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Sumitomo Corporation eyes bigger investments in Philippine rail, power

Finance Secretary and Investment Czar Frederick Go in a meeting with officials of Sumitomo Corporation

Department of Finance

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Japanese integrated trading firm Sumitomo Corporation is exploring expanded investments in the Philippines' railway and energy infrastructure, the Department of Trade and Industry said.

Investment czar and Finance Secretary Frederick Go, in a statement on Tuesday, said the conglomerate is pursuing opportunities to contribute to the operations and maintenance of the North-South Commuter Railway (NSCR), supporting the development of a more integrated and efficient rail network.

He said Sumitomo is also looking to expand its investments in energy infrastructure, including renewable energy projects that could support railway operations while strengthening the country's long-term energy security and industrial competitiveness.

"Sumitomo has long been one of the Philippines' most valued partners. We look forward to deepening this partnership through strategic investments in infrastructure and other key sectors that will strengthen our competitiveness and support our long-term economic development," Go said.

For more than four decades, Sumitomo has played a key role in delivering major transport infrastructure projects, including the Metro Rail Transit Line 3 (MRT-3) and the Light Rail Transit Line 1 (LRT-1).

To date, Sumitomo has participated in four major railway projects under the Department of Transportation, including the MRT-3 Rehabilitation and Maintenance Project, the Metro Manila Subway Project (MMSP), and two contract packages under the North-South Commuter Railway (NSCR).

Secretary Go maintained that Sumitomo's continued interest in expanding its investments in the Philippines reflects growing confidence in the country's infrastructure pipeline, reinforcing the government's sustained efforts to foster a stable, competitive, and investment-friendly environment for long-term, high-quality investments.

More investors

Also on Monday, the Department of Transportation said at least 26 Japanese companies have expressed interest in a public-private partnership to expand and modernize the MRT Line 3 project in a bid to reduce Metro Manila's chronic traffic congestion and improve daily commutes for millions of Filipinos.

The interest emerged during a market-sounding activity conducted by the DOTr in partnership with the Asian Development Bank on 23 June in Tokyo, where officials presented the MRT-3 Capacity Expansion, Operations and Maintenance PPP to potential Japanese investors.

President Ferdinand R. Marcos Jr. has directed the DOTr to prioritize the modernization of MRT-3, recognizing its role in passenger mobility across Metro Manila.

Transportation Secretary Banoy Lopez said the PPP is aimed at improving how millions of commuters move daily through Metro Manila.

“The MRT-3 PPP is more than an investment opportunity—it is an invitation to potential investors to help reshape how millions of Filipinos can swiftly move every single day,” Lopez said, adding that the department is committed to building a railway system that meets public needs.

DOTr Assistant Secretary for Railways Eduardo Danilo Macabulos said the Philippines remains the most congested country in Asia and that traffic congestion carries real economic and social costs beyond mere inconvenience.

Macabulos said the MRT-3 PPP is part of a broader pipeline of private sector opportunities the DOTr expects to roll out in the near term, including operations and maintenance contracts for the 147-kilometer North-South Commuter Railway and the 33-kilometer Metro Manila Subway Project, as well as PPPs for Light Rail Transit Line 2 and the Philippine Automated Fare Collection System.

These projects fall under the government's 30-year Railway Master Plan, which envisions a more connected and sustainable rail network for Metro Manila and surrounding regions.

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