The Cagayan Valley Railway Extension ProjectSecure Site  · Cagayan Valley itself. Meanwhile, a...

8
38 Japan Railway & Transport Review 22 • December 1999 The Cagayan Valley Railway Extension Project Feature Copyright © 1999 EJRCF. All rights reserved. The Cagayan Valley Railway Extension Project Gary L. Satre Introduction Between the towns of Cordon, Isabela and Enrile, Cagayan in northeastern Luzon of the Philippines, with persistence, you will find traces of a railway. They consist of just 63 km of developed sub-roadbed within a distance of 170 km. This is today’s Cagayan Valley Railway Extension Project. The story starts from around the early 1880s and has had as many twists and turns in it as a planned route until today. The proposed line begins from the central Luzon plains, climbs through the rugged Caraballo mountains, and descends into the verdant and rich Cagayan Valley itself. Meanwhile, a project profile in the Railway Planning Division of the Department of Transportation and Communications (DOTC) keeps the dream alive, while other documents gather dust in various government offices including the National Economic Development Authority (NEDA). Stumbling onto Obscure Philippine History After visiting NEDA’s library one afternoon in 1996, I went home flabbergasted. You see, in late 1994, I became re-acquainted with model railroads. Running the O-scale (1:48) electric trains of my childhood and riding real trains cemented my love for railroads. Travels in the US Navy in the late 1960s plus being a permanent resident of the Philippines since 1981 has exposed me to trains here as well as in Taiwan, Hong Kong, and Japan. As I read the October 1994 issue of Model Railroader, I marveled at the room-size layouts featured in that edition. ‘What to model?’ I said to myself. I first considered a portion of Metro Manila’s LRT Line 1— skill levels quickly dampened my enthusiasm. ‘But what if the tracks were extended from San Jose, Nueva Ecija into the Cagayan Valley?’ I had often seen San Jose Station from my passing bus many times in my travels north. Leaving the library after reading a 1974 report, I realized that my vision had a history! Up to that chance encounter that afternoon, I had no idea there was an actual Cagayan Valley Railway Extension Project! Late Arrival of Philippine Iron Horse Railroads arrived late in the Philippines. Spain found comfort in old traditions while the rest of Europe was being challenged by new technology. The Industrial Revolution had started its sweep from England and no other symbol of the modern age was more familiar than that of the steam locomotive. After its invention in Britain in 1825, the railroad reached France in 1828, Germany in 1835, the Netherlands in 1839, and Spain in 1848. The Spanish Revolution of 1868 was followed by a period of political turbulence for 7 years. During that time, the 1872 Cavite Mutiny and the writings of Filipino ‘propagandists’ in Madrid, showed clearly that reforms were desperately needed in the Philippines. Royal Orders for Railways In June and August 1875, royal orders were issued for general plans and ground rules for rail tracks in the islands. Complying with the first order, Don Eduardo Navarro submitted his plan for government approval on 5 February 1876. It was granted nearly 3 years later with a Royal Order of 19 July 1880 directing that survey work be started on the main island of Luzon. A prototype line was to be built north from Manila to the nearby province of Bulacan. This section eventually became part of the original main line. Survey findings showed that additional lines could be built too. The first 196-km line (Fig. 1) was opened to Dagupan on 24 November 1892. Each section entered operation as it was finished. A Royal Order of 28 April 1882 directed the San Jose Station would have been the first stop for travellers from the Cagayan Valley through the Caraballo mountains if the rail line had been completed in the mid-1960s. Since 1982, when the Tarlac branch line was abandoned, the station has been the victim of squatters and indifference. Now the Philippine National Railways is tearing down the station, apparently to prepare for a better facility should the line be extended north. (Author)

Transcript of The Cagayan Valley Railway Extension ProjectSecure Site  · Cagayan Valley itself. Meanwhile, a...

  • 38 Japan Railway & Transport Review 22 • December 1999

    The Cagayan Valley Railway Extension Project

    Feature

    Copyright © 1999 EJRCF. All rights reserved.

    The Cagayan Valley Railway Extension Project

    Gary L. Satre

    Introduction

    Between the towns of Cordon, Isabela andEnrile, Cagayan in northeastern Luzon ofthe Philippines, with persistence, you willfind traces of a railway. They consist ofjust 63 km of developed sub-roadbedwithin a distance of 170 km. This istoday’s Cagayan Valley Railway ExtensionProject. The story starts from around theearly 1880s and has had as many twistsand turns in it as a planned route untiltoday. The proposed line begins from thecentral Luzon plains, climbs through therugged Caraballo mountains, anddescends into the verdant and richCagayan Valley itself. Meanwhile, aproject profile in the Railway PlanningDiv i s ion o f t he Depa r tmen t o fTransportation and Communications(DOTC) keeps the dream alive, whileother documents gather dust in variousgovernment offices including the NationalEconomic Development Authority(NEDA).

