Subic Freeport 2009 expansion projects total $23.7 million

Despite the effects of the global recession during the previous year, investors in this free port moved forward and implemented expansion projects totaling $23.7 million, or about P1.08 billion.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said the agency’s board of directors approved a total of 25 expansion projects proposed in 2009 by Subic-registered companies.

“Clearly, there was substantial growth in the Subic Bay Freeport amidst the global recession last year,” Arreza pointed out. “Despite the global slump, our business locators made additional infusions — proving that Subic has the right atmosphere for growth.”

Figures released by the SBMA indicated that most of the expansion projects were proposed by investors in manufacturing, leisure, and logistics sectors.

Out of the 25 expansion proposals, eight projects involved additional investments exceeding $1 million each.

Topping the list in terms of expansion commitments is Philippine Coastal Storage and Pipeline Corp., an all-Filipino firm that operates terminal and oil depot facilities in Subic. The firm earmarked $7.17 million for its expansion project.

In the second spot is Mega Subic Terminal Services, Inc., another Filipino-owned firm that operates an integrated cargo handling facility for bulk and bagged cargoes. Mega Terminal pledged an additional $417,000 in February and $3.65 million in August for a total of $4.06 million in expansion projects.

Next came Koryo Subic, Inc., a Japanese manufacturer of high precision plastic molding for electronic products, with additional investments worth $3.73 million; United Auctioneers, Inc., a Filipino-owned trading, transshipment, warehousing, and auctioning firm, with $1.62 million; and property developer Innasia Corp. with $1.44 million.

Other firms with expansion pledges in the million-dollar level are Grand Pillar International Development, Inc., with $1.19 million; Puregold Duty Free (Subic), Inc., with $1.05 million; and Nicera Phils., Inc. with $1 million.

Arreza also disclosed that of the total $23.7-million expansion projects, some $5.45 million accounted for foreign direct investments (FDIs) coming particularly from Japan, Korea, the United Kingdom, and the United States.

Combined, the expansion projects and new projects approved by the SBMA in 2009 totaled $217.17 million.

While year-on-year figures would show that new investment commitments fell by 22 percent from the $249 million total in 2008, Arreza said the $217-million total generated by the SBMA last year “is already a big blessing, so to speak, considering the global recession.”

“This brought Subic’s cumulative investments total to $5.97 billion,” he added.

Arreza further announced that more Subic locators are gearing for expansion projects this year. The projects in the pipeline include an additional infusion of $416,000 by R. Joseph Holdings, which has initially invested an additional $125,000; and that of Southwing Heavy Industries, Inc., with a projected expansion of $3.2 million.

The two expansion projects are also expected to generate some 100 new jobs in the Subic Bay Freeport, Arreza added. (SBMA Corporate Communications)

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Philip Morris starts P1-B Asia-Pacific leaf warehouse

Philip Morris International (PMI), one of the largest tobacco companies in the world, formally started on Monday the construction in this free port of its P1-billion tobacco warehouse for the Asia-Pacific region.

Philip Morris Philippines Manufacturing Inc. (PMPI) managing director Chris Nelson, along with Subic Bay Metropolitan Authority (SBMA) chairman Feliciano Salonga and SBMA administrator Armand Arreza, led the groundbreaking ceremony for the project that signaled the start of PMI’s second phase of investment in Subic.

The first phase involved the renovation of an old building inside a 10,000-square meter facility in Subic’s Boton area that PMI turned into a modern leaf warehouse with a capacity of 6,100 metric tons.

Nelson said the new warehouse would occupy 20,000 square meters out of the 50,000-square meter lot that the firm has leased from the SBMA for 50 years. The lot is located at the Subic Techno Park area of this free port.

The new warehouse project would amount to P1 billion over the years, Nelson added.

The new project, Arreza said, gives the Subic Bay Freeport a big boost because it proves that Subic could compete with other locations in the Asia-Pacific region.

In choosing a site for the regional leaf warehouse, Philip Morris had considered other sites like Singapore but eventually settled on Subic, he added.

“The project is actually a vote of confidence for Subic,” Arreza said. “It proves that Subic is an ideal place to establish your hub for the Asia-Pacific regional network.”

The new Philip Morris warehouse is expected to be completed by August this year.

Nelson said the new facility would easily accommodate 14,000 metric tons of imported tobacco leaves from China, Indonesia, Thailand and India, as well as local produce from Pangasinan and the Ilocos region.


This new warehouse will have state-of-the-art features, such as humidity control, fire suppression equipment and air conditioning that will guarantee freshness of tobacco leaf that will be shipped to PMI cigarette manufacturing facilities in the Philippines, Malaysia and Indonesia.

“In the future, we could further expand the warehouse facility to handle 24,000 metric tons of tobacco depending on the region’s demand,” Nelson said.

Nelson also said that PMI chose to build the warehouse in Subic because the company is committed to the Philippines and the local tobacco industry.

“We have a strong belief in this country. We have a strong belief in the manufacturing industry and in the workers,” Nelson said. (SBMA Corporate Communications)

PHOTO: Philip Morris managing director Chris Nelson and SBMA administrator Armand Arreza inspect the site for the P1-billion regional tobacco leaf warehouse at the Subic Bay Freeport. The facility will store tobacco leaf for use in Philip Morris cigarette factories in Malaysia, Indonesia and the Philippines.

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Century21 to sell Subic retirement homes

New Jersey-based Century21 Real Estate LLC, one of the world’s largest residential real estate trading organizations, has opened here to help promote Subic as a retirement haven particularly for Filipino-Americans.

