SBMA chair urges Asian ports to explore new ways to gain growth

Citing the unprecedented growth in revenue at the Subic seaport despite the current economic slowdown, Subic Bay Metropolitan Authority (SBMA) chairman Feliciano Salonga challenged Asian ports to find new opportunities amid the ongoing crisis.

Salonga, who opened the 11th general assembly of the International Network of Affiliated Ports (INAP) in Mokpo, South Korea as outgoing chairman, also underscored the importance of INAP’s strategic alliance, saying its policies and actions “impact on the entire maritime port industry of the Asia-Pacific region.”

“The (maritime) industry operates in a global environment and grows or shrinks proportionately with trade activities all over the world,” Salonga noted in his statement at the opening of the assembly.

“But the proverbial silver lining behind today’s economic slump is the fact that while every crisis is different, all crises have one thing in common – and that is, they all create opportunities, especially for those who can identify them and are ready to act,” he added.

Salonga said the Port of Subic, which had lately become a choice anchorage for international seagoing vessels waiting out the recession, provides a good example of how opportunities could be created out of “unfortunate events.”

He said collections from vessel lay-ups in Subic Bay, as well as wharfage fees on imported products brought Subic seaport’s revenue total in the first seven months this year to P319.73 million. This amount was P3.43 million more than the revenue target set by the SBMA for this year, and represented a 15.7 percent growth over the 2008 figures.

“Our port collection from these laid-up ships, along with other equally significant factors, has allowed our seaport operations to achieve its revenue targets for 2009, as early as July,” said Salonga.

“So, today’s economic crisis should not be any different – if we attack it with logical examination, passionate zeal and decisiveness,” he also told INAP members.

Salonga likewise exhorted members of the port network “to re-establish priorities by taking a fresh look at how to manage the fiscal and operational aspects of ports, where to find new revenue streams and, at the same time, control costs.”

At the same time, Salonga urged INAP members “to discuss how we can attract more ports to join INAP,” which, he said, had attracted only three new members in the last 11 years.

He said that by tackling these twin tasks, INAP could “manage to be heard and heeded as a formidable voice and authority in the industry”, especially since ports “remain critical to the financial health of most economies around the world.”

“We in INAP can definitely be part of the solution – if we do what we ought to do and do it well,” Salonga concluded...

This year’s INAP general assembly was hosted by the Mokpo Newport in South Korea. Last year, the INAP convention was held in this free port under the auspices of the SBMA.

Among the INAP officials who participated in this year’s assembly were: Choi Byeong-Soo - CEO of Mokpo Newport Co. Ltd., Angelo C. Verdan of the Cebu Port Authority, Priyath B. Wickrema of the Sri Lanka Port Authority, Masanao Ozaki of the Kochi Prefectural Government, Chang Dechuan of the Qingdao Port Authority, and Achmad Baroto of the Port of Tanjung Perak, Indonesia. (SBMA Corporate Communications)

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Low-cost airline to invest $US10-M for Subic operations

Pacific Pearl Airways (PPA), a private airline offering domestic and foreign chartered flights, has set up its home base at the Subic Bay International Airport (SBIA) here and said it plans to infuse US$10-million for its startup operations scheduled in December.

PPA president Kristoffer Jimenez said the airline will start with two advanced Boeing 737-200 jet planes capable of seating 114 passengers for international flights, and turboprop aircraft for initial domestic flights from here to Boracay, Bohol, Cebu, and Davao.

Local flight destinations will expand as PPA establishes its presence in the local airline industry, said Jimenez.

He added that PPA will be offering competitive rates without sacrificing quality service costs — an advantage that he said was made possible by tax incentives and other perks offered by this free port.

Jimenez also said that PPA will eliminate stop-over hassles with its direct flights, enabling passengers to gain more savings and more quality holidays as it significantly cuts travel lag time.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza, who signed the memorandum of agreement with Jimenez last week, considered this latest investment here as proof of Subic Bay’s economic resiliency.

“What we have witnessed now proves that there’s still life after FedEx,” said Arreza, referring to the US courier giant which used this free port as its Asia-Pacific hub. Last February, FedEx transferred to China, where domestic cargo volume alone exceeds that of Asia.

Arreza said that being an international airport, the SBIA can host just about any kind of air transport requirements, singling out Subic’s cargo-sorting capability as its edge over other airports in the country today.

“We urge cargo airliners to start making their inquiries here at the SBIA this early, and see for themselves its complete cargo-sorting facility, and the Freeport advantages that made FedEx’s operation here successful,” said Arreza.

Arreza also said he expects more flights to and from Subic in the near future, as the SBMA aggressively promotes business and tourism establishments here.

To this, PPA’s Jimenez concurred, saying that Subic has a “very strategic location.”

“A lot of tourists come here — foreigners and locals alike. It is also a booming place in terms of businesses,” said Jimenez, who also called on interested applicants for pilots, cabin crew, and maintenance personnel to inquire at PPA’s office at the SBIA here.

