Subic Freeport workers now 81,700

Expansion programs by existing companies in Subic, as well as the entry of new business locators, has resulted in the continuing rise of employment here, with the active workforce augmented by more than a thousand workers each month since January this year.

According to figures from the Subic Bay Metropolitan Authority (SBMA), the active workforce in Subic stood at a total of 81,729 as of August this year.

This represented an increase of 11,321 new hires over the yearend 2007 figure of 70,408.

SBMA Administrator Armand Arreza said most of the new positions were created by companies expanding their operations.

"More jobs are about to be created in the coming months as we step up efforts to sign in more businesses and to coordinate job-skills matching with our locators," he said.

Arreza added that in the first eight months of this year, the SBMA has approved 130 new investment projects that will create a total of 5,177 new jobs.

SBMA data indicated that of the total 81,729 workers employed in the Subic Freeport, majority come from Olongapo City, which contributed a total 32,241, or 39.45%.

The second biggest number of Subic workers are those from Zambales, with 17,794 or 21.77%, followed by Bataan, with 10,803 or 13.22%; the National Capital Region, with 4,421 or 5.41%; Pampanga, 2,837 or 3.47%; Tarlac, 1,153 or 1.41%; and other areas, 12,480 or 15.27%.

Arreza said the SBMA's job creation initiatives will also receive a boost from an Internet-based job-skills matching program launched here on Friday by WOWCard, Inc., a business locator that conducted the first Internet-assisted job fair to be held here on September 26 to 27.

The project, Arreza added, will further strengthen job creation efforts for Central Luzon workers, and help address both unemployment and underemployment in the region.

WOWCard president Victorino Quiton said, meanwhile, that the Internet-based system dubbed as "Job@8s" will utilize an electronic database whereby investors and business locators in Subic could post job announcements and hiring requirements.

"This will make the whole recruitment and hiring process faster, more efficient and easier," he said.

Quiton explained that job-seekers availing of "Job@8s" services will be asked to list their qualifications and desired positions.

These will then be encoded and matched with available positions as listed by the more than 30 investor firms that have confirmed their participation in the job fair.

"This facility will also provide locators the window to hire highly qualified professionals even from outside the country, and, at the same time, is expected to attract more foreign investors when they learn that the recruitment and hiring process in Subic is less of a problem," Quiton added.

Quiton said the "Job@8s" facility will be made available for free to local job applicants even after the job fair. (SBMA Corporate Communications)

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Internet-based job fair set in Subic on Sept. 26-27

Job applicants take note: Landing a job at the Subic Bay Freeport will now be faster and easier with the use of Internet technology.

WOWCard, Inc., a Subic-registered company engaged in advertising, will conduct on September 26 to 27 the first Internet-based job fair in this free port at the Subic Bay Exhibition and Convention Center (SBECC).

The event, which will be undertaken in partnership with the Subic Bay Metropolitan Authority (SBMA), will also launch WOWCard's job-matching facility that will utilize advanced information and communications technology (ICT) for optimum job-skills matching.

"This will be the first job fair in the Subic Bay Freeport wherein job-seekers could go through the entire process of application and hiring in just one day," SBMA Administrator Armand Arreza said.

"This Internet-based job-matching facility developed by WOWCard will not only make it easier for job applicants, it will also be available for free," he added.

According to WOWCard president Victorino Quiton, the job-matching facility dubbed as "Job@8s" will utilize an electronic database whereby investors and business locators in Subic could post job announcements and hiring requirements.

"This will make the whole recruitment and hiring process faster, more efficient and easier," Quiton enthused.

He explained that in the coming job fair, job-seekers will be asked to list their qualifications and desired positions, which will then be encoded and matched with available positions as listed by the more than 30 investor firms that have confirmed their participation in the event.

"This facility will also provide locators the window to hire highly qualified professionals even from outside the country, and, at the same time, is expected to attract more foreign investors when they learn that the recruitment and hiring process in Subic is less of a problem," Quiton added.

Aside from being the first Internet-based job fair, the coming event will also set the standards for future job fairs, Quiton disclosed, because of exhibits and entertainment that will be put up at the 5,000-capacity convention center.

He said that there will be some 50 booths for exhibits, aside from food booths to be set up at the front parking area of the SBECC, and transportation to and from the venue will also be provided.

