankyu entered into an agreement with Sumitomo to collaborate on the operation and maintenance of the LRT Line 1. As part of the agreement, a part of shares indirectly held by Sumitomo in LRMC was transferred to JICA and Hankyu. [20] [21] The agreement is Hankyu and JICA’s first investment in railway operation and maintenance business outside of Japan.

Ownership

Ownership of the company before 2020:

  MPLRC (Metro Pacific) (55%)
  Ayala (35%)
  Macquarie (10%)

Ownership of the company since May 2020:

  MPLRC (Sumitomo) (19.2%)
  MPLRC (Metro Pacific) (35.8%)
  Ayala (35%)
  Macquarie (10%)

Before the entry of Sumitomo, Metro Pacific Investments had a 55% ownership in the company while Ayala Corporation had a 35% interest. The remaining 10% of the company is owned by Macquarie Infrastructure Holdings (Philippines). [22] After the entry of Sumitomo Corporation, which bought 34.9% of Metro Pacific's interest, Metro Pacific sold its economic interest of 19.2% in its concession, [23] reducing MPIC's stake to 35.8%. MPIC plans to increase its economic interest in the company after the 2022 Philippine presidential election. [24] A part of Sumitomo's shares was acquired by the Japan International Cooperation Agency (JICA) and Hankyu in April 2024. [21]

Related Research Articles

<span class="mw-page-title-main">Manila Light Rail Transit System</span> Rail system serving Metro Manila

The Manila Light Rail Transit System, commonly known as the LRT, is an urban rail transit system that primarily serves Metro Manila, Philippines. Although categorized as a light rail system because it originally used light rail vehicles, it presently has characteristics of a rapid transit system, such as high passenger throughput, exclusive right-of-way, and later use of full metro rolling stock. The LRT is jointly-operated by the Light Rail Transit Authority (LRTA), a government corporation attached to the Department of Transportation (DOTr), and the Light Rail Manila Corporation (LRMC). Along with the Manila Metro Rail Transit System and the Metro Commuter Line of the Philippine National Railways, the system makes up Metro Manila's rail infrastructure.

<span class="mw-page-title-main">MRT Line 3 (Metro Manila)</span> Rail line in Manila, Philippines

The Metro Rail Transit Line 3, also known as the MRT Line 3, MRT-3 or Metrostar Express, is a rapid transit line in Metro Manila in the Philippines. The line runs in an orbital north to south route following the alignment of Epifanio de los Santos Avenue (EDSA). Despite its name, the line is more akin to a light rapid transit system owing to its tram-like rolling stock while having total grade separation and high passenger throughput. The line is officially known as the Yellow Line.

<span class="mw-page-title-main">Rail transportation in the Philippines</span>

Rail transportation in the Philippines is currently used mostly to transport passengers within Metro Manila and provinces of Laguna and Quezon, as well as a commuter service in the Bicol Region. Freight transport services once operated in the country, but these services were halted. However, there are plans to restore old freight services and build new lines. From a peak of 1,100 kilometers (680 mi), the country currently has a railway footprint of 533.14 kilometers (331.28 mi), of which only 129.85 kilometers (80.69 mi) are operational as of 2024, including all the urban rail lines. World War II, natural calamities, underspending, and neglect have all contributed to the decline of the Philippine railway network. In the 2019 Global Competitiveness Report, the Philippines has the lowest efficiency score among other Asian countries in terms of efficiency of train services, receiving a score of 2.4, and ranking 86th out of 101 countries globally. The government is currently expanding the railway network up to 1,900 kilometers (1,200 mi) by 2022 through numerous projects.

<span class="mw-page-title-main">Light Rail Transit Authority</span> Filipino public transport operator

The Light Rail Transit Authority (LRTA) is a public transport operator that is responsible for the construction, operation, maintenance and/or lease of Manila Light Rail Transit System in the Philippines. It is organized as a government-owned and controlled corporation under the Department of Transportation (DOTr) as an attached agency.