Pearl Pacific Airways was organized in September 2006 and is registered with the Securities and Exchange Commission, with necessary permits from the Philippine Civil Aeronautics Board (CAB) and the Air Transportation Office (ATO). (SBMA Corporate Communications)

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Subic Freeport to train Filipino workers for Guam military build-up

Guam senators who met with officials of the Subic Bay Metropolitan Authority (SBMA) on Friday said Subic Bay would make an ideal training center for the thousands of Filipino workers needed in Guam, where the United States’ “greatest military build-up since the end of World War II” will be made.

Senators Judith Guthertz and Rory Respicio, who led the Guam delegation here, inspected the various skills-training facilities in this free port and urged the SBMA to form a Philippine delegation to Guam to expedite the setting up of the Subic Bay training center.

SBMA chairman Feliciano Salonga, who led the SBMA receiving party, readily pledged his support on behalf of the SBMA, saying that “a Philippine representation will ensure that Filipino workers will get a first shot at this massive employment opportunity.”

“This project costs US$15-billion, and 20,000 foreign workers are needed. We must not let this opportunity slip from our hands,” said Salonga, who is keen on fulfilling SBMA’s mandate to maximize employment in the region.

The SBMA official said that through the Philippine representation, technical and legal requirements for the training center and various labor concerns, including the mass deployment of Filipino workers, will be addressed.

He added that the Philippine panel will also help ensure that the training center will adhere to standards set for the Guam project.

Guthertz, who chairs the Guam Committee on US Military Buildup and cites her University of the Philippines (UP) education, urged the to-be-formed Philippine representation to work out training designs with Guam’s community college.

She also expressed much confidence in the skill of Filipino workers, “who built Guam after the brutal World War II.”

Guthertz added that the “sudden change” in Guam compelled them to look up the history of Subic Bay, which underwent similar transformation as it was a former US naval base.

Meanwhile, Respicio, who heads the Guam Committee on Foreign Affairs, said the Philippines “will likely be the source of labor for the Guam buildup,” and ruled out competition from Chinese labor.

“You have the facilities here; the Philippines is poised to grab this opportunity, so you have to be prepared,” said Respicio.

The Guam mission then signed a memorandum of understanding with Salonga and SBMA administrator Arreza as an “expression of the mutual goal of the Philippines and Guam.”

“As we sign this MOU, we’re holding true to our pledge that we have an obligation as senators from Guam to ensure that foreign workers that will go to Guam will not be exploited,” said Respicio.

The Guam mission also met with Department of Labor and Employment (DOLE) secretary Marianito Roque, Philippine Overseas Employment Administration (POEA) chief Jennifer Manalili, Overseas Workers Welfare Association (OWWA) head Carmelita Dimzon, and Technical Education and Skills Development Authority (TESDA) director-general Augusto Syjuco.

The visit, according to Guthertz, was meant “to establish understanding, and to learn more about the Philippine process,” so that final agreements could soon be made for the Guam build-up that would relocate US troops stationed in Okinawa, Japan.

Guthertz said that major construction works are scheduled from 2010 to 2014, while proposed troop movement of 14,200 military personnel and their 38,070 dependents starts on 2012 and is scheduled to be completed by 2016. (SBMA Corporate Communications)

PHOTO: SBMA Administrator Armand Arreza (left) and SBMA Chairman Feliciano Salonga (second from right) sign an agreement with Guam senators Judith Guthertz and Rory Respicio for the training of Filipino workers needed in the island’s massive military build-up.

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Hanjin donates P.5-M building supplies to Botolan

Korean shipbuilder Hanjin Heavy Industries & Construction Co. Ltd.-Philippines (HHIC-Phil) donated half a million worth of building and construction materials to the municipality of Botolan, Zambales, which was hit by massive flooding during the recent typhoon.

The materials are expected to help flood victims rebuild their homes, said officials of the Subic Bay Metropolitan Authority (SBMA), who facilitated the turnover of the donations from Hanjin to the Zambales provincial government at the provincial capitol here.

Governor Amor Deloso, who had earlier asked for assistance on behalf of more than 2,000 families left homeless by the floods, received the first truckload of materials delivered by Hanjin.

The materials will include about 1,100 bags of cement, 800 corrugated G.I. sheets, and 10,500 pieces of concrete hollow blocks, said Taek Kyun Yoo, HHIC-Phil’s general manager for external trade, who supervised the turnover.

Yoo said that in the last couple of weeks, his company has also donated canned goods and other relief items to typhoon victims in Botolan.

However, “we deem that the canned and dry goods we earlier sent to Botolan are not enough because we also see the urgent need for the repair of houses destroyed by the typhoon. So the company decided to donate these construction and building materials,” Yoo added.

HHIC-Phil, which operates the $1.6-billion shipbuilding facility at the Subic Bay Freeport Zone, has been enjoying continued growth despite the global economic crisis, Yoo also said during his meeting with Deloso.

The firm, which now builds some of the biggest ships in the word today, currently employs more than 18,000 workers, most of whom are from Zambales and other nearby communities, added Yoo.

“We are hoping that less typhoons will visit in the coming months, so that there will be no more damages to lives and property here,” he also said.

