SENATE OF THE PHILIPPINES 
FOURTEENTH CONGRESS 
Second Regular Session 
SENATE 
/ 
Senate Bill No. - 
7 
Introduced bv Senator EDGARDO J. ANGARA 
EXPLANATORY NOTE 
The establishment of a national railway system is the solution to the 
congestion and pollution of the metropolitan areas and the traffic problem in 
the major urban centers all over the country. It will provide cheaper, faster, 
safer and reliable mass transport system; facilitate the movement of people, 
goods and services; decongest the metropolis; depollute the metropolitan 
areas: enhance agricultural 
productivity; encourage investments and 
accelerate industrialization; enhance tourism in the countryside; promote 
inter-regional trade and commerce; decentralize development to the rural 
areas; reduce national dependence on oil imports; reduce the importation of 
vehicles; reduce the cost of road maintenance; facilitate the collection and 
transportation of garbage; and generate job opportunities. 
In order for the entire Filipino people to reap the foregoing benefits that 
they have been denied of, and in order to promote the railway industry in the 
Philippines, which will accelerate national progress and prosperity and ensure 
our country's global competitiveness, there is a need, more than ever, to 
vigorously pursue and, as immediately as possible, the establishment of a 
nationwide railway system that should be constructed simultaneously in 
Luzon, Visayas and Mindanao. Actually, and without fear of contradiction, the 
railways triggered the economic prosperity and stability of Europe, United 
States of America, Russia, China, India, Australia, Japan, and just recently, 
South Korea, Malaysia and Singapore. 
The bill seeks, among others, the creation of a Railway Authority that 
will unify and standardize the development and operations of railways in the 
Philippines; creation of Railway Regulatory Board that will set fare, safety and 
security standards; transfer of Railway Technology thru the establishment of 
Railway Academy, Railway Training Center, Railway Refurbishing Shop and 
the Railway Equipment Manufacturing Plant; creation of a Railway Trust Fund 
that is dedicated to finance railway projects; and the exemption from taxation 
of railway properties. 
The enactment of a National Railway Act has been over-due long 
before the food and fuel crisis that many countries of the whole world now 
suffer. The Act will ensure an efficient and effective mass transport system 
nationwide that will facilitate the movement of people, goods and services 
around the country. 
As the Filipino people as a nation, aspire for economic power and self- 
sufficiency in all fields of human endeavors, the establishment of a National 
Railway System has therefore becomes absolutely necessary. 
EDGARD //* 
' J. ' NGA A 
Senator 


SENATE OF THE PHILIPPINES 
FOURTEENTH CONGRESS 
Second Regular Session 
Introduced by Senator EDGARDO J. ANGARA 
AN ACT 
INSTITUTIONALIZING A NATIONAL RAILWAY SYSTEM IN THE 
PHILIPPINES AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
ARTICLE I 
GENERAL PROVISIONS 
SECTION I. Title. -This Act shall be known as the Philippine National 
Railway Act of 2008. 
SEC. 2. Declaration of Principles and Policies. 
a. The State shall promote the railway industry as an instrument for 
national progress and prosperity. 
b. The State shall establish a nationwide railway system that is cost 
effective, reliable, efficient, state-of-the-art, accessible, sustainable and 
compliant with international standards. 
c. The State shall promote the cooperation between the government and 
the private sector including the local government units in the 
development, implementation and operation of railway systems; 
d. The State shall assure the safety and security of the railway riding 
public. 
SEC. 3. Purposes. - This Act shall have the following purposes: 
1. To provide cheaper, faster, safer, and reliable mass transport 
system 
2. To facilitate the movement of people, goods and services 
3. To decongest the metropolis 
4. To de-pollute the metropolitan areas 
5. To enhance agricultural productivity 
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6. To encourage investments and accelerate industrialization 
7. To enhance tourism in the countryside 
8. To promote inter-regional trade and commerce 
9. To decentralize development to the rural areas 
10.To reduce national dependence on oil imports 
11 .To reduce the importation of vehicles 
12.To reduce the cost of road maintenance 
13. To facilitate the collection and transportation of garbage 
14.To generate job opportunities 
ARTICLE II 
DEFINITION OF TERMS 
SEC. 4. Definitions. - As used in this Act: 
a) Railway - shall mean an undertaking that is operated for the purpose of 
more of them 
transporting people, goods and services or any one or 
by means of rolling stock operated on track. 
b) Subway- shall mean underground railway 
c) At-Grade Railway - shall mean a railway system that runs on street 
d) Elevated Railway - shall mean a railway system that runs on tracks on 
level. 
elevated viaducts. 
e) Regional (Provincia/) Railway - shall mean a railway system that 
moves passenger and freight in long-distances. 
f) Amusement Railway - shall mean a non-common carrier railway 
system that is operated wholly or in part within the confines of an 
amusement, historical park or similar site. 
g) lndustrial Railway - shall mean a non-common carrier railway system 
that transport goods that are manufactured, refined or otherwise 
produced, processed or handled by the person who operates the 
railway or on whose behalf the railway is operated, and is operated 
wholly or in part within the confines of the industrial site on which goods 
are manufactured, refined or otherwise produced, processed or 
handled, and is not operated for the purposes of transporting goods for 
a tool or a fee. 
h) Public Railway - shall mean a common carrier railway system that is 
operated for purposes of transporting people, goods and services or 
any one or more of them for a toll or fee. 
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i) Monorail Transit System - shalf mean a special type of rail system 
that uses a single rail to support and guide a passages vehicle. 
j) Light-Rail Transit System - shall mean an electric railway system 
where the cars operate as single unit or as short train of two or three 
cars. 
k) Urban Rail Transit System - shall mean a rail system that is a street 
railway, tramway, light transit railway or similar system, the purpose of 
which is to transport the general public within an urban area. 
I) Commuter Rail System - shall mean a rail transit that use traditional 
freight railroad technology, including diesel or electric locomotives, to 
operate trains for passenger service. 
m) Metro Rail Transit System - shall mean a heavy rail system that is 
also commonly referred to as rail rapid transit. Heavy-rail system 
typically consists of large four-axle rail vehicles operating in trains of 
two to ten cars. 
n) Rail Rapid-Transit System - shall mean a rail system that operate on 
tracks reserved solely for the rail cars. 
systems, which operate without crew. 
0) Automated Guided Transit - shall mean a fully automated transit 
p) Streetcars - shall mean a tramway or trolley that are electrically 
powered vehicles that run on steel tracks embedded within city streets. 
q) High Speed Train - shall mean a railway technology that operates at 
the speed of 220 kph and above. 
r) Maglev- shall mean a train utilizing propulsion technology 
s) Rolling Stock - shall mean any locomotive or railway car that operates 
on track and any other vehicle that by design or by the way it is 
equipped is capable of being operated on track. 
t) Track - shall mean a railway track or any land or Right-of-way on 
which the railway track is located and any signal and apparatus used 
relative to the operation of the railway track. 
u) Station - shall mean loading and unloading area for rail commuters. 
v) Structural Facilities - shall mean railway bridges, tunnels, overpasses, 
underpasses, culverts, crossings, and similar structures. 
w) Authority - shall mean the Philippine National Railway Authority. 
x) Board- shall refer to the Board of Directors of the Authority. 
y) Regulatory Board - shall refer to the Railway Regulatory Board. 
z) Approval - shall mean an approval granted under this Act and includes 
an amendment to the approval. 
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aa)Secretary - shall mean the ministerlhead of the Department of 
bb)National Railway Administrator - shall mean a person appointed as 
Chief Operating Officer of the Philippine National Railway Authority. 
cc) Railway Operator - shall mean a natural person or a juridical person 
Transportation and Communications. 
who is authorized to own, operate and maintain a railway system. 
dd)Rai/way Safety Officer - shall mean a person designated as a railway 
safety officer and includes any person authorized by the Authority to 
perform the duties or functions on behalf of or in place of a railway 
safety officer. 
ee)Rai/way Security Officer- shall mean a person directly responsible in 
securing not only the life of each and every commuter and the 
employees of the Authority and its subsidiaries but also in securing 
railway structure and facilities. 
ff) Affected Person - shall mean: 
a person who has submitted to the Authority a proposal to 
build, operate and maintain a railway system, or license to 
operate; 
a person who has been granted or denied approval by the 
Authority; 
a person to whom an order or direction has been given or 
whom an order or decision has been issued by the Authority; 
a person whose property or the use or any interest thereof is 
affected by any expropriation proceedings to carry out 
railway project; 
Any person whom the Board, in its discretion, accepts as an 
affected person. 
gg)Private Road - Shall mean a road that is not a highway, or a road 
that is not owned or otherwise under the direction, control and 
management of the Authority or any instrumentality of the 
government. 
hh)Services - shall mean one or more of the following: 
the operation of rolling stock; 
(i) 
(ii) 
the operation of track; 
(iii) 
the transportation of people, goods and services 
ARTICLE 111 
STRUCTURE OF THE NATIONAL RAILWAY INDUSTRY 
SEC. 5. The National Railway lndustry. - The National Railway lndustry 
has two (2) components, such as (a) The Public Domain and (b) The 
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Private Domain. The Public Domain consists of: 1) The Philippine National 
Railway Authority and 2) The Railway Regulatory Board. The Private 
Domain encompasses ownership, maintenance and operation of railway 
systems. 
SEC. 6. Sovereign Duty. - Specifically the duty of the government in the 
public domain on the railway industry is to construct, own, maintain and 
operate railway systems including the supervision of both public and 
private railway systems 
ARTICLE IV 
PHILIPPINE NATIONAL RAILWAY AUTHORITY 
SEC. 7. Philippine National Railway Authority. - 
The Philippine 
National Railway Authority is hereby created with a Board of Directors 
composed of the Secretary of Transportation and Communications as 
Chairman, the Director General of the National Economic Development 
Authority as Vice Chairman, and the Secretaries of the Departments of 
Public Works and Highways, Finance, Budget and Management, 
Agriculture, Environment and Natural Resources, Interior and Local 
Governments and the Chairman of the Metro Manila Development 
Authority, including the National Railway Administrator and the President 
of the Philippine Chamber of Commerce & Industry, as members. 
The Chairman and the Members of the Board may designate their 
respective alternates to the Board from among their own officials with the 
rank of undersecretaries. 
SEC. 8. Mandate. - The Authority is mandated to establish a nationwide 
railway system covering the islands of Luzon, Visayas and Mindanao 
including Metro Manila and the other metropolitan areas in the Philippines 
as the Authority may determine. 
SEC. 9. Powers, Duties and Functions. - As corporate body, the 
Authority shall have the following powers, duties and functions: 
(a) To have continuous succession under its corporate name; 
(b) To sue and be sued; 
(c) To adopt, alter and use a corporate seal; 
(d) To amend, and repeal its By-laws; 
(e) To acquire, own, hold, administer and lease such real or personal 
property as it deems necessary or convenient in governing its 
business affairs and to lease, mortgage, sell, alienate or otherwise 
dispose of any such real or personal property held by it except its 
Right - of - Way; 
(f) To enter into any obligation, assign or accept the assignment of 
and rescind any agreement or contract necessary or incidental to 
the proper functioning of the Authority. 
(9) To contract loan, indebtedness and credit accommodation, in any 
local or convertible foreign currency from nay international financial 
6 


institution, foreign government entities and local or foreign private 
commercial banks or similar institutions under such terms and 
conditions pursuant to law, rules and regulations, and to issue 
commercial papers and bonds in connection therewith; 
(h) To construct, own lease, operate and maintain public utilities, 
infrastructure facilities and such auxiliary support services needed 
to develop, operate and maintain a nationwide railway system; 
(i) To design, construct, maintain and operate by itself or by 
delegation to, or through contractual arrangement such auxiliary 
infrastructure support facilities as, but not limited to, parking 
structures above or below the ground, including the means of 
access: 
0) To prescribe, fix and regulate the scheduled, frequency and route 
of railway services; 
(k) To fix the agency estimate of the cost of railway project 
(I) To receive donations, grants, bequest and assistance of all kinds 
and to utilize the same; 
(m)To establish, organize and maintain subsidiary corporations as 
operators of railway systems or establish a joint ventures formed in 
accordance with the Philippine Corporation Code: 
(n) To privatize any part or all of the railway system or any subsystem 
under the Authority, and the party that acquires the system is 
automatically granted an Authority to operate the same; 
(0) To formulate and adopt a master plan for a national railway system 
with ecological and environmental standards; 
(p) To develop, construct, operate, maintain and control railway 
facilities including parking stations and terminals for freight, goods 
and cargoes: 
(4) To consider and approve variation orders of not more than 10% of 
the cost of railway project .and without prejudice of the prevailing 
inflation rate; 
(r) To order the cessation of operations or any activities related to the 
railway system upon the recommendation of the concerned railway 
safety/ security officer; 
(s) To call upon any government agency for such assistance as maybe 
necessary in the discharge of its duties and functions; 
(t) To promulgate such rules and regulations as may be necessary to 
carry out the objectives of this Act: 
(u) To be member of International Railway Organizations; and 
(v) Perform such other powers as may be necessary to carry out the 
purpose of this Act. 
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SEC. 10. Board of Directors. The powers of the Authority shall be vested 
in a Board of Directors, as such, it shall: 
(a) Formulate policies, rules and regulations, plans and projects and 
(b) Direct the management, operations and administration of the 
programs; 
Authority; 
(c) Establish financial and operations targets for management as the 
basis for evaluating and monitoring corporate performance; 
(d) Authorize such expenditures for the effective and efficient 
administration and operations of the Authority; 
(e) Create Project Management offices or positions necessary for the 
efficient operations of the Authority and fix the remuneration and 
other emoluments of subordinate officers and personnel of the 
Authority, subject to the approval of the Department of Budget and 
Management (DBM); and 
(9 Exercise such other powers as may be necessary to accomplish 
the purposes for which the Authority was organized. 
SEC. 11. Per diems and Allowances. The Chairman of the Board shall 
receive a per diem in the amount of Five Thousand Pesos (P5, 000. 00) 
per meeting and a monthly allowance of Twenty Thousand Pesos (P20, 
000. 00). Each of the members of the Board shall receive a per diem in 
the amount of Three Thousand Pesos (P3,OOO. 00) each per meeting and 
a monthly allowance of Fifteen Thousand Pesos (P15, 000. 00). 
SEC. 12. Secretary to the Board. - There shall be Secretary to the 
Board who must be, preferably, a member of the Integrated Bar of the 
Philippines. 
ARTICLE V 
ADMINISTRATION OF THE AUTHORITY 
SEC. 13. Administration.- The general conduct of the operations and 
management of the Authority shall be vested in the National Railway 
Administrator with rank and privileges of undersecretary who shall serve 
as Chief Executive Officer of the Authority and Member of the Board. He 
shall be primarily responsible in carrying out the projects and programs of 
the Authority as well as in the implementation of its policies, rules and 
regulations, including the faithful execution of the decisions of the Board. 
SEC. 14. Qualificafiions. - The National Railway Administrator must be 
natural-born citizen of the Philippines, at least thirty-five (35) years of age 
on the day of hislher appointment, of good moral character and with 
recognized executive ability and competence in the field of transportation, 
business administration, management, finance or law. He shall be 
appointed by the President of the Republic of the Philippines for a term of 
seven (7) years, renewable for another term only and can only be 
removed from the service for cause as provided under existing laws. 
8 


SEC. 15. Deputies. - The National Railway Administrator shall have four 
(4) deputies for Metro Manila, Luzon, Visayas and Mindanao, all of whom 
shall likewise be appointed by the President of the Republic of the 
Philippines for a term of seven (7) years, renewable for another term only. 
The deputies shall have the same qualifications with that of the 
Administrator. These officials with the rank and privileges of Assistant 
Secretary can only be removed from the service for cause as provided 
under existing laws. 
SEC. 16. Duties and Responsibilities of the National Railway 
Administrator. - 
The Administrator of the Authority shall have the 
following duties and functions; 
(a) Determine, subject to the approval of the Board and the 
concurrence of the Department of Budget and Management, the 
staffing pattern and the number of personnel of the Authority; 
(b) Appoint all the staff and personnel of the Authority; 
(c) Execute, administer and implement the policies, programs, plans, 
and regulations issued and adopted by the Board of Directors; 
(d) Direct and supervise the operations and administration of 
Authority; 
(e) Direct and supervise the operations of all public railways; 
(9 Direct and supervise the preparation of the agenda for the meeting 
of the Board, and to submit for the consideration of the Board such 
measures as he/she believes necessary to carry out the purposes 
and objectives of the Act; 
(9) Represent the Authority in all its transactions with other offices, 
agencies and instrumentalities of the government and to deal with 
any persons and entities, public or private, domestic or foreign, on 
matters related to the mandate of the Authority; 
(h) Exercise such other powers and perform such other duties and 
function as the Board may assign or authorize; 
(i) Remove or discipline officials/employees for cause and in 
accordance with the Civil Service laws, rules and regulations; and 
(j) Grant fringe benefits and other forms of incentives to deserving and 
performing officials/employees when finances of the Authority so 
warrant. 
SEC. 17. Legal Counsel. - The Authority shall appoint a Legal Counsel 
who must be member of the Integrated Bar of the Philippines; have at 
least five (5) years experience in the procedure of law, and must be at 
least thirty five (35) years of age at the time of his/her appointment. 
SEG. 18. Merit System. - All officials and employees of the Authority 
shall be selected and appointed based on the comprehensive and 
progressive merit system to be established by the Authority immediately 
upon its organization and in accordance with Civil Service law, rules and 
regulations. The hiring, promotion, transfer and dismissal of all the 
9 


personnel of the Authority shall be governed by applicable existing civil 
service laws, rules and regulations. 
ARTICLE VI 
CONSOLIDATION OF EXISTING RAIL 
OFFICES AND AGENCIES 
SEC. 19. Consolidation. - Upon the approval of this Act, the Philippine 
National Railways (PNR), the Light Rail Transit Authority (LRTA), the 
Panay Railways, Incorporated and the North Luzon Railway Corporation 
(NORTHRAIL) including all other rail offices and agencies shall be 
deemed consolidated/absorbed and consistently/abolished and its 
projects, assets and liabilities transferred to and assumed by the 
Philippine National Railway Authority. 
SEC. 20. The assets and liabilities of the EDSA Light Rail Transit of the 
Department of Transportation and Communications in so far as its existing 
Build-Lease Transfer Contract with the Metro Rail Transit Corporation 
(MRTC) are likewise deemed transferred to and assumed by the Authority. 
SEC. 21. Valuation - The assets of the existing railway offices and 
agencies mentioned in Section 1 hereof shall be valued by the 
Commission on Audit, and their respective liabilities determined by the 
Commission on Audit and Department of Finance. 
SEC. 22. The plantilla personnel of the existing rail offices and agencies 
holding either permanent or contractual positions maybe absorbed by the 
Authority or retire from the service, subject to existing laws, rules and 
regulations and the guidelines that the Department of Budget and 
Management may issue for the purpose. 
ARTICLE VI1 
RAILWAY REGULATORY BOARD 
SEC. 23. Composition of the Regulatory Board. - A Regulatory Board 
is hereby created composed of the Secretary of Transportation and 
Communications as Chairman, Secretary of Public Works and Highways 
as Vice-chairman, Secretaries of Department of Labor and Employment, 
Finance, Budget and Management, Trade and Industry and the Head of 
the Office of Transportation Security. The National Railway Administrator 
shall sit in the Board as ex-officio member. 
SEC. 24. Standards. - In order to sustain the development of the railway 
industry, enhance the operations of railway systems and ensure the 
safetykecurity of the railway riding public, and protect them from any form 
of natural calamities and man-made disasters, the Regulatory Board shall 
set the necessary fare, safety and security standards to be observed by all 
the railway operators, public or private. 
SEC. 25. Compliant with Infernational Standards. - The fare, safety and 
security standards that the Regulatory Board shall formulate must be 
compliant with international standards. 
SEC. 26. Rules and Regulations. - Railway Regulatory Board shall 
formulate rules and regulations on the following: 
10 


(a) Standards and specifications with respect to rolling stock, track and 
(b) Construction, maintenance, repair and removal of track and 
(c) Permanent and temporary fencing of Right-of-way and structural 
facilities including the apportionment of costs in relation thereto. 
(d) Track crossing and its usages; 
(e) Installation and use of signage, warning signals, barriers, operating 
(f) Qualifications of persons operating rolling stock and of persons 
carrying out functions regarding the operation of track and of other 
equipment and matters ancillary to the operation of rolling stock; 
(9) Materials, equipment and technology to be used for the building 
and construction of the railway systems; 
(h) Tariff, rates and other fees and charges; 
(i) Formulate rules and regulations relative to railway security and 
structural facilities and other railway equipment and apparatus. 
structural facilities; 
signals and other similar apparatus; 
safety; and 
(j) Formulate rules and regulations relative to the imposition of fines 
(k) Exercise such powers and perform such duties and functions in 
and penalties. 
behalf of its creation. 
SEC. 27. Per diems and Allowances. - The Chairman of the Board shall 
receive per diem in the amount of Three Thousand Pesos (P3, 000. 00) 
per meeting and a monthly allowance of Fifteen Thousand Pesos (P15, 
000. 00). Each of the members of the Board shall receive a per diem in 
the amount of Two Thousand Five Hundred Pesos (P2, 500. 00) each per 
meeting and a monthly allowance of Twelve Thousand Pesos (P12, 000. 
00). 
SEC. 28. Secretary to fhe Board. - There shall be Secretary to the 
Board who must be, preferably, a member of the Integrated Bar of the 
Philippines, preferably. 
ARTICLE Vlll 
ADMINISTRATION OF THE REGULATORY BOARD 
SEC. 29. Administration. - The Management and Operations of the 
Regulatory Board shall be vested in an Executive Director with the same 
rank and privileges of Assistant Secretary. He shall be appointed by the 
President of the Republic of the Philippines for a term of Seven (7) years 
and renewable for another term only. 
SEC. 30. Qua/Wications. - The Executive Director must be natural born 
citizen of the Philippines, at least Thirty (30) years of age on the day of 
hislher appointment, and of good moral character. He must either be a 
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lawyer or duly licensed civil/electronic engineer. He can only be removed 
from the service for cause pursuant to law. 
SEC. 31. Deputies. - 
The Executive Director shall have Three (3) 
deputies for fare, safety and security and shall have the same 
qualifications with that of the Executive Director. Each of them shall be 
appointed by the President for the same term of office and can only be 
removed for cause pursuant to law. 
SEC. 32. Staff and Personnel. - 
The Executive Director Shall be 
assisted with such staff and personnel that the Board shall determine, 
subject to the approval of the Department of Budget and Management. 
SEC. 33. Salaries and Compensation. - The Executive Director and his 
deputies including his staff and personnel shall receive salaries and other 
emoluments as prescribed under existing laws, rules and regulations. 
SEC. 34. Appointment. - The staff and personnel of the Regulatory 
Board shall be appointed by the Executive Director subject to the 
confirmation of the Board. 
ARTICLE IX 
COMMON CARRIER 
SEC. 35. Public Railways as Common Carrier. - As common carrier, a 
railway operator shall provide all the necessary equipment and facilities for 
the safety, security, comfort and convenience of the general riding public 
in accordance with international standards and best practices. 
SEC. 36. Limitation of Liabi/ity. - 
The liability of a railway operator 
shall not be limited to the liability and responsibility of a shipper under 
existing laws, rules and regulations. 
SEC. 37. Transfer of Authority to Operate. - No authority to operate a 
railway system shall be transferred or conveyed without the approval of 
the Philippine National Railway Authority. 
ARTICLE X 
HIERARCHY OF RAILWAYS 
Sec. 38. Classification. - The railway system of the Philippines shall be 
classified according to technology and level of ridership such as 
Tramways; Mono Rail; Light Rail; Metro Rail; Heavy Rail; Sky Rail; 
Subway and Maglev. 
ARTICLE XI 
CONSTRUCTION OF RAILWAYS 
SEC. 39. Construction of Railways. - No person shall construct any 
form and kind of railway track such as track crossing, intersections, joints, 
or connections that unites with any existing railway track or structural 
facilities Industrial, Amusement, Public or Private on any land, for 
purposes of developing a railway without prior approval of the Authority. 
12 


SEC. 40. Construction of Highway Crossing Track. - No person shall 
construct on, across, over or under a highway without prior approval of the 
Authority. 
SEC. 41. Structural Change. - No person shall change or replace any 
existing railway structure or methodology in the replacement without prior 
approval of the Authority. 
SEC. 42. Right of Entry and Disturbance Fee. - A railway operator or 
his authorized agent bringing in equipment and materials to a piece of 
land, may gain access to such land to construct or maintain a rail system 
or to repair a rolling stock, track or structural facilities of a public railway, 
subject to the payment of disturbance fee in such amount as may be 
determined by the Authority. 
SEC. 43. Highway Crossing. - When the construction is carried out to 
lay track on, across, over or under a highway, the person carrying out the 
construction shall allow vehicles using the highway adequate passages, 
and on the completion of the construction restore the highway to its 
acceptable passable condition. 
SEC. 44. Crossing Construction. - 
Subject to the approval of the 
Philippine National Railway Authority, the owner of a private road may be 
allowed in writing to construct and maintain at his own cost either an 
underpass or overpass crossing across the right-of-way that already 
existed prior to the construction of his private road. However, if the private 
road was in existence before the rail right of way was established the 
railway ownerloperator is responsible for the cost of constructing and 
maintaining the crossing. 
SEC. 45. Crossing of Landowners. - Any proponent of a railway project 
shall provide access road in between lands cut crossed by the project 
when public interest so demands. 
SEC. 46. Cost - When the railway operator is unable to agree with the 
road authority as to the cost apportionment associated with the 
construction of projects under this article, the parties may resort to 
arbitration. 
SEC. 47. Fencing of Railway Track. - The operators of railway systems 
when public safety demands as may be determined by the Authority shall 
provide the necessary fences along railway tracks. 
SEC. 48. Drainage. - In the establishment of the railway system, there 
shall be provided appropriate and adequate drainage and sanitary 
facilities that Authority shall refuse of any railway project and with 
concerned government offices and agencies. 
SEC. 49. Fire Prevention. - All railway operators shall provide their 
railway systems all the necessary equipment and adopt ways and means 
to protect their systems and commuters from fire or damages arising 
therefrom. 
SEC. 50. Stoppage. - When the construction or work poses danger to 
person or property, the Safety Officer may immediately order the stoppage 
of the construction or work unless constraint by the Authority. 
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ARTICLE XI1 
RIGHT - OF - WAY 
SEC. 51. Right - of - Way. - The Authority shall identify and establish 
within three (3) years after the approval of this Act, the alignment of a 
National Railway System, and once established and the right - of - way is 
acquired, the same cannot be the object of sale, lease or otherwise. 
SEC. 52. Intrusion into the Right - of - Way. - Any intrusion into the 
right - of - way by any person shall be punishable by imprisonment as 
provided under Section 1, Article XXlX hereof. 
ARTICLE Xlll 
INTEGRATION OF TRANSPORT SYSTEMS 
Sec. 53. Integration of Rail Systems. - The Authority shall integrate all 
the existing railway systems for purposes of interfacing, seamless 
operation and unified ticketing system. 
Sec. 54. Integration with other Transport Systems. - The Authority 
shall integrate whenever feasible the railway transport with maritime, civil 
aviation and road transports. 
ARTICLE XIV 
OBJECTIVE OF CONSTRUCTION 
EXPROPRIATION AND OVER- RIDING 
SEC. 55. Expropriation. - In the implementation of any railway projects 
and the operations of railway systems, Authority may initiate on its own 
behalf or in behalf of any duly authorized Railway Operator the necessary 
expropriation proceedings. 
SEC. 56. Ejection. - Any person or group of persons who enter, intrude, 
occupy, settle, possess, construct into the railway alignment or Right-of - 
Way or any property owned by any railway office or agency shall be 
considered as nuisance per se 
summarily ejected the 
premises. Such entry intrusion, occupation, settlement, possession and 
construction shall be considered as criminal act and therefore punishable 
under Section 1, Article XXI hereof. 
SEC. 57. Suspension. - When the construction or work is not being 
carried out in accordance of the approved specifications-relative to design 
and product standards, the Safety Officer may order the suspension of the 
construction or work until after corrections shall have been made by the 
contractor or its resumption is ordered by the Authority. 
S EC. 58. 
Prohibition Against Issuance of Restraining Orders and 
Preliminary Injunctions or Preliminary Mandatory Injunctions. - 
No 
court in the Philippines, except the Supreme Court, shall have the 
jurisdiction to issue any restraining order, preliminary injunction, or 
preliminary mandatory injunction in any case, dispute, or controversy 
involving any contract or project being implemented by the Authority, to 
and shall be 
14 


prohibit any person or persons, or entity or government official from 
proceeding with, or continuing the execution or implementation of such 
contract or project, or pursuing any lawful activity necessary for the 
execution, implementation or operation of such railway projecffsystem. 
ARTICLE XV 
RAILWAY OPERATIONS 
SEC. 59. Operations. - The operator of a railway shall ensure that the 
track and other railway facilities are constructed, operated and maintained 
in accordance with this act and the pertinent rules and regulations 
implementing the same and those policies that may be promulgated by 
the Authority and the Railway Regulatory Board and that the rolling stock 
is maintained and operated in accordance with applicable rules and 
regulations promulgated by the Philippine National Railway Authority and 
the Railway Regulatory Board. 
SEC. 60. 
Suspension and Termination. - Any operator of a public or 
industrial railway who intends to suspend or terminate its operation shall, 
within six months, prior to the suspension or termination, give notice 
thereof to the Authority and to the public. 
ARTICLE XVI 
SAFETY AND SECURITY 
SEC. 61. Safety Officer. - There shall be created positions of Safety 
officers with the following duties and functions: 
(i) 
Administer and foster faithful compliance with railway safety 
legislations, approvals and operating rules and regulations; 
Ensure the safety at all times of rolling stocks, railway tracks, 
signaling and communication systems and other facilities. 
Conduct regularly safety audit of railway system including a 
check on inventory levels of essential spare parts; and 
Ensure the safety of the general riding public and of persons 
employed by or acting on behalf of operators of railways; 
(ii) 
(iii) 
(iv) 
SEC. 62. Qualifications. - Only persons who graduated from a course 
related to safety shall be appointed Safety Officer and shall pass the 
examination given by the Railway Regulatory Board for the purpose. 
SEC. 63. Security Officer. - There shall be created positions of Security 
Officers with the following duties and functions: 
(i) Administer and foster faithful compliance with railway security 
legislations, approvals and operating rules and regulations; 
employed by or acting on behalf of operators of railways. 
tracking equipment for passengers and cargo. 
(ii) Ensure the security of the general riding public and of persons 
(iii) Ensure the installation of the state of the art surveillance and 
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SEC. 64. Qualifications. - Only persons who graduated from a course 
related to security shall be appointed Security Officer and shall pass the 
examination given by the Railway Regulatory Board for the purpose. 
ARTICLE XVll 
MAINTENANCE 
SEC. 65. Proper Maintenance. - There shall be created a Maintenance 
Group in every railway line with the following duties and functions. 
(i) Ensure that the economic lifespan of the system is attained 
through rehabilitation, refurbishment and overhauling; 
(ii) Ensure continuous and efficient operation of the system; 
(iii) Ensure a continued availability of spare parts in the inventory; 
(iv) Ensure the repair and maintenance of the rolling stock, track or 
structural facilities. 
The maintenance group lead by a Maintenance Engineer shall be 
composed of Engineers from different fields of specialization. 
ARTICLE XVlll 
COMPLIANCE, ACCIDENTS AND ADMINISTRATIVE PENALTIES 
SEC. 66. lnspection of Railways. - A railway safetykecurity officer 
may carry out inspections of the following: 
(i) 
(ii) 
Rolling stock, track, goods and other facilities; 
Record, document, object or thing that relates to the 
operations of a railway; 
SEC. 67. Access. - A railway safety officer, in carrying out an inspection 
may do one or more of the following: 
(i) 
Enter any track, structural facility, rolling stock, building or 
any other property associated with railways; 
Make inquiries with any person who is employed by or who 
carries out any duties or functions for or in behalf of the 
railway operator; and. 
Perform or caused to be performed tests or examinations of 
anything relative to the inspection. 
(ii) 
(iii) 
SEC. 68. Production of Documents. - In the course of safety/security 
inspection the officer conducting the inspection may require the production 
of any documents, record or thing relative thereto. 
Any person who is the subject to an inspection shall, when 
requested to do so by a railway safetykecurity officer, 
produce for inspection within reasonable period of time any 
(i) 
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(ii) 
(iii) 
record, document, object or thing that relates to the matter 
under inspection. 
A railway safety/security officer may request copies or take 
photographs of the record, document, object or thing under 
inspection and immediately thereafter return the same. 
When conducting an inspection of a record, document, object 
or thing, a railway safetykecurity officer is of the opinion that 
he must retain possession of the record, document, object or 
thing for a longer period of time, he may do so within 
reasonable time but not longer than three days after receipt 
thereof. 
SEC. 69. Directions of Railway Safety Officer. -When a railway safety 
officer carries out an inspection, he may do one or more of the following: 
0) 
(ii) 
(iii) 
Recommend the cessation of the operation of any railway 
system or any activity related thereto when in his opinion he 
has reasonable grounds to believe that he has to do so. 
However, when there is a compelling reason, he may order 
the suspension of the operations unless restrained by 
competent authority. 
Order the removal of rolling stock or any equipment from the 
service or any person on board, when the railway safety 
officer is of the opinion that the operation of the same poses 
danger to the safety of the public or persons employed by or 
acting on behalf of the operator unless restrained by the 
National Railway Authority; 
Issue directions to stop over-speeding of the train or when 
violations are being committed related to the speed of the 
rolling stock. 
SEC. 70. Accidents. - The railway operator shall keep a record of every 
accident involving person or the railway system and shall forthwith report 
to the Authority. 
SEC. 71. Investigation. - The Philippine National Railway Authority shall 
conduct an investigation on accidents provided for in the immediate 
preceding section, and for this purpose the investigating officer shall have 
full access to the place and attributes of accident. 
SEC. 72. Liability. - The operator and his agent shall be jointly and 
solidarily liable for the fines and penalties provided under this article. 
SEC. 73. Execution. - When the operator andlor his agent fails to pay the 
administrative penalty in accordance with this article, the Authority shall 
take all the necessary legal actions to compel the payment of 
the 
administrative legal penalties and fines against the operator and his agent. 
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ARTICLE XIX 
REVIEW 
SEC. 74. ReviewIAppeal. - Any order issued by the Safety /Security 
Officer maybe appealed for review by the affected person to the Authority 
within Fifteen (15) working days from notice thereof whose decision shall 
be final and executory. 
SEC. 75. Motion for Reconsideration. - Any person affected by the 
order or decision of the Authority may file a motion for reconsideration 
within Fifteen (15) days from receipt of the notice thereof. No second 
motion for reconsideration shall be entertained. 
ARTICLE XX 
PARTICIPATION OF THE LOCAL GOVERNMENT UNITS AND THE 
PRIVATE SECTOR IN RAILWAY DEVELOPMENT 
SEC. 76. Local Government Units (LGUs). - A Local Government Unit 
or group of Local Government Units may own, construct, maintain and 
operate a railway system in accordance with International Standards and 
subject to the approval of the Authority. 
SEC. 77. Private Sector. - Any person, natural or juridical, may own, 
construct, maintain and operate a railway system in accordance with 
International Standards and subject to the approval of the Authority. 
SEC. 78. Private-Public Partnership. - The Authority or any Local 
Government Unit may jointly own, construct, maintain and operate a 
railway system with the Private Sector in accordance with the Corporation 
Law and other applicable laws. 
ARTICLE XXI 
RAILWAY ENERGY PLANT 
SEC. 
79. Power Plant. - 
In order to ensure a continuous and 
uninterrupted operation of the railway systems in the Philippines, the 
Authority may establish its power plant for any of its rail systems when on 
its own judgment it is more economical and advantageous on the part of 
the government. 
SEC. 80. Waste - to - Energy Plant - The Authority shall establish in 
cooperation with the Local Government Units and the Private sector 
waste-to-energy plant in strategic areas in the country. 
ARTICLE XXIl 
TRANSFER OF RAILWAY TECHNOLOGY 
SEC. 81. 
Railway Engineering Course. - The Philippine Railway 
Academy established in the Polytechnic University of the Philippines 
(PUP) shall offer a 5-year baccalaureate course on Railway Engineering 
Management and other Railway related courses and shall receive an 
annual budgetary support which shall be provided in the Annual General 
Appropriations Act. 
18 


SEC. 82. Assistance for Other State Colleges and Universities. - The 
Authority when its finance permit shall extend assistance to other State 
Colleges and Universities offering similar Railway Engineering courses 
until after the necessary budgetary support for the concerned institutions 
shall have considered in their respective annual budget from the national 
government. 
SEC. 83. Railway Training Center. - 
A Railway Training Center is 
hereby established to equip the railway manpower resource with the 
necessary skills and expertise in the development and implementation of 
railway projects and programs, and in the operation of railway systems. 
The budgetary support for the Railway Training Center shall be provided 
in the General Appropriations Act. 
SEC. 84. Manufacturing of Rai/way Equipment. - The Authority shall 
endeavor to establish the necessary mechanism for the manufacturing of 
railway equipment to ensure the expansion and sustainability of a National 
Railway System herein envisioned. 
ARTICLE XXlll 
TRAIN DRIVERS 
SEC. 85. Train Drivers. - To promote proficiency and to ensure the 
safety of the general railway riding public, all train drivers must posses 
certain educational attainment and undergo training to attain certain level 
of skills, and must be physically and mentally fit owing to the delicate 
characters of their job. 
SEC. 86. Train Driver’s License. - The Railway Training Center shall 
conduct the training for train drivers for a duration that it may determine 
and thereafter issue the necessary Train Driver’s License (TDL) for those 
who will pass the training according to its tests and measurements. 
ARTICLE XXlV 
CAPITALIZATION AND TRUST FUND 
SEC. 87. Capitalization. - The Philippine National Authority shall have a 
capitalization of Five Hundred Billion (P500, 000,000,000.00) divided into 
shares at One Thousand Pesos per share (PI, 000. 00) This capitalization 
may consist of the assets of the existing railway offices and agencies that 
the Authority shall absorb under this Act, including the amount of One 
Hundred Billion Pesos which shall be provided in the General 
Appropriations Act for a period of Five (5) years starting on the year 
following the passage of this Act. 
SEC. 88. Establishment of the Railway Trust Fund. - A Railway 
Trust Fund is hereby established that is dedicated to finance only railway 
projects and the operations of railway systems. 
SEC. 89. Sources. - The Railway Trust Fund consists of 3% increase in 
the real property tax, 2% share of the sin taxes and 5% share of the road 
user’s tax. 
SEC. 90. Fund Administrator. - The Trust Fund shall be administered 
19 


by any recognized government depository bank and can only be spent 
and withdrawn by 213 vote of the members of the Board of Directors of the 
Authority for the purposes for which it is created. 
ARTICLE XXV 
EXEMPTION FROM REAL PROPERTY TAX 
SEC. 91. Exemption from Real Property Tax. - All rail properties in 
the form of land, right - of - way, depot, stations, tracks, office buildings, 
and terminals are exempted from the payment of real property tax and 
those which have already been due to the government shall be deemed 
condoned entirely. 
SEC. 92. Exemption from lncome Tax. - The incomes of the Authority 
that are derived from the operations of its railway systems is exempted 
from the payment of income tax. 
SEC. 93. 
Exemption from the Payment of C,ustoms, Duties and 
Charges. - Any importation of goods and/or equipment for the building of 
railway systems and for the maintenance and operation of railway systems 
is free from payment of customs, duties, and other forms of fees and 
charges. 
ARTICLE XXVl 
REVENUES 
SEC. 94. Rail Revenues. - The rail revenues shall consist of all incomes 
derived from the ridership, freight and trackage fees. 
SEC. 95. Non-Rail Revenues. - The non-rail revenues shall consist of all 
incomes generated from commercial, advertisement and real estate 
development programs. 
ARTICLE XXVll 
INSURANCE COVERAGE 
SEC. 96. Railsystems lnsurance Coverage. - All rail systems shall be 
covered by insurance from natural and man-made disaster either by the 
Government Service Insurance System (GSIS) or by a self-insurance 
system in the form of a Common Trust Fund that the Authority may 
establish for the purpose for all the public railway operators. 
SEC. 97. Passenger's lnsurance Coverage. - 
Each and every rail 
passenger shall be covered by accident insurance by the rail operators, 
government or private, in the amount of One Hundred Thousand Pesos 
(PlOO,OOO.OO) in case of death, not more than Fifty Thousand Pesos 
(P50,OOO.OO) in case of an injury exclusive of medical and hospitalization 
expense, and Seventy Five Thousand Pesos (P75,OOO.OO) in case of 
incapacity exclusive of medical and hospitalization expense. 
SEC. 98. Premiums. - 
After five (5) years from the date of the 
establishment of the Common Trust Fund and every three (3) years 
20 


thereafter, a portion of the trust fund may be used for rail projects and 
programs by 213 vote of the members of the Board of Directors of the 
Philippine National Railway Authority. 
SEC. 99. Fund Adminisffafor. - The Common Trust Fund authorized 
under this article may be administered by a group of financial experts 
when in judgment of the Board the need for it arises, otherwise, the 
Authority shall administer and manage such fund. 
ARTICLE XXVlll 
ACCOUNTABILITY 
SEC. 
100. Accountabiljfy- - To ensure public accountability, the 
Authority shall be subject to the audit of the Commission on Audit (COA) 
and shall comply with all the generally accepted accounting and auditing 
rules and regulations and those which the commission may promulgate 
from time to time pursuant to its constitutional mandate. 
