LRMC, Japanese firms ink deal for LRT-1 operations, maintenance assistance

Light Rail Manila Corporation (LRMC), private operator of Light Rail Transit Line 1 (LRT-1), on Wednesday signed an agreement with Japanese companies for technical assistance on the rail system’s operations and maintenance.

In a news release, the Department of Transportation (DOTr) said LRMC, Sumitomo Corporation, and Hankyu Corporation signed a Technical Assistance Agreement. 

The signing was witnessed by Transportation Secretary Jaime Bautista and Japan International Cooperation Agency (JICA) officials.

Under the agreement, Hankyu will provide technical assistance to LRMC to help evaluate LRT-1’s operations and improve its processes and personnel training.

Moreover, LRMC will also leverage on Hankyu’s railway expertise in areas such as operations and maintenance, non-fare revenue, land value capturing, and urban development planning.

“This added layer of assistance will be most helpful especially at this time when the Cavite Extension is about to start partial operations very soon,” Bautista said.

“This latest partnership for LRT-1’s operations and maintenance serves as a showcase to convince new Japanese investors to seriously consider Philippine mass transport projects,” he said.

Masayoshi Uemora, Hankyu senior managing director, said constructing railway systems in the Philippines is “of vital importance to mitigate traffic congestion.”

“Railway service plays an increasingly important role in helping solve this crisis,” said Masayoshi.

As part of the accord, Sumitomo will transfer an undisclosed number of shares it holds in LRMC to JICA and Hankyu.

LRMC has been the private operator of LRT-1 since 2015. It is a joint venture company of Metro Pacific Investments Corporation, Ayala Corporation’s AC Infrastructure Holdings Corporation, Sumitomo, and the Philippine Investment Alliance for Infrastructure’s Macquarie Investments Holdings (Philippines) PTE Ltd.—RF, GMA Integrated News