Government seeks Austrian donation of 16 trains for MRT-3 line

The Transportation department will initiate talks with the government of Austria next month for the donation to the Philippines of 48 of its spare light rail vehicles that are equivalent to 16 trains. Transportation Assistant Sec. Roberto R. Castañares said the government wants to use the additional rail vehicles to increase loading capacity of the already-overcrowded Metro Rail Transit 3 (MRT-3) on EDSA at low cost. The Transportation department expects to spend $400,000 to $500,000 to refurbish each rail vehicle, much lower than the projected cost of $2 million per brand new vehicle. It also expects to secure a 20-year warranty for the upkeep of the trains from European rail vehicle manufacturers doing business with Vienna. The 13-station MRT-3 is now served by 21 trains that carry 350,000 to 400,000 passengers daily, higher than its normal loading capacity of 300,000 passengers daily. INCREASED CAPACITY If the Transportation department can convince Vienna to donate the trains to the Philippines, then the MRT-3 loading capacity will be raised by 200,000 passengers daily. The trains will have a life span of another 12-15 years, about the same life span of existing MRT-3 trains. Mr. Castañares said that officials of the Transportation department will fly to Vienna next month to inspect the trains, particularly to determine whether they are technically compatible with the rail standards of MRT-3. If the trains fit the specifications of MRT-3 and if Vienna would agree to donate them, then delivery can be expected this December, he added. Refurbishing of the trains will be done in first quarter of 2007 and commercial use of the trains along the MRT-3 revenue line will be scheduled by end of next year. A European rail vehicle manufacturer with presence in Manila tipped off the Transportation department of the availability of the trains from Vienna, Mr. Castañares said. It said the Vienna Metro Management is set to replace 80 of its rail vehicles that were built from 1979 to 1983. The manufacturer claims that the rail vehicles are "perfectly maintained" and would be available this July. The Transportation department needs 48 rail vehicles for the capacity expansion program of MRT-3. COSTLY PROPOSITION "MRT has been a costly proposition for the government but we continued to finance its programs and subsidize its fares because of its phenomenal ridership. It is but logical for us to look for ways to save on its capacity expansion project," Mr. Castañares said. "We will request the President [Gloria Macapagal Arroyo] to allocate a part of the Executive Branch’s pump-priming fund or we can re-align some parcels of the department’s P14-billion budget for this [for MRT-3 capacity expansion]," he added, when asked about the source of funding for the Austrian rail vehicles. In 2004, the Metro Rail Transit Authority has petitioned the Transportation department to buy new trains that will boost capacity of MRT-3. Implementation of the capacity expansion project, however, was put on hold due to poor finances of the railway. MRT-3 has a daily revenue of P4 million from its average 450,000 regular riders at the current average fare of P12.50. Payment for rentals, maintenance, and staffing is pegged at P9.9 million daily. Last year, the government planned to implement the project using official development assistance (ODA) loans, for which interest will stand at 2%-3% and payments were to be spread out over 25 years. ODA commitments of the government, however, had by then been fully allotted until 2008. MRT-3 developer Metro Rail Transit Corp. has also proposed to implement the project for the government at a cost of $120.84 million. The Transportation department, however, had not been inclined to award the contract to MRTC due to what the government said was a high price. -- Kerlyn G. Bautista, BusinessWorld Reporter