Aside from Hanjin, another Korean firm based in the Subic Bay Freeport had extended assistance to Botolan flood victims.

Neorex Philkor, which is into development of resort and entertainment facilities in Subic Freeport, delivered 800 bags of relief goods worth P200,000.

Neorex president Henry Park personally led the distribution of relief goods to evacuees housed at the Porac Elemenrary School and Bucao Elementary School, which still serve as evacuation centers for some 200 families in Botolan.

SBMA Administrator Armand Arreza, meanwhile, has commended both HHIC-Phil and Neorex Philkor “for taking the initiative of being a good neighbor to local communities, especially in times of need.”

“These are gestures that not only build goodwill between neighbors,” Arreza remarked. “These initiatives, in fact, help save lives and bring hope to people who find themselves in desperate situations.”

“We hope that more business locators in Subic would find the time and the wherewithal to extend their help,” Arreza added. (SBMA Corporate Communications)


PHOTO: Governor Amor Deloso (second from right) receives the first truckload of construction materials donated by the Subic Bay Freeport-based shipbuilder Hanjin. The donation, which was turned over by HHIC-Phil external trade manager Taek Kyun Yoo (second from left), is expected to benefit some 2,000 families affected by floods spawned by typhoon Kiko last month.

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Subic Aetas add technical know-how to jungle survival skills

Their renowned jungle survival instincts made them masters of Subic Bay’s virgin forests. But realizing that the “outside” world is much bigger than their forest homes, Subic Bay’s indigenous people are now pursuing technical skills training to enable them to survive in the lowlands.

Supported by the Subic Bay Metropolitan Authority (SBMA) and various organizations, the Subic natives are seeking opportunities for training and employment, intent as they are in establishing their presence in this bustling free port, said SBMA deputy administrator for corporate communications Knette Fernando.

Last Thursday, Fernando lauded the efforts of 36 Aeta students from the remote areas of Pastolan and Kanawan in Bataan, who finished a professional housekeeping course — the first batch to do so at the GP Corporate Personality Enhancement Center in this free port.

Aside from Fernando, those who cheered on the new graduates at the Subic Bay Arts Center commencement rites were Bataan representative Herminia Roman, Subic Bay Freeport Chamber of Commerce president Danny Piano, SBMA PRO manager Armie Llamas, GP Center director Gina Prohorrov, and relatives of the graduates.

Prohorrov said the 36 hardworking graduates underwent weekend trainings for four months, covering the aspects of cleaning standards, computer operation, conversational English, work value and etiquette, and customer service.

Among the Aeta students in this batch, 14 took and passed the assessment test of the Technical Education and Skills Development Authority (TESDA), earning for them the NC2 certification that qualifies them for employment overseas, Prohorrov added.

“That translates to a 100% passing rate. The rest of the 36 were equally capable but, unfortunately, were not able to make it during the application for the exam because of heavy rains that day,” said Prohorrov.

However, while waiting for the next examinations, the graduates can apply for local employment, she added.

Rep. Roman, meanwhile, thanked the SBMA and Prohorrov “for giving my constituents the opportunity to rise above their present conditions,” adding that she approved of this SBMA-GP project that emphasized self-reliance by way of the “teach-a-man-how-to-fish” approach.

Roman said that she was so moved by the graduates’ testimonials that she vowed to construct and repair roads and bridges in the Pastolan-Kanawan area to improve logistics, and boost economic activities in the remote villages.

She also thanked the “good heart” of Prohorrov, whose GP Center shouldered all the graduates’ expenses in uniform, teambuilding activities, and educational materials.

In the same event, SBMA’s Fernando urged other organizations based in the Subic free port to emulate the example of GP Center.

She added that the SBMA needs more partners for its livelihood and community development programs for indigenous people in the Subic Bay area. (SBMA Corporate Communications)

PHOTO: Aeta students from the Pastolan and Kanawan villages in Bataan proudly pose for their class photo during the graduation rites for a professional housekeeping course at the Subic Bay Arts Center.

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Ocean 9 donates relief goods to Botolan flood victims

Still far from laying the first foundation for its planned multi-million dollar hotel in Subic Freeport, Ocean 9 Casino and Hotel Resort reached out to donate relief goods to victims of flash floods in lahar-stricken barangays in this town.

Ocean 9 is a US$120- million project, owned by Neorex Philkor Inc. and Grand Utopia Inc., which includes a three-story casino building and a 15-story hotel building to be constructed in the Freeport’s central business district.

Ocean 9 president Henry Park personally led Ocean 9 workers in delivering 800 bags of relief goods worth P200,000 to Porac Elemenrary School and Bucao Elementary School, which serve as evacuation centers for some 200 families.

Botolan Mayor Roger Yap, in the presence of Porac barangay chairman Nelio Angeles, DSWD-R3 staffs Arleen Aquino and Vencie Vertulfo, accepted the goods from Park and Ocean 9 vice president Arsenio Villanueva.

“We want the Filipino people to know that our company is here and ready to help them in times of need, like when disaster strikes their place,” Park said.