Century21 Subic President Josephine Chua said the company will provide expertise and help clients narrow down their choices by sharing market trends and local real estate information.

“Buying or selling a home is one of the most important decisions you will make in life and that’s why it’s in your best interest to choose an experienced real estate agent,” Ms. Chua said, following the opening of the firm’s office near the Royal Subic Mall.

The firm operates in 64 countries, with more than 8,800 offices and 145,000 brokers and agents.

Ms. Chua said Century21 Subic will offer “personalized service.”

Ramon Agregado, Subic Bay Metropolitan Authority (SBMA) deputy administrator, said Century21 will help promote Subic free port as a retirement haven particularly for “Fil-Ams” and overseas Filipino workers wanting to go back home.

“Retiring Filipinos abroad wanting to stay in a safe and clean environment would have a better option in choosing Subic as their retirement home,” he said.

Century21 Subic will provide buyers a “Home Search System” and sellers “Customized Home Marketing.” The Century21 Home Search System promises “full service” and an “anxiety-free real estate experience.”

“The home search system offers proprietary marketing tools,” Ms. Chua said.

Services include an Internet marketing program, a global referral network, a quality service survey, property management, home inspection services, and local government assistance.

“This customized Home Search System answers all of the questions and concerns that buyers are challenged with when purchasing a house,” Ms. Chua said.

For those interested to sell their houses, the firm’s Customized Home Marketing System provides sellers with assistance in differentiating their homes from others for sale in a highly competitive marketplace.

The marketing system provides online marketing, a global referral network, information on specialty markets, property management, a home inspection service, and government assistance.

Century21 is aiming to increase its presence and market share in the US and elsewhere, with operations throughout Europe, Latin America, the Middle East and Asia, Ms. Chua said.

While more buyers now use the Internet to gain access to listings or available properties for sale, it is still a good idea to use an agent, Ms. Chua said.

She pointed out that an agent brings value to the entire home-buying process. “He or she is available to analyze data, answer questions, share professional expertise, and handle all the paperwork and legwork that is involved in the real estate transaction.” (Rey Garcia, BusinessWorld)

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SBMA sets Subic water summit on Jan. 28-29

The Subic Bay Metropolitan Authority (SBMA) will host the first Subic Bay Water Summit here on January 28-29 to address concerns on the sustainability of this free port’s number one asset — the waters of Subic Bay.

Experts said the 12,350-hectare body of water, which plays a critical role in the development of the Subic Bay Freeport, had been subjected to various strains brought about by rapid urbanization, as well as development activities.

“If these stresses continue, we are sure to be left with an unsustainable resource,” SBMA Administrator Armand Arreza warned.

“Of course, we don’t want that to happen because Subic Bay is an all-important natural asset,” he added.

Arreza pointed out that Subic Bay, which forms part of the communal waters of Olongapo City and nearby areas in the provinces of Zambales and Bataan, is now considered a threatened resource due to patches of pollution load caused by the disposal of partially-treated sewage, nutrient inflows from changes in land use, and inadequate treatment of industrial wastes.

“Surprisingly, despite the growing industrialization in the Subic Bay Freeport, the major culprit in the observed decline of water quality at this point is waste from domestic households in the surrounding local communities,” Arreza added, citing studies made in 2006 during the preparation of the free port’s Integrated Coastal Management Plan (ICMP).

Experts said that as the primary selling point for Subic’s development into a center for investment, commerce, industry and tourism, the bay is being stressed by several sources. These include reduction of forest cover, inefficient use of fertilizer and pesticides, burning of grasslands, proliferation of fish cages, and increasing sewage and pollution load from domestic wastes produced by neighboring communities.

The same studies also revealed that pressures from commercial and industrial activities in nearby communities, as well as rapid urbanization of surrounding communities have also increased solid waste generation.


These stresses are exacerbated by limited sewer and wastewater treatment facilities, and lack of waste disposal facilities despite increases in local population.

In view of this, Arreza said the SBMA decided to call for a summit to involve stakeholders in the Subic Bay Freeport area and local communities in improving the water quality of Subic Bay, and keeping the natural environment healthy, productive and sustainable.

“Since Subic Bay is a common resource, every stakeholder has the moral obligation to keep this critical resource sustainable and we hope that the summit would address this very vital concern,” Arreza added.

SBMA Ecology Center manager Amethya dela Llana-Koval, whose department is spearheading the two-day event, said the SBMA seeks to define the current status and issues on the quality of the environment in Subic Bay through the water summit.

It also wants to raise environmental awareness among stakeholders and community groups, and provide them with examples of current best practices in environment and water resource management; identify and prioritize key water issues and action plan for the greater Subic Bay area; and generate commitment among stakeholders towards sustainable use and management of land and water resources

“We hope to move on from general concerns to specific commitments,” Koval explained. “After determining the problem areas, we hope to identify concrete solutions, then move on to specific action plans for key issues.”

Among those expected to join the summit are people’s organizations in Olongapo, Zambales and Bataan; environment officials; heads of local government units; and representatives from Subic business locators, schools, and various SBMA departments.

The speakers will include Sec. Edgardo Pamintuan, chairman of the Subic-Clark Alliance for Development Council, who will talk on the impact of human settlements on water resources; Gov. Felipe Nava of Guimaras, who will present best practices in marine conservation; Marikina Mayor Marides Fernando, who will tackle sustainable city planning; World Wide Fund for the Environment vice president Joel Palma, who will make a presentation on marine conservation; and Engr. Cesar dela Cruz, president of the Philippine Institute of Chemical Engineers, who will lecture on sustainable technologies and best practices in industries.