"And while job-seekers wait in line for their application, video and live band, as well as raffle of prizes donated by locator-sponsors, will provide the sidelights of the event," Quiton said.

He also stressed that WOWCard will provide the Job@8s job assistance program even after the job fair, and it will be a free service.

The project, Arreza meanwhile said, is seen to further strengthen job creation efforts for Central Luzon workers, and also address both unemployment and underemployment in the region.

As of August, data Department of Labor and Employment's Bureau of Labor and Employment Statistics indicate that Central Luzon ranks third among the 17 regions in unemployment rate with 10 percent, and 17th in underemployment rate with 8.3 percent.

Since its establishment as a free port in 1992, Subic has helped create livelihood opportunities not only for local investors, but also to workers from Central Luzon and nearby regions, Arreza said.

The Subic Bay Freeport now employs a total of 81,729 workers, most of them from Olongapo City, which now has an employment share of 39.45%. The rest comes from Zambales, 21.77%; Bataan, 13.22%; National Capital Region, 5.41%; Pampanga, 3.47%; Tarlac, 1.41%; and other areas, 15.27%. (SBMA Corporate Communications)

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Koreans top new Subic investors with $198.8-M

South Korean companies pledged some $198.8 million in new investments here in the first eight months of the year, making them the top-ranking group of new investors for the past three years.

The South Korean firms, with a total of 46 projects approved by the Subic Bay Metropolitan Authority (SBMA) from January to August, committed more than 85% of the $232.6 million worth of new investments for the said period.

Filipino investors, meanwhile, came in second with 67 projects worth $10 million, followed by Taiwanese firms with three projects worth $2.9 million, and Malaysians, with another three proposals amounting to $2 million.

SBMA Administrator Armand Arreza said the influx of Korean investors here came in the wake of the $1.6-billion investment infused by shipbuilder Hanjin Heavy Industries Corp.-Philippines in 2006 and 2007.

“Most of these Korean companies are either suppliers or subcontractors of Hanjin, and some are property developers that also target the growing Korean community not only in Subic, but in other parts of the country,” Arreza revealed.

“Subic’s biggest new investor so far this year, the Subic Neocove Corp., is also a Korean company which intends to develop a resort to cater mostly to Korean expatriates,” he added.

“Of course, Subic has a good mix of nationalities, who have been part of the local business community since the free port was established in 1992,” Arreza said.

Among the nationalities that put up new investments here this year are the Taiwanese, Japanese, American, Malaysian, Pakistan, Norwegian, Australian, British, Singaporean and Canadian.

SBMA records also indicate that in January to August this year, foreign direct investments (FDIs) composed the bulk of fresh capital infusions in Subic with a total of $208.8 million.

In the same period, the SBMA had approved a total of 130 projects, with projected employment totaling 5,177.

These increased the number of approved projects in the Subic Bay Freeport to 1,103, with committed investments totaling $5.73 billion.

Arreza said that for the past three years, Korean firms had topped other nationalities in terms of value of new investment projects.

In 2006, Korean companies put up a total of $1.36 billion, followed by Filipinos with $57 million, and Taiwanese with $9.8 million.

Last year, Koreans were again on the number one rank with $993 million worth of investments, followed by Filipinos with $355 million, and Taiwanese with $222 million.(SBMA Corporate Communications)

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Subic revenues hit P3.55-B in first 8 months

Revenue collections in this free port amounted to more than P3.55 billion in the first eight months of the year, boosted by positive growth in cash receipts by both the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR).

Figures released by the Subic Bay Metropolitan Authority (SBMA) indicated that the two collection agencies here posted a combined increase of more than P251 million, or 7.61% over last year’s January to August revenue total of P3.3 billion.

The surge in tax and duties collection started in June this year, when a positive variance of 40.05% was recorded, followed by increases of 12.27% and 8.36%, respectively, in the next two months.

SBMA Administrator Armand Arreza said the positive tally is “reflective of the growth in business operations” by the more than 1,100 investor firms in the Subic Bay Freeport, as well as the increasing number of port users.

“The growing number of business locators in Subic also contributed to the growth in income taxes collected from Freeport employees, which now number to almost 82,000,” he said.

He added that in just the first eight months alone, the active workforce in the Subic Freeport rose by 11,321 from 70,408 at the end of 2007.

