Belmonte, Wang discuss investments in Subic

MANILA - Representative Raymond Wang, of Taipei Economic and Cultural Office in the Philippines, met recently with House Speaker Feliciano Belmonte Jr. over Taiwan’s growing investment in Subic, Bataan and other localities.

They were joined by Reps. Victor Ortega, George Arnaiz, Rachel Del Mar and Mylene Garcia-Albano.

Wang briefed Belmonte on the $2.5 billion infused by Taiwanese locators in Subic and the inauguration of the new China Airlines charter flight between Taipei and Cebu on March 31.

He cited business projects in Carmona, Cavite and in neighboring Laguna province, underscoring his country’s pragmatic diplomacy and the major achievements in Cross Strait relations in recent years to push for the Economic Cooperation Agreement and Mutual Legal Assistance Agreement between Taiwan and the Philippines.

Wang, Belmonte and other House members exchanged views on strengthening bilateral relations between the two countries through cooperation projects and exchange visits by legislators. (Manila Standard Today)

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SOFA 2012 set for Feb. 28

Subic Bay Metropolitan Authority Chairman and Administrator Roberto V. Garcia is all set to deliver his first State of the Freeport Address (SOFA) today (Feb 28) at 2:00 pm at the Subic Bay Exhibition and Convention Center.

The SOFA, as the yearly report is now commonly referred to in the Subic Bay Freeport, is a traditional review of the Agency’s performance in the previous year, and a look into its present situation, as well as its future direction.

“This is will be a different report, as I intend to discuss the problems we are facing, which we are determined to address with the support of our locators,” Garcia noted.

As the highlight of the annual Freeport Community Forum conducted by the Subic Bay Freeport Chamber of Commerce (SBFCC), the event also includes the induction of new SBFCC officers by the SBMA chairman and administrator.

Expected to attend the afternoon affair are chamber officers and members, SBMA officials and employees, media members, and other Freeport locators and residents.

“While this Community Forum is open to all those interested, including the SBMA workforce, it will be a regular SBFCC meeting with the only Order of Business from the Chamber agenda to include the Induction of new SBFCC Officers”, Chamber President danny J. Piano said. (SBMA Corporate Communications)

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'Probe SBMA appointee mess'

MANILA - Malacañang has ordered an investigation into the alleged misrepresentation of a certain Mike Macapagal who claimed to have been named Subic Bay Metropolitan Authority (SBMA) administrator.

Executive Secretary Paquito Ochoa Jr. said President Aquino did not appoint Macapagal to the post being held by Roberto Garcia, who took his oath of office at Malacañang last Monday. Garcia was appointed on Nov. 21, 2011.

“Due to the confusion caused in SBMA by the statements of Mr. Macapagal and his representatives, I have directed the National Bureau of Investigation to conduct an investigation into the matter and prepare the filing of appropriate charges,” Ochoa said.

Based on reports, Ochoa said Macapagal supposedly presented to the media his appointment papers and a press release announcing his appointment as SBMA administrator. (Aurea Calica, Ric Sapnu, Philippine Star)

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SpeedFest comes to Subic; top of the line race cars to roar on runway

At least 70 top of the line, maximum performance, exotic cars will roar here for two days in the first ever SpeedFest to be held at the Subic Bay International Airport (SBIA) on February 25-26.

The high-adrenaline action is organized by AutoIndustriya.com, the country's leading automotive industry website and forum.

The SBIA will be temporarily closed during the event, and no aircraft will be admitted to the airport except for emergency situations.

Subic Bay Metropolitan Authority (SBMA) chairman and administrator Roberto Garcia said that the organizer had completed all necessary requirements for this event, including permits from the Air Transportation Office (ATO).

“We have already coordinated with the ATO and other flying schools here, regarding the temporary closure of the airport to avoid accidents,” assured Garcia.

Event organizer Brent Co said that the race will be held on the SBIA runway to accommodate four-wheeled high-performance machines for the no-speed-limit Mile Run Event on Saturday.

On Sunday, meanwhile, all-out drag machines will tackle the Quarter Mile Drag Strip in the same venue.