Two members of the SBMA ICMP team, Dr. Hoanh Hoang Nguyen, a soil and water specialist; and Engr. Carlito Rufo an environmental consultant, will also make presentations on land and water use planning, and coastal management, respectively, while Engr. Jaime Garcia, assistant general manager of Subic Water and Sewerage Co., will expound on the firm’s sewerage master plan.

Sen. Richard Gordon, who served as the first SBMA chairman and administrator, has also been invited to deliver his message to participants of the two-day summit. (SBMA Corporate Communications)

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Customs tapping LTO to blacklist 200 luxury cars, SUVs from Subic

Customs Commissioner Napoleon Morales said he will ask the Land Transportation Office (LTO) to blacklist the more than 200 high-end cars and sports utility vehicles (SUVs) that were allegedly discovered missing in a warehouse within the Subic Bay Freeport in Olongapo City.

“Customs has the complete list of these luxury cars and SUVs and we will forward it to LTO in order to round up the missing vehicles,” Morales said.

The Bureau of Customs (BoC) tapped the LTO as part of its effort to seize the unaccounted motor vehicles with blue license plates that had gone out from the warehouses of locators doing business with the Subic Bay Metropolitan Authority (SBMA).

They appeared to have imported permits from SBMA and “privately owned” brought in by locators who can operate warehouse in the Freeport for use as storage areas for their imported goods.

It was reported that duties and taxes due from the vehicles are estimated at P600 million considering that the rates of duties and taxes would average at P2 million per imported vehicle.

“There is a need to find these motor vehicles not only to collect duties and taxes but also for the administrative and criminal prosecution of any and all persons involved,” Morales said.

He added that Customs Task Force “Oplan Blue Plates” headed by his senior assistant Alex Arcilla has been activated to run after the vehicles since Subic District Collector Marietta Zamoranos issued a number of warrants of seizure and detention (WSD) against them.

They are believed to be moving around Metro Manila or in nearby provinces using spurious LTO certificates or used Import Permits issued by SBMA for authorities to import them from abroad.

Under Republic Act 7227, the Subic Special Economic Zone shall be operated and managed as a separate customs territory ensuring free flow or movement of goods and capital, as well as provide incentives such as tax and duty-free importations of raw materials, capital and equipment.

But Morales said its a different story once these imported items were released out of SBMA because they will be subjected to customs duties and taxes under the Customs and Tariff Code of the Philippines. (RAYMUND F. ANTONIO, Manila Bulletin)

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SBMA calls on Asia-Pacific media for greater support

Recognizing the power of the mass media to disseminate crucial news and information to target audiences worldwide, officials of the Subic Bay Metropolitan Authority (SBMA) have urged for greater partnership between managers of economic zones and media networks in the Asia-Pacific Region.

SBMA chairman Feliciano Salonga and SBMA administrator Armand Arreza issued this call as about 40 executives representing 14 members and five affiliates of the AsiaNet news network met here at The Lighthouse Marina Resort on January 11-12 for the Sixth AsiaNet Forum.

The participants included representatives from Australian Associated Press (AAP), United News of Bangladesh, China’s Xinhua News Agency, Hong Kong’s New China News (NCN), Press Trust of India (PTI), Indonesia’s Antara News Agency, Japan’s Kyodo News JBN, Bernama News Agency of Malaysia and Singapore, New Zealand Press Association (NZPA), Pakistan Press International (PPI), Philippines News Agency (PNA), South Korea’s Yonhap News Agency, Thailand’s InfoQuest, and Vietnam News Agency.

Representatives from the network’s global affiliates PR Newswire USA, PR Newswire Europe, Canada’s CNW Group, and Germany’s News Aktuell, also joined the forum.

According to Salonga, AsiaNet represents virtually all the leading news wire organizations in the Asia Pacific Region today and could play a big part in promoting local economies like the Subic Bay Freeport.

“As a significant force not only for the dissemination of news and information, but also for the promotion of truth, enlightenment, education and empowerment, AsiaNet could help us disseminate the information that, yes, we’re already making maritime history here in Subic — and also making big strides in the electronics sector, as well as tourism,” Salonga added.

Arreza, on the other hand, stressed that the “virtual treasure trove of news and statistics that the members and affiliates of AsiaNet routinely handle and deliver, gains more importance and significance in this age of globalization.”


He added that the SBMA and its business locators have gained “the unequalled advantage” of being able to promote their policies, programs and projects through the assiduous monitoring and reporting of Subic events by the Philippines News Agency (PNA), which is a member of the AsiaNet.

Arreza also said that through PNA and AsiaNet, the SBMA’s media reach has “become global and instantaneous,” with news about the free port reaching as far as Australia, United States, China, Japan and Germany within a few hours.

With this global reach, Arreza said, AsiaNet’s support and assistance would be a big help in promoting Subic, highlighting its distinct advantages, and generating the attention of global investors.

AsiaNet, which was founded 15 years ago, now delivers full text and unedited releases and images to over 5,000 media outlets in 34 countries and regions across Asia and the Pacific, said Secretary Conrado Limcaoco Jr., director general of the Philippine Information Agency and supervising secretary of the PNA.

The network “offers a direct link between Asia-Pacific and the rest of the world,” he added.