According to figures submitted by the BoC to the SBMA, the bureau’s cash receipts this year totaled P2,539,272,857.53 as of August, representing an increase of 8.11% over the P2,348,694,404.81 posted in the same period last year.

The overall growth was attained despite negative month-on-month variances posted in March, with –13.7%, and May, with –21.63%.

The highest monthly total in the eight-month period was recorded in July when BoC collected P393,074,394.64, followed by P367,591,192.46 in June, and P335,330,989.39 in August.

Meanwhile, non-cash revenues by the BoC, which are not included in the total cash receipts, amounted to P3.54 billion in the first eight months. This figure represented a percentage increase of 118.48 over the 2007 total of P1.58 billion.

As for the BIR, its income tax collections rose by 6.35% in January to August 2008, compared to its 2007 performance.

The BIR said it collected a total of P1,014,153,609.10 this year, compared to P953,566,367.74 in January to August 2007.

The bureau’s biggest tax haul was made in April when collections reached
P210,080,661.86.

The agency also posted a 61.8% month-on-month increase in March and 24.36% in August, despite negative variances in January (-28.83%) and February (-33.01%). (SBMA Corporate Communications)

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Pres. Arroyo to confer ‘Pagasa’ awards to top civil servants

President Gloria Macapagal-Arroyo will confer on Friday the “Pagasa” award to the country’s most outstanding civil servants, including a security officer here who was recognized for initiating innovative programs for the Subic Bay Metropolitan Authority’s law enforcement department.

Set to receive the Pagasa award under the individual category is SBMA Security Officer III Joel Viray, who was the first SBMA employee of the year awardee in 2006.

The awarding will be held at Malacañang’s Rizal Hall in commemoration of the 108th anniversary of Philippine Civil Service, said Civil Service Commission (CSC) chairman Ricardo Saludo in an announcement sent recently to the SBMA.

Viray will join five other individual awardees, among them a college president and two municipal mayors, who bested other regional finalists in the nationwide CSC search.

Saludo said the Pagasa award is conferred to individuals and groups for outstanding contributions resulting from an idea or performance that directly benefited more than one department of the government.

Six other Pagasa awardees under the group category will also be recognized during the Malacañang ceremony, along with winners in two other award categories: the “Lingkod Bayan” award, which is given for achievements with national impact on public interest, security and patrimony; and the “Dangal ng Bayan” award, for extraordinary acts and exemplary ethical behavior in public service.

Viray was earlier recognized, along with other Central Luzon finalists, by Saludo and CSC Region III director Karin Litz Zerna during an awards ceremony held at the King’s Royal Resort in Bacolor, Pampanga.

According to the CSC, the SBMA security officer earned the Pagasa award for his “dynamism and dedication in his work, which led to the improvement of security systems and processes” in the Subic Bay Freeport.

Viray’s innovations enhanced the operational efficiency of the SBMA Law Enforcement Department by streamlining the accreditation program for security officers, thus generating savings worth P1.2 million, the CSC citation added.

Along with Viray, the 2008 Pagasa awardees in the individual category are: Aleli C. Almodovar, general manager of the Isabela City Water District in Basilan, who was recognized for resurrecting a moribund company into a profitable utility; Dr. Philip B. Ibarra, president of the Tarlac College of Agriculture in Camiling, Tarlac, for his masterful stewardship of the college’s human capital; Froilan C. Roque, refinery officer IV of Bangko Sentral ng Pilipinas in Quezon city, for innovativeness and ingenuity in the workplace; Mayor Noel R. Rosal of Legazpi City, Albay, for leading and inspiring his constituents in rebuilding the city that was devastated by typhoons in 2007; and Mayor Roque S. Verzosa Jr. of Tagudin, Ilocos Sur, for successfully implementing a blueprint for development.

Winners in the Pagasa group category, meanwhile, are: the Department of Agriculture-Cagayan Valley Integrated Agricultural Research Center’s Crop Improvement Group; Ilocos Norte Water District; the Pag-Ibig Fund branch in Butuan City, Agusan del Norte; the Tarlac College of Agriculture’s group for Promoting Commercialization of Sweet Potato-Clean Planting Materials; the “Buwis Balikatan sa Barangay” group of the Bulacan government’s Provincial Asessment and Treasury Office; and the UPLB Bee Program of the University of the Philippines at Los Baños. (SBMA Corporate Communications)

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UIG claim of P1-B investment disputed

Officials of the Subic Bay Metropolitan Authority (SBMA) have disputed claims by the Universal International Group (UIG) that it has invested P1 billion to develop the golf course facility in this free port.

