San Miguel CEO Ramon Ang(left) and Korail CEO Han Moon-hee South Korea's state-run railway company Korea Railroad Corporation (Korail) said on Monday that it participates in the operation and maintenance (O&M) of an urban railway in the Philippines.
Korail revealed on September 10 that it was selected as the preferred negotiator for the O&M contract of the Manila Metro Line 7 (MRT-7), set to open late next year.
The MRT-7, a 23-kilometer line, will feature 14 stations and connect Quezon City to Bulacan in Metro Manila, the Philippines' capital region.
This marks the first instance of a private firm, San Miguel Corp., securing the business rights for a Philippine railway line. Construction is underway, with the line expected to open by November next year.
Korail aims to finalize contract negotiations with San Miguel by the end of the year. If successful, approximately 50 Korail experts will collaborate with San Miguel on the MRT-7 O&M project over the next decade.
Korail's selection is a testament to the company's trust and technical expertise within the Philippine railway industry, which dates back to 2012.
Korail first entered the market with the Manila Light Rail Transit (LRT-1) facility improvement project.
Since 2016, Korail has provided technical support on vehicle and system design and construction for the MRT-7. In 2023, it began consultations on O&M, including test operations and system verification.
The company is also responsible for training critical personnel, such as train drivers and controllers.
Korail has established a consultative body with San Miguel's management and formed a dedicated team to advance the ongoing negotiations.