“With the long and flat ‘race track’ this event is going to be the best opportunity for the drivers to test their skills and their machines’ driving performance,” Co said.

As a sidelight to the race, a Gymkhana event will also take place on both days for those who get their kicks with screeching tires as they take on the tight, challenging course designed by David Feliciano.

The event is open to public, but with entrance fees. (RAV/MPD-SBMA)

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PNoy swears in Garcia as SBMA chairman-administrator

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia finally took his oath of office as chairman and administrator of the agency before President Benigno Aquino III, ending speculations that a new Palace appointee would take over the reins of the SBMA.

Garcia was sworn in, along with other new Palace appointees, on Monday in Malacañang.

He said that his appointment as SBMA Chairman and Administrator in effect unified both positions in conformance with the SBMA charter.

Garcia was originally appointed by President Aquino as chairman of the SBMA board of directors in April 2011. In November 2011, he was signed in as SBMA administrator. His term as chairman and administrator will end on June 30, 2016.

Garcia’s oath-taking on Monday was belatedly challenged by some reports saying that Michael Ted ‘Mike’ Macapagal had been appointed as SBMA administrator by President Aquino effective February 27.

A news report also said that Macapagal’s appointment was backed by political and business leaders in Olongapo City, including Aurelio Pineda and Ramon del Rosario, president and vice president, respectively, of the Metro Olongapo Chamber of Commerce, Inc.

However, both had since issued a written statement to disclaim their reported role in the “alleged endorsement of an aspirant to the SBMA.”

Garcia stressed that he works at the pleasure of the President. “I am ready to step down anytime if the President says so because the ultimate decision is the decision of the President,” Garcia said. (RFD/MPD-SBMA)

PHOTO:
President Benigo Aquino III congratulates SBMA chairman and administrator Roberto V. Garcia after the latter’s oath-taking at the Rizal Ceremonial Hall in Malacañang last Monday. With Garcia is his wife, the former Maribi Mapa.

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Garcia takes oath as SBMA Chairman & Administrator

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Roberto V. Garcia (4th from right) poses with President Benigno Aquino III after taking oath at the Rizal Ceremonial Hall in Malacañang on Monday, along with other new Palace appointees. Also in photo are members of Garcia’s family.

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US-based Filipino foundation fulfills promise to Subic Aeta kids

“I have returned.” Like that of a great general in World War II, a Filipino-American has fulfilled a promise he made two years ago to Aeta children in this free port.

Edilberto “Bert” Aguilera, a certified public accountant from Ibaan, Batangas, who now lives in New Jersey, USA, met an Aeta while visiting Subic in 2010 and made a promise to return with school supplies.

Aguilera, president of the family foundation Fil Aid USA, a US-based non-profit humanitarian organization, was then in Subic as part of the delegation from the Philippine-American Chamber of Commerce of Texas which organized a trade, tourism, and humanitarian mission to the Philippines on October 11 to 16, 2010.

On their last day at the Subic Bay Exhibition and Convention Center, which served as the venue, Aguilera met Tata Kasoy, an Aeta tribal elder living in Pastolan Village inside the Freeport.

“I met Tata Kasoy and made a promise that I would return to donate school supplies for the school children in his tribe,” Aguilera recalled.

In a surprise gesture on the second week of February this year, Aguilera, accompanied by his wife and three more family members, visited Subic Bay to fulfill his promise.

In coordination with the Public Relations Department of the Subic Bay Metropolitan Authority (SBMA), which regularly undertakes livelihood projects in Aeta villages here as part of the agency's corporate social responsibility program, Fil Aid USA visited elementary schools at Sitio Kanawan, Barangay Binaritan, and Pastolan Village in Hermosa, Bataan.

In Kanawan, where a simple turnover of donations was held, the group was met by tribal leaders headed by chieftain Rodelio Tamundong and school principal Jose Labandillo.

In Pastolan, Tata Kasoy was among those who greeted the group and was emotional in meeting Aguilera, who returned to fulfill his promise.