Pointing out that UIG was booted out of the facility precisely for its failure to introduce developments in the former US military golf links, the SBMA questioned where the supposed P1 billion investment went.

"We believe that the claim cannot be substantiated because we have yet to see the clubhouse, or the condo, or the villas that the UIG had promised in 1995," SBMA Administrator Armand Arreza said.

"As you can see, despite the UIG having operated the facility for more than 10 years, nothing much has changed. The property is still fenced off with barbed wire until now," he added.

Arreza said that UIG president Jack Ho apparently bloated his firm's capital exposure when he made his case for the company during a House committee hearing recently.

Ho said the P1 billion represented "an accumulation of so many investments, of operating expenses," with around P900 million going to improvements alone.

He claimed further that because of UIG's development, the golf course was assessed by a private appraisal firm in 2001 to be worth P1.3 billion.

SBMA officials, however, have pointed out that the UIG has not delivered on its commitments under its lease development agreement (LDA) with the agency.

The first development phase includes the rehabilitation of the golf course to world-class standards by 2001, the construction of two tee houses by 2002, a full service halfway house by 2003, as well as the establishment of a fishing area, an orchid garden and a handicraft center.

The SBMA said there was only partial compliance on these requirements, while the orchid garden and handicraft center have not yet been constructed.

The second and third phases would have seen the construction of a 100-room condominium and 80 villas by 2006, while the fourth phase would have the completion of a 400-room resort/casino hotel by 2011.

These commitments, however, have not been realized, the SBMA said.

Along with UIG's unpaid debts to the SBMA amounting to $44,070 in dollar account and more than P25 million in peso account, the unfulfilled development commitments had forced the agency to take over operations in May last year.

The dearth of improvements at the Subic golf course, meanwhile, has led irate members of the UIG-controlled Subic Bay Golf and Country Club to sign last June 15 a manifesto expressing support to the SBMA and "elation" over its takeover of the facility.

According to records, the SBGCC has close to 500 members who paid fees equivalent to P200,000 per share.

The paid-up membership fees, dues, and other income collected from the golf course operation, may have been the sole source of funds that the UIG had used for what little development the firm has introduced into the facility, club members also suspected.

Other members rued that the club shares they paid for turned out to be only "playing rights" because UIG has not delivered on the full-blown country club amenities that it has promised earlier. (SBMA Corporate Communications)

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Subic golf course contract not a ‘sweetheart deal’

The Subic Bay Metropolitan Authority (SBMA) has vehemently denied allegations that it has entered into a “sweetheart deal” with Hanafil Golf and Tour, Inc., a Korean-Filipino firm that is set to pour $48 million to redevelop the Subic Bay golf course.

SBMA Administrator Armand Arreza stressed that the agency had observed due process in awarding the contract to Hanafil, in accordance with RA 9184, otherwise known as the Government Procurement Reform Act.

“How could it be a sweetheart deal when, clearly, our agreement with Hanafil assures the government a P14-million income annually compared to the P3.6-million promised by the former operator?” Arreza asked.

“And this P14-million rental will be paid on top of a five percent revenue sharing scheme, as well as the $48 million development commitment,” he said.

Arreza also explained that the SBMA awarded the lease and development contract to Hanafil because the firm offered terms “most advantageous to the government” among the eight proposals received by the SBMA’s Bids and Awards Committee (BAC) for infrastructure.

“All these underwent the legal process — from the publication of an invitation to submit comparative proposals, to the creation of an oversight committee composed of SBMA directors and managers to oversee the bidding process,” Arreza said.

“So there is simply no substance to this sweetheart deal angle foisted by some detractors who seem to relish the idea of reverting to the previous contract that didn’t work out,” he added.

Arreza clarified these points in reaction to claims by Northern Samar Rep. Emil Ong that the terms and conditions of the Hanafil contract were “grossly disadvantageous to the government” because unlike the Universal International Group (UIG), the former operator, Hanafil was given a one-year grace period from payment of rentals to allow the new operator to develop the golf course.

