PH, US sign deal to develop the Subic-Clark-Manila-Batangas freight railway

The Philippines and the United States have signed an agreement to pursue the development of the proposed Subic-Clark-Manila-Batangas (SCMB) freight railway, a strategic infrastructure project designed to alleviate port congestion in key trade hubs and foster broader economic growth and connectivity.

Department of Transportation (DOTr) Secretary Vince Dizon and US Trade and Development Agency (USTDA) Acting Director Thomas Hardy signed the agreement in Arlington, Virginia, on Wednesday (June 26).

In a statement released by the DOTr, the USTDA said that its technical assistance for the SCMB Railway involves transport model development, a port-rail integration study, and an analysis of the legal and institutional framework, among other activities.

Hardy said the project “underscores the US-Philippine alliance’s vital role in maintaining a free and open Indo-Pacific region. By supporting the development of the SCMB Railway, we are ensuring that key infrastructure will flourish, increasing economic cooperation to develop an essential trading route that will mutually benefit American and Philippine citizens.”

Dizon said the 155-kilometer railway is designed to connect three of the country’s major ports—Manila, Subic Bay, and Batangas—enhancing logistical efficiency and regional connectivity.

“As a freight cargo railway, the SCMB Railway is seen to solve port traffic and congestion in Manila Port, while ensuring the timely movement of products to and from adjacent major transport hubs,” Dizon said.

Special Assistant to the President for Investment and Economic Affairs Secretary Frederick D. Go said the project enhances the initiative to link major economic hubs under the Luzon Economic Corridor.

“Once operational, the SCMB Railway will attract investments, create new opportunities for businesses, and most importantly, generate quality jobs that will benefit millions of Filipinos,” Go said. (SNL)

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₱4.135-B multi-modal logistics, transport hub to rise in Subic Freeport

 

A ₱4.135-billion multi-modal logistics and transport hub will soon rise in this premier Freeport, as the Subic Bay Metropolitan Authority (SBMA) and the Subic Bay Freeport Grain Terminal Services, Inc. (SBFGTSI) partnered to construct this project.

Senior Deputy Administrator for Business and Investment Renato Lee III and SBFGTSI Executive Vice President Lester C. Valdes recently signed the lease contracts and amendment to the existing contracts at the SBMA Corporate Boardroom on May 28, 2025.

According to Lee, the construction of the multi-modal logistics and transport hub will integrate sections along San Bernardino Road within the Subic Port District and parts of the Subic Bay International Airport (SBIA).

The committed investment for the proposed development of these areas includes P660-million for Lot 4, P1.8-billion for Lot 5, P801-million for Lot 6, P20-million for Lot 7, and P854-million for Lot 8. 

These developments include a petroleum tank farm, grain storage, an airport logistics hub, dry storage and warehouse facilities, cold storage areas, a commercial and hospitality hub for cruise ships, and a new wharf for ultra-large cruise ships. 

This is also seen to generate employment for 798 workers. 

“This is a huge step for Subic Bay Freeport as it reaches its goal to have a more modern air and seaport which are expected to boost the port’s capacity, increase competitiveness, and generate more revenue,” Lee said.

Subic’s port development program aligns with the Luzon Economic Corridor (LEC) Development initiative of President Ferdinand Marcos Jr., whose projects are expected to be completed by the end of his term in 2028. These development projects inside the Subic Bay Freeport zone are part of the “Build Better More” project of President Marcos’ administration. (MPD-SBMA) 

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SBMA keeps Subic Freeport locators abreast on logistics automation, other services

The Subic Bay Metropolitan Authority (SBMA) held a Locators’ Forum at the Subic Bay Travelers Hotel on May 26, 2025 with 170 locators in attendance.

According to SBMA Chairman and Administrator Eduardo Jose L. Aliño, the Subic Bay International Container Terminal Corp. (SBITC), SBMA Seaport Department, and SBMA Trade Facilitation and Compliance Department (TFCD) collaborated to stage the forum, which was also graced by SBMA Director Cecile Bobadilla-Bitare.