    Stumbling onto ObscurePhilippine History

    After visiting NEDA’s library one afternoonin 1996, I went home flabbergasted. Yousee, in late 1994, I became re-acquaintedwith model railroads. Running the O-scale(1:48) electric trains of my childhood andriding real trains cemented my love forrailroads. Travels in the US Navy in thelate 1960s plus being a permanentresident of the Philippines since 1981 hasexposed me to trains here as well as inTaiwan, Hong Kong, and Japan. As I readthe October 1994 issue of ModelRailroader, I marveled at the room-sizelayouts featured in that edition. ‘What tomodel?’ I said to myself. I first considereda portion of Metro Manila’s LRT Line 1—skill levels quickly dampened myenthusiasm. ‘But what if the tracks wereextended from San Jose, Nueva Ecija intothe Cagayan Valley?’ I had often seen SanJose Station from my passing bus manytimes in my travels north. Leaving thelibrary after reading a 1974 report, I

    realized that my vision had a history! Upto that chance encounter that afternoon, Ihad no idea there was an actual CagayanValley Railway Extension Project!

    Late Arrival of PhilippineIron Horse

    Railroads arrived late in the Philippines.Spain found comfort in old traditionswhile the rest of Europe was beingchallenged by new technology. TheIndustrial Revolution had started its sweepfrom England and no other symbol of themodern age was more familiar than thatof the steam locomotive. After itsinvention in Britain in 1825, the railroadreached France in 1828, Germany in1835, the Netherlands in 1839, and Spainin 1848. The Spanish Revolution of 1868was followed by a period of politicalturbulence for 7 years. During that time,the 1872 Cavite Mutiny and the writingsof Filipino ‘propagandists’ in Madrid,showed clearly that reforms weredesperately needed in the Philippines.

    Royal Orders for Railways

    In June and August 1875, royal orderswere issued for general plans and groundrules for rail tracks in the islands.Complying with the first order, DonEduardo Navarro submitted his plan forgovernment approval on 5 February 1876.It was granted nearly 3 years later with aRoyal Order of 19 July 1880 directing thatsurvey work be started on the main islandof Luzon. A prototype line was to be builtnorth from Manila to the nearby provinceof Bulacan. This section eventuallybecame part of the original main line.Survey findings showed that additionallines could be built too. The first 196-kmline (Fig. 1) was opened to Dagupan on24 November 1892. Each section enteredoperation as it was finished. A RoyalOrder of 28 April 1882 directed the

    San Jose Station would have been the first stop for travellers from the Cagayan Valley through the Caraballomountains if the rail line had been completed in the mid-1960s. Since 1982, when the Tarlac branch line wasabandoned, the station has been the victim of squatters and indifference. Now the Philippine National Railways istearing down the station, apparently to prepare for a better facility should the line be extended north. (Author)

  • 39Japan Railway & Transport Review 22 • December 1999Copyright © 1999 EJRCF. All rights reserved.

    Figure 1 Current Conditions of Railway Network on Luzon Island

    northern tracks be extended from Bigaa(present-day Balagtas, Bulacan) toTuguegarao, Cagayan. This is the very firstmention of a railroad into the CagayanValley. A south line to Albay, called for inthe same order, was eventually builtduring the American period.

    North Line’s Operation

    The North Line was the narrow gauge(3’6"/1067 mm) used widely in all Britishcolonies. The winners of the concession,the English-owned Manila Railroad

    Company (MRC) of London, adopted thisgauge to save money on sleepers and toreduce banks on curves. The narrowgauge forced lower train speeds and themotive power was provided by wood-burning tank engines rated at 32 tons.Local railroad historians call them theDagupan type. English engineer andGeneral Manager, Horace L. Higgins latertold the Americans that he favored biggerlocomotives in the 40- to 45-ton range.He also blamed the Spanish for causingcost overruns. They insisted on numerousbuildings and stations. Higgins said theuse of concrete instead of lime also drove

    up costs needlessly.Passenger revenue exceeded freight by aratio of 3:1. The shipment of farm producecarried by the railway increased morethan 100%. The economic impact wasapparent within a 10-km belt on each sideof the line.Shortly after his return from Hong Kongon 26 June 1892, Dr Jose Rizal, thecountry’s national hero, wrote of his 120-km train trip to Tarlac from Manila. It took5 hours 40 minutes. His journey was 2weeks before his exile to Dapitan. Thisgives a foretaste of the railway’s fate—firstduring the war of independence and laterin the conflict with the Americans.