“Hindi ko na halos matandaan ang naging pag-uusap namin noon at hindi ko na inaasahan na matutupad iyon. Pero narito na nga siya at dala na ang ipinangakong mga gamit ng bata sa paaralan,” Tata Kasoy said.

Aguilera said his return is part of a mission to help the needy.

“This trip of ours could be a trailblazer because when I go back to US, we will make some publication about what we have done here for the school children, and probably others will follow suit,” Aguilera said.

“God is giving me energy while I’m doing this mission,” he added. This kind of project, he added, would be ideal for “people coming from abroad go to various places in the Philippines for a vacation. We in this mission are looking for places where we could help the needy,” Aguilera said. (RAV/MPD-SBMA)

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Subic is still the best retirement haven, Fil-Ams told

Subic is still the best place for retirement.

This was the message by Subic Bay Metropolitan Authority (SBMA) chairman and administrator Roberto Garcia to visiting Filipino-American delegates during the 22nd Trade Mission to the Philippines, a workshop-conference organized by the Filipino Chamber of Commerce of Hawaii and held at the Subic Bay Exhibition and Convention Center (SBECC).

Garcia, who was keynote speaker in the conference dubbed “Global Citizenship: The Filipino American Experience,” updated the delegates on the strategic advantages of doing business or retiring in Subic.

“Aside from scenic views and friendly environment, Subic is a much secured area,” Garcia said, noting that the Subic Bay Freeport is securely bounded by perimeter fences and has a very good law enforcement unit that is well-known for its expertise and alertness.

Garcia added that Subic is also primed to push its advantage in medical tourism, having recently opened two world-class hospitals that cater to retirees and provide excellent medical services at very affordable rates.

“Subic is a very attractive place for tourists and retirees alike, providing both an eco-friendly environment and a cost-effective locality,” Garcia also pointed out.

Citing the experience of a Japanese friend who is paying P150,000 monthly for services in a nursing home where his aged mother stays, Garcia said this same amount “can already buy him a very nice house and lot with 24-hour service nurse here.”

“Now, my Japanese friend is considering retiring in the Philippines,” he added.

The recent trade mission here coincided with the annual outreach project of the American Services Division of the US Embassy in Manila for the large American resident community in the Subic Bay area.

On the same occasion, US Ambassador to the Philippines Harry Thomas personally answered some queries and concerns from the American community here.

Also invited to the same occasion were Carlo Ponti Zialcita, officer in charge of the Philippine Retirement Authority (PRA) at its Subic-Clark office, who talked about “The Philippines and Subic/Clark as a Retirement Community Destination”; Darrin Morgan, regional federal benefits officer at the US Embassy; and Dr. Dean Alegado, president of DT Alegado Consulting Group, who discussed issues and concerns related to retiring in the Philippines. (RAV/MPD-SBMA)

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SBMA welcomes UK cruise ship

SUBIC BAY FREEPORT – Colorful dance performances and a beautiful sunrise greeted foreign tourists here recently as the Subic Bay Metropolitan Authority (SBMA) welcomed the arrival of the first cruise ship to dock here this year.

The United Kingdom-based M/V Spirit of Adventure docked at the Alava pier last Friday and disembarked 378 passengers and 201 crew members for a tour of the Freeport, including a jungle survival demonstration at the Pamulaklakin Aeta village.

The visitors, who have recently toured Palawan, Cebu and Manila, were pleasantly surprised to discover “hidden treasures” among the forests of the former Subic Naval Base here.

“When we got off, I was a bit disappointed because the environment was so American, but once we arrived at the Pamulaklakin trails, very quickly after that, we found Subic to be unique, very unique,” said Helen Pollard, one of the tourists from the M/V Spirit of Adventure.

Pollard said that she was impressed by the Aetas’ ability to make anything out of bamboo.

“I’m really impressed by the knowledge of these people, and how long it must have taken to get that knowledge. This is fabulous!” she added.

Pollard also found the people warm and sincere. She said that her visit to Subic was the most interesting part and the best day she had on tour.

The visitors also went to other tourist spots and the duty free shops inside the Freeport.