Arreza said, however, that the SBMA has given the UIG “more than enough concessions already” to enable it to make good on its development commitments that were agreed upon as early as 1995.

Among UIG’s commitments were the construction of a first-class clubhouse, a five-star hotel and resort, a condominium and VIP villas targeted for completion before Subic hosted the Asia-Pacific Economic Cooperation summit in 1996.

Arreza said that the SBMA had allowed the UIG’s original lease and development agreement (LDA) to be amended three times, with the first amendment in 2001 effectively reducing the UIG’s rental fees, performance bond and service fees, and extending the firm’s compliance period for its commitments.

However, by January 2003, the UIG still accumulated $44,070 and more than P25 million in arrears, and also failed to deliver on its promises.

The second amendment in 2003 stopped the imposition of service fees altogether and waived future interest on fixed service fees, while the third, in 2004, reduced UIG’s lease rate by 50% and deferred the imposition of escalation rates.

Despite these, Arreza said the UIG continued to default on its obligations under the LDA and under the compromise agreements, so that by the end of March 2007 the firm’s arrears had ballooned to more than $2.55 million and P47.73 million.

“The firm’s failure to settle its debts and to fulfill its development commitments forced the SBMA to terminate UIG’s LDA in May last year in order to protect the interest of the government,” said Arreza. (SBMA Corporate Communications)

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SBMA to invest P160M in WiMax security network

The Subic Bay Metropolitan Authority (SBMA) is investing about P160 million to build a security net powered by the rising star of wireless communications -- WiMax (Worldwide Interoperability for Microwave Access) technology.

SBMA Administrator and CEO Armand Arreza said the government development arm is planning to acquire security cameras and install WiMax equipment all over Subic to connect these.

Arreza said that SBMA picked WiMax over other technologies because it is most suited to Subic's mountainous terrain.

"From the airport to the central area, where we have our office, the distance is longer than Quezon City to Makati," he said, adding that it would be better to use WiMax.

"We will be the one to make an investment on the infrastructure and then we will look for an operator to run it. Our primary goal is to have a wireless security network so we will not need all the bandwidth available. The operator can offer other services, including video streaming, and so on."

Arreza added that SBMA will finalize plans before yearend so that the WiMax network can be deployed next year. (Riza T. Olchondra - Philippine Daily Inquirer)

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Hanjin to improve safety in its Philippine shipyard

Shipbuilder Hanjin Heavy Industries Construction (HHIC) is to improve safety after the deaths of 15 workers at its Philippines shipyard in three years, an official said.

The news comes as the South Korean-based company enters into a contract to build two supertankers at the shipyard in the former US naval base at Subic Bay just north of Manila.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said Hanjin was working to improve safety standards, adding that the workers had died in accidents since construction of the shipyard began in May 2005.

Arreza said the rise of the shipyard, which he compared to an entire town, had been
swift. The shipyard which Hanjin says is the biggest in the world, covers 354 hectares (875 acres).

"This has been a challenge to us. Hanjin went from having zero employees in May 2005, when they began building the shipyard, to 20,000 employees this year," he added.

He said both Hanjin and the workers had to "comply with the culture of safety we
seek to inculcate into all locators at the SBMA.

"He added: "Many construction site mishaps are the result of the construction workers
not wearing their safety gear and we want to change that mindset."

Pyeung Jung Yu, the head of Hanjin's business department in Subic, said the shipyard had signed a contract to build two Very Large Crude Carriers (VLCCs) for 330 million dollars for Emarat Maritime LLC of the United Arab Emirates.

The 320,000-tonne, double-hulled vessels will be 333 metres (1,098 feet) long, 60 metres wide and 30.5 metres tall with a top speed of up to 16 knots.The tankers are expected to be delivered in 2011 and will be a first for Hanjin, which did not have
the space at its South Korea shipyards.

"We simply don't have the space in South Korea so it is only here in Subic that we can build these huge carriers," Yu said.

Hanjin' s Subic shipyard delivered its first ship, the 41,000-tonne container carrier MV Argolikos in July, and launched its second vessel, the CMA CGM Turquoise a month later. It also has contracts for bulk carriers with companies based in Hong Kong and Germany. (AFP)

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Hanjin's Subic Bay shipyard building 2 supertankers

South Korean shipbuilder Hanjin Heavy Industries & Construction (HHIC) will be building two units of Very Large Crude Carrier (VLCC) worth a total of $330 million at its shipyard in Subic Bay Freeport.