Limcaoco also said the hosting of the AsiaNet Forum in Subic “augurs well for the Philippines, as this will tremendously help our country strengthen its global economic network.” (SBMA Corporate Communications)

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PLDT, SBMA to push Subic as IT hotspot

Telecommunications giant Philippine Long Distance Telephone Co. (PLDT) has teamed up with the Subic Bay Metropolitan Authority (SBMA) to put Subic at the frontlines of the country’s Information and Communications Technology (ICT) sector.

PLDT Subictel president Dennis Magbatoc said they have “agreed in principle” to partner with SBMA in the promotion of this free port’s emerging IT capabilities to enable Subic to directly compete with leading ICT players like Manila, Cebu, Davao, Laguna and others.

“We would like to position Subic in the forefront, one of the newest choices when it comes to ICT,” said Magbatoc.

He said a memorandum of understanding (MoU) between SBMA, PLDT and its subsidiary PLDT Subic Telecom (Subictel) is scheduled for signing late this month.

Magbatoc said the agreement would pave the way for tripartite collaborative projects that would benefit the Subic Bay Freeport’s ICT industry.

He said the projects would bank on PLDT’s most recent ICT investments here that are worth more than P40-million.These include the fiber optics cable that connects Subic Bay to Manila and the entire Luzon grid, and the P20-million Innovation Laboratory (Innolab) of Subictel that was unveiled last October.

SBMA administrator Armand Arreza said meanwhile that Subictel’s hi-tech IT facility, which sits beside Subic’s Spanish Gate landmark, has been included in the itinerary for potential investors visiting this former naval base.

He said that Subic Bay’s IT and telecommunications infrastructure, available and soon-to-be-offered telecoms solutions that cater to business process outsourcing (BPO) operations, retail and manufacturing businesses, and even the hotel industry, will be staged at the Subic Innolab, the fifth such PLDT facility in the country.

“With this one-stop IT center, the SBMA will get to showcase the IT aspect of doing business in Subic, on top of its other strengths like strategic location, tax and duty-free perks, highly-skilled manpower, superb support industries and infrastructure, and a highly-secured and tourist-friendly environment,” said Arreza.

“When it comes to IT support, we now have everything and anything you need,” Arreza added, referring to the “fully loaded” theme of Subictel’s Innolab.

Arreza said the SBMA is keen on having Subic take the path to knowledge-based industries, as some IT analysts expect the ICT industry to grow by 30%-35% annually, generating one million new jobs for 2010 alone.

“With PLDT as partner, the Subic Bay Freeport can now shift from labor-intensive industries to knowledge-based industries, guided by the emerging trends in the IT sector,” he said.

Arreza also said that the vertical expansion thrust of this free port is being taken to accommodate the entire gamut of BPO and IT-related services like back-office outsourcing, software and games development, engineering design, and digital animation, among others. (SBMA Corporate Communications)

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Mangudadatu bodyguard kills 2 cops in Subic

A bodyguard of Vice Mayor Esmael Mangudadatu of Buluan, Maguindanao, went on a shooting rampage at the law-enforcement office here on Monday afternoon, killing two police officers in what authorities here described as “unprovoked firing.”

Mohamedin Panegas Ali, 39, initially sought refuge with the police here, but for unknown reasons opened fire while inside the office of the Officer of the Day (OOD) at Building 657, which houses the Law Enforcement Department of the Subic Bay Metropolitan Authority (SBMA-LED).

“It was indiscriminate shooting,” said retired police general Orlando Maddela, head of the SBMA-LED, whose office is located next door. “It seems like [Ali] was firing at will.”

“We could see no motive for what he did,” Maddela added. “There was no provocation either.”

Maddela said bullets from Ali’s caliber .45 pistol tore through the wooden door of the OOD room and hit two police officers who were then at the hallway.

The victims were OOD Ceferino Abadia and Senior Police Officer 4 Delfin Orines, who was in the building to see Maddela. Both fatalities were hit in the chest.

Abadia was pronounced dead on arrival at the James L. Gordon Memorial Hospital in Olongapo City, while Orines expired about an hour after the shooting.

Maddela said it was not known why Ali snapped, when he was “very cooperative” with the local police at the outset. Maddela even described him as “obedient.”

After the shooting, the suspect kept silent and simply murmured to himself, Maddela said.

“I think he was praying,” he added.

The spot report Maddela submitted to SBMA officials said Ali was reported as missing by his companions, Police Officer 3 Nasser Dilangalen and Faustino Bernil, at about 6:45 a.m. on Monday.

The two, identified as security personnel assigned to Mangudadatu and assigned to the National Police 1207 Police Mobile Group based in Tacurong City, Sultan Kudarat, personally filed the report with the shift sergeant at the SBMA-LED’s communications branch.

The information was relayed to all police units in Subic.

At about 3:17 p.m. that day, the police again received a report about Ali, this time from a company at the Subic Bay Gateway Park, saying that Ali was in their office and seeking assistance “for fear of his life.”

Maddela said that upon arriving at the SBMA-LED office, Ali informed him that he formerly served with the Special Action Force (SAF) unit stationed at Subic’s Naval Magazine area, and asked that he be brought there for his own safety.

Maddela reportedly agreed and called up Supt. Jonas Amparo, the local SAF commander, to have his men fetch Ali from the LED office.

According to SG-II (security guard-II) Rexie Alinea of Subic’s Special Weapons and Tactics (Swat) branch, who prepared the evidence custody receipt (ECR) for Ali’s gun, the law enforcers even gave Ali some coffee and bread after learning that he had not yet had his afternoon snack.

It was then, when such arrangements have been made, that Ali apparently snapped at the OOD room.

Alinea said he was busy with the ECR when Ali saw some SAF officers outside the building and asked to get his identification card from his waist bag that was on top of a table.

