Hanjin Subic gets 10 ship orders from French container firm

CMA CGM Group, the world’s third-largest container line operator, has placed ship orders to South Korean shipbuilder Hanjin for 10 ships for Hanjin Heavy Industries and Construction -Philippines (HHIC-Phil) in Subic.

CMA CGM has a total of 51 ships ordered from various South Korean shipyards for the 2009-2012 period.

CMA CGM is a leading client of South Korean yards and Hanjin has secured orders which will be constructed by its affiliate yard in the Philippines.

It currently operates 370 ships in 200 shipping lines around the world.

The firm is undergoing debt restructuring effort and has reached agreement on the establishment of a committee comprised of French, European and international banks including certain major financial institutions from Asia and the Republic of Korea.

The firm is addressing short and medium term financing requirements with a view of strengthening the capital structure to ensure its ongoing development.

In 2008, it moved the equivalent of 8.9 million 20-foot container units, generating revenue estimated at $15.1 billion.

Compared with the second half of 2008, the first half of 2009 saw record decreases in freight rates and shipment volumes on all main shipping lines around the world.

However, the level of activity began to improve again during the third quarter of this year and, so far this recovery is sustained in the fourth quarter.

The forecasted load factors and freight rates for the beginning of 2010 suggest a possible continuation of these recent positive trends.

CMA CGM will continue with the initiatives started during the course of 2009.

CMA CGM is aiming to reach an all-encompassing agreement with the help of the committee by the middle of November.

HHIC-Phil on the other hand said the continued construction of high value ships only show its positive performance amidst the economic meltdown.

The Subic Shipyard, one of the world’s Top 10 largest shipyards, is equipped with high technology shipbuilding facilities that include mega docks and goliath cranes that are used to build high technology, high value added ships.

At present, the Subic shipyard focuses on mega and large container carriers of 12,800 TEU or more, as well as tankers and bulk carriers and it no longer import ship components from Korea, as it embarks on building its own.

Lynette Dela Cruz, Seaport Department Strategic Planning Head of Subic Bay Metropolitan Authority (SBMA) said Hanjin Subic delivered the 5th vessel to an Egyptian firm in August. (Genivi Facto, Malaya)

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US forces deliver aid to flood victims

The United States said Monday its military forces were carrying out rescue missions, delivering aid and providing medical care for victims of the flooding in the Philippines.

"US forces are helping support rescue operations for victims of the flooding, as well as distributing essential relief supplies," State Department spokesman Ian Kelly told reporters. "They're providing medical treatment to flood victims," he added.

He said the US Agency for International Development set aside 1.8 million to help relief organizations deliver relief to the needy.

"The USS Tortuga and the USS Harpers Ferry are in Subic Bay right now and are providing support," Kelly said.

Bryan Whitman, a Pentagon spokesman quoted by Pacific Command, said nearly 450 US Marines and sailors posted in the Manila area delivered relief supplies, cleared roads, and provided basic medical care to residents over the weekend.

"More than 8,000 food packages have been delivered, and more than 1,400 Philippine residents have received medical care," according to the Pacific Command website. (Olongapo City News)

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Charges filed against Subic drug suspect

Manila - The Department of Justice (DoJ) has filed narcotics charges against Harry Yao, owner of a warehousing company in Subic Bay Freeport Zone which allegedly handled the illegal drug shipment of businessman Anthony Ang.

Acting Justice Secretary Agnes VST. Devanadera also ordered the reversal of an earlier resolution that cleared Mr. Ang’s associates, namely, Robert Lee, Anton S. Go, Rudy G. Chua, Cai Changcheng and Cai Wengcong.

In May 2008, Subic Bay Metropolitan Authority (SBMA) officials intercepted a car driven by Mr. Ang, then the operations manager of Hualong, Inc. which is into transhipment.

Mr. Ang had claimed the boxes inside his car were computer components and asked that he be allowed to retrieve the documents for the cargo. He did not return and authorities later on found out the boxes contained high-grade methamphetamine hydrochloride or shabu.