He also noted that Ocean 9 is also sponsoring scholarship grants to 20 students of Gordon College in Olongapo City. The grant has a guaranteed fund of US$1,000 a month from the company.

Mayor Yap, meanwhile, said that there are at least 6,500 people from more than 2,000 families whose houses and livelihood were destroyed by the flash flood last August 6, and who are still staying in the two evacuation centers. (SBMA Corporate Communications)

PHOTO: Subic Freeport locator Ocean 9 president Henry Park (center) hand over to Botolan mayor Roger Yap part of the 800 bags of relief goods for the victims of the flash flood that hit the town in early August.

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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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One-stop health and wellness center is Subic Bay’s newest attraction

Efforts to make Subic Bay a household name in medical tourism received a big boost recently, with the inauguration here of the George Dewey Medical and Wellness Center (GDMWC) on August 14.

No less than President Gloria Macapagal-Arroyo inaugurated the one-stop medical and wellness facility, which is touted to be the first of its kind in Asia.

The US$30-million center is located inside Villa Amorosa, a self-contained health resort for retirees, medical practitioners and medical students in this free port.

The center, which includes a 100-bed tertiary hospital, is named after Commodore George Dewey of the US Navy, who liberated Subic Bay from the Spanish armada in July 1898. The whole facility is owned and operated by the George Dewey Medical College, Inc..

“The Center is our response — the Philippine response — to the challenge posed by our neighbors like Thailand, Singapore and Malaysia for leadership in medical tourism,” said Dr. Carmen Dinglasan, president of GDMWC.

She added that the center targets to serve patients from Northern and Central Luzon, who previously had to endure long travel hours to Metro Manila or abroad to seek professional medical and health services.

Among the services the new facility provides are: cardiac surgery, joint and hip replacement, reconstructive surgery, corneal transplant, refractive surgery and multi-focal intraocular lens implantation, stem cell rejuvenation, sleep disorder therapy, transplant surgery, laboratory analysis, pain management, fertility clinic, and dental implants.

In addition, the GDMWC is a health resort for retirees. It also caters to persons seeking medical treatment or check-up, or those who have concerns about their well-being.

Dinglasan said the cost of medical care like these are a lot cheaper in the Philippines than in the United States, for example.

“So when they’re in Subic, patients can also enjoy long sabbaticals as tourists with their families,” she said.

Noting that there are now more foreigners who have made Subic their second home after investing here in various businesses, Dinglasan added that the GDMWC also hopes to cater to the expatriate community.

The entire facility is located inside the forest at Subic’s Upper Cubi area — a location that is said to be perfect for rest, taking medication, and strengthening one’s mind and body.

“A healthy environment is one factor that helps improve health, and George Dewey has this advantage,” Dinglasan added.

Aside from the GDMWC, other facilities that are now open at Villa Amorosa are the George Dewey Medical College; a gymnasium, which has separate saunas for male and female; and a chapel.

However, in the next 45 days, the complex will also open to the public a 72-bed retirement facility; a clubhouse for conferences, club meetings and socials; a mini mart, restaurants, mini-sports complex, and a mini-theater that can accommodate 500 guests.

Next year, the construction of a 500-unit condominium for retirees will also start, GDMWC officials said.

When fully completed, the Center will have all the amenities one would expect in world-class destinations, including facilities for sports, shopping, entertainment, leisure and business.

Meanwhile, SBMA administrator Armand Arreza said that the project is in support to President Arroyo’s program on the promotion of greater health consciousness among Filipinos.

Arreza was among the personalities who accompanied the President in gracing the inauguration of the GDMWC. Others included SBMA chairman Feliciano Salonga, GDMWC chairperson Winnie Monsod, Representatives Mitos Magsaysay and Carissa Coscolluela, and Sec. Eduardo Pamintuan of the Subic-Clark Alliance for Development Council.

Arreza said that the new medical facility will benefit both local residents and foreign nationals temporarily living in various economic zones in Central and Northern Luzon, who can now easily access Subic via the Subic-Clark-Tarlac Expressway.

The SBMA official also noted that foreigners appreciate the way Filipinos take care of their elders, which is rarely practiced in other developed countries like Japan, the United States and Europe.

Likewise, the Subic Bay Freeport Zone has an edge in medical tourism because of its clean environment and high level of security, Arreza added.

Among the people behind the GDMWC are: Dr. Fe Hildalgo, former education undersecretary and now president of the George Dewey Medical College (GDMC); Dr. Ruby Cereneo, former dean at the Lyceum of the Philippines, now GDMC vice president for academic affairs; Rony Diaz, former Manila Times publisher, and former labor undersecretary; Winnie Monsod, former NEDA chief, now GDMWC chairperson; Dr. Manuel Chua Chiaco, a well-known heart surgeon from the Philippine Heart Center, now GDMWC medical director; and Jose Araullo, former chairman of the law firm Araullo, Punongbayan and Associates.