“It’s been a good experience and a good farewell to the Philippines for our guests,” said cruise director Neil Harrocks, adding that it was a delight to have Subic as their last stop in the Philippines.

“The passengers were very pleased to see that their welcome is extended not just by those who work here, but also by the local residents. The smiling, the waving, it’s been a delight,” he stated.

Harrocks also said that the passengers enjoyed the excursions and that everybody wanted to come back and explore Subic more.

Harrocks also had nothing but praises for the Filipinos. Most of the crew members aboard the ship are Filipinos.

While the M/V Spirit of Adventure was docked in Subic, several SBMA officials headed by deputy administrator for business and tourism Raul Marcelo, deputy administrator for administration Robert Martinez, and deputy administrator for operations Redentor Tuazon boarded the cruise liner to meet some of the crew members and tour the ship.

Marcelo said that with the ship’s visit, Subic has now established itself as a full-blown maritime facility, with its shipyard, ship repair, and cruise ship facilities.

The SBMA has been pushing the Subic Bay Freeport into becoming a top Asian cruise ship destination. The agency is a founding member of the Asia Cruise Terminals Association, which was recently launched in Singapore. (FMD/SBMA-MPD)

PHOTO:
Tourists disembark from the United Kingdom-based M/V Spirit of Adventure, the first cruise ship to visit the Subic Bay Freeport this year. The visitors toured popular attractions in Subic, including the Pamulaklakin Aeta village.

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Hanjin enrolls in DOLE's Kapatiran WISE-TAV

OLONGAPO CITY - Hanjin Heavy Industries & Construction Philippines (HHICP) and the Department of Labor and Employment (DOLE) yesterday signed a Memorandum of Understanding that effectively enrolls the Korean shipbuilding and construction giant to the DOLE's "Big Brother, Small Brother" Program, otherwise known as the Kapatiran WISE-TAV, the program that encourages big companies (Big Brother) to practice corporate social responsibility by coaching small companies (Small Brother) in eventually becoming fully compliant with labor laws and occupational safety and health (OSH) standards.

Secretary Rosalinda Dimapilis-Baldoz signed the MOU on behalf of the DOLE, while President Ahn Jin Kyu signed on behalf of HHICP.

DOLE Regional Director Raymundo Agravante and Bureau of Working Conditions Director Brenda Villafuerte witnessed the signing held at the sprawling HHICP shipbuilding facility, the most modern and the largest in Southeast Asia, in Brgy. Cawag, Subic Bay Freeport Zone, in Zambales.
The MOU effectively covers 16 HHICP contractors, subcontractors, and services providers and involves 22,000 workers.

The Kapatiran WISE-TAV Para sa Mas Ligtas, Malusog, at Produktibong Manggagawa, is a flagship public-partnership program of the DOLE, and is anchored on the ILO's Work Improvement in Small Enterprises, whose action-oriented approach has long proven to link productivity and product quality to safer and better working conditions.

Baldoz, who delivered a message during the signing, hailed the HHIPC’s for enrollment in the program, as it is a big step towards instilling a culture of voluntary compliance with labor laws and occupational safety and health standards in the company.

"I consider this occasion very important and significant. This is a very good starting point of our partnership towards productivity and compliance with labor laws and occupational safety and health standards, given that the HHICP has faced a number of concerns in the past few years," she said.

She explained that the administration of President Benigno S. Aquino III is committed to create and nurture an environment conducive to sustainable businesses that creates decent jobs.

Baldoz announced during the signing ceremony that she is assigning no less than Regional Director Agravante as her focal person at the HHICP’s Kapatiran WISE TAV

"Director Agravante knows what that means, so you can call him directly because he can mobilize other offices of the DOLE under him in the region to assist you," the labor and employment chief said.

On his part, Mr. Ahn Jin Kyu said that as "Big Brother, HHICP is most willing to share its safety and health standards with its contractors, subcontractors, and services providers."

This is the second memorandum of understanding that the DOLE has signed this year under the Kapatiran WISE TAV. The first was signed last January between DOLE Region 3 and Yokohama Philippines.

