Section 2. Purpose and Specific Powers. —
The Philippine National Railways shall have the following purposes and specific powers:
To acquire and hold the assets of the Manila Railroad Company of the Philippine Islands, and to succeed to, or acquire, maintain and operate such grants, concessions, and franchises as are now held and enjoyed by the said Manila Railroad Company of the Philippine Islands;
To own or operate railroad trainways, bus lines, trucklines, subways, and other kinds of land transportation, vessels, and pipelines, for the purposes of transporting for consideration, passengers, mail and property between any points in the Philippines;
As an auxiliary to its main purpose, to own and/or operate powerhouses, hotels, restaurants, terminals, warehouses, timber concessions, coal mines, iron and other mining properties and to manufacture rolling stocks, equipment, tools and other appliances; to construct and operate in connection with its railroad lines, toll viaducts, toll tunnels; and
To borrow money and contract loans, credits and indebtedness from domestic and/or foreign sources for the prosecution and furtherance of its goals and objectives.