LIGHT Rail Manila Corp., a consortium led by Ayala Corp. and Metro Pacific Investments Corp., said it is bidding out marketing rights at Light Rail Transit Line 1 stations and sought proposals from public and private companies who want to take part in its Station Partnership Program.
Initially, LRMC will grant certain marketing rights at Edsa LRT-1 station, including the right to integrate their brand identity into the name of the station.
This marketing initiative is being launched in tandem with the station refurbishment program currently under way across all 20 LRT-1 stations, from Baclaran to Roosevelt.
LRMC has engaged PHAR, an international marketing agency, to this program.
Under the agreement with LRMC, PHAR will assume responsibility of commercializing all non-fare box revenue across the entire LRT Line 1 from 2016 until 2026, which includes all forms of advertising, major brand partnerships, Wi-Fi, fiber optics, retail led solutions, naming rights, data and applications, automated teller machines and other category partnerships.
Currently, the LRT-1 line’s monthly ridership is 13.5 million, and Edsa accounts for 1.5 million monthly riders.
The revenue generated from this exercise will be used for the upgrade of the Edsa LRT-1 station. This includes the rehabilitation of the roofing and flooring of the station, complete electrical overhaul, additional security measures and passenger conveniences, and introduction of a retail environment.
“Urban transport is a critical component of any metropolis and programs like this are the most exclusive type of initiatives available to marketers. It helps companies and brands demonstrate their willingness to invest in their cities’ development, while engaging with thousands of daily commuters, over several years,” Prem Bhatia, PHAR managing director, said.
“It has been successfully implemented in cities like Kuala Lumpur, New York, Madrid, Philadelphia and New Delhi and we look forward to making it a reality in Manila,” he added.
The criteria under which companies can apply for the program include that it is a multi-year agreement, and restricted to businesses established in the Philippines, for at least two years.
LRMC is a joint venture company of Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp. and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) PTE Ltd. It has been awarded a 32-year concession to operate and maintain the LRT 1 including the Cavite extension.