During the forum dubbed “Updates on Logistics Services, Port Projects and Automation,” Senior Deputy Administrator for Port Operations Ronnie Yambao cited in his opening message the ₱233-million state-of-the-art Vessel Traffic Management System (VTMS) launched in February 2024. The VTMS significantly improved the safety and operational efficiency of vessel tracking across the Freeport.

Yambao added that the agency is in the initial stages of procurement to implement the Shore Power Connection project, which would reduce air pollution from ships at berth by 95 percent.

“Phase 1, focusing on the New Container Terminal, is set to commence in 2026 with a budget of ₱100 million, followed by Phase 2 covering the Naval Supply Depot and Ship Repair Facility from 2027 to 2028, requiring P150 million,” he said.

He also mentioned the numerous port expansion projects with a total approximate budget of US$878.7 million, including a new Container Terminal 3 with a capacity of 300,000 TEUs, estimated at US$359 million; a multipurpose terminal at Redondo Peninsula, valued at US$162 million; a multipurpose terminal in Lower Mau, supporting bulk and break-bulk industries, costing US$182 million; and a dedicated cruise terminal to boost tourism, with an investment of ₱10.2 billion.

Furthermore, he added that the SBMA is enhancing its logistics capabilities to support multi-modal transport.

“The Freeport boasts a modern container terminal with a capacity of 600,000 TEUs, expandable to one million TEUs, and is accessible by land, sea, and air. Plans include integration with the Luzon Economic Corridor via railway,” he said.

The official also stated that the SBMA has implemented various automation initiatives to streamline cargo movement and enhance efficiency, including the Automated System for Customs Data (ASYCUDA), Electronic Transit Admission Permit System (ETAPS), and Automated Export Documentation System (AEDS).

The agency is also considering a partnership with the Port of San Diego to transform Subic Freeport into a smart port city.

“This collaboration aims to integrate artificial intelligence, automation, break bulk cargo handling, shore power connections, cruise ship terminal development, and ship repair capabilities,” he said. (MPD-SBMA)

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SBMA bares seaport, airport projects for completion in 2028

This premier Freeport is set to boost the economic corridor of the country by developing both its seaport and airport.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Eduardo Jose L. Aliño said these port infrastructure projects support the Luzon Economic Corridor (LEC) Development initiative of President Ferdinand Marcos Jr.’s administration, which are expected for completion by 2028.

Speaking before stakeholders at the Build Better More Infrastructure Forum held at the New Clark City (NCC) in Capas, Tarlac, Aliño disclosed that the first project, a Multipurpose Port Terminal (MPT) at the Lower Mau, will include a 570-meter wharf, with a depth of 12.9 meters. It has a back-up area of 17.2 hectares for warehouses and open storage areas.

“This project will provide an additional capacity of 2.5 million metric tons bulk cargoes. As one of the identified projects under Public Investment Program of the National Economic Development Authority (NEDA), the project will spur economic growth through the additional berthing facility,” he said.

Another MPT that is set to be constructed at the Redondo Peninsula, will have a 600-meter wharf, with a depth of 14 meters and a breakwater. It has a back-up area of 30 hectares for warehouses, open storage, offices and support facilities. The project will increase the port capacity with additional 3 million metric tons cargoes. This is one of the identified projects under Public Investment Program of the NEDA, with a project cost of P11-billion.

“The high percentage of domestic and international commerce is by sea, therefore, the efficiency of maritime transportation has become increasingly essential to national competitiveness,” Aliño said.

The SBMA also plans to construct a Cruise Passenger Terminal area with a project cost of P1.2 Billion for Phase 1, and P8.96 Billion for Phase 2.  The facility will have a double berth 380-meter pier with a depth of 12 meters, along with the reclamation of 20 hectares for Phase 2.

“International and local cruise operations will greatly benefit the local and national economies, with increased employment opportunities, revenue from port fees and dues, and increased tourism spending. This is vital to the National Cruise Tourism Program of the Marcos Jr. administration,” the official shared.

Also in the pipeline is the proposed improvement of existing buildings and the construction of new facilities inside the Subic Bay International Airport (SBIA) with a project cost of P7.02-billion.

To modernize ports and allied industries and to decongest passenger traffic in Metro Manila, the Marcos administration will also undertake the improvement of the SBIA to be able to accommodate 6 million passengers annually.