According to a company statement received by the Subic Bay Metropolitan Authority (SBMA), Hanjin has entered into a contract to construct two large carriers for Emarat Maritime LLC (EML) of the United Arab Emirates.

The deal was signed on September 3 by EML president Jitendra Misra and HHIC president Kyu-Won Park on behalf of HHIC-Phil, the company's construction arm based in Subic.

The construction of VLCCs will be the first for Hanjin, which has not been able to participate in large vessel production in the past due to limited space at its Yeongdo shipyard in Korea.

"With the completion of the Subic Shipyard, we're now able to build very large vessels," the HHIC statement said."From now on, we're going to focus on high value-added vessels and strengthen our competitiveness through improvement of productivity and technical development based on close cooperation between Yeongdo Shipyard and Subic Shipyard," the HHIC added.

SBMA Administrator Armand Arreza said Hanjin's VLCC contract would accelerate Subic's recognition as a global player in the shipbuilding industry, as well as increase the freeport's job creation and export production thrusts.

"This is no small feat for Subic, considering that it has just recently shifted its focus to its maritime trade potentials. Now, the Subic Bay Freeport, as well as
the Philippines, is gaining popularity for its capability to produce world-class ships," Arreza added.

According to Hanjin, the first VLCCs to be built in Subic are expected to be delivered in June 2011.The 320,000-ton vessels will be 333 meters long, 60 meters wide and 30.5 meters deep, with speed of up to 16 knots. The vessels will be
double-hulled in compliance with maritime industry standards.

Hanjin officials said that with the "revolutionary progress" of VLCC construction in Subic, the company has received high praises from the industry.

The firm's Subic shipyard delivered its first ship, the 41,000-ton container carrier MV Argolikos last July, and launched its second vessel, the CMA CGM Turquoise a month later. Hanjin said it also recently won a total of $630 million shipbuilding deals in a row, including those for a capesize bulk carrier for Sealink Shipping of
Hong Kong on August 27, and two bulk carriers for MPC Steamship of Germany on August 27. (Malou Dungog)

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To meet investment goal, SBMA wants IT parks in Subic

The Subic Bay Metropolitan Authority, aiming to attract a total of $7.5 billion in investments by 2010, is promoting development of information technology (IT) parks in the Subic Bay Freeport, northwest of Manila, SBMA administrator and chief executive Armand Arreza said.

"So far, investments in the free port have reached $5.7 billion, he said. In the first half of 2008, Subic attracted $212 million in investment pledges," he added.

"Subic's port, shipyard and logistics facilities are well known but Subic is not yet known as an IT hub," Arreza said. "It would be very good for us to also establish presence in this area."

Arreza said the SBMA was negotiating with a Taiwanese group and a Dubai-based group that could each develop an IT park in Subic.

"The Taiwanese group is more interested in digital content and biotechnology, while the Dubai group is considering developing space for outsourcing companies, maybe call centers," he said.

The two IT parks would entail about $40 million in investments, of which about $15 million would go to land development, he said.

About 19 hectares of land has been allocated for IT park development at Subic, he said.

The SBMA will host an ICT forum in November, he added. (Riza T. Olchondra - Philippine Daily Inquirer)

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Hanafil golf deal ‘most advantageous’ to the gov’t

The awarding of a contract to develop the Subic Bay golf course to Korean-Filipino firm Hanafil Golf & Tour, Inc. is by far the most advantageous proposal for the government, the Subic Bay Metropolitan Authority (SBMA) said.

Reacting to allegations by Northern Samar Rep. Emil Ong that the terms of the lease given to Hanafil were “disadvantageous to the government”, SBMA Administrator Armand Arreza clarified that Hanafil won the open bidding for the golf course project “precisely because it gave the most generous offer.”

“Anyone, including Mr. Ong, can see for himself that Hanafil’s contract provisions are miles away in comparison with the old terms,” Arreza asserted.

He explained that while the former operator UIG International Development Corp. offered a rental of only P300,000 per month, or a total of P3.6 million in one year, Hanafil has offered $350,000, which translates to more than P14 million annually.

