MPIC eyes exit from LRT-1 amid continued losses

METRO PACIFIC Investments Corp. (MPIC) is considering divesting its 35.8% stake in Light Rail Manila Corp. (LRMC), the operator of Light Rail Transit Line 1 (LRT-1), as losses persist and ridership has yet to recover from the pandemic impact.

“We are still losing on LRT-1, in part because of COVID. Ridership went down, obviously. We continue to lose money from LRT-1, and I think we are considering selling it and getting out of the light rail,” MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan told reporters on the sidelines of PLDT’s financial briefing on Tuesday.

“We are just talking about it, and people are complaining that we are losing money so that is why we need to do this,” he added.

MPIC holds a 35.8% stake in LRMC through its unit Metro Pacific Light Rail Corp., while Sumitomo Corp. owns 19.2% and Macquarie Investments Holdings (Philippines) Pte. Ltd. holds 10%.

LRMC is a joint-venture company of MPIC, AC Infrastructure Holdings Corp. (a unit of Ayala Corp.), Sumitomo Corp., and Macquarie Investments Holdings, and assumed operations and maintenance of LRT-1 in September 2015 under a P65-billion, 32-year concession agreement with the Light Rail Transit Authority and the Department of Transportation.

Incorporated on July 22, 2014, LRMC develops, constructs, operates, maintains, and invests in railways and other public-transport systems.

The company previously said it was reconsidering plans to acquire Ayala Corp.’s stake in LRT-1 following unresolved valuation issues, and last year explored acquiring Ayala’s shares after the latter announced its divestment plan.

Meanwhile, MPIC has no intention of bidding for the operations and maintenance of Metro Rail Transit Line 3 (MRT-3), Mr. Pangilinan said, noting the company has not submitted any recent unsolicited proposals.

The Transportation department aims to start bidding for MRT-3’s operations and maintenance within the first half of 2026, and in September hinted at receiving an unsolicited proposal for the project.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose