CEZA to host $1-billion high speed train facility, training hub

MANILA, Philippines — Chinese firms Eminova Asset Management Ltd. and Hunan Goke Maglev Technology Development Ltd. are setting up a $1-billion training and production center for Maglev trains in Sta. Ana, Cagayan, the Cagayan Economic Zone Authority (CEZA) said.

In a statement CEZA said it entered into a memorandum of understanding with Eminova and Hunan Goke Maglev for the establishment of the Maglev research and development center for production and training hub.

Eminova is a Hong Kong-based independent investment fund management of Australian and European funders with a portfolio covering projects in energy, environment, global entertainment and infrastructure.

Hunan Goke Maglev, meanwhile, is the world’s biggest magnetic levitation line builder.

CEZA administrator and chief executive officer Raul Lambino said the two Chinese firms’ project has an initial cost of $1 billion.

He said the Maglev production line in CEZA would roll out light rail vehicles and medium and high-speed Maglev trains from 200 kilometers (km) to 400 km per hour for countries in Southeast Asia, including the Philippines.

Lambino said CEZA would be providing the land area for the project.

Hunan Goke Maglev, meanwhile, will be responsible for establishing the research and development for training and production center, ensuring technology transfer and generating local employment.

For Eminova, its role would be to provide the necessary financial and marketing requirement including financial investment and feasibility studies for the project.

The Maglev research and development project diversifies investments in the Cagayan Special Economic Zone and Freeport.

CEZA is positioning the freeport as the “FinTech City” or the “Silicon Valley of Asia” by attracting startup firms engaged in financial technology and overseas trading of cryptocurrencies such as bitcoin and etherium.

CEZA has so far attracted more than two dozen startup firms.

“We need to be aggressive and innovative in promoting our competitive edge in the Freeport,” Lambino said.       

“We have relatively cheap labor, highly-skilled workers, vast tracks of unused lands and attractive fiscal incentives,” he added.