The Philippines and the United States (US) signed an agreement to advance the development of the proposed Subic-Clark-Manila-Batangas (SCMB) freight railway, Malacañang confirmed Friday.

In a press conference, Presidential Communications Undersecretary and Palace Press Officer Claire Castro said the new deal for such an infrastructure project aimed at easing port congestion in major trade corridors and boosting economic growth and regional connectivity.

“Nakikitang magiging solusyon ang SCMB Railway sa pag-decentralize ng port activity at pagbawas sa port congestion (The SCMB Railway is seen as a solution to decentralize port activity and reduce port congestion)," Castro said.

She added the project aims to further strengthen trade and spur the country's economic development.

On June 25, Transportation Secretary Vince Dizon and U.S. Trade and Development Agency (USTDA) Acting Director Thomas Hardy formalized the agreement during a signing ceremony in Arlington, Virginia.

In a statement, the Department of Transportation (DOTr) said the USTDA’s technical assistance for the Subic-Clark-Manila-Batangas (SCMB) Railway will include the development of a transport model, a port-rail integration study, and a review of the legal and institutional framework, among other components.

"The project underscores the US-Philippine alliance’s vital role in maintaining a free and open Indo-Pacific region," Hardy said.

"By supporting the development of the SCMB Railway, we are ensuring that key infrastructure will flourish, increasing economic cooperation to develop an essential trading route that will mutually benefit American and Philippine citizens," he continued.

Meanwhile, Dizon said the 155-kilometer Subic-Clark-Manila-Batangas (SCMB) Railway is designed to link three of the country’s major ports—Manila, Subic Bay, and Batangas—aiming to boost logistical efficiency and regional connectivity.

"As a freight cargo railway, the SCMB Railway is seen to solve port traffic and congestion in Manila Port, while ensuring the timely movement of products to and from adjacent major transport hubs," he added.

For his part, Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go emphasized the railway's role in advancing the Luzon Economic Corridor initiative, which seeks to integrate key economic zones across the region.

“Once operational, the SCMB Railway will attract investments, create new opportunities for businesses, and most importantly, generate quality jobs that will benefit millions of Filipinos,” Go said.