The Department of Transportation (DOTr) plans hailing CRRC Dalian, the Chinese train manufacturer, before the Court of Arbitration in Singapore over alleged non-compliant trains delivered to the MRT-3 system but have never been used.
Transportation Secretary Jaime Bautista told reporters the agency has issues with the Chinese company that delivered trains not “in conformity with the agreed terms” that in this case is heavier than a “light rail train” is supposed to be.
“The reason we don’t like to operate those trains at this time is because of potentially higher maintenance costs of maintaining the rail line. It might also result in higher operating costs,” Bautista said.
According to Bautista, the government is considering imposing a penalty against the Chinese train manufacturer.
He said the plan is for CRRC Dalian to “liquidate damages” given the non delivery of the contract as required by the terms but subject to their agreement.
“We need to talk with them. We should be fair and reasonable in terms of what should be collected from Dalian,” Bautista said.
The indications, Bautista said, seem to point in the direction for the matter to be settled through arbitration and that one is being planned for filing in Singapore.
Nevertheless, the transport chief said, Dailian is working on solutions to make the trains usable on the MRT-3 platform.
“If we are satisfied, we may agree to operate the Dalian train,” he said.
Bautista also said the winning bidder for the contract to operate and maintain the MRT3, which is being privatized, may consider using the Dalian trains.
“We have to involve the private sector. They know how to operate the trains despite the weight” issue, he said.
The public bidding for the privatization of MRT3 is seen happening in the second or third quarter of 2025.
The government operates the MRT 3. The MRTC, owned by Metro Rail Transit Holdings II Inc. under businessman Robert John Sobrepeña, designed and constructed the EDSA rail transit system.
