The government is targeting to start the operations of the P35.911-billion, 102.28-kilometer Tagum-Davao-Digos segment of the Mindanao Railway Project by the end of 2022.
This commuter line is the first phase of the 830-kilometer Mindanao Railway Project loop, which would run from Tagum City in Davao del Norte to Digos City in Davao del Sur, a preliminary document obtained by the Inquirer showed.
Besides the terminal in Davao City, it will have seven stations—Tagum, Carmen, Panabo, Mudiang, Toril, Sta. Cruz and Digos— and a depot in Tagum City.
The Department of Transportation will implement the project through the proposed Mindanao Railway Corp., which will be a government-owned and -controlled corporation, which is still pending creation and grant of Congressional franchise.
Total project cost—to be financed by the annual budget—will reach P35.911 billion, of which construction cost will amount P14.744 billion; rolling stock, P7.372 billion; land acquisition, P5.656 billion; price contingencies, P3.658 billion; physical contingencies, P2.932 billion; engineering cost, P1.106 billion and project administration, P442.3 million.
Project implementation will take 59 months starting the first quarter of next year until the third quarter of 2022.
The project will involve a total of 338 hectares of right of way, of which 307 hectares will be for the main line, 11 hectares for the station yards, and 10 hectares each for the Davao terminal and the Tagum depot.
Daily ridership is expected to hit 134,000 in 2022 and increase to 177,000 in 2027, 233,250 in 2032, 297,690 in 2037, and 369,160 in 2042.
“Based on the analysis, an average of P290 million (ranging from P5.34 million to P1.05 billion) per year in government subsidy is needed for the first 10 years of operation to sustain operations,” according to the document.
The project is expected to benefit the towns and cities covered, which have a combined area of 3,976 square kilometers and a total population of 2,181,109 at present.
“The establishment of the Mindanao Railway Project’s Tagum-Davao-Digos [line] is envisioned to facilitate greater connectivity of areas along the project alignment. With the provision of a more efficient and affordable mode of transport for its constituent population, it can boost tourism, industry and overall economic development in the area by connecting existing and emerging growth centers in the Davao Region,” the document read.
The document noted that the Tagum-Davao-Digos segment would be within two of the three corridors of the Mindanao Railway Project, namely the 256-km Butuan-Nabunturan-Davao corridor and the 289-km Davao-Cotabato-Iligan. The other corridor is the 285-kilometer Iligan-Cagayan de Oro-Butuan, the document showed.