The GDMWC now employs 200 medical staff and health-related workers. It would need another 300 for its shopping areas, sports complex, restaurants and condominiums when they open in 2010. (SBMA Corporate Communications)

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Solons note improvement in Hanjin safety, but want more

Members of the House Committee on Labor and Employment have expressed appreciation for the implementation of work safety measures inside the Korean shipyard in Subic, but said they wanted to see more improvement in labor safety inside the facility.

Headed by its chairman Rep. Magtanggol Guinigundo (2nd District of Bulacan), the committee made an ocular inspection of the shipbuilding facility owned and operated by the Hanjin Heavy Industries Corp. (HHIC) in Subic’s Redondo Peninsula last Wednesday.

Subic Bay Metropolitan Authority (SBMA) officials, who accompanied the House delegation, said the lawmakers wanted to see for themselves how workers fared at the Hanjin facility.

“The ocular visit is in connection with the on-going committee hearing to determine how safe the facility is, and to evaluate the working conditions of the workers in the Hanjin shipyard,” Guinigundo said during the inspection.

Other committee members who joined the Hanjin inspection were: Representatives Carlos Padilla (Nueva Vizcaya), Joel Maglunsod (Anak Pawis party list), Mitos Magsaysay (Zambales 1st District), Rafael Mariano (Anak Pawis), Walden Bello (Akbayan party list), Edno Joson (Balane-Kampi), Rufus
Rodriguez (Cagayan de Oro 2nd District), and Monico Puentavella (Bacolod).

The lawmakers were accompanied by Director Nathaniel Lacambra of the Department of Labor and Employment (DoLE) in Region III, Director Brenda Villafuerte of the DoLE’s Bureau of Working Conditions, and SBMA officials headed by senior deputy administrator Ramon Agregado.

The delegation was welcomed by HHIC general manager Taek Kyun Yoo, who briefed the visitors on Hanjin operations prior to the inspection tour.

According to SBMA records, a total of 19 fatal accidents have occurred in the shipyard since it started operations in 2006. The incidents had led SBMA and other government agencies to suspend Hanjin operations, as well as to blacklist some subcontractors, pending a review of safety measures at the shipyard.

During the briefing, Yoo told the congressmen that HHIC has been implementing health and safety measures that the House committee has recommended during previous hearings.

“We are happy to report to you that Hanjin Philippines is now 99.9% compliant in securing accreditation for all its health and safety personnel, and works towards the improvement of the working conditions of our workers,” he said.

Yoo also reported that the emergency clinic in the shipyard complex has been expanded to accommodate 20 beds and modern equipment, and now has four medical doctors.

The clinic is supported by an ambulance and three units of fast sea ambulances, he added.

Yoo likewise reported that the HHIC Board has approved an annual budget of P311,356,292 for the improvement of work conditions in the facility. This will also cover the procurement of personal protective equipment (PPE) such
gloves, shoes, over-all work suits, goggles, and helmets which are given free to workers, he added.

Rep. Bello noted, however, that despite the improvements in Hanjin’s labor safety, the implementation is still in the early stages.

“We are happy to hear and see the big improvement in the implementation of safety measures, but because they have just started doing this, there are lots more to do,” Bello added.

Rep. Magsaysay insisted, meanwhile, that despite the additional medical equipment and personnel, Hanjin should build its own hospital in the area so that full medical services would be available to the workers.

She added that doctors and nurses should be on duty at the facility on a 24-hour basis. (SBMA Corporate Communications)

PHOTO: Members of the House Committee on Labor and Employment (from left) Representatives Magtanggol Guinigundo, Mitos Magsaysay, and Rafael Mariano arrive at the Hanjin shipyard in the Subic Bay Freeport to inspect the firm’s compliance with labor safety standards.

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Gordon bill to expand Subic, Clark ecozones gains support

A proposal by Senator Richard Gordon to allow the Subic Bay Metropolitan Authority (SBMA) and the Clark Development Corporation (CDC) to develop more economic zones in neighboring areas gained more adherents during committee deliberations on Wednesday.

Gordon, who heads the Senate Committee on Government Corporations and Public Enterprises, received assurances from concerned national government agencies, government corporations and local government units (LGUs) that they would support development thrusts in the Subic-Clark growth corridor as envisioned in Gordon’s bill.

The agencies included SBMA and CDC, Bases Conversion and Development Authority (BCDA), Philippine Ports Authority (PPA), Department of Finance (DoF), and the Philippine National Railways (PNR).

Representatives from the provincial governments of Zambales and Bataan likewise attended the hearing and expressed support to the proposal.

According to Gordon, Senate Bill No. 143 seeks to maximize the vision of the Subic-Clark growth corridor to decongest Manila and open up more livelihood opportunities in areas between the Subic, Clark and Manila, as well as along the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEx).

Gordon also said that by creating more special economic zones near the two free ports, the government could optimize the use of the three airports in Subic, Clark and Manila, the two seaports in Subic and Manila, and the connecting highway and railway in Luzon.

Agreeing to Gordon’s proposal, SBMA Administrator Armand Arreza suggested that funds for the acquisition of lands for conversion into economic zones be sourced out from the 5 percent gross revenue tax collected by SBMA and CDC from their business locators.