    Prolonged Conflictwith New Colonizers

    The Filipinos were nearly successful intheir fight for freedom from Spain.However, the Americans were fresh fromvictory in their war with Spain andclaimed what they thought was rightfullytheirs under the terms of the Treaty of Paris.Apolonario Mabini, chairman of theRevolutionary Government Cabinet wasadamant. On 15 April 1899, he answeredofficial American assertions by saying thatthe US claim to the Philippines was nulland void because the Filipino people hadnot been consulted—war was the onlyalternative. As a strategic resource, therailway was caught in the middle of theconflict. However, it was able to operatecommercially for more than 5 years—longenough to earn a place in Filipino life andeconomics.

    Railroad Expansionin American Period

    On 4 April 1899, the first AmericanCommission to the Philippines arrived inManila. Led by Cornell UniversityPresident Jacob Gould Schurman, the so-called Schurman Commission was tosurvey conditions in the islands and

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    Matnog

    Naga378 km

    Aparri577 km

    CEZACEZA597 km597 kmCEZA597 km

    Santa AnaSanta Ana610 km610 kmSanta Ana610 km

    San Pedro L. 36 km

    Meycauayan15 km

    Malolos37 km

    Cabanatuan118 km

    Santiago City352 km

    Ilagan403 km

    Cordon

    Tuguegaraouguegarao481 km481 kmTuguegarao481 km

    AmulungAmulungAmulung

    Santo Niño501 km

    Port Irene

    San Jose174 km

    Cabarroguis370 km

    Lipa88 km

    LegaspiLegaspi479 km479 kmLegaspi479 km

    Lucena133 km

    LigaoLigao445 km445 km

    Ligao445 km

    Santa PraxedesSanta Praxedes686 km686 km

    Santa Praxedes686 km

    Tabuk564 km

    Enrile

    Dau83 km

    Tarlac119 km

    Dagupan195 km

    San Fernando L. U.266 km

    Bacnotan283 km

    BanaweBanawe352 km352 kmBanawe352 km

    Villa VVilla Verdeerde297 km297 km

    Villa Verde297 km

    LagaweLagaweLagawe

    San Fernando PSan Fernando P.62 km62 km

    San Fernando P.62 km

    Manila 0 kmManila 0 kmManila 0 km

    CarmonaCarmona40 km40 km

    Carmona40 km

    Calamba56 km

    : Planning Route

    : Route with Removed Track

    : Service Route

    : Suspended Route/Unmaintained Route

    0 50 100 km

    KALINGAKALINGAKALINGA

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    Cord

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    a

    N VIZCAN VIZCAYAN VIZCAYA

    QUIRINOQUIRINOQUIRINO

    CAGAYAN

    ISABELAISABELAISABELA

    Pacific Ocean

    South ChinaSea

    Balagtas (Bigaa)Balagtas (Bigaa)Balagtas (Bigaa)

    Muñ

    oz

    Caraballo mountainsCaraballo mountainsCaraballo mountains

    mou

    ntai

    nsm

    ount

    ains

    mou

    ntai

    ns

    Nappat Br

    Kalin

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    Balagtas/Cabanatuan BrBalagtas/Cabanatuan BrBalagtas/Cabanatuan Br

    Ifugao Br

    CVRA Secondary main line

    BayombongBayombongBayombong

  • 40 Japan Railway & Transport Review 22 • December 1999

    The Cagayan Valley Railway Extension Project

    Copyright © 1999 EJRCF. All rights reserved.

