“We’re still losing on LRT1 in part because of COVID. Ridership went down and it has not fully recovered,” Manuel V. Pangilinan, MPIC chair and CEO, told reporters on Tuesday.
“We’re considering selling it, getting out of the light rail [business],” he added.
Metro Pacific owns about 35 percent of Light Rail Manila Corp. (LRMC), the operator of LRT-1, alongside Ayala Corp. (35 percent), Sumitomo Group (20 percent), and Macquarie (10 percent).
“It recovered somewhat but not fully, so we continue to lose money,” Pangilinan said, adding the potential sale was discussed in a meeting this week.
Ongoing losses a key issue for LRT-1 shareholders
“We just talked about it yesterday. People were complaining that it’s losing money, why do we need this,” he added.
He added that while discussions on a possible divestment are underway, no formal decision has been made.
This would not be the first time a major LRT-1 shareholder has weighed a sale. Ayala Corp. previously explored divesting its stake but ultimately decided to hold off.
According to Metro Pacific's first half 2025 report, LRT-1 revenues rose 36 percent to a record P1.9 billion on higher ridership of around 390,000 passengers, though still below pre-pandemic levels.
Despite a 22 percent fare hike and the Cavite Extension boost, core income swung to a P510 million loss due to heavy amortization and the end of capitalized borrowing costs.
Metro Pacific's portfolio includes newly-listed Maynilad Water Services, Manila Electric Co., expressways, hospitals, and agriculture investments.
Aquino-era PPP project
The LRT-1 Cavite Extension was launched under the Aquino administration as one of its flagship public-private partnership (PPP) projects.
The 32-year concession covers the operation of the existing line and the construction of an 11.7-kilometer extension from Baclaran to Bacoor, Cavite.
—Edited by Miguel R. Camus
