San Miguel, KORAIL Sign Agreement to Move MRT-7 Closer to Full Operations

SMC Chairman and CEO Ramon S. Ang (seated, right) and KORAIL President and CEO Han Moon Hee seal their deal at the San Miguel Corp. head office in Mandaluyong City on Tuesday, April 22, 2025. Standing from left are: South Korea Ambassador Lee Sang-hwa, Korea Ministry of Land, Infrastructure and Transport Vice Minister Baek Won Kug, DOTr Senior Undersecretary Giovanni Lopez, and DOTr Undersecretary for Railways Timothy John Batan

SMC MRT-7 Corporation, a wholly owned subsidiary of San Miguel Corporation’s (SMC) infrastructure unit, has signed an Operations and Maintenance (O&M) Services Agreement with Korea Railroad Corporation (KORAIL), South Korea’s national railway operator, to support the next phase of MRT-7 as it moves closer to full operations.

Under the agreement, KORAIL will continue its advisory role — helping guide the setup of MRT-7’s core operational systems, safety protocols, and maintenance programs. SMC MRT-7 Corp. holds the concession to build, operate, and maintain the MRT-7, which links Metro Manila to Bulacan via Commonwealth Avenue.

The signing ceremony was attended by SMC Chairman and CEO Ramon S. Ang, KORAIL President and CEO Han Moon Hee, Vice Minister Baek Won Kug of Korea’s Ministry of Land, Infrastructure and Transport, and His Excellency Lee Sang-hwa, Ambassador of the Republic of Korea to the Philippines. The Department of Transportation was represented by Undersecretaries Giovanni Lopez, Timothy John Batan, and Jonathan Ronulo.

With its extensive experience in running large-scale rail networks, KORAIL will provide technical expertise to ensure a smooth transition from construction to daily operations.

The engagement starts in July 2025, with the first six to 12 months focused on completing pre-operational requirements and stabilizing key systems. Over the long term, KORAIL will continue to provide technical support for operations and maintenance to help maintain continuity, support knowledge transfer, and apply global best practices throughout the system.

“This is a critical step as we move closer to delivering MRT-7 to the public,” said Ang. “We have faced delays — mostly due to right-of-way issues — but we have stayed focused. With all trains expected to be running and tested by the end of this year, and full operations targeted for 2026, this partnership with KORAIL brings us closer to our goal.”

KORAIL operates South Korea’s extensive rail network, including the high-speed KTX system, metropolitan commuter lines, and intercity services. It is recognized globally for its strong track record in safety, technology integration, infrastructure management, and workforce development.

Ang acknowledged the DOTr’s active, hands-on role in moving the project forward, led by Secretary Vince Dizon. He credited the department’s leadership and coordination across agencies as instrumental in keeping stakeholders aligned and maintaining steady progress.

“This agreement brings together strong public and private sector efforts,” Ang added. “At San Miguel, we remain committed to building projects that not only improve everyday life for Filipinos, but also contribute to sustainable growth for our economy.”

For the government’s part, Sec. Dizon reiterated President Marcos’ instruction to ease the burden of the commuting public by having reliable mass transport systems such as railways.

“We prioritize passengers, we focus on the plight of the commuters. We are ensuring that an infrastructure or a transport project such as a railway system is not only safe and efficient but will also provide comfort to commuters and lessen their travel time,” Dizon said in remarks read by Undersecretary for Railways Timothy John R. Batan.

KORAIL officials described their renewed partnership with SMC as a “landmark of cooperation and mutual prosperity, enabling the Philippines’ premiere corporation to excel in the new arena of rail.”

“I am confident that the fusion of KORAIL’s technical expertise with San Miguel’s managerial prowess will make MRT-7 the finest rail in the Philippines,” said KORAIL’s Han.

“I am certain that the success of MRT-7 will become a role model for Philippine railway projects and dramatically improve mobility and quality of life for the Filipino people,” he added.

The MRT-7 project is a 22-kilometer elevated railway that will connect North Avenue in Quezon City to San Jose del Monte, Bulacan, with 14 stations. Once operational, it is expected to significantly cut travel time, decongest major road corridors, and improve mobility across Metro Manila and nearby provinces.