To date, 79 "Big Brothers" and 804 "Small Brothers" are enrolled under the program, effectively covering 177,000 workers, who benefit from the MOU in terms of better labor conditions and safer and healthier work places.

Baldoz reiterated that its collaboration with private companies under the Kapatiran WISE TAV is meaningful for inclusive growth and the promotion of productivity and competitiveness.

“Through the Kapatiran program, the DOLE considers private sector establishments as partners in ensuring voluntary compliance to labor laws and safety and health standards. We know they play a positive and developmental role in enhancing the welfare and protection of our workers and in promoting productivity and competitiveness and sound and harmonious labor-management relations,” Baldoz emphasized. (DOLE LCO)

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UK-based cruise ship to visit Subic Freeport

SUBIC BAY FREEPORT - The Subic Bay Metropolitan Authority (SBMA) will welcome the first international cruise ship to dock in this free port this year, as M/V Spirit of Adventure arrives from Manila on February 17 as part of its Southeast Asian tour.

The ship, which is based in the United Kingdom, has 378 passengers and more than 200 crew members on board. They are scheduled to visit key tourist spots in the Subic Freeport such as the Pamulaklakin Aeta village and Camayan Beach.

M/V Spirit of Adventure has been to Malaysia, Brunei and Borneo before arriving at Puerto Princesa in Palawan recently. The ship will then proceed to Cebu and Manila before docking at Subic.

Raul Marcelo, SBMA deputy administrator for business and tourism, said that the cruise ship’s visit is an opportunity to show that the Subic Bay Freeport is ready to be a top cruise ship destination in the Philippines and in Asia.

He also said that the SBMA has already made arrangements to ensure the passengers’ safety and convenience during their ten-hour stay here.

The SBMA has been grooming the Freeport as a major cruise ship destination since it co-founded in 2010 the Asia Cruise Terminals Association (ACTA), a group seeking to provide a unified marketing platform for the cruise ship industry in the Asian region.

Last year, the SBMA hosted ACTA’s second pro-tem meeting before the group was formally launched in Singapore last November.

Marcelo said that Subic stands to get a windfall from the cruise industry, which also eyes the growing number of wealthy Asians as a “source market.” (FMD, SBMA-MPD)

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‘Pnoy Pawikans’ released at Subic Freeport

SUBIC BAY FREEPORT – A total of 114 turtle hatchlings were released into the sea here by students on the occasion of President Aquino’s birthday on Wednesday.

According to All Hands Beach Resort official Mark Dayrit, the turtles which hatched at about 12:30 a.m. on February 8 were collectively nicknamed “PNoy Pawikans” as their birth coincided with the President’s birthday.

The baby turtles were released by some students from the Brent International School in Subic Freeport, employees of the Subic Bay Metropolitan Authority (SBMA), and members of local community organizations.

Cynthia Robles of Greg’s Waterworld, a tourism establishment in this free port, said that the hatchlings that were released into the wild belonged to the Olive Ridley species, one of the three species of sea turtles that lay eggs along the Zambales coastline.

The Olive Ridley is described to be a small sea turtle, with an adult carapace length averaging from 60 to 70 centimeters. Olive Ridley turtles are best known for their behavior of synchronized nesting in mass numbers.

The All Hands Beach is among the few known turtle nesting sites in the Subic Freeport, leading the management of the resort to pledge give its assurance to preserve the area as a turtle conservation site.

Dayrit said five of the nine clusters of sea turtle eggs laid at All hands have already hatched and released into the sea without having been endangered by predators. Among the recent hatchlings were those of a Hawksbill, a critically-endangered species.

“We contacted the SBMA Ecology Center to ask their support in caring for these animals,” Dayrit said, adding that the resort staff also signified willingness to help in the conservation of these vulnerable animals especially during their nesting season.

He said that the Ecology Center has given them tags to identify the turtles that lay eggs at the resort, as well as a chart to record the number of eggs laid, along with a guide on how to relocate eggs to safer places along the beach.

