The Department of Transportation (DoTr) of the Philippines is poised to allocate funding in 2025 or 2026 to begin right-of-way (RoW) acquisition for the first phase of the Mindanao Railway Project (MRP)—the 100.2 km Tagum–Davao–Digos (TDD) segment.

According to the Department of Economy, Planning, and Development (DEPD) 11, the RoW acquisition is ongoing for the 100.2 km Tagum–Davao–Digos (TDD) segment, which is the first phase of the project. The segment covers alignment, land, and station site acquisition. The project has been delayed due to funding challenges after the Chinese government withdrew its support. In response, the government is seeking alternative financing options such as official development assistance (ODA) and public–private partnerships (PPP). The original feasibility study prepared by China is being revised to comply with updated standards and funding criteria, with a new study underway to ensure a modern, environmentally sustainable design.

Valued at PHP 83 billion (US$1.4 billion), the railway is expected to transport around 122,000 passengers daily and cut travel time between Tagum and Digos from three hours to just one. Local leaders have emphasized the importance of aligning railway development with existing road networks—particularly bypass roads—to optimize routing and project sequencing.