    extend American goodwill. It largelyfailed due to the Philippine–AmericanWar that had erupted just 2 months earlier.The Americans quickly realized that whatthey had inherited from the Spanish wasanything but a modern nation. UnderSection 8 of the Regulative Principles, theSchurman Commission instructed that‘construction of roads, railroads, and othermeans o f commun ica t i on s andtransportation, as well as other publicworks of manifest advantage to thePhilippine people will be promoted.’ Thustransportation was given a high priority.Railroads had played a major role inbuilding the US into a wealthy industrialnation. The growth was largely influencedby the need to link ports with sources ofraw materials such as lumber and coal.Farmers also needed a way to transport theirharvests to market. This experience shapedthe Commission’s recommendations.The Filipinos resisted strongly and theirtenacity won the grudging respect of theAmerican forces. The second PhilippineCommission was headed by William H.Taft, later America’s 27th President. It wasreminded via instructions from PresidentWilliam McKinley that the colonialgovernment ‘is not designed for oursatisfaction or for the expression of ourtheoretical views, but for the happiness,peace and prosperity of the people of thePhilippines.’ The Taft Commission’s firstlaw was an act allocating P2 million(US$1 million) to be spent on road andbridge repairs.Operation of the MRC was returned to itsBritish owners on 20 April 1900. In thefirst 8 years of the American period, mostof the railroad’s revenues came frompassenger operations by a 2:1 ratio overfreight. Some 95% of the passengerrevenues came from Third Class.By 1906, four branch lines had beenadded, including a 91.5-km Bigaa–Cabanatuan, Nueva Ecija section, theclosest the tracks got to the CagayanValley at that time. Reorganization

    followed—the MRC of London becamean American firm registered in New Jerseyand on 7 July 1906, the Taft Commissionallowed the new MRC to build additionallines north and south of Manila.By May of 1929, the original North Linewas restored and extended up to SanFernando, La Union. San Jose, NuevaEcija within sight of the Caraballomountain foothills got railroad services inFebruary 1939. The MRC logo was stillon the station windows up to late 1995but the branch line, under the control ofthe successor Philippine NationalRailways (PNR), is not used and its railswere pilfered long ago.

    Early Interestin Cagayan Project

    William Kline of the New York TradingCompany showed interest in extending theline to Bayombong, Nueva Vizcaya, about270 km north from Manila. Vanessa J.Glynn, a British researcher, commented inher Master’s thesis for the University of thePhilippines, ‘Despite only cursoryinvestigations, Kline did not foresee any

    engineering difficulties, and had ambitionsfor the line to be continued to the CagayanValley all the way to Aparri on thenortheastern coast of Luzon.’ Americanbusinessman Neil MacLeod was just asambitious but more experienced, havingattempted to send the rails to Antipolo,Rizal via Sta. Ana, San Juan and Marikina.He showed interest in a Cagayan Valleyroute ‘to tap the tobacco provinces,especially Isabela.’Financial problems and a scandal troubledthe MRC and the government nationalizedthe company in January 1917. However,although owned by the government, MRCstill operated as an autonomous business.Development of the Luzon railroadnetwork continued up to the start of thePacific War in 1941. Glynn concluded,‘although over-ambitious and ultimatelyflawed, the railroad policy of the Americanadministrations on the Philippines wasthroughout based on what was sincerelybelieved to be the best interests of thePhilippines. Development of the country,rather than exploitation was the guidingprinciple in Philippine railroad policy.’ Shecontinued by making this astute

    This is a trace of the abandoned Tarlac–San Jose branch line a short distance from the Maharlika Highway in SanJose City, Nueva Ecija. (Author)

  • 41Japan Railway & Transport Review 22 • December 1999Copyright © 1999 EJRCF. All rights reserved.

    observation, ‘It is possible that railroads didnot fire the imagination (my emphasis) ofthe Filipino leaders at a time when biggerquestions dominated, or it could be thatAmerican policymakers believed that theyknew what was best for the colony andneglected to consult the Filipinos, (myemphasis) except where constitutionallyrequired to do so.’ One can see traces ofthese attitudes even today.

    Independence andPostwar Reconstruction

    When the Philippines became independentin July 1946, the nation faced the heavyburden of rebuilding its badly war-damagedeconomy and infrastructure. During theElpidio Quirino administration, import andexchange controls were imposed to preventbankruptcies and stop the spread of acommunist-led rebellion. During thisperiod, Republic Act (RA) 470 of 9 June1950 authorized the MRC to borrow P45million ($22.5 million), allowing the MRCto rehabilitate, restore, and extend its linesfrom San Jose, Nueva Ecija to Echague,Isabela (108 km) and onwards north to

    Aparri, Cagayan (440 km). Meanwhile, themanufacturing sector continued growingfrom 3% of the GNP in 1949, to 14% in1956, and 18% in 1960. Domesticinvestment also grew—from 55% in 1959to 88% in 1961. More than 5000 newbusinesses were started in 4 years of theQuirino controls, which lasted 12 years.The 1963 World Bank report said, ‘Theprogress of the Philippine economy duringthe highly protectionist decade of the 50swas one of the more impressive records ofeconomic gain among less developedcountries.’