The resort staff have also given free lectures among visitors, helping make elementary and high school students aware of the need to protect the marine creatures. For this, the management is giving free rides to lecture participants, from the Subic Freeport main gate to the resort, which is about 20 kilometers away.

“We want to make sure that our children get first-hand experience on how to handle these animals. Awareness among people is the key in the protection and survival of the sea turtles,” Dayrit said. (Jonas Reyes, Manila Bulletin)

PHOTO:
Newly-hatched Olive Ridley turtles are released into the sea at the All Hands Beach Resort in the Subic Bay Freeport.

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SBMA to ban plastic bags, Styrofoam to protect environment

The Subic Bay Metropolitan Authority (SBMA) is consulting its stakeholders on the proposed policy to prohibit retail establishments inside the Subic Bay Freeport from using plastic bags and Styrofoam as packaging materials.

SBMA Chairman Roberto Garcia said the proposal is in line with the SBMA’s desire to reduce, if not totally eliminate, the use of plastic film bags in an effort to protect public health and welfare, as well as the local environment and wildlife.

Garcia noted that the agency is mandated to conserve and protect the environment of the Subic Freeport, as well as its surrounding communities. He also pointed out that Subic is among the few remaining areas in the country where rainforests can be found.

Garcia said that the SBMA Solid Waste Management Division collects almost 35 tons of garbage everyday inside the free port zone. Of these, 15 percent or 6.5 tons are plastic and Styrofoam, which are mostly used as packaging materials.

“Those that are not collected usually end up clogging canals, creeks, rivers and other waterways, thus posing a significant source of marine debris. These are hazardous to marine animals and birds,” Garcia said.

“From an overall environmental and economic perspective, the best thing the SBMA can do is to require retail establishments to refrain from using plastic bags and Styrofoam, and shift to reusable non-plastic carry-out bags or biodegradable materials,” he said.

In response, restaurant, canteen and food kiosk operators attending the consultation-forum organized by the SBMA Ecology Center signified full support of the new policy, but expressed concern over the availability of alternative packaging materials they may use.

“We support the policy eliminating plastics, but we need some time to find other alternatives materials to replace our plastic cups, bags and Styrofoam,” says Kristy Dizon of Ed-Beng Kiosk.

College of Subic Montessori principal Imee Lacbain Alejo asked the SBMA to invite producers of alternative packaging materials to conduct product exhibits in the Freeport so that stakeholders would be apprised of available environment-friendly products.

Meanwhile, Liway Santiago of Pideli Cafe here urged fast food and kiosk operators inside the Freeport to advocate the proper disposal of plastics while alternative materials are not yet available.

The SBMA had tasked its Ecology Center to conduct consultations with stakeholders and explain the policy guidelines to affected businesses, and later to implement and monitor the effective implementation of the new policy.

During the consultation with retailers, SBMA Ecology Center manager Amethya Koval said that the proposed policy is expected to take effect in June 2012, but for the purpose of moratorium, all business establishments and individual retailers are given six months, or until December this year, to comply with the new regulation.

After December 2012, retail establishments will be prohibited from providing plastic bags to customers as packaging materials for dry or wet goods, or selling and providing Styrofoam containers for food, produce and other products. Violators will be fined accordingly.

Exempted from this regulation are original packaging of goods delivered to Subic Freeport establishments. However, when new plastic or plastic bag is to be used in repacking the goods purchased by a consumer, then the new policy would apply. (RAV/MPD-SBMA)

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Vale Starting Subic Ore Transshipment

SINGAPORE (Reuters) – Brazil's Vale will begin its iron ore distribution operations in the Philippines this weekend, the Philippine port operator said, from where the world's top miner of the raw material will transfer China-bound ore brought in by big ships.

Vale is taking a more costly route to deliver iron ore to China, its top market, which has barred the miner's giant dry bulk vessels from entering its ports to shield its domestic shipping industry.

The miner has set up a transshipment hub in the Philippines' Subic Bay port using a floating storage vessel which will start operations on Feb. 12. It is also building a $1.3-billion iron ore distribution hub in Malaysia's northern Perak state, which could be ready to handle the giant ships by 2014.