“The challenge would be in the consolidation of the adjoining lands, and to spur the development of the prospective ecozones we shall need adequate funding,” Arreza said, pointing out that most of the lands along the SCTEX are already titled, based on a recent survey conducted by the Subic-Clark Alliance for Development Council (SCADC).

Meanwhile, PNR chairman Mike Defensor commended Gordon for coming up with a proposal to hasten the development of the Subic-Clark growth corridor.

Defensor revealed that his agency will be starting the Northrail project next month to enhance the benefits of the SCTEx and encourage more trade and livelihood opportunities in the Central and Northern Luzon regions.

“We will support the development of more economic zones,” Defensor pledged.

He added that, in particular, the Northrail project will further boost existing means to transport commuters and products in the area.

In the same hearing, Gordon also brushed off concerns by representatives of the Philippine Economic Zone Authority (PEZA) that Gordon’s proposal would duplicate the PEZA law by creating another agency to oversee economic zones.

“This is not a territorial tug of war. What I want to see out of this bill is just development,” Gordon added.

Aside from getting their support, Gordon also asked the concerned agencies and LGUs represented in the hearing to form a technical working group to collate suggested measures for incorporation in the bill.

“We’ll put the bill on the floor in two weeks,” Gordon said.

Two other measures seeking to amend Republic Act No. 7227, otherwise known as the Bases Conversion and Development Authority Act of 1991, are under deliberation by Senate committees.

The bills, which both seek to expand revenue allocations from the sale, lease, joint ventures and other transactions involving military bases and reservations in the country, are authored respectively by senators Jinggoy Estrada and Rodolfo Biazon. (SBMA Corporate Communications)

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Philip Morris starts phase 2 of P1-B Subic warehouse project

Philip Morris Philippines Manufacturing Inc. (PMPMI) has signed a 50-year lease agreement with the Subic Bay Metropolitan Authority (SBMA), increasing the company’s investment here and paving the way for the construction of a P1-billion tobacco leaf regional warehouse.

In the lease agreement signed by SBMA administrator Armand Arreza and PMPMI managing director Christopher Nelson on Tuesday (Aug 18), PMMPI increased the total land area of its project here to 49,279 square meters, from the current 9,600-square meter warehouse it has refurbished when it started its Subic operation in 2007.

Once completed, the state-of-the-art warehouse will have a capacity to hold some 24,000 metric tons of tobacco. At present, the P30-million peso refurbished warehouse can only accommodate 6,100 metric tons.

Nelson said the new warehouse will boast of features like humidity control, fire suppression equipment, and air conditioning to handle the imported tobacco leaves from foreign suppliers, which will then be shipped and processed in cigarette manufacturing facilities in the Philippines, Malaysia and Indonesia.

According to Arreza, the agreement, which extended PMPMI’s lease agreement to 50 years, "strengthens Subic Bay Freeport’s competitive posture as South East Asia’s logistics hub, as envisioned by President Arroyo."

He added that this free port’s multi-modal transport (air-land-sea) capabilities, world-class infrastructures, modern road networks, and tax incentives might have prompted PMPMI to sign an agreement that spans half a century.

"A global brand such as Phillip Morris would not make hasty decisions, which means the firm has really found Subic an enviable logistics hub," said Arreza.

Just recently, Subic scored another milestone in its thrust to become a leading logistics hub when a major cargo forwarder based in the United States established its North Luzon hub in this free port, Arreza added.

Nelson, for his part, said that PMPMI continued to expand since their establishment here in 2007 at the Subic Technopark, and even posted growth during the global economic slowdown which hit the country in the last quarter of 2008.

Nelson added that the warehouse expansion is "a reflection of our faith in the Philippine government, particularly the SBMA."

The PMPMI managing director also expressed confidence that the company will sustain profitability and competence against its competitors, despite the increasing competition in the tobacco industry.

"If you plan well ahead, and stay committed, this country will reward you in many ways," Nelson said.

He added that the 50-year lease extension is another expression of PMPMI’s gratefulness to the Filipino people.

"It may be difficult to get us, but once you have us, it would be difficult for us to leave you," said Nelson.

Also on Tuesday, Nelson and other PMPMI executives visited the Nellie E. Brown Elementary School in Olongapo City to turn over the PMPMI-sponsored "Proficient Measures for Quality Education" project, which would benefit five local public elementary schools.

This project, which PMPMI said will be replicated in other areas such as Bataan, provides access to curriculum-based TV programs through the Knowledge Channel, in partnership with the Knowledge Channel Foundation Inc. (SBMA Corporate Communications)


PHOTO: SBMA administrator Armand Arreza and PMPMI managing director Christopher Nelson sign an agreement expanding and extending the firm’s regional leaf tobacco warehouse project in the Subic Bay Freeport Zone.

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Historic past combines with modern present in Subic Bay festival

While a Hollywood-inspired parade spiced up this year’s “Karakol” festival in this free port, the original religious message of thanking Subic’s patron saint San Roque remains the core of the festivity.