A new hotel and parking facilities within the airport complex that will promote the use of the SBIA and further boost the tourism sector in the Subic Bay Freeport is also in the offing. “The project is currently under study and will cost around P4.3 billion,” Aliño said.

“Locators, port users and prospective investors will also benefit from upgraded and modernized airport facilities, with increased SBIA efficiency, capacity and revenue generation.  With these improvements, the SBMA will have additional revenue generating facilities with the rise of a world-class airport hotel and multilevel carpark,” he added.

“Now for the Subic Bay International Airport (SBIA) to achieve its maximum potential, we are planning to expand the SBIA by upgrading and modernizing its facilities. Once in place, we are confident to increase both the handling and revenue generating capacity of the airport,” the chairman said.

The feasibility study on the proposed SBIA Expansion Project will include the extension of the runway from 2,745 meters to 3,300 meters in length, expanded aprons, relocated CAAP-ATC tower, and a new passenger terminal building.

“This will improve and provide a more efficient client and passenger accommodation as the proposed airport is expected to generate a conservative revenue of P12.5 billion annually.  This should significantly align to the objectives of the Luzon Economic Corridor,” he said. (MPD-SBMA)

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SBMA chair reveals P6.33-M Subic Port Expansion plan

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator has revealed the P6.33-million port expansion plan for this premier Freeport.

Speaking before the participants of the Central Luzon Transport & Trade Conference 2024 held at the Hilton Clark Sun Valley Resort on May 24, Aliño presented Subic’s Port Expansion plan under the Japan International Cooperation Agency (JICA)-Regional Development Master Plan. 

“Subic Bay Freeport will have additional berthing facilities in the Boton Area alongside the expansion of the Boton Wharf with an approximate cost of P6.33-million. The plan would include the reclamation for a terminal expansion with a ten-hectare area, expansion and deepening of the existing wharf by 1.5 meters, and the inclusion of a general cargo and Roll-On Roll-Off (RoRo) terminal,” Aliño said.

He also said that the New Container Terminal 3 will also have an expansion plan to include additional berthing facilities and a quay with a length of 410 meters and width of 700 meters, a total area of 28.7 hectares, and a depth of 16 meters. The said project will cost P20-billion. 

The agency also plans to create additional berthing facilities at the San Bernardino Road which will have a multi-purpose terminal that has a quay length of 400 meters, an area of 17.4 hectares, and a depth of 12 meters.

“The construction of the 400-meter wharf will have warehouses and open spaces, an empty container yard, and a truck weigh scale area. The expansion at the San Bernardino Road will cost around P10 billion,” Aliño added.

Aside from the aforementioned expansion plans, the SBMA also aims to implement the Port Expansion Plan at the Redondo Peninsula that includes the construction of a P9.35-billion multi-purpose terminal with a 600m by 500m quay that has a total area of 30 hectares and a depth of 13.5 meters.

“This will also include the construction of a 600-meter wharf, warehouses, an admin building, truck parking, truck weigh scale, sentry gate, open storage, offices and facilities for workers,” Aliño also said.

A proposed multi-purpose terminal at the Lower Mau area of the Subic Bay Freeport is also in the works that includes a 570-meter quay with a total area of 17.2 hectares and a depth of 13 meters. The said facility will have the same amenities as the other multi-purpose terminals, but has an approximate cost of P10.19 million.

Aliño stated that the SBMA is bullish on the shipping industry, citing that Subic Bay Freeport can easily handle the shipping industry in the North and Central Luzon. “This is why we are pushing for these expansion plans, we want the world to know that Subic Bay Freeport is more than capable of handling their cargo,” he added. (MPD-SBMA)

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NOTICE TO INTERESTED PROPONENTS - MARSHALLING YARD DEVELOPMENT

The Subic Bay Metropolitan Authority (SBMA) is now offering the Twelve-hectare Marshalling Yard located at the Subic Gateway District, Subic Bay Freeport Zone for lease and development.

Interested proponents are invited to attend an orientation seminar regarding the Marshalling Yard on March 30, 2021, 2:00 PM Philippine Time, via Google Meet.