Aside from rental fees, Hanafil has also offered the SBMA a 5 percent gross revenue sharing and development commitments worth $48 million to be implemented within six years.

“Given these commitments by Hanafil, the P3.6 million annual income under the old contract that the honorable congressman seems to want to maintain simply doesn’t measure up,” Arreza said.

Arreza said the issue on the operation of the Subic golf course has been a “recurring theme” among some legislators like Ong ever since the SBMA terminated the UIG’s lease development agreement (LDA) last year due to ballooning debts amounting to $150 million.

He said Hanafil won over seven other companies in a bidding held last March that required proponents to deposit in an SBMA bank $3 million in initial development funds, as well as advance $400,000 in rentals to the SBMA treasury.

The bidding process was duly reviewed by an oversight committee composed of members of the SBMA board of directors and other officials of the agency.


As to the UIG, which is lobbying to repossess the golf course, Arreza said the SBMA “can no longer continue having false hopes with a repeat offender,” pointing out further that the SBMA takeover of the golf course last year and in 1997 had been affirmed respectively by the Regional Trial Court in Olongapo City and the Supreme Court.

“It’s precisely because the government was losing money from the continued operation of UIG that the SBMA took over the operations twice,” Arreza said.

“The SBMA has given the former operator enough concessions,” Arreza said.

However, the Taiwanese firm had “utterly failed to honor its development commitments made as early as 1995,” he added. These included the construction of a first-class clubhouse, a five-star hotel and resort, a condominium and VIP villas.

Ong had also asked the House committee on oversight to investigate SBMA’s awarding of the golf course lease to Hanafil, purportedly because the firm is headed by Benjamin John Defensor III, reportedly a nephew of pro-administration senator Miriam Defensor-Santiago.

Ong has also raised the possibility that Defensor “is just fronting for South Korean investors” since he reportedly holds less than one percent of the shares, while his Korean partners own 87 percent of the company.

That issue, Arreza said however, “is just water under the bridge.”

“What matters to us is the capability of the company to deliver — and we believe that Hanafil has that capability,” he added. (SBMA Corporate Communications)

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"5th Freedom Rights"eyed for Kuwait in Subic-Clark Freeports

The Philippines and Kuwait have begun bilateral talks on liberalized civil aviation
policies that would entitle designated airlines of both countries to operate from the free ports of Subic or Clark to any point in Kuwait and vice versa.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza said the broad terms of discussions included provisions for “Fifth freedom rights” that essentially allows an airline to carry passengers from intermediate points between the two contracting countries.

“This will be a big shot in the arm to both the local aviation and tourism industry,” Arreza said on Thursday, pointing out that airports in both Subic and Clark could accommodate passenger and cargo flights.“The Diosdado Macapagal International Airport [DMIA] in Clark would probably benefit the most because it’s already established as a commercial airport, but our own Subic Bay International Airport [SBIA] could still play catchup,” Arreza added.

Arreza said the initial round of discussions for the prospective Kuwait-Clark/ Subic routes was concluded during the visit to the country of Kuwait’s Prime Minister
Sheik Nasser al-Mohamed al-Alhmed al-Jabber al-Sabah from August 14 to 16.

Secretary Edgardo Pamintuan, chairman of the Subic-Clark Alliance for Development Council, and Fawaz Alfarah, president of the Kuwait Civil Aviation, signed the record of discussion on August 15.

A copy of the record of discussion showed that the two parties agreed to specifically entitle designated airlines of both countries to operate air services from Clark/Subic to any point in Kuwait, and from any point in Kuwait to Clark/Subic, “with any number of frequencies and with any type of aircraft.”

The two parties also agreed that such air services along these routes “shall enjoy unlimited frequencies with Fifth freedom traffic rights both for passenger and cargo flights.”

The Fifth freedom rights as discussed, however, specifically provided that any point in the United States “shall not be served as an intermediate or beyond point of destination.”

The discussion also provided that Kuwait shall grant designated Filipino airlines serving the Kuwait-Clark/ Subic routes a 10-percent discount on fuel and 15-percent
discount on ground-handling services.Arreza said formal negotiations for these agreed-upon items are expected to be held soon between the respective civil-aviation authorities of the two countries.

Once the agreement is sealed, the SBMA “expects to better market Subic as a destination for international tourists, as well as a logistics hub,” he added.