SEC. 101. Transparency. - The Authority and its subsidiaries shall be 
transparent in all its affairs and financial transactions. 
ARTICLE XXlX 
PUNISHABLE ACTS AND ADMINISTRATIVE PENALTIES 
SEC. 102. Intrusion. - 
The entry, intrusion, occupation, settlement, 
possession and construction on the properties described in the section 2, 
Article XI1 hereof shall be considered a crime against property and 
punishable by imprisonment ranging from six (6) months and one (1) day 
to two (2) years and or fined in an amount not lower than Ten Thousand 
(PIO, 000. 00) as maybe determined by the court. 
SEC. 103. Obstructions. - Any person who obstructs or impedes the 
construction, operation, repair, maintenance and removal of any track, 
rolling stock or railway facilities shall be criminally liable and the 
punishment by imprisonment ranging from two (2) years and one (1) day 
to three (3) years. 
SEC. 104. Theff of Railway fropetty. - Any person who is found to 
have stolen any part of a track or rolling stock shall be punished by 
imprisonment of 1) Twelve (12) days and Six (6) months to Fifteen (15) 
years and One (1) day and a fine of One Hundred Thousand (PIOO, 000. 
00) Pesos or both at the direction of the Court. 
SEC. 105. Administrative Penalties. - The Authority may impose a fine 
or penalty or both against the operator and/or its agents who committed 
any or all of the following acts of violations. 
a) Exceeding the authorized speed limit of his rolling stock shall 
be punished with 1) First Offense - Fine of One Hundred 
Thousand Pesos; 2) Second Offense - Fine of Three 
Hundred Thousand Pesos; 3) Fine of Five Hundred 
Thousand Pesos; 
b) Failure to properly maintain the system resulting to Service 
Interruption shall be fined 1) First Offense - Fifty to One 
21 


Hundred Thousand Pesos; 2) Second Offense - One 
Hundred to Two Hundred Thousand Pesos; 3) Third Offense 
-Two Hundred to Three Hundred Thousand Pesos; and 
C) Failure to secure Annual Passengers Insurance Coverage 
shall be fined Ten Million Pesos. 
d) Failure to operate - shall be fined with One Million Pesos for 
every day of non-operation, and cancellation of its Franchise 
or Authority after 30days of non operation, except when 
caused by force majeure or fortuitous event. 
e) Failure to Comply with Safety and Security Regulations 
resulting to injury or loss of life and damage to property shall 
be fined with Fifty Thousand Pesos for injury and Three 
Hundred Thousand for every loss of human life. 
9 Failure to maintain adequate spare parts inventory shall be 
fined with an amount equivalent to the cost of the required 
spare parts. 
g) Failure to maintain a maintenance and accident record shall 
be fined with shall be fined with 1) First Offense - One 
Hundred Thousand Pesos; 2) Second Offense - Two 
Hundred Thousand Pesos; 3) Third Offense - Three Hundred 
Thousand Pesos. 
h) Failure to Comply with regulations on cleanliness and 
sanitation shall be fined with 1) First Offense - One Hundred 
Thousand Pesos; 2) Second Offense - Two Hundred 
Thousand Pesos; 3) Third Offense - Three Hundred 
Thousand Pesos; and 
i) Failure to comply with and execute orders, decisions and 
similar issuances of the Philippine National Railway Authority 
shall be fined with One Hundred Thousand Pesos for every 
day of non compliance. 
ARTICLE XXX 
BUDGETARY SUPPORT 
SEC. 106. lnitial Funding Support - The Amount of Five Hundred 
Million (P500, 000, 000. 00) Pesos and Fifty Million (P50, 000, 000. 00) 
Pesos for the Authority and the Railway Regulatory Board, respectively, is 
hereby appropriated out of the unprogrammed fund in the 2009 General 
Appropriation of these two (2) bodies. 
SEC. 107. Annual Budgetary Support - 
The annual budgetary 
requirements of the Authority and the Railway Regulatory Board and other 
railway institution created n the Act shall be provided in the Annual 
General Appropriations Act. 
22 


ARTICLE XXXl 
APPLICABILITY OF THIS ACT 
SEC. 108. Application of this Act. - This act applies to the development 
and implementation of Railway Projects and the operations of railway 
systems, both Public and Private, in the Philippines. 
ARTICLE XXXll 
APPLICABILITY OF EXISTING LAWS AND REGULATIONS 
SEC. 109. Applicabi/jfy. - In so far as they are not inconsistent with this 
Act, the provision of the Corporation Law and Republic Act 6957 otherwise 
known as “An Act Authorizing the Financing, Construction, Operations and 
Maintenance of Infrastructure Projects by the Private Sector and for other 
purposes” shall be applicable to the operation of the National Railway 
Authority. 
ARTICLE XXXlll 
CONGRESSIONAL OVERSIGHT COMMITTEE 
SEC. 1 I O .  Congressional Oversight Committee. - A Congressional 
Oversight Committee is hereby created, composed of the Chairpersons of 
the Committee on Public Services of the Senate and the Committee on 
Transportations and Communications of the House of the Representatives 
and four (4) additional members from each Houses, to be designated by 
the Senate President and the Speaker of the House of Representatives, 
respectively. The Oversight Committee, shall among others, monitor and 
ensure the effective implementation of this Act. 
ARTICLE XXXlV 
SEPARABILITY AND REPEALING CLAUSES 
SEC. 111. Separability Clause. - If any of the provisions of this Act is 
declared invalid, the provisions thereof not affected by such declaration 
shall remain in force and effect. 
SEC. 112. Repealing Clause. - The provisions of Republic Act No. 
1156, as amended. Executive Order No. 603, as amended are hereby 
repealed. 
All other laws, decrees, orders, proclamations, rules and 
regulations or parts thereof, inconsistent with any of the provisions of this 
Act are hereby repealed, amended ‘or modified accordingly. 
ARTICLE XXXV 
EFFECTIVITY 
SEC. 113. Effectivity Clause. - This Act shall take effect fifteen (15) 
days following its publication in at least two (2) newspapers of general 
circulation. 
Approved, 
23