Authorities also later on discovered hundreds of kilograms of shabu insideHualong’s warehouse. Ms. Devanadera said the respondents "have admittedly permitted respondent Ang to run the transhipment business and have acquiesced in or assented to his patently unlawful acts." (bworldonline.com)

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Solon bats for stronger SBMA, CDC

Bataan Rep. Abet S. Garcia is pushing for the enactment of a law strengthening and expanding the powers of the Subic Bay Metropolitan Authority (SBMA) and Clark Development Corp. (CDC) to allow them to further develop other Special Economic Zones in Luzon to optimize airports and seaports in Subic and in Manila.

Eldest son of Bataan Governor Enrique “Tet” Garcia, the bachelor solon said that “The State must be aggressive in taking advantage of the strategic infrastructure in Subic, Clark and Manila as international transportation hubs. The development of Special Economic Zones in the municipalities nearby, bordering the highway and railway and connected to the airports and seaports in Subic, Clark and Manila must be encouraged as this will bring jobs to the people and work to the workers and promote a rising standard of living and an improved quality of life for all. The development of these Special Economic Zones will embody a decentralized local government and private sector-led development..." (Mar T. Supnad, Manila Bulletin)

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Kenyan eyes Subic marathon defense

KENYAN RUNNER NELSON KIRWA Rotich leads the foreign charge when he defends his title in the 2nd Smart Subic International Marathon that starts at the Subic Clark Tarlac Expressway and ends at Remy Field on Oct. 24 and 25 in Subic Bay, Olongapo City.

Rotich, who clocked 2 hours, 27 minutes and 11 seconds to nip Filipino Eduardo Buenavista (2:27:56) for the title last year, headlines a field expected to reach 10,000 that will negotiate a scenic route that will pass through Floridablanca, Pampanga.

Speaking at the PSA Forum on Tuesday, Subic marathon founder Gen. Sam Tucay (ret.) and race organizer Adi delos Reyes said that at least 30 Kenyan runners have confirmed their participation in the event, along with a slew of participants from the United States, Australia and China.

The marathon will veer away from the traditional early morning start with the race firing off at 4 p.m. on Oct. 24.

Apart from the regular 42K race, 21K, 10K, 5K and 3K events will be held simultaneously the following day.

More than P1.2 million in prize money will be at stake in the event with the men’s champion receiving $5,000, Delos Reyes said. (Phil. Daily Inquirer)

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SBMA sends 2nd emergency contingent to Ondoy victims

The participation of volunteers from the Subic Bay Metropolitan Authority (SBMA) in rescue and relief operations in the wake of Typhoon Ondoy tragedy kicked into high gear, as the agency sent a second emergency contingent to flood-ravaged Metro Manila.

SBMA Administrator Armand Arreza deployed additional members of the crack SBMA Fire and Rescue Team, as another typhoon edged closer to Philippine territory and authorities urged residents in flood-prone areas to be ready for more heavy rains.

On Sunday SBMA first dispatched its search-and-rescue team, along with rubber boats and other emergency equipment, to the Marikina area.

Arreza, who is also director of the Philippine National Red Cross (PNRC), said the SBMA has traditionally sent its fire and rescue teams “anytime, anywhere to provide assistance and to save lives and properties.”

Aside from the fire and rescue team, rescue vehicles and rubber boats, the SBMA sent out about P300,000 worth of relief goods on Wednesday.(H. Empeño, Business Mirror)

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SBMA sends help to Ondoy victims in Metro Manila

As typhoon "Pepeng" moved closer to Philippine territory on Wednesday, the Subic Bay Metropolitan Authority (SBMA) kicked its rescue and relief operations into higher mode to help provide food and other basic necessities to flood victims in Metro Manila, as well as search for missing persons in the aftermath of the “Ondoy” tragedy.

Early yesterday, the SBMA sent out some P300,000-worth of relief goods, rescue vehicles, rubber boats, and another batch of trained rescue personnel to the flood-ravaged Marikina in response to the call for assistance made by the Philippine National Red Cross (PNRC).

The SBMA emergency contingent dispatched yesterday was composed of firemen, harbor patrol personnel, and even common employees willing to set up camp to help out in various operations at the emergency station set up by PNRC at the Blue Leaf Events Pavilion in Fort Bonifacio, Taguig City.

A search and rescue team was first dispatched on Sunday, along with rubber boats and other emergency equipment, to the Marikina area.

SBMA administrator Armand Arreza, who is also a director of the PNRC, said 1,100 bags of relief goods, each containing five kilos of rice, four cans of sardines and six packs of instant noodles, were hastily packed by SBMA employees “to immediately build up the food stock” at the PNRC station.