In the street dancing activity that kicked off the Karakol celebration recently, characters from hit movies like “Grease,” “Sister Act,” “The Matrix” and “Moulin Rouge,” as well as Miss Universe “contestants” assembled at the San Roque chapel here, their attractive costumes lending color and fun to the otherwise sedate occasion.

The cast of Hollywood characters were actually employees of the Subic Bay Metropolitan Authority (SBMA) and students of schools here, who donned well-prepared costumes and heavy make-up in an effort to please the crowd of tourists that looked forward to the annual Karakol festival.

However, the festivity has not abandoned its original religious purpose despite the modern elements, said SBMA Administrator Armand Arreza.

Arreza said the modern celebration only reflects the Subic lifestyle, which he described as a merger of the past and the present.

“You can call this a strategy to catch the younger generation’s attention, so that they are introduced to their historical roots,” Arreza said.

“But that is just like icing on a cake. The celebration’s core message— the spiritual significance— remains unaltered,” he added.

Arreza noted that this “past-present strategy” is applied by the SBMA even in the physical development of the Subic Freeport, wherein modern facilities are being constructed to blend with historical landmarks that date back to Spanish and American periods.

Raul Marcelo, SBMA deputy administrator for tourism, said the Karakol festival is one of the most awaited events held annually at the Subic Bay Freeport Zone.

He said SBMA departments and business locators here took turns sponsoring the week-long mass offerings at the San Roque chapel, which was built for Spanish sailors and Filipino converts to Christianity during the 1800’s.

Enshrined in the chapel is an image of San Roque from Segovia, Spain, which was given as a gift to the people of Olongapo by a prominent resident of Cavite in 1905.

Marcelo added that while modern facilities mushroomed here in the past two decades, historical landmarks such as the San Roque chapel were preserved, thereby providing a venue for residents and visitors alike to trace the cultural roots of the Subic Bay area.

Aside from the San Roque chapel, other top historical attractions here are Tappan Park, the oldest park in the Subic Freeport-Olongapo area; the Spanish Gate, the main gate to the Naval Station built here by Spaniards; and the Admiral’s Guest House, which was built during the early American period.

These structures are all within the central business district of the Subic Bay Freeport and are now easily accessible to tourists.

Outside of the business district, historical attractions include the World War II-era battery installations at the Grande Island, as well as several shipwrecks at the bottom of the Subic Bay. (SBMA Corporate Communications)


PHOTO: Modern festivities blend with religious tradition in the Karakol Festival, which honors Subic Bay’s patron saint San Roque.

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SCADC consults building, zonal officers on SCTEX billboards

A business with no sign is a sign of no business.

For the development stakeholders of the Subic-Clark-Tarlac Expressway (SCTEX), there is no better sign that they mean serious business than the panoramic view of the mountains, rivers and the countryside that they are seeking to preserve.

In keeping with its mandate to oversee and direct policy development, the Subic-Clark Alliance for Development Council (SCADC) met with building and zoning officials of all the local government units along the expressway corridor for a consultation on the drafting of Additional Rules and Regulations (ARR) on Signs and Signboard Structures.

As presented by Director Teresito Tiotuyco of the SCADC Directorate for Utilities and Infrastructure, the proposed additional rules and regulations are further amplifications of Rule XX of Presidential Decree 1096, also known as the National Building Code of the Philippines, and Section 5 of Administrative Order No. 160. Specific provisions have been inserted to address the particular need to preserve the SCTEX panorama along the “view corridor,” that Clark-to-Subic segment that has been identified as most scenic by stakeholders.

The objective of the addenda is to keep the most scenic views of the expressway free from any advertising structure or signage, such as those currently found along the major highways of the country, more notably, EDSA. This would afford people the opportunity to behold nature’s beauty and rustic landscapes while travelling in comfort and safety. At the same time, it will be synchronized with the long term goal of transforming the corridor into a mega logistics hub that is competitively at par with the best in the Asia Pacific region.

However, locations will be identified where service providers can put up signs and structures according to specifications detailed in the ARR. Engr. Tiotuyco observed that in certain places, billboards may even help add to landscape aesthetics, and provide illumination as well for night drivers.

Aesthetics is not the only subject considered in the ARR. Mr. Audey Orleans of the Ads Standards Council gave an overview of their vetting process in approving advertising content. He said that community standards, discretion, truthfulness of claims and even size are taken into account for every advertisement submitted to them. He noted that giant billboards are of particular concern, because their size tends to amplify dimensions of images.

Commenting on the proposed additions, Director Emmanuel Cuntapay of the National Building Code Development Office stated that the SCADC initiative has moved the Department of Public Works and Highways to fast-track its move to formulate its Implementing Rules and Regulations covering billboards and signs along expressways and other similar thoroughfares. He also enjoined the officials to be always on the watch for violations of existing laws and regulations.

For its pro-active resolution totally prohibiting any construction or posting of advertising structure, the Sangguniang Bayan of Floridablanca was praised by resource speakers and attendees. Floridablanca lies within the “view corridor,” and boasts of the picturesque Palacol River.