“Everything happened so fast,” Alinea said in an SBMA media briefing on Tuesday morning. “As soon as he got hold of his bag, out came the gun. Then he quickly cocked it and pointed it at me.”

Another SWAT officer, SG-II Edwin Nopal, who was in the same room reacted quickly when he saw Ali pull his gun out of the bag.

“I immediately embraced him to prevent him from shooting. But he was big, and I couldn’t easily subdue him,” Nopal recounted.

Nopal said that even as he tried to wrestle the gun from Ali, the suspect managed to fire some shots.

“He was even trying to point the gun to my head, but each time he did that, I moved my head closer to his,” said Nopal, who said he was temporarily deafened by the shots.

At one point in the scuffle, the two fell on the floor, said Nopal.

“When I felt that his gun jammed, I shouted for the others to enter the room,” Nopal added.

Maddela said murder charges are now being readied against Ali, who is temporarily detained at Police Station 3 in Olongapo City.

He added that verification of the murder weapon revealed that the caliber .45 pistol used by Ali is duly licensed, with expiry date of February 27, 2011. Ali’s permit to carry firearms outside residence (PTCFOR) is also valid until August 16.

Meanwhile, SBMA Administrator Armand Arreza clarified that Ali was not under arrest when the incident happened.

He also said the actions by Nopal and Alinea were “in accordance with the procedures.”

“The SBMA stands behind these men,” he added.

At the same time, Arreza lamented the twin killing, calling it “tragic” and “a loss of two dedicated men.”

“This incident is a testament to the hazards that our law-enforcement officers face every day in the performance of their duties,” he added.

Arreza also said the SBMA will provide assistance to the family of Abadia and ordered his subordinates to expedite the release of benefits that are due them.(Henry Empeño, Business Mirror)

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Maritime, electronics firms are Subic’s top employers

Companies engaged in shipbuilding and maritime-related services are now the biggest employers in this free port, even as service-oriented companies still employ the bulk of close to 87,000 workers hired by various business locators here.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said that seven of Subic’s top 10 biggest employers are in the maritime business, while the three others that complete the list are from the electronics manufacturing business.

“This has been the case since Korean shipbuilder Hanjin Heavy Industries & Construction Corp. located in Subic in 2006,” Arreza noted. “While the services sector still hired most of Subic’s workers, those in the shipbuilding and manufacturing industries usually landed in the top 10 biggest individual employers.”

“These two industries are really catching up fast in terms of hiring, but the bulk of total Subic’s workforce still depended on companies that provide services,” Arreza added.

According to SBMA data, the biggest employer in Subic as of October 2009 is Hanjin Heavy Industries & Construction Corp., which has a total of 3,118 employees. Hanjin operates a $1.7-billion shipyard at Subic’s Redondo Peninsula and builds some of the biggest vessels in the world today.

Following Hanjin in the second and third slots are two Japanese manufacturers — computer parts-maker Nidec Subic Phils. Corp., which employs 2,361 workers; and electronics motor-producer Sanyo Denki, which has hired a total of 2,218.

The fourth and fifth biggest employers are Korean companies that provide support services to Hanjin. These are Subic Shipbuilder Corp., with a total of 1,862 employees; and Greenbeach Powertech, Inc., with a total of 1,693 workers.

In sixth place is Taiwanese computer-maker Wistron Infocomm Phils., which has a total of 1,699 employees. Wistron used to be Subic’s biggest employer prior to the establishment here of Hanjin in 2006.

The rest of the companies in the top 10 employers list are all Hanjin subcontractors: Subickor Corp., which has a total of 1,662 workers; Metrobay Corporation, with 1,514; Redondo Baytech Corp., with 1,426; and Kalayaan I-Tech Corp., which has a total of 1,361 employees.

With a total manpower complement of 15,796, the top 10 employers, however, delivered only 18.51 percent of Subic’s current employment record of 86,631.

SBMA data as of October this year also indicated that the number of workers in the services sector stood at 38,676, or 44.64 percent of the total workforce in the free port, while those in the shipbuilding and maritime sector totaled 25,301, or 29.21 percent.

The rest come from the manufacturing sector, which had 15,614 workers, or 18.02 percent; construction sector, with 6,494 or 7.5 percent; and the domestic sector which employed a total of 546 helpers and caretakers, or 1 percent.

Arreza also said that the services sector is expected to keep the lead in employment generation in the coming years because Subic “is basically service-oriented.”

Subic’s thrust to become a major service and logistics hub is also expected to create more service-oriented jobs, he added.

Among the 86,631 workers in the Subic Bay Freeport today, fully 40 percent come from Olongapo City, which has traditionally contributed the most number of workers since 1992. Olongapo’s workers in the free port now number 34,807.

Next to Olongapo, the province of Zambales provided the biggest number at 19,194, or 22.16 percent; Bataan, with a total of 10,994 or 12.69 percent.

The rest are from the National Capital Region, which has a total of 4,556 migrant workers in Subic, or 5.26 percent of the total; Pampanga, with 2,897 or 3.34 percent; and Tarlac, with 1,801 or 2.08 percent. (SBMA Corporate Communications)

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SBMA seaport posts all-time high income of P449.15-M as 2009 closes

Living up to the vision of becoming a highly-competitive service and logistics hub in the Southeast Asian region, the Subic seaport racked up bigger monthly earnings this year and could be expected to post an all-time high income at the year-end.