The SBMA also sent 35 bales of used clothing, along with some 12 cavans of rice, Arreza said.

Arreza explained that more goods coming from the Subic Bay Freeport area will follow, as the SBMA gathers more donations from the hundreds of business locators in this free port.

“It has become a tradition here to send out goods to calamity-stricken areas where the SBMA rescue team is dispatched,” Arreza said.

“When SBMA rescue equipment and personnel are stationed in an area, one might as well expect goods from the Subic community pouring in soon,” he added.

Arreza also said that the trained SBMA emergency personnel were specifically sought by the PNRC, which currently lacks operators for their recently-acquired fire trucks.

The SBMA firemen, after assessing the situation, will embark on cleaning operations in the mud-inundated communities of Marikina, he said.

As the SBMA called for volunteers to help in the search, rescue and relief efforts, some SBMA employees left the comfort of their offices and joined the agency’s emergency team.

“This is one of the greatest sources of personal satisfaction for us — to be able to help our countrymen who are in dire need,” said Sander Lucban, an SBMA warehouseman who joined SBMA's humanitarian mission.

With only a single set of spare clothes, Lucban said he is willing to extend his scheduled one-day stay at the PNRC camp if his services would be needed in the coming days.

“The boss (Arreza) need only say so. We are ready,” he said, speaking on behalf of the 17 other volunteers from his department.

The SBMA rescue team, which has set itself apart for the exhaustive training of its personnel and its modern equipment, is being dispatched almost all over Luzon to conduct various rescue operations.

Before the typhoon “Ondoy” tragedy, the SBMA rescue team was busy in Botolan, Zambales, which was also hit by floods after a series of typhoons beginning last month. (SBMA Corporate Communications)

PHOTO: SBMA employees load up trucks with some P.3-million worth of relief goods for flood victims in Metro Manila, as SBMA Administrator Armand Arreza looks on. The SBMA also sent out its emergency team to help in search and rescue operations in flood-ravaged communities.

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‘Hassle-free’ cash card launched in Subic Free Port

Vacations and leisure trips to popular tourism attractions in this free port have just gotten more efficient with the recent introduction of a cashless-transaction system for paying the bills.

This, after Rizal Commercial Banking Corp. (RCBC) and Pilipinas Micro-Matrix Technology Inc. (PMTI), an information and communications technology firm based in this free port, launched the RCBC MyWallet-WOW Mangga Card that integrated features of an ATM card and a credit card.

Prior to the cobranding venture, MyWallet is known as a prepaid stored-value ATM/cash card designed to give holders easy access to the bank’s deposit and withdrawal facilities, as well as faster transactions with business establishments.

The WOW Mangga Card, on the other hand, was recently introduced in the Subic Bay Free Port for cashless payment with accredited business theme parks, hotels, restaurants and other tourism establishments.

The resulting fusion of features “introduces the convenience of cashless transactions with fast and accurate payments that also eliminate the problem of short-changing due to the unavailability of coins,” the firms said in a statement.

The RCBC-WOW Mangga card can also be used for the unique “hop-on, hop-off” transportation system recently introduced by WOW Card to efficiently bring visitors to various tourism attractions in the Subic Bay Free Port.

The card, which is now available in RCBC branches nationwide, also allows family vacationers to plan ahead for their trips to Subic with the “Pack Your Own Package” scheme that also provides discounts.

The introduction of the cashless- transaction system, said Raul Marcelo, deputy administrator for business development of the Subic Bay Metropolitan Authority (SBMA), “will definitely boost the tourism program in the Subic Bay Free Port Zone.”

“At the same time, this will bring Subic to the next level, as far as adapting technology to bolster tourism is concerned,” he added.

The SBMA had earlier endorsed the introduction of PMTI’s WOW Mangga Card to draw more foreign tourists who are more at home with cashless transactions.

