The Government of Sweden is extending grant financing to the Philippines through Swedfund International to support the feasibility study of the Subic–Clark–Manila–Batangas (SCMB) railway, the flagship infrastructure project of the Luzon Economic Corridor (LEC).

The Department of Transportation (DOTr) said Wednesday Swedfund’s grant will fund a study on signaling systems and operational models for the proposed freight railway, which will connect the major ports of Subic, Manila, and Batangas to boost logistics efficiency and trade across Luzon.

The agreement was signed by the Government of Sweden, through Swedfund International, and the DOTr.

Sweden’s Ministry of Foreign Affairs official Daniel Wolvén, Swedish Ambassador to the Philippines Anna Ferry, Trade Commissioner Johan Lennefalk, and DOTr officials led by Acting Secretary Giovanni Lopez attended the event with representatives from the Department of Finance and the Department of Foreign Affairs.

“On behalf of the Department of Transportation, we express our gratitude to the Swedish government for this valuable assistance to the Subic–Clark–Manila–Batangas Freight Railway Project,” Lopez said. 

“This project will strengthen the country’s logistics and supply chain by providing a dedicated freight transport system connecting major ports with industrial and economic zones. Once realized, it will reduce logistics costs, improve trade efficiency, and advance the administration’s goal of building a more competitive and connected economy,” he added.

The latest support from Sweden complements funding secured in June from the United States Trade and Development Agency for parallel studies on transport modeling, port–rail integration, and institutional planning. 

The Asian Development Bank will oversee the procurement of a consultant for the main feasibility study.

“This additional agreement with the DOTr is a remarkable example of synergies and cooperation between public and private efforts. We are proud to support the Philippines’ development goals with Swedish technology and expertise in transportation and provide a boost for sustainable growth and opportunities,” Ambassador Ferry said. 

The Luzon Economic Corridor is part of trilateral cooperation among the Philippines, Japan, and the United States, which is expected to enhance infrastructure connectivity, promote sustainable industrial development, and drive inclusive growth across key economic regions in Luzon.