Officials of the Subic Bay Metropolitan Authority (SBMA) said that Subic seaport earnings in the last 11 months already stood at P449.15 million, which is about 78 percent more than last year’s January-November total of P252.63 million.

“This not only breached our seaport revenue target for the current year, but has also surpassed year-on-year figures since 1992 when the Subic Bay Freeport was created,” said SBMA administrator Armand Arreza.

“This is really unprecedented,” he added. “This is one record that would be hard to beat even in the next few years.”

According to records of the SBMA Seaport Department, the surge in seaport income started in January this year when it earned P37.6 million, or 167 percent more than the P14.07-million earnings in January 2008.

The positive growth continued all through the following months, with comparative figures rising by 165 percent in February, 209 percent in March, 101 percent in April, and 168 percent in June.

As of November, this year’s seaport income already exceeded the January-November 2008 income by P196.5 million, said Arreza.

The seaport income is derived from vessel and cargo charges, leases and rentals, processing fees, SBMA shares from joint ventures, and other billings for port users.

SBMA seaport manager Federico Pascual also pointed out that Subic seaport’s revenue generation consistently began posting increases in the last four years, rising from P181.09 million in 2005, to P190.88 million in 2006, P221.39 million in 2007, and P276.24 million in 2008.

The rebound began, Pascual noted, after seaport income dipped in 2005 by 20.39 percent, compared to the P227.46 million recorded in 2004.

“Since then, seaport operations picked up, especially this year when the global recession turned out to be an opportunity for the Subic port,” Pascual said.

“In the first six months of 2009 alone, seaport revenue already exceeded the previous year’s 12-month performance,” he added.

Pascual said the rise in seaport income could be attributed to the operation of Subic’s New Container Terminal 1 (NCT-1) by the Subic Bay International Terminal Corp. (SBITC), as well as to income from vessel lay-ups and wharfage fees for petroleum products, fertilizer, and grains like soya and wheat.

He also said the positive performance stemmed from SBMA efforts to aggressively market the Subic port and attract more shippers, importers, brokers and forwarders to Subic.

Pascual said that because of SBMA’s marketing program, the agency’s seaport department posted a whopping revenue of P60.7 million in June, the highest in the 11-month period, as well as a P51-million collection in March.

He likewise noted that the SBMA Seaport Department’s 11-month revenue has (Henry: Sounds like this phrase has a missing verb) its 12-month revenue forecast of P316..3 million by P133 million, or 52 percent.

Pascual added that since the seaport’s average monthly income now stood at P40.8 million, it would be safe to assume that the 2009 revenue total for the Subic seaport would reach P490 million.

The estimated year-end earnings would exceed the revenue forecast of P316.3 million by about 55 percent. (SBMA Corporate Communications)
PHOTO: The SBMA seaport is proving to be a globally-competitive service and logistics hub, as its 2009 income is expected to be the biggest year-end total in 16 years.

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SBMA ‘Pamaskong Handog’ benefits 500 indigents, Aeta kids

Some 500 residents from poor families in Olongapo City enjoyed an early Christmas treat when the Subic Bay Metropolitan Authority (SBMA) held a gift-giving activity and children’s party under the agency’s annual “Pamaskong Handog” project.

As an initiative of the offices of the chairman and the administrator, “Pamaskong Handog” endeavors to bring smiles and the spirit of Christmas to less fortunate residents, especially children, in the area.

“This is only a simple way of returning part of the blessings that the SBMA and the Freeport community have received this year,” said SBMA administrator Armand Arreza.

“We’d like to make some of the poorest members of the community feel that we are here for them, that somebody also loves and cares for them, and would like to share the spirit of Christmas with them,” he added.

Arreza said the annual project has benefited thousands of indigent families and street children, as well as members of the Aeta tribe in upland communities near the Subic Bay Freeport.

At the remote Aeta community of Mampweng in barangay New Cabalan, Olongapo City, 61 students from the local grade school were among those who enjoyed a Christmas party sponsored by the SBMA this year.

“Masaya po ang party namin, kasi po lahat kami ay nagsaya, nabusog at may regalo pang naiuwi,” said Paulo Jugatan, a grade 1 pupil.

The gifts given to Mampweng schoolchildren came from the SBMA unit of the Couples of Christ Handmaids of the Lord. Olongapo City councilor Ellen Dabu also sent some gifts for Mampweng.

The Mampweng community is populated by about 150 Aeta families whose main livelihood is subsistence farming, selling bananas and other crops.

The SBMA Christmas outreach project also benefited more than 400 children and adults who received their Christmas gifts at the San Roque chapel in Subic’s central business district.

The distribution of gifts was led by Mrs. Pat Arreza, wife of the SBMA administrator, and Ms. Rose Baldeo, head of the Global Terminals and Development Inc., a Subic investor.

Global Terminals, as well as some other business locators in the Freeport, donated most of the gifts, while SBMA personnel and church lay groups serving at the San Roque chapel helped out in the gift-giving activity.

Rev. Joven Descartin, tribal pastor of the Word of Hope Assembly of God church, who helped organize the Christmas outreach project, said the activity exemplifies the true meaning of Christmas — that of giving life and hope to others.

“As we celebrate the joy of Christmas, let us then remember our less fortunate brothers and sisters, and share our love with them through giving gifts,” Descartin said. (SBMA Corporate Communications)

PHOTOS: SIMPLE FEAST: Schoolchildren at the Aeta village of Mampweng in Olongapo City partake of a simple feast prepared for them by the Subic Bay Metropolitan Authority during the agency’s Christmas outreach project.