“With WOW Card’s joint venture with RCBC, Subic’s bid to be at the cutting edge of technology is further strengthened,” Marcelo said. (Henry Empeño, Business Mirror Online)

IN PHOTO -- OFFICIALS of Rizal Commercial Banking Corp. (RCBC) and Pilipinas Micro-Matrix Technology Inc. (PMII) conclude an agreement integrating RCBC’s MyWallet with PMTI’s WOW Mangga Card for cashless-transactions convenience at the Subic Bay Free Port. Photo shows (from left) RCBC executives Emma Siapno, Nestor Pineda and Ismael Mike Sandig, and PMTI officials Laurence Ilicito and Sarah Jane Sandoval. H. EMPEÑO

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Subic marine park starts dolphin-breeding program

The operator of the Ocean Adventure marine park in this free port has embarked on a cetacean breeding program to boost the number of dolphins in its open-water viewing facilities.

According to a statement from the Subic Bay Marine Exploratorium Inc. (SBMEI), the company that operates Ocean Adventure and its sister facility, Camayan Beach Resort & Hotel, four more dolphins were acquired recently from Japan for the marine park’s breeding program.

Three female and one male bottle- nosed dolphins were the new arrivals, the SBMEI said. They are now undergoing a routine 30-day quarantine and acclimatization period before their introduction to the existing dolphin population at the park.

Ocean Adventure, which is one of the most popular tourism attractions in the Subic Bay Free Port today, is expanding its marine park business that features trained dolphins, false killer whales and sea lions that perform in a huge open-water habitat.

The SBMEI said that under a permit approved by the Department of Agriculture, the four new dolphins will be part of a cetacean breeding program “so that a stable and sustainable population of bottle-nosed dolphins at Ocean Adventure may be achieved.”

The dolphin breeding program was pushed by the firm after it became “extremely successful” with its sea-lion reproductive-management program that has produced three healthy sea- lion pups this year. The company said a total of seven pups have been born so far at the marine park since it began operations in 2001.

Before they were transferred to Subic, the four dolphins lived in an open-water facility in Japan, where they underwent some preliminary conditioning and training for the past two years, the SBMEI said.

At their new Ocean Adventure home, the new dolphins will undergo further training from Ocean Adventure’s animal-care experts and training staff to “enhance the animals’ development through internationally recognized positive-reinforcement training techniques,” the SBMEI said.

Aside from being used in the SBMEI’s cetacean breeding program, the four dolphins will also become the “new additions to our already exciting lineup of entertainment and activities,” said John Corcoran, a director of the SBMEI.

The company said it has opened two new shows this month that feature trained animals at Ocean Adventure.

The first one, the Rap, Jump and Roll Show,” is presented at a new seaside stadium and features international trampoline performers, along with the park’s famous animal mascots and dancers.

The second is called “Walk on the Wild Side,” shown at the new Eco Theater, and includes forest animals, along with Aeta tribesmen who demonstrate jungle survival skills.

SBMEI chairman and CEO Timothy Desmond also announced recently that the firm has opened “Adventure Beach,” which was designed for special events, group outings and team-building activities. (Henry Empeño , Business Mirror Online)

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Subic tourism week focuses on diversity

The Subic Bay Metropolitan Authority (SBMA) kicked off the celebration of Tourism Week here on Monday with a smorgasbord of events that focus on the highly-diversified natural attractions here, as well as the unique culture of local inhabitants.

The week-long tourism celebration also features events aimed at fostering camaraderie among various tourism stakeholders in this free port, and promoting livelihood opportunities among local residents.

For the official opening of the Tourism Week, SBMA employees and other stakeholders in the local tourism industry gathered in front of the SBMA administration building, where Subic Bay’s iconic double-decker tourist buses and other vehicles duly-festooned with balloons and buntings began a motorcade that made the rounds of the Subic Bay Freeport.

SBMA deputy administrator for tourism Raul Marcelo said the SBMA has also scheduled job fairs, seminars and skills-building programs for hoteliers and restaurant owners, beach cleanups, tree-planting activities, and team-building events throughout the week-long observance.

Special programs like the Subic Bay tourism sports festival, and the Subic Bay familiarization tour that will give visitors glimpses into the unique facets of this former US military base, will also be held, said Marcelo.

“We want to create an awareness that the success of tourism here depends on many factors — caring for the environment, equipping the workforce, forging cooperation between stakeholders, and knowing intimately what Subic Bay has to offer,” he also said.

To give due emphasis to these factors that made Subic a popular tourism attraction, Marcelo said the line-up of events for the Tourism Week has been planned under the theme “Tourism Celebrating Diversity.”

“We are balancing the forward thrust of tourism with environmental and cultural sustainability,” Marcelo said in a briefing here.