    Magsaysay as MRC GeneralManager and Philippine

    President

    Prior to his election as President in 1953,Ramon Magsaysay was General Managerof MRC for the last 3 months of 1951. Thisfirsthand experience aided him in seeingthe importance of modernizing therailroad. A new fleet of diesel locomotiveswas acquired from Japan through theReparations Agreement signed in May1956. Unfortunately, the US Japan-first

    policy, which was designed to containcommunism, made it difficult for countrieslike the Philippines to get aid. Thusreparations were too little, too late.During the Magsaysay administration, theNorth Line was extended beyond SanFernando, La Union to Bacnotan.A total of P78 million ($39 million) wasbudgeted for 4 years by RA 1867 of 22June 1957 to extend the line from the endof the San Jose branch to Tuguegarao. Outof this amount, P48 million ($24 million)were reparations from Japan. At last, workwas about to begin on the Cagayan Valleyproject, 75 years after the first Spanishroyal order. The track distance was about306 km and construction began in thesections on the gently rolling plainsbetween Cordon and Tuguegarao in July1961. A tunnel through the Caraballomountains was to be built later.

    What Went Wrong?

    Building ground to a halt a little less than4 years later with NEDA saying that abouthalf the appropriated amount had beenspent. What went wrong?PNR Civil engineer Lope M. Padiernos wasthe Assistant Supervising Railroad Engineerduring the construction. In an interview ayear before he died last July, Mr Padiernossaid he believed that the funding wasadequate ‘at that time’ to complete theproject. He added that only about P6million ($3 million) was actually spent.However, release of those funds was tooslow by the national government. Sub-roadbed sections were built in bits andpieces and not in sequence from Cordonto Enrile, Cagayan, less than 11 km fromTuguegarao. Ramon J. Jimenez, now PNR’sActing Assistant General Manager forOperations and Maintenance was on thesurvey team for the Caraballo Tunnelsection. The other sections were San Jose–Maringalo, Maringalo–South Portal, SouthPortal–Bayombong, and Bayombong–

    Traces of what was once a four-track stub yard are seen amongst the squatter shanties near San Jose Station.(Author)

  • 42 Japan Railway & Transport Review 22 • December 1999

    The Cagayan Valley Railway Extension Project

    Copyright © 1999 EJRCF. All rights reserved.

    Tuguegarao. While construction wasproceeding, so was a presidential electioncampaign. Magsaysay was killed in a planecrash in 1957 and Carlos P. Garcia, his VicePresident, took over and served theremaining months of Magsaysay’s termbefore running for a 4-year term of his own.Padiernos mentioned how the supportersof the incumbent Garcia attempted to makethe project a local campaign promise as ifto say ‘Vote for Garcia, get the railway.’ Railsand sleepers were sometimes taken andplaced in front of municipal halls to drivethe point home.Garcia was elected President while his VicePresident, Diosdado Macapagal, camefrom a different political party. Garciaintroduced the ‘Filipino First’ policy. Ithelped the country just as import andcurrency controls did, but angered themany foreign business interests in thecountry. It also paved the way forMacapagal’s election as President in 1961.In 1962, Macapagal introduced hisDecontrol Program. For the first time, thepeso, which had been pegged at P2 to $1,depreciated to P3.90 against the greenback.This happened while the extension linewas being constructed. Mr Jimenez pointedout that during the subsequent Marcosadministration, the President went to Tokyofor a 3-day State Visit on 28 September1966, hoping to get more money to finishthe project. But instead of finishing therailway, the money was spent to upgradethe existing Maharlika Highway, sometimescalled the Japan–Philippine FriendshipHighway. Consequently, although muchof the heavy equipment had alreadyarrived, including the tunnel boringmachinery for cutting the nearly 10-kmCaraballo Tunnel (the extension line wasto reach its highest elevation inside thetunnel at about 500 m above sea level) theheavy equipment was sold to alleviatePNR’s poor financial conditions.In an interview, political economistAlejandro Lichauco said that many majorindustrial projects including the Jacinto