China last week barred Vale's mega ships called Valemaxes – which at 400,000 deadweight tons each are the world's biggest dry bulk carriers – to protect its shipping sector hit hard by the economic downturn and freight rates that have fallen to their lowest in more than a quarter century.

''When Vale starts full operations on Feb. 12, we expect the SBMA (Subic Bay Metropolitan Authority) to earn some 70 million pesos ($1.64 million) in additional income in the first year alone because of the projected increase in ship calls,'' Roberto Garcia, chairman of SBMA, said in a statement late on Monday.

Vale's Ore Fabrica, the world's largest dry bulk floating storage vessel, arrived in Subic Bay last week. The 280,000-deadweight-tonne vessel will serve as a platform to transfer iron ore from the Valemaxes to smaller vessels for transport to Asian markets led by China.

A Valemax, Vale Brasil, is expected to arrive in Subic on Feb. 12, Reuters shipping data showed. SBMA said it expects Vale Brasil to dock a day later.

Vale was hoping its planned fleet of 35 Valemaxes would slash its shipping costs to China to help it better compete with Australian rivals BHP Billiton and Rio Tinto.

But some analysts have said the cost of the transshipment centers would unlikely outweigh any savings from using the Valemaxes.

Vale has said its plan to build a fleet of 35 giant ore carriers, of which six are already in service, had not changed despite China's ban. (Manolo Serapio Jr., Manila Bulletin)

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Subic Freeport eyes P70-M income from Vale transshipment project

The Subic Bay Metropolitan Authority (SBMA) expects to generate additional revenue of as much as P70 million with the transshipment operation here of Brazil’s Vale Mining, the world's biggest iron ore producer.

SBMA Chairman Roberto Garcia said the agency, which also administers the Port of Subic, has entered into an agreement with Vale Mining, making this free port the hub of Vale’s iron transshipment operations in Asia and turning Subic into a major player in the maritime logistics industry in the Asia Pacific Region.

“The main reason why Vale has located its operations here is Subic’s strategic location in the Asia-Pacific region,” Garcia said. “And it’s all about economies of scale. Vale will haul its ore products to Subic using its big carriers, then transfer the iron ore to smaller vessels, which the smaller ports in China will be able to accommodate,” he said.

“This is a very fortuitous development for SBMA because Subic will be at the very center of what is expected to be the biggest ship-to-ship transfer operations in the world in terms of volume,” Garcia noted.

“When Vale starts full operations on February 12, we expect the SBMA to earn some P70 million in additional income in the first year alone because of the projected increase in ship calls, as well,” Garcia added.

According to SBMA deputy administrator for port operations Redentor Tuazon, Vale will utilize its Valemax carrier vessels, which have a capacity of up to 400,000 deadweight tons (DWT), to deliver iron ore to several ports in China, now the world’s biggest user of iron ore.

The company will carry out its iron ore transshipment operation from its Valemax mother vessels, supplying ore to smaller daughter vessels, or feeders, which are either Panamax or Capesize types. The especially-designed floating terminal that will supply feeder ships will be anchored in Subic Bay.

Tuazon said that preparations are now underway for the initial transshipment operations with M/V Ore Fabrica, the floating terminal station that arrived here last Monday, January 31, and M/V Vale Brazil, which is set to arrive on February 13.

Owing to the magnitude of the transshipment operation, Tuazon said that various marine safety measures have been put into place, including the conduct of hazard and operability (HAZOP) analysis jointly made by representatives of Vale Brazil, SBMA, and agent companies involved in the operations.

All of the vessels to be used in the operation are insured and covered with protection and indemnity insurance, Tuazon added.

The SBMA has been aggressively pushing for the Port of Subic Bay to be a premier marine logistics hub in the region, as it continues to develop the market for the full utilization of Subic’s container terminals.

Recently, it has also offered various incentives to shipping companies for the development of new shipping routes to Singapore and Hongkong.

The arrival of Vale Brazil here would help Subic secure its place on the map in terms of floating terminal operations, Chairman Garcia said. (SBMA Corporate Communications)

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