“We are saying that this could be attained by tapping the greatest capability of man — the ability to foster social responsibility and forge cooperation to achieve goals,” he added.

The SBMA tourism chief explained that this is the strategy employed by the SBMA that has made Subic Bay a popular destination.

“Tourists are actually people who want to escape from their monotonous surroundings. They go to places that offer something different. The tourism industry, therefore, banks on diversity,” Marcelo said.

“This is the unique facet of Subic Bay; it is a destination with many destinations,” he added, citing this free port’s clean beaches, virgin tropical rainforests, zoos, theme parks, and other man-made facilities catering to audiences of all ages and persuasions.

Marcelo, who joined SBMA and Clark Development Corporation (CDC) officials in promoting the Subic-Clark corridor in Hong Kong last week, said that the Subic Bay tourism week also serves actually as a means to prepare the local tourism establishments “for more opportunities coming their way.”

The Subic Bay Freeport has enjoyed immense popularity as a tourism site where visitors can enjoy the best of both worlds — the raw excitement of forest and marine attractions amid the comfort and luxury of modern hotels and entertainment facilities.

Subic’s accessibility by land, air and sea also makes it an ideal place for vacation, sports events, corporate meetings and conventions, as well as for simple weekend breaks for families. (SBMA Corporate Communications)


PHOTO: Employees of a locator engage in the familiarization tour which is part of the SBMA’s tourism celebration aimed at fostering camaraderie among various tourism stakeholders in this free port, and promoting livelihood opportunities among local residents.

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Subic’s Ocean Adventure park gets 4 new dolphins

The highly popular Ocean Adventure marine park has recently acquired four more dolphins to boost the growing cast of marine animals featured in its open-water viewing facilities here.

The new arrivals — three female and one male Bottlenose dolphins — are the “new additions to our already exciting lineup of entertainment and activities,” said John Corcoran, director of the Subic Bay Marine Exploratorium, Inc. (SBMEI), the company that operates the marine park and its sister facility, the Camayan Beach Resort & Hotel.

Ocean Adventure, which is now expanding its marine park and resort business at Subic’s Camayan beach area, is now home to trained dolphins, false killer whales, and sea lions that perform in a huge open-water habitat.

Under a permit approved by the Department of Agriculture, the four dolphins will be part of a cetacean breeding program “so that a stable and sustainable population of Bottlenose dolphins at Ocean Adventure may be achieved,” the SBMEI said in a statement.

The SBMEI added that the firm “has been extremely successful with its sea lion reproductive management program, as evidenced by the birth of three healthy sea lion pups this year.” A total of seven pups have been born at the marine park since 2001, it was learned.

The SBMEI added that the new dolphin arrivals will undergo a routine 30-day quarantine and acclimatization period before they are introduced to the existing dolphin population at the park.

Prior to their transfer here, the four dolphins have been living in an open-water facility in Japan, where they underwent some preliminary conditioning and training for the past two years.

Now, Ocean Adventure’s expert animal care and training staff “will enhance the animals’ development through their internationally-recognized positive reinforcement training techniques,” the SBMEI said.

Aside from being used in the SBMEI’s cetacean breeding program, the four dolphins will also be involved in shows at the Ocean Adventure park, which opened two new shows this month: “Rap, Jump and Roll Show” and “Walk on the Wild Side.”

The first show, presented at a new seaside stadium, features international trampoline performers, along with the park’s famous mascots and dancers; the second, which is shown at the new Eco Theater, presents animals of the forest, along with Aeta tribesmen who demonstrate jungle survival skills.

Earlier, SBMEI chairman and CEO Timothy Desmond announced that the firm has recently opened “Adventure Beach”, which is a special events beach for group outings and team-building activities.

The development of the new seaside stadium, the Eco Theater, and the Adventure beach are part of the company’s 10-year master plan designed to beef up the park’s extensive product line-up.

Desmond said the firm’s expansion “is evidence of our ongoing commitment to provide our guests with the very best in family entertainment.”

Under the expansion program, Ocean Adventure’s large open-water lagoons “will be expanded even more to provide one of the largest (marine) habitats in the world,” the SBMEI statement said.

A portion of the lagoon “will be dedicated exclusively to the dolphin reproductive management program,” the company added.