<span class="mw-page-title-main">LRT Line 1 (Metro Manila)</span> Metro rail line in Manila

The Light Rail Transit Line 1, commonly referred to as LRT Line 1 or LRT-1, is a light rapid transit system line in Metro Manila, Philippines, operated by Light Rail Manila Corporation (LRMC) and owned by the Light Rail Transit Authority (LRTA) as part of the Manila Light Rail Transit System. Originally referred to as Metrorail and the Yellow Line, LRT Line 1 was reclassified to be the Green Line in 2012. It travels in a general north–south direction from Baclaran to Monumento, and then east–west from Monumento to Fernando Poe Jr. Currently, the line consists of 20 stations and runs on 19.65 kilometers of fully elevated route. Although it has the characteristics of light rail, such as with the type of rolling stock used, it is more akin to a rapid transit system owing to its total grade separation and high passenger throughput.

<span class="mw-page-title-main">LRT Line 2</span> Manila Metro line

The Light Rail Transit Line 2, also known as LRT Line 2,LRT-2, or Megatren, is a rapid transit line in Metro Manila in the Philippines owned and operated by the Light Rail Transit Authority (LRTA). The line generally runs in an east–west direction between Recto in Manila and Antipolo. The line is officially referred to as the Purple Line.

<span class="mw-page-title-main">MIA station</span> Light rail station under construction

MIA station, also known as Manila International Airport station, is an under-construction Light Rail Transit (LRT) station located on the LRT Line 1 (LRT-1) system in Parañaque. It is a part of the LRT-1 South Extension Project.

<span class="mw-page-title-main">Redemptorist station</span>

Redemptorist station is an under-construction Light Rail Transit (LRT) station located on the LRT Line 1 (LRT-1) system in Parañaque. It is part of the Line 1 South Extension Project. The station would be the northernmost of the extension. It would be the twenty-second station from the northern terminus at Common Station. It would be built in Aseana City in Barangay Baclaran and would be named after the nearby Redemptorist Road.

<span class="mw-page-title-main">Zapote station</span>

Zapote station is an under-construction Light Rail Transit (LRT) station located on the LRT Line 1 (LRT-1) system in Bacoor, Cavite. Zapote differs from other LRT-1 stations in that it will be constructed at grade. It is part of the LRT-1 South Extension Project. The station would be the first LRT-1 station outside Metro Manila. The station will be situated near the Zapote Exit Ramp of Manila-Cavite Expressway in Barangay Zapote V (Longos).

<span class="mw-page-title-main">Metro Rail Transit Corporation</span>

The Metro Rail Transit Corporation (MRTC), is a private consortium organized in June 1995. The consortium is composed of seven (7) Filipino-owned companies: Fil-Estate Management Inc, Ayala Land Inc, Ramcar Inc, Greenfield Development Corporation of Unilab, Anglo-Philippine Holdings Corporation, National Book Store Group, Allante Realty and Development Inc, and DBH Inc. The Metro Rail Transit Corporation owns the Manila Metro Rail Transit System Line 3 running along the EDSA corridor. MRTC was the original contractor for the EDSA MRT-3 Project. It runs the MRT-3 in coordination with the Department of Transportation under a 25-year Build-Lease-Transfer contract or BLT Agreement, which will end in 2025.

<span class="mw-page-title-main">Asia World station</span> Under construction station in the Philippines

Asia World station is an under-construction Light Rail Transit (LRT) station located on the LRT Line 1 (LRT-1) system in Parañaque. Named after the nearby Asiaworld district where it is situated, it is part of the LRT-1 South Extension Project to Cavite.

<span class="mw-page-title-main">Metro Pacific Investments</span> Philippine conglomerate

Metro Pacific Investments Corporation (MPIC) is a Philippine-based unit investment holding company of First Pacific Company Limited through Metro Pacific Holdings, Inc. MPIC through its subsidiaries, provides water, sanitation, and sewerage services and also operates in real estate, and infrastructure projects. It also invests in some hospitals in the Philippines.