Interested proponents may now email their attendance confirmation to osda.big@sbma.com (Office of the Senior Deputy Administrator for Business & Investment).

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SBMA signs business tie-up with Israeli port

The Subic Bay Metropolitan Authority (SBMA) has established an alliance for cooperation with the Port of Eilat in Israel under an agreement signed during the historic four-day visit of President Rodrigo Duterte to the Jewish state.

SBMA Chairman and Administrator Wilma T. Eisma signed the memorandum of agreement with Eilat Port Company Ltd. CEO Gideon Golber on September 4 during a ceremony witnessed by President Duterte and Israeli Prime Minister Benjamin Netanyahu at the King David Hotel in Jerusalem.

Eisma said the agreement for the promotion of an all-water route between Subic and Eilat, which is the only Israeli port on the Red Sea, “will open up doors in the area of port development and innovation between the two countries.”

“It will also serve to increase port traffic and revenue for Subic Bay, since trade routes for the movement of goods between Eilat and Subic will be firmly established,” she added.

Under the agreement, SBMA and Eilat Port Company Ltd. will cooperate to generate new shipping business by promoting the all-water route between Subic and Eilat, as well as to develop links to support trade and investment.

Specifically, the two parties will cooperate in the areas of marketing, data interchange, market studies, modernization and improvements, training, and technological exchange.

Eisma also said that the cooperation alliance with Eilat will further cement Subic’s global standing as a sea port and hub for maritime trade.

According to Philippine Ambassador to Israel Nathaniel Imperial, it was Eilat’s Golber who proposed last April a partnership between Eilat and a Philippine port in order for the latter “to become the bridge of Israel to the rest of the Far East.”

Imperial then referred the offer to the SBMA chief last May, pointing out that the SBMA “can work with the Eilat Port management to learn more about technological innovations of Israel, which ensure the efficient and professional services of the port to its international clients.”

The Port of Eilat, which is located at the northern tip of the Gulf of Aqaba, is mainly used for trading with Far East countries, as it allows vessels from Israel to reach the Indian Ocean without sailing through the Suez Canal. It is also Israel’s gateway to South Africa and Australia.

Imperial said Eilat Port was developed in 1965 and was privatized in 2013, with control going to American businessman Joseph Nakash, owner of Arkia Israeli Airlines, The Sitai boutique hotels, Jordache Enterprises, and Nakash Group of America.

About 60% of Israel’s vehicle imports from Japan, China, India, Thailand and Korea now enter through Eilat Port, he added.

President Duterte, who became the first sitting Philippine president to visit Israel, said the Philippines would seek a “robust relationship” with the Jewish state in areas of economic development, trade and investments, labor, as well as defense, security, and law enforcement.

The Subic-Eilat agreement was among the 11 memoranda of understanding, 3 memoranda of agreement, and 7 letters of intent signed during a forum attended by Duterte in Jerusalem last Tuesday. (HEE/MPD-SBMA)

PHOTO:

SBMA Chairman Wilma T. Eisma (right) and Eilat Port Company CEO Gideon Golber (left) confirm their agreement for port cooperation, as Trade Secretary Ramon M. Lopez looks on approvingly. 

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P10B expansion for Subic Port

The Subic Bay Metropolitan Authority (SBMA) is readying the P10-billion expansion of the minimally used container terminal at Subic Bay Freeport in anticipation of increased trade.

The ambitious expansion plan will double the present capacity of 600,000 TEUs to 1.2 million TEUs.

At present the Subic port cargo volume averages at 75,000 TEUs or 15 percent of port capacity.

SBMA is now finalizing the terms of reference for the bidding of consultants which will undertake a detailed engineering to expand the container termina.

SBMA said it plans to award the consultancy before the end of the year.

The National Economic and Development Authority is now consolidating comments from various government agencies on the plan.

The new container terminals 1 and 2 in Subic, each with capacity of 300,000 TEUs, are currently operated by International Container Terminal Services Inc. through unit Subic Bay International Terminal Corp. (SBITC), which operates four quay cranes.

SBMA anticipates increased volume of trade in Subic where some of the goods are now being handled to help ease the port congestion felt in Manila.