Subic Bay Metropolitan Authority deputy administrator for tourism Raul Marcelo welcomed Ocean Adventure's efforts to enhance its attractions and facilities.

"This will not only attract more tourists to the only marine theme park here, but also strengthen further Subic's position as a unique and wholesome tourist destination," Marcelo said. (SBMA Corporate Communications)


PHOTO: An animal trainer makes dolphins perform at the Ocean Adventure marine park in the Subic Bay Freeport.

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Subic investments remain flat

The Subic Bay Metropolitan Authority (SBMA) said it expects investment pledges in the Freeport this year would be flat on the back of the global economic slowdown.

Armand Arreza, SBMA administrator, told reporters that there have been several projects in the Subic Freeport zone that were delayed as a result of the global economic slowdown.

“Some projects have been postponed, but they were never cancelled,” he said.

But despite this, Arreza said SBMA will continue to market the freeport to interested investors.

“We will continue to build leads,” he said.

Last year, investment pledges with the SBMA reached $249 million, or roughly P12 billion. But it was way below the $1.71-billion worth of pledges the Freeport attracted in 2007.

SBMA has reported that investment commitments in the first quarter of this year reached about P1.5 billion, up by 13.6 percent year-on-year.

Arreza said he would lead a delegation to the cities of Shanghai and Suzhou in China next week to lure investors to Subic’s logistics, property development, and tourism sectors.

He also said the Freeport is ready to be a site for business process outsourcing (BPO) activities. Arreza said they have put in place the infrastructure, and a BPO facility will be ready by the end of this year.

Arreza said SBMA is currently in talks with two large call-center companies, and the agency is also looking at opportunities in the nonvoice segment.

At present, three BPO firms are located in Subic, he said. (Ben Arnold O. de Vera, Manila Times)

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EEI forms new unit

LISTED CONSTRUCTION firm EEI Corp. has set up a new unit to handle operations in Subic, documents submitted to regulators showed.

The new firm, named EEI Subic Corp. said it would engage in contracting and the specialty construction service business for property development and infrastructure firms.

The new firm has P100 million in authorized capital, P99.99 million of which were subscribed to by EEI. It paid for P89.99 million.

EEI Corp.’s profits from January to June rose by 15% to P291.62 million even as revenues were cut by more than a quarter to P3.31 billion amid a decline in local construction activity.

EEI had said it was cautiously confident of its near- to medium-term prospects despite the global economic slump.

The company had secured contracts and orders in Saudi Arabia. It also won several contracts in the first half, such as the 18-storey Acacia Grove condominium- hotel in Alabang, toll station work packages for the Public Works department, and an airport interchange. (BusinessWorld)

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SBMA approves US$57.74-M new investment projects

The Subic Bay Metropolitan Authority (SBMA) recently approved new investment projects worth a total of $57.74 million, as this free port continues to beat the odds of the global economic downturn and attract fresh capital infusion from both foreign and Filipino investors.

In ceremonies at the conference hall of the Subic Bay Development and Management Corp. on Wednesday, SBMA chairman Feliciano Salonga and SBMA administrator Armand Arreza formally signed in 17 new projects in four different industry sectors here.

These included six new projects in leisure industry worth a total of $ 53.59 million, three in manufacturing and maritime with total investments of $1.3 million, three in general business at a total of $266,274, and five in logistics with a total of $2.57 million.

According to Arreza, the latest additions to Subic’s growing business community “only proves the resiliency of the Subic Bay Freeport in attracting new investors despite the global economic crisis.”

He added that as of August this year, 65 new accounts have been added by the agency to the list of investor firms here that totaled 948 at the end of 2008.

Arreza also said that most of the 17 new investment contracts were signed by new business locators, while a few were by existing Subic firms that opted to expand operations.

The biggest investment commitments in this latest batch of approved projects is the P2.5-billion (about $50 million) commitment by Ocean Nine Philkor, Inc., a South Korean firm involved in the development and operation of hotels, casinos and resorts.

The firm, under its short-term plan, will be renovating a hotel complex in Subic’s Cubi area to start its hotel and casino operation by January 2010, Ocean Nine manager Charles Kim said during the contract-signing ceremony.

The second biggest project in this batch is the P70-million construction of a four-story hotel and expansion of a dining facility by Innasia Corp., which operates Courtyard Inn in this free port. This is followed by the P50-million expansion of Puregold Duty Free (Subic) Corp., and the $1-million project of Lionair Subic Philippines, Inc. for the servicing and maintenance of fixed- and rotary-wing aircraft here.