SCADC is planning more future consultations as more issues are raised and consensus is built. According to Arch. Armando Alli, land utilization consultant, “this is an opportunity to plan the future with foresight. Having learned from our own sad experiences, and from the benchmarks set by other countries, we hope that the SCAD Corridor shall become a showcase of the Filipino’s capability to be the best.” (SCADC)

Photo Caption : Director Emmanuel Cuntapay of the National Building Code Development Office stresses a point during the SCADC Consultation Meeting on Signs and Signboard Structures held at the Clark Freeport Zone, Pampanga last August 12, 2009.

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SBMA rescue team bags ‘Kalasag’ award

Preparedness and the willingness to respond to emergency calls at all times proved its worth for the rescue team of the Subic Bay Metropolitan Authority (SBMA), as it was conferred a special citation presented by no less than President Gloria Macapagal-Arroyo on August 12.

The SBMA Fire and Rescue Team received special recognition for being the “Best Support Organization/Institution” in the national level during the 2009 Gawad Kalasag awarding ceremony at the Malacañang Palace on Wednesday.

The awards, which are given out by the National Disaster Coordinating Council (NDCC), recognize individuals, groups or institutions that have shown extraordinary courage, heroism, self-sacrifice, and bravery against all odds in times of emergencies and disasters.

Aside from the SBMA team, 57 other entities received the award from President Arroyo and Defense Secretary Gilbert Teodoro.

NDCC executive officer Glenn Rabonza said that the special citation for SBMA recognized the Subic rescue team’s “invaluable services, competence and commitment in preparing for and responding to emergencies within and outside the Subic Bay Freeport Zone.”

SBMA Fire Chief Ranny Magno, who received the Kalasag award with his team members, meanwhile shared the citation with the rest of the SBMA employees.

“This is not something that only the SBMA fire and rescue team should be proud of,” Magno said. “We earned this national award because of the support of everyone in the SBMA.”

Magno said his team has also received several commendations for various emergency responses and rescue missions made over the years.

On July 28, the Cordillera Regional Disaster Coordinating Council (CRDCC) recognized the SBMA team for its support in recovering and retrieving trapped miners at Itogon, Benguet, in September 2008. The award was presented by CRDCC regional director Olive Luces in Baguio City.

The SBMA team also received a certificate of appreciation from Director Neri Amparo of RDCC-3 for the same heroic acts in Benguet.

Magno recalled that after getting the emergency call from Baguio City in the afternoon of that fateful day in September, the SBMA rescue team was immediately organized that by midnight all were already heading for Baguio.

A few minutes after the team's arrival at the collapsed mine shaft, the operation to retrieve the trapped miners started. Before noon the following day, the team had retrieved the first miner, Magno said.

Meanwhile, SBMA Administrator Armand Arreza gave the assurance that the SBMA will always be ready to send its fire and rescue teams anytime, anywhere to provide assistance and to save lives and properties.

“The SBMA also has a mandate to contribute to the development of neighboring communities, and that includes making sure that these communities are a safe place to live in,” Arreza said.

He said the latest emergency that the SBMA team responded to was in Botolan, Zambales, where floodwaters trapped hundreds of residents in 10 barangays after a lahar dike collapsed due to heavy rains from typhoon “Kiko.” (SBMA Corporate Communications)

PHOTO: SBMA fire chief Ranny Magno (left) presents an award received by the SBMA Fire and Rescue Team to SBMA Administrator Armand Arreza.

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Longboard lures visitors to Subic even during rainy season

The rainy season here actually draws more tourists, and the recent arrival of longboarding is expected to boost the number of visitors even more.

A variant of skateboarding also known as “sidewalk surfing,” longboarding is the latest addition to the extreme adventure sports being held in the free port.

“This is the latest adventure craze here in Subic during the rainy season,” said Subic Bay Metropolitan Authority (SBMA) deputy administrator for tourism Raul Marcelo.

“In fact, some longboarders even love it more when faced with extreme weather conditions,” Marcelo added.

Longboarding, developed by skateboarders in the US who wanted to recreate the feeling of surfing and snowboarding on the street, was introduced here early this month at the former naval magazine area.

Longer boards with bigger wheels are supposed to be used for this sport, but participants in a recent event here simply used modified skateboards for better maneuverability on the makeshift short course that was lined with protective air bags and cushions.

It now joins the list of other sports that lure tourists, including rappelling, wall and rock-climbing, windsurfing, sailing, jet skiing, biking, diving, parasailing and auto racing.

“We have the forests, the bay and man-made structures that provide a myriad of challenges for those who hunger for the extreme experience,” Marcelo said.

“The great thing about adventure tourism is that even the rains cannot stop it. In fact, the inclement weather adds another dimension to the challenge,” he said.

“Because of this, you can spot thrill-seekers going to Subic on weekends even when there’s a typhoon,” Marcelo said. “That’s because they can still have fun here with their jet skis, surfboards, mountain bikes, skateboards and other sports gears.” (Henry Empeño, Business Mirror Correspondent)

IN PHOTO -- A Longboarding enthusiast test the turns and downhill stretches of the course at the former naval magazine area.

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