In two to three years, trade volume in Manila is expected to double to 6 million TEUs from 3 million TEUs at present, the SBMA said.

Of the 3 million TEUs, 15 percent comes from the northern and central Luzon areas, which could otherwise be handled by Subic port.

The ports of Subic and Batangas have been designated by the government as alternative Manila ports due to the port congestion experienced in Manila last year.

SBMA has so far identified another 15-hectare lot for the new port.

In keeping with its strategy of future-proofing its ports, SBITC has recognized the need to expand the port in coordination with SBMA. (Irma Isip, Malaya Business Insight)

PHOTO:
The ports in Subic are currently operating at 15 percent of capacity but SBMA aims to double capacity of the terminals to 1.2 million TEUs.

http://www.malaya.com.ph/business-news/business/p10b-expansion-subic-port

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40th PBC submits 8-point Resolutions to PNoy

The following are the approved 8-point Resolutions of the 40th Philippine Business Conference and submitted to President Benigno S. Aquino III during the final day of the conference on October 24, 2014 at the Manila Hotel.

1.ENERGY AND POWER:

•Resolution urging the National Government to formulate an integrated and sustainable energy and power development roadmap with a clear, definite target level of power supply capacity and rate; doable and time-bound strategies to achieve the desired goals; a well-defined process that shall be directed, facilitated and regularly reviewed by an authoritative body; and, premised on the goal to revitalize manufacturing, attract more quality foreign investments and achieve sustainable and inclusive growth

•Resolution supporting the implementation of the Department of Energy’s (DOE) Demand Aggregation and Auctioning Policy (DASAP) which will induce transparent and efficient supply contracting, attract more direct investments in power generation, create greater competition and generation adequacy and thereby defining a firm process policy of specified periodic public international bidding for base load and reserve capacity based on 100% of aggregated projected demand and standardized Power Supply Agreement (PSA) with strong participation and role of the Energy Regulatory Commission to expedite simultaneous approval of the Power Supply Agreement .”

•Resolution to support the implementation of the Philippine Qualifications Framework (PQF) and the ASEAN Qualifications Framework for global competitiveness.

•Resolution to support the K-12 Program of the government thru the Department of Education and the Technical Education and Skills Development Authority (TESDA).

•Resolution for government and business chambers, associations and enterprises to enter into partnerships in the implementation of the National Qualification and Certification System, and thereby ensure the preparation of our human resources with relevant competencies for the world of work.

3.ASEAN INTEGRATION:

•Resolution urging the Government to draw strategies and programs that would promote and support the integration of the small and medium enterprises (SMEs) in the global and regional value chains.

•Resolution urging the Government to come up with a clear program, developed jointly with the private sector, for the promotion and security of Philippine brands in view of the ASEAN.

•Resolution urging the Government to improve the physical connectivity of Mindanao to BIMP-EAGA and the rest of ASEAN.

4.PORT CONGESTION:

•Resolution urging the National Government to decongest Metro Manila, develop the countryside and strengthen provincial and regional economic growth areas to complement, supplement, fortify and sustain Metro Manila’s Economic Growth and Development.

•Resolution urging the relevant government authorities to maximize the utilization of the Subic and Batangas Ports by shifting container traffic and focusing all future port developments thereat.

5.TRAFFIC CONGESTION:

•Resolution urging the National Government, the Metropolitan Manila Development Authority and local governments within Metro Manila to ensure the smooth flow of traffic within the Metropolis, instill discipline among drivers and operators of public utility vehicles (PUVs), promote road use efficiency and safety and driver/operator responsibility by designating and strictly enforcing pick-up and drop-off points for passengers and designating terminals for said PUVs

6.TRANSPORTATION AND INFRASTRUCTURE:

•Resolution urging the prioritization of the full development of the Clark International Airport parallel/twin with the Ninoy Aquino International Airport before other airports.

•Resolution urging the President to revisit the plan to construct C-6 and to complete the construction of C-5.

7.AGRICULTURE:

•Resolution urging the National Government to implement the proper infrastructure and policy directions to ensure food security specifically hastening Agri-Mechanization and modernization to be at par with our ASEAN neighbors especially with the advent of the AEC Integration in 2015.