    Steel Mill in Iligan City were suddenly infinancial trouble. In his 1998 book on theAsian Currency Crisis, Lichauco points outthat by 1964, more than 1000 factorieswere having serious money problems.There was a clamor for restoration of importand currency controls and Macapagal’sapparent refusal to listen caused hisdownfall in the 1965 elections againstMarcos.Ignoring the calls of Congress, Marcoscontinued Macapagal ’s policy ofeconomic liberalization. In 1970, thepeso was devalued again under IMF-imposed loan conditions. By February1970, it had sunk to P5.50 to the US dollarreaching P7.90 by June 1981. Today, it isstable at around P40 to the dollar.As the country prepared to emerge fromIMF supervision in 1997, Lichauco says itwas, ‘the region’s debt-ridden economicparaplegic, a once young and roaring tiger,or at least a growling tiger cub, reduced toa decaying vegetable. The Philippineeconomy, like its politics, has been reducedto an absurdity, which would be comicwere it not for the national tragedy andimmense human suffering which thatabsurdity has brought about.’Lichauco says that an expanded railnetwork is ‘vital’ to development. ‘Anythingthat would bring down the cost of transportwill help to do that.’ However, he addsthat, ‘a joint venture with the governmentis the only way it can be built [in thePhilippines].’ He believes that thegovernment must abandon privatization asit relates to public transport. At present, hesees no basis for recovery, because whatlittle manufacturing activity remains in thePhilippines is being eroded. The currenteconomic troubles besetting the countrycould get worse.

    Where Things Stand

    The people at NEDA are not encouragingif studies released as late as 1995 are

    accurate indicators. The workingrelationship between NEDA and theRegional Development Councils (RDCs)is an important link in economic planning.The RDCs identify projects addressingvital needs across the country. However,if those projects do not match the agendaprepared by the national government—meaning the President and his closestadvisors—those projects are not fundedor implemented. This is the top–bottomapproach to economic planning, whereprojects are studied at great expense tothe Filipino taxpayer, but very little getsaccomplished. This situation has beendescribed as ‘analysis paralysis.’ Bycontrast, Mr Jimenez says, ‘Build the lineand economic development will follow.’American railroad expert John H.Armstrong agrees. Citing the USexperience, he wrote, ‘It became clear thata railroad could be built to go just aboutanywhere. With this wide-open choice,the real question became one ofeconomics; railroads should be builtwhere there was, or reasonably could beexpected to be (my emphasis), enoughdemand for transportation to support theline and pay back the cost of building it.Prosperity and people usually followed(his emphasis) rather than preceded thecoming of the railroad, so faith and luckwere important too.’ The Region 2 Councilhas studied the project since 1992, hopingto revive it.Meanwhile, the picture is a little brighterin the Philippine Congress. There are nowat least seven bills pending and one HouseResolution addressing the need torehabilitate and expand the railroadnetwork in northern Luzon. Of particularinterest is House Bill 801, proposed byRepresentative Edgar R. Lara of the SecondDistrict of Cagayan, and a majoritymember of the House Committee onTransportation and Communications. Theexplanatory note says ‘This bill aims tocreate the Cagayan Valley RailwaysAuthority (CVRA) which shall provide for

  • 43Japan Railway & Transport Review 22 • December 1999Copyright © 1999 EJRCF. All rights reserved.

    an adequate , cos t -e f fec t ive anddependable transportation systembetween Cagayan Valley and MetroManila.’ If passed into law, CVRA wouldbe a government corporation with a 50-yearlife, renewable after that period. Locatedin the Cagayan Valley itself, it wouldreceive its authority from the DOTC withfunding by an IPO valued at P1 billion(about $20.60 million). CongressmanLara believes a separate agency needs tobe created due to the size of its operationand to maintain a distinct regionalcorporate personality in the Valley.To overcome the very serious financialsituation of PNR, there are calls to privatizethe system and reduce the scope of itsoperations. Under one proposal, PNRwould become strictly a commuter service,helping to relieve traffic congestion inMetro Manila. The now-abandoned NorthLine would be taken over by North Rail,an existing government entity. Therehabilitation will be to standard gauge,although PNR now runs on narrow gauge.Perhaps the best reason for finishing theCagayan Valley project was created on 24February 1995 when the CagayanEconomic Zone Authority (CEZA) Actbecame law. Like the proposed CVRA,CEZA is a government corporation that isresponsible for development of a specialeconomic zone and freeport, like theSubic Bay Freeport. The ConceptualMaster Plan, including a railroadcomponent, is complete and has beensubmitted to the CEZA Board of Directors.Aside from acquiring land for a dedicated6.5-km right of way connecting the PortIrene seaport and air cargo terminal, thereare no plans to build a railroad during thefirst 15-year phase of the Zone.Meanwhile, Region 2, which is outside thezone, has the second lowest road densityin the country. CEZA’s Final Reportrecognizes this challenge by saying, ‘Dueto this perceived lack of efficient roadsystems, the region has difficulty attractingprivate sector investments because of

