More Countries Express Support For The Luzon Economic Corridor

An increasing number of countries have expressed their intent to support the Luzon Economic Corridor (LEC), a grand initiative aimed at accelerating coordinated investments in high-impact infrastructure projects, including railways, port upgrades and modernization, clean energy, and semiconductor supply chains.

The Bataan-Cavite Interlink Bridge is among the many core infrastructure projects essential to the development of the LEC. I Photo: Camella Homes

These projects will be deployed across key urban and industrial zones, including Metro Manila, Batangas, and Central Luzon.

The LEC is the first project under the United States (US)-initiated Partnership for Global Infrastructure and Investment in the Indo-Pacific, which seeks to transform the region into a hub for commerce, industry, and logistics, driving economic growth and regional progress.

Recently, South Korean Ambassador to the Philippines Lee Sang-hwa expressed his country’s interest in joining the LEC, according to Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Secretary Frederick Go.

The United Kingdom, Sweden, and Australia had earlier signified their intent to support the LEC. Secretary Go expressed optimism that the Subic-Clark-Manila-Batangas (SCMB) cargo railway project would proceed.

The SCMB cargo railway, a flagship project of the LEC, has secured USD2.5 million from the US Trade and Development Agency (USTDA) for a feasibility study in partnership with the Swedish government. Go noted that the LEC steering committee is set to hold another meeting to discuss the projects.

Despite right-of-way challenges, the Bases Conversion and Development Authority (BCDA) has begun securing land for the cargo railway project.

In December 2024, the BCDA reported that 43 landowners in the towns of Porac and Floridablanca in Pampanga had agreed to allocate portions of their properties for the LEC flagship project. A total of 68 Transfer Certificates of Titles were distributed to the landowners.

Birth of the Luzon Economic Corridor

The LEC was launched in 2024 by then-US President Joe Biden, Japanese Prime Minister Fumio Kishida, and Philippine President Ferdinand R. Marcos Jr.

As part of their Joint Statement issued on April 11, 2024, they stated:

“We gather today in Washington as equal partners and trusted friends, united by the vision we share of a free and open Indo-Pacific and an international order based on international law—a vision we pledge to advance together for decades to come. We believe, fundamentally, that by working together, we can advance the security and prosperity of our own nations, the Indo-Pacific region, and the world… Our three nations are proud to partner on the first Partnership for Global Infrastructure and Investment corridor in the Indo-Pacific. Today, we are launching the Luzon Economic Corridor… We plan to work with multilateral organizations and the private sector to attract quality, transformative investments… The Luzon Corridor is a demonstration of our enhanced economic cooperation, focused on delivering tangible investments across multiple sectors. Japan, the Philippines, and the United States are also partnering to expand cooperation and investments in other areas of the Philippines.”

Strategic Projects and Investment Opportunities

According to the International Trade Administration (ITA), the LEC includes the following key projects:

• North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX): These highways connect Metro Manila to northern and southern Luzon, facilitating efficient movement of goods and people.

• Manila-Clark Railway and North-South Commuter Railway: These railway projects aim to improve connectivity and reduce travel time between major urban centers.

• Port of Manila and Batangas Port: These ports serve as crucial hubs for maritime trade, strengthening the region’s role in global supply chains.

The LEC offers numerous investment opportunities across various sectors:

• Manufacturing: The corridor, with its established industrial zones and skilled workforce, is ideal for investments in electronics, automotive, and food processing.

• Real Estate and Infrastructure: Ongoing urbanization and infrastructure projects present lucrative opportunities in residential, commercial, and industrial real estate development.

• Agriculture and Agribusiness: Central Luzon’s fertile lands provide a strong foundation for agribusiness ventures, including food processing and high-value crop production.

• Tourism: With its rich cultural heritage and natural attractions, the LEC is a promising area for tourism investments, particularly in eco-tourism and heritage tourism.

Last year, the National Economic and Development Authority (NEDA) projected that 12 core infrastructure projects essential to the development of the Luzon Economic Corridor would require an estimated investment of PHP2.13 trillion.

These projects include:

• Subic-Clark-Manila-Batangas Railway

• Bataan-Cavite Interlink Bridge

• Subic Bay (Redondo-Ilanin) Bridge

• Central Luzon Link Expressway Phase II

• North Luzon East Expressway

• Laguna Lakeshore Road Network Development Phase I

• Central Luzon Bus Rapid Transit

• Manila Bay-Pasig River-Laguna Lake Ferry System

• Kalaanan Irrigation Project

• North-South Commuter Railway

• New Clark City Extension of the railway

• Southern Batangas Airport

NEDA Secretary Arsenio M. Balisacan emphasized that infrastructure linked to the corridor would bolster growth in key areas along its route.

“There will be economies of scope and scale in one place, especially if supported with adequate infrastructure,” he stated.

The government is also considering expanding the corridor further south in Luzon, he added.