8.REHABILITATION OF EASTERN VISAYAS:

•Resolution urging President Benigno Simeon Aquino III to start and fast track the completion of the Yolanda rehabilitation and recovery projects in Eastern Visayas.

http://www.mb.com.ph/40th-pbc-submits-8-point-resolutions-to-pnoy/

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JPEPA talks focus on use of ports

The further utilization of the Subic and Batangas ports emerged anew as one of the key points pressed by Japanese investors in the Philippines.

The Philippines and Japan yesterday convened the 8th meeting of the Sub-Committee on Improvement of Business Environment convened under the Japan-Philippines economic partnership agreement (JPEPA). the embassy of Japan said in a statement.

The embassy said that during the meeting, both sides noted the progress made on issues such as refund of value-added tax, the common carriers tax and gross Philippine billings (CCT/GPB) among other issues.

So far, the budget department has allocated funds to refund the VAT paid by Japanese investors. A law has been recently passed scrapping the foreign carriers’ tax.

Also discussed were topics on consistency of tax-related issues, sustainability of affordable and reliable supply of electricity, further utilization of Batangas and Subic ports, additional surcharges introduced by the Subic Bay Metropolitan Authority, development of the Philippines as Human Resource Development (HRD) hub, and other issues and initiatives.

Batangas and Subic ports, both funded by the Japan Bank for International Cooperation have remained under-utilized.

The meeting was led by Ambassador of Japan Toshinao Urabe, and Undersecretary of the Department of Trade and Industry, Adrian S. Cristobal, Jr. co-chaired the meeting.

Representatives from various Philippine government agencies, Embassy of Japan in the Philippines, Japan International Cooperation Agency (JICA), and Japan External Trade Organization (JETRO) attended the meeting. The private sector was represented by Mr. Takashi Ishigami, President, Japanese Chamber of Commerce and Industry of the Philippines, Inc. for the Japanese side.

Among the JPEPA framework, the Sub-Committee on Improvement of Business Environment is of significant importance because it provides a forum for dialogue between public and private sectors of both countries to discuss specific issues in order to ensure transparent, predictable and consistent business environment. This regular semi-annual dialogue with parties concerned is indispensable for further improvement of business environment which is constantly evolving.

The next meeting of the Sub-Committee is scheduled in September 2014.

JPEPA, which entered into force in December 2008, is an important framework for enhancing economic ties between the two countries.

Both sides noted that recent trade and investment figures had been very encouraging. The existence of JPEPA has successfully promoted Japanese investment to the Philippines.

The abundant, diligent, and English-speaking workforce in the Philippines are finding jobs in and out of the country. Such win-win relationship is expected to be further enhanced by the adoption of Integrated Services Digital Broadcast-Terrestrial (ISDB-T) by the Philippines late last year, two and a half fold increase of bilateral air services including direct links to Haneda Airport, Japan’s on-going cooperation in Yolanda relief and rehabilitation projects, as well as other ODA projects. (Reuters)


http://www.malaya.com.ph/business-news/business/jpepa-talks-focus-use-ports

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JICA officials in Subic to gauge funded projects

Officials of the Japan International Cooperation Agency (JICA) and other Japanese financial institutions visited this free port recently to assess the status and financial and economic potentials of projects funded by the financial institution.

The group, led by JICA chief representative Takahiro Sasaki, was welcomed by Subic Bay Metropolitan Authority (SBMA) chairman Roberto Garcia, together with several officials from the SBMA seaport department.

Sasaki said the group’s visit to Subic was part of their two-day tour of the Philippines to understand the actual financial and economic potential of the country and also to introduce JICA’s projects and programs here.

During the meeting, Garcia and seaport officials briefed the visitors on the seaport facilities available within the free port, as well as the performance of the New Container Port Terminal.

The terminal project, along with the Subic-Clark-Tarlac Expressway that connected the two former bases of Subic and Clark, was completed with funding from JICA’s Official Development Assistance (ODA).

Last month, a group composed of members of the House of Councilors from Japan also visited Subic and commented that the Philippines has a huge potential and that it needs to take advantage the growing manufacturing sector.

