THE Mindanao Development Authority (MinDA) is stepping up efforts to attract private investors to the Mindanao Railway Project, with six to seven groups expressing interest in funding the proposed rail network, MinDA chairperson Leo Tereso Magno said.
Speaking at the Habi at Kape forum at Ayala Malls Abreeza in Davao City on Oct. 21, Magno said the interested groups include prospective investors from China, India, Canada and the United States.
“We are scaling up our efforts to invite private partners to invest in the Mindanao Railway,” Magno said.
Magno cited indicative costs of about P81 billion for Phase 1 and P100 billion for Phase 3. He said MinDA was engaging potential investors and exploring public-private partnerships (PPPs) to move the long-delayed infrastructure project forward.
The investment drive aims to demonstrate the railway’s economic potential, particularly its capacity to improve connectivity, ease freight movement and strengthen trade across Mindanao.
However, the expressions of interest do not represent firm financing commitments. The project still needs viable proposals, appropriate financing arrangements and the necessary government approvals before construction can proceed.
Investor interest remains preliminary
Magno said he had met representatives of six or seven prospective investor groups in the two months before the forum. Two groups had held discussions with MinDA the previous week, while others remained in the early stages of engagement.
“Nabanggit ko kanina na may six to seven private groups expressed their interest to invest in the Mindanao Railway (As I mentioned earlier, six to seven private groups have expressed interest in investing in the Mindanao Railway),” he said.
The groups' varying stages of engagement underscore the preliminary nature of the investment process. Expressions of interest do not constitute binding commitments to finance, construct, or operate the railway.
MinDA is working to show potential investors why the proposed rail corridors could offer viable business opportunities.
“We try to show them the possibilities and why they should be interested in the Mindanao Railway Project,” Magno said.
Investors must determine whether the communities and economic centers along the proposed routes can generate enough business to justify the substantial capital required, he added.
“Rest assured, these engagements with different sectors are ongoing,” he added.
He also said he and Department of Transportation officials had committed to meeting again before the end of 2025 to discuss ways to advance the project. He did not announce a construction timetable or target opening date.
3-phase network requires substantial investment
The Mindanao Railway Project envisions a rail network connecting major urban centers and economic corridors across the island.
Phase 1, the proposed Tagum-Davao-Digos segment, would span about 100.2 kilometers, linking areas in Davao del Norte, Davao City and Davao del Sur. Earlier government estimates put its cost at about P81.6 billion.
Phase 2 was planned to extend the line north from Tagum toward Butuan, while Phase 3 forms part of the broader network intended to serve other major economic centers, including the Cagayan de Oro corridor.
Magno cited estimated costs of about P81 billion for Phase 1 and P100 billion for Phase 3. These figures remain indicative and may change as the government and prospective proponents refine the project’s scope, engineering requirements, and financing arrangements.
The feasibility work also varies by phase. Government reporting in October 2025 indicated that pre-feasibility work for Phase 3 had been completed, while officials were updating Phase 1’s feasibility study to account for possible financing arrangements.
Feasibility studies assess whether a project is technically, economically and financially viable. They do not guarantee that financing will be secured or that construction will begin.
Railway seen boosting agricultural logistics
Magno highlighted the railway’s potential to improve the movement of agricultural products from farms to markets.
Mindanao produces major commodities such as bananas, pineapples, coconuts, and corn. Moving these products to processing facilities, warehouses, ports, and consumers requires an extensive transport network.
“Makakatulong sa value chain, sa pag-transport (It can help strengthen the value chain by improving transportation),” Magno said.
A rail service capable of moving large volumes of freight could complement road transport and improve links between production areas and markets. More efficient freight movement could help businesses manage delivery schedules, handling costs and inventory.
The project could also create opportunities for logistics operators, warehouse developers and agricultural processors to establish facilities near rail terminals.
These benefits, however, would depend on sufficient freight demand, competitive transport rates, strategically located terminals and efficient connections to highways and seaports. Railway infrastructure alone would not guarantee lower logistics costs.
Magno said MinDA was also stepping up efforts to improve ports across Mindanao, noting the need to coordinate railways, roads and maritime facilities to support regional trade.
Together, these transport links could connect agricultural production areas more efficiently with processing centers, domestic markets and export gateways.
Magno said the government was moving toward accepting unsolicited proposals from private companies interested in developing the railway.
“I think [it] is now a matter of policy that we will be entertaining unsolicited proposals from private proponents,” he said.
Unlike solicited proposals, which respond to projects defined by the government, unsolicited proposals originate from private companies. Proponents may suggest financing schemes, construction methods, operating models or partnership arrangements.
Any proposal would still have to meet applicable legal, technical, financial and procurement requirements, including safeguards governing PPP projects.
Magno said companies could independently identify where and how they wanted to participate, with the government evaluating their proposals once submitted.
Financing institutions await viable proposals
Magno said banks and other financing institutions would likely wait for formal proposals and supporting feasibility studies before considering their participation.
He added that an unsolicited proposal would not necessarily require a separate financial adviser at the outset because the proponent would be responsible for preparing its financial component.
Magno expressed confidence that the Department of Finance and the Department of Economy, Planning, and Development could assess whether the proposals would be economically viable for both the government and private investors.
Asked whether the railway could become operational in the coming years, Magno did not provide a definite timeline. He instead stressed the need to sustain efforts to make the project viable.
He cited the long-running discussions surrounding the Samal Island-Davao City Connector Bridge as an example of how major infrastructure projects can take years to advance.
“Libre naman ang mangarap (There's nothing wrong with dreaming),” Magno said, adding that a dream disappears only when people stop dreaming.
For Mindanao’s business community, the railway represents a potential opportunity to improve freight movement, support industrial investment and connect the island’s economic centers. Realizing those benefits, however, will depend on whether investor interest translates into viable proposals, financing commitments, and an implementable project. DEF