<span class="mw-page-title-main">Cavite–Laguna Expressway</span> Expressway in the Philippines

The Cavite–Laguna Expressway, signed as E3 of the Philippine expressway network, is a partially operational controlled-access toll expressway in the provinces of Cavite and Laguna, Philippines. The construction of the 44.63-kilometer-long (27.73 mi) expressway, which began in June 2017, costs an estimated ₱35.43 billion. Once completed, it will connect the Manila–Cavite Expressway in Kawit to the South Luzon Expressway in Biñan and is expected to ease the traffic congestion in the Cavite–Laguna area, particularly along the Aguinaldo Highway, Governor's Drive, and the Santa Rosa–Tagaytay Road.

The Light Rail Transit Line 6 is a proposed rapid transit system in Cavite, Philippines. There have been two proposals for the line, with the first one shelved immediately in 2018. Another proposal emerged in 2017 and is currently under review by the National Economic and Development Authority (NEDA).

The Metro Manila Subway, formerly known as the Mega Manila Subway (MMS), is an under-construction underground rapid transit line in Metro Manila, Philippines. The 33-kilometer (21 mi) line, which will run north–south between Valenzuela, Quezon City, Pasig, Taguig, Parañaque and Pasay, consists of 17 stations between the East Valenzuela and Bicutan stations. It will become the country's second direct airport rail link after the North–South Commuter Railway, with a branch line to Ninoy Aquino International Airport.

<span class="mw-page-title-main">LRTA 1000 class</span> Oldest rolling stock operating at LRT-1

The LRTA 1000 class is the first-generation class of high-floor light rail vehicles (LRV) currently operated by the Light Rail Manila Corporation. It first entered service under the Light Rail Transit Authority in 1984 on the LRT Line 1.

<span class="mw-page-title-main">LRTA 1200 class</span> 3rd-generation rolling stock operating at LRT-1

The LRTA 1200 class is the third-generation class of high-floor light rail vehicles (LRV) of the Light Rail Transit Authority servicing the Manila LRT Line 1. Purchased as part of the second phase of the capacity expansion of the line, the trains entered service in December 2006.

<span class="mw-page-title-main">LRTA 1100 class</span> LRTA Rolling Stock operating at Manila Line 1

The LRTA 1100 class is the second-generation class of high-floor light rail vehicles of the Light Rail Transit Authority (LRTA) in Manila, Philippines, which began operation in 1999.

<span class="mw-page-title-main">LRTA 13000 class</span> 4th generation rolling stock operating at LRT-1

The LRTA 13000 class is a class of fourth-generation high-floor light rail vehicles (LRV) of the Light Rail Transit Authority servicing the Manila LRT Line 1. Purchased in 2017 as part of the south extension of the line, the trains entered service in July 2023 to replace the aging first-generation 1000 class trains.

<span class="mw-page-title-main">Rail transportation in the Greater Manila Area</span>

Rail transportation in the Greater Manila Area is a major part of the transportation system in Metro Manila and its surrounding areas. It consists of the Manila Light Rail Transit System, Manila Metro Rail Transit System, and the PNR Metro Commuter Line. The network makes up the majority of active railways in the country and bear the brunt of providing the metropolis with rail as a faster alternative mode of transport other than buses and jeepneys. However, these systems are currently insufficient for the rapidly expanding metropolis; to address this, new lines and line extensions are under construction, which will extend the system far out into neighboring regions.