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2009 Subic Freeport revenue to top 2008 record

Revenue generation in this free port this year will be slightly higher than the P5.27 billion recorded in 2008, as cash collections by both the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR) began showing minimal growth in the last quarter.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said that combined BoC and BIR earnings will “pull Subic through to a positive performance despite a shortfall in foreign direct investment (FDI).”

“As of now, we only need about P394.6 million more to reach the 2008 revenue level. That’s about a month’s worth of collections to make,” Arreza said, adding that BIR figures for October and November have yet to come in.

With combined collections averaging P443.7 million a month in the last 11 months, “the December earnings alone should bring total earnings over and above the 2008 record,” Arreza added.

According to figures compiled by the SBMA, combined BoC and BIR cash collections from January to November 2009 have already reached P4.88 billion. This is broken down into a P3.85-billion revenue delivered by the BoC, and a P1.03 billion collection remitted by the BIR.

Aside from cash collections, the Subic Customs office also recorded some P2.78 billion in non-cash earnings, which are mostly composed of government to government transactions.

However, the BoC is still short by about P71.36 million in its collections this year, in order to attain its 2009 target. The agency has set a P3.92 billion goal for the January-November period, but has thus far collected only P3.85 billion.

Meanwhile, exports generated by businesses in the Subic Bay Freeport this year have reached $800.98 million as of September, a slight increase over the $755 million export production recorded in the same period last year.

Subic’s biggest exporters this year are: Hanjin Heavy Industries & Construction Corp., with $355.56 million in freight-on-board (FOB) deliveries; Wistron Infocomm (Phils) Corp., with $111.4 million; Lets Do Mobile Philippines, $63.52 million; Sanyo Denki Phils., $50.91 million; Hitachi Terminals Mechatronics Phils. Corp., $43.08 milion; Juken Sangyo Phils., $26.03 million; Tong Lung (Phils) Metal Industry, $17.71 million; Lindberg Subic, Inc., $14.88 million; Nicera Philippines, Inc., $12.13 million; and Nidec Subic Philippines Corp., with $9.8 million.

On the other hand, import transactions made in the Subic Bay Freeport from January to November 2009 reached a total of $2.01 billion, SBMA records indicated.

This figure represented a 6.14 percent decrease from the $2.14 billion record set in January-November 2008.

The top importers for this year are: Hanjin Heavy Industries & Construction Corp., with an FOB total of $378.46 million; Sanyo Denki, with $335.17 million; PTT Philippines Trading Corp., $289.94 million; Wistron Infocomm, $182.56 million; Nidec Subic, $135.45 million; Nicera Philippines, $86.79 million; Micro Dragon Petroleum Inc., $72.65 million; Koryo Subic, Inc., $54.3 million; Lets Do Mobile Philippines, $48.54 million; and Ixion Corporation, with imports totaling $45.4 million. (SBMA Corporate Communications)

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Subic Freeport Oct-Nov investments reach $44.42M

Investments generated in this free port in the months of October and November have reached $44.42 million, putting the cumulative total in the last 11 months at $166.64 million.

Figures from the Subic Bay Metropolitan Authority (SBMA) indicated that a total of $23.1 million were committed by 12 investor-companies here in October, while 22 firms pledged a total of $21.32 million in November for their projects.

Among the top investors in the two-month period is real estate developer Ayala Land, Inc. , which pledged $21.4 million for the construction, development and operation of a retail and commercial center here.

Other investors with substantial project commitments included Aeroframe Composites, Inc., which pledged $465,000 for the processing of composite parts and materials; Hamomo Corp., with $385,274 for the operation of a real estate business; and Honey & Money Subic Corp., with $321,062 for the development, management, and operations of a condominium, hotel and commercial complex.

SBMA Administrator Armand Arreza, who noted the resurgence of investments here following a slowdown late last year until early this year due to the global economic crisis, said this is “an encouraging sign.”

“As far as we can tell, Subic is fast regaining its footing in terms of investment generation,” Arreza said.

“While there has been a noticeable drop in FDIs (foreign direct investments), Filipino companies like Ayala Land have more than made up for the slump,” Arreza added.

According to Arreza, FDIs recorded in the Subic Bay Freeport actually fell by more than 67 percent in January-November this year compared to the total in the same period last year. The 2008 figure for the first 11 months was $224.82 million, while the 2009 tally was only $73.82 million.

On the other hand, 139 investment projects put up by Filipino companies contributed a total of $96.22 million in investment pledges, or 57.74 percent of the $166.64 million total for January-November..

After the Filipino investment commitments, the next biggest pledges were put up by 26 Korean firms with a total of $55.86 million, or 33.52 percent; a Swiss project worth $7 million, or 4.2 percent; six Taiwanese projects totaling $2.86 million; and four Japanese projects with a total of $1.27 million.

The ten biggest investments in the 11-month period were committed by Ocean Nine Philkor, Inc., a Korean company that pledged $52.38 million; Filipino developer Ayala Land, Inc., with $21.4 million; Tountzis Shipping Inc. (Filipino), with $20.23 million; Jadelink Subic Inc. (Filipino), $16.85 million; Philip Morris Philippines Manufacturing, Inc. (Swiss), $7 million; Pure Petroleum Corp. (Filipino), $6.22 million; Subic Business and Technology College (Filipino), $4.29 million; Bonsure Evergreen International Corp. (Filipino), $2.21 million; Chifil International Import-Export Manufacturing Co., Inc. (Filipino), $1.41 million; and Eastern Subic Fuel Depot Corp. (Filipino), with $1.05 million.