    problems assuring reliable transportation,power, communications, and other supportfacilities.’North Rail’s route south of San Jose woulduse PNR’s abandoned Tarlac branch lineto Muñoz, Nueva Ecija. The Balagtas–Cabanatuan branch line from the south,which is also abandoned, would berestored and a new line would fill the 26-kmgap between Cabanatuan and Muñoz.This route bypasses Tarlac and brings theZone and Cagayan Valley 16 km closerto Metro Manila.Transport planning within the Zonerevolves around the Global TransParkconcept (GTP), developed by Dr John D.Kasarda, Director of the Kenan Instituteof Private Enterprise, University of NorthCarolina, USA. It integrates the variouselements of successful industrial estateswith an efficient multi-modal transportsystem providing just-in-time services.Port Irene, an intermodal rail facility andair cargo terminal would create anefficient and seamless supply chain forinvestors and businesses within the Zone.The centerpiece of the system is a newregional airport with internationalcapability. A 1982 feasibility study by theJapan International Cooperation Agency(JICA) on Port Irene’s development wasgenerally favorable, and Port Irene will be

    upgraded to international standards.When CEZA is fully developed, it willbring five of the Philippines’ ten leadingtrading partners (Hong Kong, Japan, SouthKorea, Taiwan, and the US) much closerto the Philippines. The advent of thecontainer revolution offers anotherexciting business chance for the railroad.

    Conditions to Keep in Mind

    Five conditions must be kept in mind tocomplete this long-overdue project:• Power supply

    Region 2 has a low annual growth indemand for electricity of 7%. InSeptember 1999, National PowerCorp. generated 52.8% of the poweron Luzon from oil-fired plants, 13%from hydro plants, and 13.7% fromgeothermal plants. If the railway canbe powered by a reliable electricitysupply, it would contribute greatly tomaking trains environment friendly.

    • Currency risksTrack and rolling stock are notmanufactured in the Philippines andmust be purchased overseas in USdollars, meaning that currency risksmust be factored into any loans,etc.

    The rails have long since been removed by scavengers on this bridge in Plaridel, Bulacan on the abandoned linefrom Balagtas to Cabanatuan. Plaridel is about 12 km from Balagtas. (Author)

  • 44 Japan Railway & Transport Review 22 • December 1999

    The Cagayan Valley Railway Extension Project

    Copyright © 1999 EJRCF. All rights reserved.

    Tourism to the world-famous Banawe Rice Terraces is the main reason for building the Ifugao branch line to Banawe. (Quintin Pitoy, Philippine Dept. of Tourism)

    • WeatherFrom 1948 to 1997, 55 typhoons hitCagayan. The region’s annual averagerainfall is 2036 mm and it rains 144days each year on average. Theseweather conditions impose severeconstruction standards on trackstructures.

    • EarthquakesThe proposed railroad lies between twoactive earthquake faults. A 1990 paperby the Phi l ippine Inst i tute ofVolcanology and Seismology warns,‘We should also accept the fact that,since earthquakes of [Richter]magnitude 7 or more have also affectedthe Philippines in the recent past, the

    likelihood of destructive earthquakesoccurring again in the future is indeedvery strong.’ A Richter magnitude 7earthquake causes considerabledamage to structures near the epicenter,so the track structures will need to beearthquake resistant.

    • Political willDoes the Estrada Administration havewhat it takes to make decisions andimplement programs? President Estradahas acknowledged the role transportcan play in poverty alleviation. In hissecond State of the Nation Address lastJuly, he was less specific about its role.Committee appointments to the HouseSubcommittee on Railways are still

    incomplete. Removing and relocatingsquatters along the right-of-way posesa significant challenge to local, regionaland national politicians.

    Future Vision

    Here is one vision of railroads in theCagayan Valley based on several conceptsfrom diverse sources. Envision a regionalsystem smaller than the 856-km networkof JR Shikoku in Japan based on anoperational framework like the USWisconsin Central Railway—a companywith overseas business interests. TheCVRA would employ about 2900

  • 45Japan Railway & Transport Review 22 • December 1999Copyright © 1999 EJRCF. All rights reserved.