References

  1. 1 2 3 Periabras, Rosalie C. (September 14, 2015). "LRMC consortium takes over LRT-1 operations". The Manila Times . Archived from the original on September 18, 2015. Retrieved March 30, 2019.{{cite news}}: CS1 maint: unfit URL (link)
  2. 1 2 3 4 5 Cabacungan, Gil; Camus, Miguel (September 15, 2015). "LRT1 now under Ayala, Metro Pacific management". Philippine Daily Inquirer . Retrieved March 30, 2019.
  3. ↑ Montecillo, Paolo (May 9, 2011). "LRT, MRT privatization to benefit commuters, DoTC says". Philippine Daily Inquirer . Retrieved March 30, 2019.
  4. ↑ "Philippines to seek bids for $1.4bn LRT-1 extension in 2012". Railway Technology. February 7, 2012. Retrieved December 13, 2021.
  5. ↑ "Aquino approves 42 infrastructure projects worth P439-B in 2012". Rappler. January 3, 2013. Retrieved December 13, 2021.
  6. ↑ Montecillo, Paolo G. (June 5, 2012). "Gov't starts bidding process for P30B LRT 1 extension deal". Philippine Daily Inquirer. Retrieved December 13, 2021.
  7. ↑ "Ayala and MPIC: Rivals turn rail partners". Rappler. April 24, 2012. Retrieved December 13, 2021.
  8. ↑ "Final: LRT-1 Cavite rail bidding on August 15". Rappler. July 29, 2013. Archived from the original on December 13, 2021. Retrieved December 13, 2021.
  9. ↑ "MVP group lone bidder for LRT-1 extension". Rappler. August 15, 2013. Retrieved December 13, 2021.
  10. ↑ "LRT-1 Cavite extension bidding 'a failure'". Rappler. August 29, 2013. Retrieved December 13, 2021.
  11. ↑ Camus, Miguel R. (May 28, 2014). "Ayala-Metro Pacific consortium submits lone bid offer for LRT 1 extension". Philippine Daily Inquirer. Retrieved December 13, 2021.
  12. ↑ Salamat, Marya (October 2, 2014). "Bayan rues 'End of an era' as Aquino privatizes LRT 1". Bulatlat. Retrieved February 20, 2022.
  13. ↑ "DOTC awards LRT-1 Cavex PPP; starts bid for LRT-2 O&M". Official Gazette of the Republic of the Philippines. September 13, 2014. Retrieved December 13, 2021.
  14. ↑ "PPP contract signed for Manila LRT 1 project". InfraPPP. October 6, 2014. Archived from the original on January 24, 2021. Retrieved December 13, 2021.
  15. ↑ "Company Profile" . Retrieved March 30, 2019.
  16. ↑ Rey, Aika (March 4, 2019). "LRT1 Cavite extension construction to begin April 2019". Rappler . Retrieved March 30, 2019.
  17. ↑ Schnabel, Chris (September 29, 2017). "Construction of MRT-LRT common station finally begins". Rappler . Retrieved March 31, 2019.
  18. ↑ Dumlao-Abadilla, Doris (May 29, 2020). "Sumitomo buys into MPIC's railway business". Philippine Daily Inquirer.
  19. ↑ "LRMC and DOST-MIRDC ink knowledge-sharing partnership on rail technology". Light Rail Manila Corporation. April 23, 2021. Retrieved April 12, 2022.
  20. ↑ Cruz, Beatriz Marie (May 13, 2024). "JICA announces Sumitomo, Hankyu tie-up to enhance LRT-1 operations". BusinessWorld Online. Retrieved June 8, 2024.
  21. 1 2 "Hankyu Corporation and JICA participate in LRT-1 project (Manila, the Philippines) partly owned by Sumitomo Corporation". Sumitomo Corporation. June 3, 2024. Retrieved June 8, 2024.
  22. ↑ "Light Rail Manila consortium bids for $1.5bn LRT 1 extension project". Railway Technology. May 28, 2014. Retrieved February 20, 2022.
  23. ↑ "MPIC sells economic interest of 19.2% in its LRT1 concession through sale of 34.9% of Metro Pacific Light Rail Corporation to Sumitomo Corporation" (PDF). Metro Pacific Investments . Retrieved February 20, 2022.
  24. ↑ Romero, Maria (May 5, 2022). "MPIC eyes Ayala LRT stake after polls". Daily Tribune. Retrieved May 5, 2022.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.