The 163 projects approved so far by the SBMA this year are expected to contribute a total of 6,340 new jobs.

As of November this year, there are a total of 1,310 approved investment projects in the Subic Bay Freeport Zone. The cumulative investment commitments generated by these projects now total $5.918 billion. (SBMA Corporate Communications)

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FedEx to continue CSR, business activities in RP

FEDERAL Express (FedEx) Philippines says it will continue supporting the communities and businesses in the coming years despite its recent pullout of its Asia-Pacific hub in Subic, Olongapo.

Samuel S. David, FedEx country manager, said its continuing corporate social responsibility (CSR) activities in the Philippines only indicate that they want to do business here on a long term basis.

“History will show that companies that focus its efforts only on short-term profit is [using] a business model that is not bound to succeed in the long term. So our presence in the Philippines is long term,” David said in an interview.

The FedEx official said the company’s strategic partnerships with various non-profit groups will also continue for as long as these organizations will remain within the thrust of the firm. FedEx’s CSR thrusts are on human services, education, emergency and relief and pedestrian and child safety.

At present, the company is in partnership with organizations such as Gawad Kalinga, Safe Kids Philippines and Junior Achievement International Trade Challenge.

The company also gives financial support to schools in eight different Gawad Kalinga communities, three of which are in Parañaque City and the others are in Zambales, Bacolod, Negros Occidental, Cebu, Sultan Kudarat and Bukidnon.

David, who also managed the company’s former Asia-Pacific hub in Subic before its pullout earlier this year, said they may have further partnerships with other groups in the future.

At the moment, David said that they are monitoring Mayon Volcano in Bicol as they may be of help to the communities there.

During the relief efforts for typhoons Ondoy and Pepeng that visited the country in October, FedEx was instrumental in moving goods on the ground by providing trucks and helped groups such as the Philippine National Red Cross, ABS-CBN Foundation, and GMA Kapuso Foundation.

Over $30,000 in cash donations was raised by FedEx from its employees in the Asia-Pacific region, David said.

After pulling the plug on its Subic facility, FedEx said its operations in the country will be focused in Manila and in Cebu, mainly on exports of electronics materials.

“FedEx will maintain its presence in the Philippines and remains committed to the Philippine market in the long term as we expand our operations gateway in Manila, with back-office facilities being ramped up as part of a regional strategy to centralize certain services,” the company earlier said. (VG Cabuag, Business Mirror)

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$96-M Filipino investments outpace FDI in Subic

Investment commitments put up by Filipino-owned locator-companies in this free port have so far eclipsed foreign direct investment (FDI) recorded here this year, marking the first time in recent years that locals outshone imports.

According to the Subic Bay Metropolitan Authority (SBMA), Filipino firms made it to the top of the chart by drowning out the competition with sheer numbers: a total of 139 investment projects that, taken all together, were worth about $96.22 million.
This translates to 57.74 percent of the $166.64 million total for investment projects approved by the SBMA board from January to November this year.

Korean firms, which held sway here since 2006 when shipbuilder Hanjin Heavy Industries Corp. plunked its initial $1-billion investment, slipped to the No. 2 position with only 26 investment projects worth a total of $55.86 million, or 33.52 percent.

This was less than a third of the $198.84 million (85.48 percent) committed by 46 Korean companies in 2008, the same year that 67 Filipino firms invested $10.09 million (4.33 percent).

The third slot among the biggest investors this year went to a Swiss-owned company, which put up a project worth $7 million or 4.2 percent; followed by six Taiwanese projects with a total worth of $2.86 million; and four Japanese projects with a total of $1.27 million.

SBMA Administrator Armand Arreza said that FDI generated in the Subic Bay Free Port in the last 11 months actually fell by more than 67 percent, when compared with the total posted in the same period last year.

Arreza said that FDI in the January-November 2008 period totaled $224.82 million. For the same period this year, it was only $73.82 million.

However, even as foreign investment dropped this year, Arreza noted that Filipino companies “more than made up for the slump” and carried the day for Subic’s investment performance.

“This is an encouraging sign,” Arreza said. “As far as we can tell, Subic is fast regaining its footing in terms of investment generation.”

For the last two months alone, investment pledges in Subic reached a total of $44.42 million, with a total of $23.1 million committed by 12 investor-companies in October, and a total of $21.32 million pledged by 22 other firms in November.

Arezza said that among the biggest investors in the two-month period is Filipino real-estate giant Ayala Land Inc., which pledged $21.4 million for the construction, development and operation of a retail and commercial center.

Seven other Filipino companies made it to the list of top 10 biggest investors this year. These are Tountzis Shipping Inc. with $20.23 million; Jadelink Subic Inc., $16.85 million; Pure Petroleum Corp., $6.22 million; Subic Business and Technology College, $4.29 million; Bonsure Evergreen International Corp., $2.21 million; Chifil International Import-Export Manufacturing Co. Inc., $1.41 million; and Eastern Subic Fuel Depot Corp., with $1.05 million.

The only foreign companies in the same list are Korean casino-resort developer Ocean Nine Philkor Inc., which pledged $52.38 million; and Swiss-owned Philip Morris Philippines Manufacturing Inc., with $7 million for its warehousing operation here.

The SBMA also said that the 163 projects it has approved this year are expected to create a total of 6,340 new jobs. The Subic free port has an active work force of 86,631 as of October 2009.

The agency added that as of November this year, there are a total of 1,310 approved investment projects in the Subic Bay Free-port Zone. These projects are worth a total of $5.918 billion in committed funds. (Henry Empeño, Business Mirror}

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