The group added that the Philippines and Japan have a lot in common and that continuous communication and information exchange is very important for mutual development.

The group also stressed the importance of Subic port in decongesting the port of Manila. (FMD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia (right) confers with JICA chief representative Takahiro Sasaki during a consultation meeting regarding the status of projects funded through JICA-ODA in the Subic Bay Freeport Zone.

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ICTSI sees Subic becoming top seaport

Subic Free Port Zone will become a major port in 10 years, the top official of International Container Terminal Services Inc. (ICTSI) said.

“Subic we are pushing hard we are building up the market, it takes a long time within the next 10 years. I think Subic will become a major port,” said Enrique Razon, chairman and president of ICTSI, during the company’s annual stockholders meeting on Thursday.

The Port of Subic in Zambales is located in the vicinity of Subic Bay, one of the Philippines’ finest harbors and most strategic base.

Subic Port is the country’s first free port and continues to be one of the country’s major economic engines with more than 700 investment projects, including the fourth largest shipbuilding facility in the world.

Earlier reports said that at present, Subic is upgrading its port facilities through the Subic Bay Port Development Project, and forging ties with the Clark Special Economic Zone in Angeles Pampanga to form the Subic-Clark Corridor via the 45-kilometer segment of Subic-Clark-Tarlac Expressway. With those developments, Subic and Clark are being positioned to become one of the most competitive international service and logistics centers in Southeast Asia.
Financial results

During the ICTSI annual stockholders meeting, it was reported that the company’s consolidated cash operating expenses in 2012 grew 10 percent to $319 million, from $289.3 million in 2011.

The increase was mainly driven by the full-period consolidation of the expenses of terminals in the United States and Croatia, and the inclusion of new terminals in Indonesia and Pakistan.

Consolidated financing charges and other expenses slid 25 percent to $35 million, from $46.4 million. The company said that the decrease was due to the higher capitalized borrowing cost as the company expanded existing terminals, and developed new projects in Mexico and Argentina.

In 2012, ICTSI’s capital expenditure was about $465.6 million, against a full-year capital expenditure of $550 million.
“Our capex program is $500 million this year then it will severely drop after that next year, so we are covered this year already,” Razon said.

The group’s capital expenditure budget for 2013 is approximately $500 million, mainly allocated for the completion of projects in Argentina and Mexico, and the ramp-up of construction in Colombia and Philippines.
 
ICTSI also said that it will vie for seaport developments in Cambodia and Greece.

“We are just looking, waiting, same parts, Latin America, Africa, Middle East and Asia of course,” Razon said.

“Mynamar, we are watching it but no plans to expand there. Cambodia is the most promising, but the government has not decided to privatize, one thing or another they have not made up their mind. Its beyond our control, the time table there,” Razon said. ( Rosalie C. Periabras, Manila Times)

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SBMA to lease out terminal for 4 years

THE Subic Bay Metropolitan Authority (SBMA) has decided to just lease its New Container Terminal 2 (NCT-2) rather than put it up for bidding and risk another failed bid as a result of the current economic slump experienced worldwide.

SBMA seaport department strategic planning head Lynette de la Cruz said they had decided to lease the property to manufacturing firm Bechtel Corp. for the next four years in order to have some cash flow and pay for the loan used to develop the terminal.

“Bechtel will use NCT-2 as its hub for four years. By that time, we expect that the current financial crisis will be over, and we could generate enough interest from the international market for our terminal,” de la Cruz said.

“After the lease contract, we will immediately resume with the privatization of the port. But as of now, we are more concerned in paying up our loan,” de la Cruz added.

She said the said company will use the port, which has a capacity to handle up to 300,000 twenty-foot equivalent units as its hub for its aluminum and electrical modules. The company will be paying SBMA about $1.10 per square meter per day.

She did not state the entire contract cost.

According to the original schedule as agreed upon by SBMA and the Japan Bank for International Cooperation, the procurement of the operator for the NCT-2 should not be later than the second quarter in 2008.

