Construcciones y Auxiliar de Ferrocarriles S A : CAF TO SUPPLY EXPRESS TRAINS IN THE PHILIPPINES

01/12/2023

Mitsubishi Corporation has chosen to outsource the design and supply of 7 Electric Multiple Units (EMUs) to CAF as part of the contract awarded to them by the Department of Transportation (DOTr) of the Government of the Philippines. The project includes the manufacture of the seven express trains mentioned above, each one consisting of eight cars including the fleet spares.

The contract is one of the packages of the macro project for the North-South Commuter Railway Project which will connect the Clark International Airport (southeast of Manila) which serves as one of the country's principal entry hubs for international flights with the province of Laguna (southern part of Luzon). The project is worth €150M, and it is financed by the Japan International Cooperation Agency (JICA).

DOTr is the primary government institution in charge of the country's transport systems and services and is also responsible for managing all infrastructure projects (roads, railways, ports, airports, etc.). Its primary goal is to drive economic growth and improve the country's competitiveness by planning and developing modern and efficient transport systems.

The new line, which will be managed by the Department of Transportation in partnership with the Philippine National Railways (PNR), forms part of the national initiative to improve transportation in the surrounding areas of the Philippine capital city (in this case the route to the airport), reduce road traffic, and prevent major traffic jams in the metropolitan area, all forming part of the framework of the Philippine government's policy to achieve more sustainable transport.

In recent years, the CAF Group has established a close strategic relationship with Mitsubishi Corporation, having undertaken numerous extremely successful railway projects. Highlights include supplying rolling stock for Line 1 of the Manila Light Rail Transit System, also in the Philippines, automatic units for the Istanbul Metro, and constructing a transport system in the Australian City of Canberra.

This also consolidates CAF's operations in the Philippine market, a market with major potential in Asia Pacific. This is a strategic region for the company's future, both in view of the ongoing annual GDP growth, which exceeds European levels, and the major infrastructure projects that the Philippines intends to develop over the next few years.