    Gary L. Satre

    Mr Satre obtained a Masters degree from the University of the Philippines after working as a US Navy

    journalist. He is an Associate Trainer at the South East Asia Speakers and Trainers Bureau of Makati

    City. He also writes and speaks on railroad issues in the Philippines. He contributed an article on the

    Metro Manila LRT system in JRTR 16, pp.33–37.

    employees and would operate a 467-kmmain line with at least three, possibly four,branch lines. A secondary main linewould follow the north coast of Luzon,providing a rail link with the Ilocos regionto the west.The plan for the main line (Cagayan RiverRoute) closely follows the 1980 revisionof a plan first prepared by PacificConsultants KK of Tokyo in 1970 for thePNR but shortens both the main line andCaraballo Tunnel. Another main line routewas first mentioned by the late ManuelVijungco of the University of thePhilippines Law Center; an advisory bodyto Congress. The rationale behind thesecond route, which is to the east of theoriginal, was that there would becompetition from the Maharlika Highway.However, parts of this so-called SierraMadre Route are prone to flooding.The branch lines were not included in theJapanese plans but have been added tomake the system regional by linking all theprovincial capitals. Strictly speaking, theKalinga and Ifugao branch lines to Tabukand Banawe, respectively, are not nowwithin the administrative structure ofRegion 2, but they still have a geographicalkinship with Cagayan Valley. Social,economic, and law and order are the mainfactors behind three of the branch lines.Supporting tourism is the purpose of theIfugao branch, which would serve theworld-famous Banawe Rice Terraces. Onthe short line to Amulung, practical realitiesmay overrule political considerations andit could be added later. The total tracklength would be a little less than 648 km.Freight to and from the Cagayan EconomicZone would be a main source of railwayrevenue. Most f reight would becontainerized moving on eight containertrains each day. Local freight trains wouldserve the branches and secondary mainline. Container services could also run tothe Ilocos region.A variety of passenger services rangingfrom local commuter trains to comfortable

    long-distance expresses would popularizethe railways with a minimum of 32services each day. The fastest expresseswould cover the main-line distance in alittle under 6 hours with another 4 hoursto Metro Manila from San Jose.Both passenger and freight operationswould go a long way toward fulfilling apossible CVRA vision statement ofbecoming Region 2’s leading transportprovider.But this is a vision of what the CagayanValley could be, not what it is. At present,there is no heavy industry, no large-scaleagri-business and no world-class port. Iimagine the valley when it’s beingsupported by a well-maintained andoperating railway system.The American, Japanese and, to a limiteddegree, even the Philippine experience,shows that a railway usually has a positiveeconomic impact on the areas it serves. Asa writer who has become a moreenthusiastic proponent of railways in recentyears, I’m encouraged by the words of thenoted American architect Philip Johnson,‘Architecture is too important to leave toarchitects.’ Likewise, I believe that railwaysin developing countries are too importantto leave to railway civil engineers, regionaland urban planners, and governmentofficials. �

    DedicationTo the memory of Lope M. Padiernos, engineer

    and railway consultant, who died at aged 71

    while this story was being revised. He was a

    valuable source of information.

    AcknowledgmentsI wish to thank the many people who provided

    information for this article, including: Dr A. G.

    Cruz, Professor R. S. David, Mr E. O. Enriquez,

    Ms E. R. Aborod, Ms Fely E. Gica, Engineer R. J.

    Jimenez, Dr L. Q. Liongson, Mr S. Navarro, Dr

    E. G. Ramos, Mr R. Rimando, Dr R. Sigua, Ms A.

    Shari Tan-Aliman, and Engineer C. O. Giron.

    Notes:1. John H. Armstrong, The Railroad—What It Is,

    What It Does. The Introduction To Railroading,

    Simmons-Boardman Publishing Corp., 1978.

    2. James H. Blount, American Occupation of the

    Philippines, 1898–1912, Putnam’s Sons, 1913.

    3. Arturo G. Cruz, Railroad and Regional Develop-

    ment in the Philippines: View From the Colo-

    nial Iron Horse, 1875–1935, Cornell University,

    1989.

    4. Glaudio O. Giron, What Is Brownout? — Luzon

    Grid Power Crisis and System Operations, Giron

    Enterprise, 1993.

    5. Vanessa Jane Glynn, Railroad Policy and

    Administration in the Philippines in the American

    Period, 1898–1924, University of the Philippines,

    1987.

    6. Earthquake and Tsunami, Philippine Institute of

    Volcanology and Seismology, 1990.

    7. Maximo M. Kalaw, The Development of Philip-

    pine Politics, 1872–1920, Oriental Commercial

    Co. Inc., 1926.

    8. Leonardo Q. Liongson, At the Heels of the In-

    dustrial Revolution: Filipino Responses to 19th

    Century Infrastructure, University of the Philip-

    pines, January 1998.

    9. Rosalinda Pineda-Ofreneo, The Manipulated

    Press — A History of Philippine Journalism Since

    1945, Solar Publishing Corporation, 1986.

    10. PNR: The First 100 Years, Philippine National

    Railways, 1987.