Banaag, chairman of the House committee on Natural Resources, said the railway system for Mindanao can provide fast and cheap transportation of goods from the island’s produce.
"People can reduce cost of finished products sold in markets and more people can easily move around," Banaag explained.
Though Surigao del Sur was not among provinces in Mindanao where the railway will not pass through in the original plan, Pichay, vice chairman of the Committee on Appointments, said it will benefit most from the project as Caraga is considered as the poorest region but richest in terms of natural resources in Mindanao.
The first phase of the railway project will cover Cagayan de Oro, Butuan and Surigao, covering a total distance of 320 kilometers. The pre-feasibility studies were done by Transport East West Expert Team GmbH Germany known as "TEWET" and the Austrian Rail Engineering (ARE) based in Vienna, Austria.
The project will be undertaken through a concessional loan extended by the governments of Austria and Germany.
Phase II of the project will cover the cities of Butuan, Davao and General Santos, or a length of 390 kilometers. It will pass through the provinces of Agusan del Sur, Compostela Valley, Davao del Norte and Saranggani.
The project will be handled also by foreign railway construction giants, TEWET of Germany and Austrian Rail Engineering (ARE).
Meanwhile, the Iligan-Zamboanga line will be handled by the Ministry of Railways of the government of India, through its subsidiary IPCON International Ltd. and the Thaipicon and Industry Co. Ltd. (TPCON) of Thailand.