The new investors whose project proposals were approved by the SBMA under the leisure sector are: Aggressive North Developers, Inc., with P30 million for hotel and restaurant operation; Goltongne Subic, Corp., $368,333 for a restaurant and gift shop; Innasia, P70 million; LG Digital Plaza, Inc., P11.25 million for an authentic Ilonggo restaurant, wholesale and retail operations, and import/export services; Ocean Nine, P2.5 billion; and Puregold Duty Free, P50 million.

Under the manufacturing and maritime sector, the new projects are: Consummare, Inc., with $562,478 for the production of specialty wood products; Pacific Metal Works Corp., for steel fabrication; and Shang Min Construction Corp., $580,000 for trading of construction-related materials and equipment.

Under general business, the new locators are: Golden AI Trucking, with committed investments of $215,074; I Will Communicate, Inc., $30,000; and M&M Subic Bay Development Corp., $21,200.

Meanwhile, five new investments were approved under the logistics sector: Food Entrepreneur and Exporters of the Phil., with $470,000 for trading in grains and meat products; Lionair Subic, $1 million; Omni Aviation Corp., $700,000; Solutions Advancing Global Enterprise International Import-Export Corp., $300,000; and Subic Bay Merlion Trading, Inc., with P5 million for the transshipment of wines and liquors.

In the same occasion, SBMA Chairman Feliciano Salonga thanked the new business locators “for having confidence in the Subic Bay Freeport”, and vowed the agency’s full support and cooperation. (SBMA Corporate Communications)

PHOTO:
SBMA Chairman Feliciano Salonga (3rd from right, second row) and SBMA Administrator Armand Arreza (7th from left, second row) join representatives of new investor-companies at the Subic Bay Freeport Zone after a mass contract-signing on Wednesday.

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Subic Freeport aims for new Chinese investments

The Subic Bay Metropolitan Authority (SBMA) will be promoting this free port as an investment site to companies based in China, as the agency intensifies its efforts to gain substantial investments despite the economic slowdown.

SBMA Administrator Armand Arreza said Subic officials will be visiting the city of Suzhou in China next week in the hope of bagging more investments after fresh capital infusions from countries like South Korea and Taiwan seemed to be tapering off.

As of the latest SBMA record, investments by Chinese firms in the Subic Bay Freeport stood this year at only US$12.7 million, the sixth biggest in terms of nationality here.

Arreza said that while SBMA’s April 2009 tally showed that Korean firms still had the biggest investment commitments here at US$2.76 billion, Korea’s investment momentum in the manufacturing sector that was started by shipbuilder Hanjin Heavy Industries and Construction Co. in 2006 had significantly waned.

“So we’re looking for more diversified investments to cushion the effects of any economic downturn on the Freeport's revenue and employment generation efforts,” Arreza said.

He added that companies based in Suzhou, which is located just outside the financial capital of Shanghai, have recently diversified from industrial manufacturing to information technology and commercial development.

This makes Suzhou-based firms more attractive to the SBMA as the latter prepares the Subic Freeport for more investments in property development, tourism, logistics, and energy.

Arreza added that the SBMA is now adopting a “wait-and-see” attitude toward investments coming from Korea, Taiwan, and the Middle East, even as it seeks new markets like China.

Arreza also stressed that Subic’s financial performance this year had remained on the positive side, despite the delay in some scheduled investments here due to the global economic downturn.

“Investments would most likely be flat by the end of this year, but Subic’s revenue performance remains up,” Arreza said..

He attributed the continuing growth in revenue to investments approved by the SBMA from two years ago. “These are now being realized,” he added.

Likewise, Subic’s export production and job generation continued to gain, although only slightly, Arreza said, citing some Subic manufacturing firms that had actually expanded operations despite the recession.

In the first seven months of 2009, the SBMA also created about 2,000 new jobs, adding to the 86,000 total number of workers recorded at the end of 2008.

Arreza added that even at this slow rate, Subic would still have a total active workforce of about 90,000 by the end of 2009.

"By attracting new investments, especially in manufacturing, from Suzhou, we hope to generate even more new jobs here," he said. (SBMA Corporate Communications)

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