SBMA tried to privatize NCT-2 in April, but forced to declare it a failed bid. All of the four qualified bidders, which included Manila-based port operators Asian Terminals Inc.  International Container Terminal Services Inc., and Harbour Centre Port Terminals Inc. did not submit their respective bids due to economic reasons.

When fully privatized, SBMA placed the potential annual revenues for the port at $6 million.

The annual lease for the port, which has a lifespan of 50 years, will be enough to shoulder the $60-million loan from JBIC used to partly fund the project, it earlier said.

The government wants international shipping lines as the major operator for NCT-2 to ensure a strong cargo volume. According to the bid invitation sent out earlier by SBMA’s bids and awards committee, the contract will be for the operation, management and maintenance of the NCT-2 as a transshipment hub.

The said port, located in Cubi Point in Subic, has a 14-hectare container yard, a 280-meter -long wharf, two units of 53-ton-capacity quay gantry cranes, as well as other buildings, equipment and utilities. It can accommodate big container ships, including Panamax vessels. (VC Cabuag, Business Mirror Online)

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Bidding for Subic container terminal starts

The Subic Bay Metropolitan Authority (SBMA) has announced that bid documents for the operation and management of the New Container Terminal-2 (NCT-2), the second phase of the multi-million dollar Subic port project, are now available to interested parties.

Capt. Perfecto Pascual, general manager of the SBMA Seaport Department, said on Tuesday that bid documents may be obtained from the Project Management Office (PMO) upon payment of a non-refundable amount of P100,000 or $2,500..

The PMO, which is located at Bldg. 29, Waterfront Road Extension, SRF Compound, Subic Bay Freeport, is open Monday to Friday, from 8 a.m. to 5 p.m.

“We have started selling out bid documents today after completing the requirements of publishing notices in January,” Pascual said on Tuesday.

He added that bidders are expected to submit their proposals on or before 2 p.m. of April 14, after which the bids will be evaluated by the Special Bids and Awards Committee (SBAC) for Port Commercialization.

“If we have a successful bidding, then we intend to finish with the awarding sometime in July,” Pascual said.

According to the bid invitation sent out by the SBAC, the contract will be for the operation, management and maintenance of the NCT-2 as a transshipment hub.

The NCT-2, which is located at the Cubi Point in Subic, has a 14-hectare newly-constructed container yard, a 280-meter long newly constructed wharf, two units of 53-ton capacity quay gantry cranes, as well as other buildings, equipment and utilities.

Pascual said the facility, which has a capacity of 300,000-TEUs (twenty-foot equivalent units), can accommodate big container ships, including Panamax vessels.

The SBMA bid invitation has set minimum requirements to determine the eligibility of interested bidders.

Under technical qualifications, the SBMA said that the bidder must be an operator of an international container shipping line, or a consortium of operators; and that the bidder handles at least 2 million TEUs per year, or has an operating capacity of 100,000 TEUs, which are combined in case of a consortium.

The bidder or consortium of bidders must also have a net worth of at least US$50 million, which are again combined in case of a bidding consortium.

Under the financial requirements, the SBMA said, among others, that each bidder or joint venture or consortium “must be able to submit evidence of the availability of, or the ability to raise the amount needed for the operation and maintenance of NCT-2 in the amount of at least US50 million.”

Legal qualifications, meanwhile, require each bidder to submit proof of legal eligibility and competence, as well as proof of payment of current taxes, among others.

Moreover, in case of a foreign bidder, the SBMA set as a condition for award that the equity participation of a foreigner “shall not exceed 40 percent of the total equity of the winning operator.”

Pascual said the SBMA is encouraging foreign shipping lines to participate in the bidding because it is positioning the NCT-2 as a transshipment hub.

“A lot would benefit if NCT-2 becomes a transshipment hub,” Pascual said. “The government would earn more revenue, commerce and trade in Central Luzon would be enhanced, and more jobs would be created.”

He said that the 300,000-TEU NCT-1, which is operated by the Subic Bay International Terminal Corp. (SBITC), is now being utilized mainly for shipping export and import requirements of business locators in Subic and Clark free ports, as well as other port users in the Luzon area. (SBMA Corporate Communications)

PHOTO: Subic’s New Container Terminal-2

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