While Clark has lately attracted several airlines flying international routes, the Subic airport has been used mostly for domestic flights and logistics operations by FedEx.

SBMA records indicate that from January to July 2008, a total of 57,998 domestic
aircraft and 6,840 FedEx flights used the SBIA.The Subic airport, which has a 10,000-sq-m passenger terminal and is equipped with an upgraded instrument landing system, now serves as a secondary airport and a main diversion airport of the Ninoy Aquino International Airport in Manila. It can accommodate as many as 41 passenger planes at a time, including wide-bodied aircraft like Airbus A340-200s and Boeing 747-400s, SBMA airport officials said.

Arreza said the SBIA could expect more international passengers once the Kuwait-Subic route is established.(Henry Empeno/Business Mirror)

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Taiwanese in Subic are Happy

Taiwanese investors here “are very happy” that government efforts to harmonize customs systems and procedures with the free ports of Subic and Clark are helping advance trade relations between Manila and Taipei.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza said the recent automation of cargo clearance and releasing facilities in the free ports ironed out kinks in the flow of trade and investments from the island economy.

“Now, we will have an environment where investors can see that their goods are being handled on time and processed in a transparent manner,” Arreza said. “Our locators, particularly the Taiwanese firms, believe that through the harmonized immigration, customs and quarantine program, doing business in Subic and Clark will truly be at par with world-class standards,” he added.

The SBMA and the Clark Development Corp. (CDC) signed a memorandum of agreement (MOA) on the harmonized customs system last week, along with the Subic-Clark Alliance for Development Council (SCADC) and the Bureau of Customs (BOC).In particular, the agreement bound the signatories to formulate, coordinate, implement and monitor an automated cargo clearance and releasing facility in Subic and Clark,
and to adopt the government’s national single window (NSW) program.

The NSW, which was created under Executive Order 482, enables the single submission and synchronous processing of data and information so that the BOC may release cargo shipments at the earliest possible time.

To put the agreement to work, the parties last week issued a joint memorandum order (JMO) that outlined the administrative and operational provisions for automated cargo facilities and defined the responsibilities of each party involved.

The agreement was signed by Arreza, CDC president Benigno Ricafort, SCADC chairman Edgardo Pamintuan and Customs Commissioner Napoleon Morales.Taiwanese locators
from Subic and Clark witnessed the signing held at the Clark Free Port.

Pamintuan said the agreement also put to work the vision of establishing an economic corridor to fully open trade linkages with Taiwan, particularly the Taiwan Export Processing Zone Authority.

He explained that the JMO intends to make smooth and easy the way people do business by providing, through the NSW program, a more efficient, less costly and fully automated system for merchandise that are admitted, transited and transferred into and between the free-port zones.

“The MOA and JMO will facilitate a smooth and seamless transfer of goods and people from and to Subic and Clark, and the export processing zones in Taiwan,” Pamintuan added.

Arreza said the Subic Bay Free Port would benefit substantially from the agreement as it woos Taiwanese investors, particularly those involved in information and communications technology, electronics, software design and biotechnology.

In June the SBMA said it will waive rental fees for high-technology firms from Taiwan under a bilateral trade deal between Manila and Taipei. The talks also resulted in an accord to grant reduced tariffs to Taiwanese manufacturers in Subic and Clark, and the assistance by Taiwan experts in training Filipino workers in integrated circuit design. (Henry Empeno/Business Mirror)

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Hanjin launches second Subic-made ship

South Korean shipbuilder Hanjin Heavy Industries Corp.-Philippines (HHIC-Phil) launched on Saturday, August 30, the second container vessel to be made in this free port — just over a month after it delivered the first ship order, the MV Argolikos, to its Greek owner on July 4.

The vessel, which is also a 4,300-TEU (twenty-foot equivalent) container ship, was towed from Hanjin’s Drydock 5 to the shipyard’s quayside where it will sit for three months as electrical systems and other facilities are installed prior to its sea trial.
The ship, which has a market value of about $60 million, will be called the CMA CGM Turquoise.
It will also be delivered to the Dioryx Maritime Corp., a Greek shipping company that bought MV Argolikos.

According to HHIC-Phil officials, productivity in the Hanjin shipyard here is fast catching up with South Korea’s.

“Filipinos learn fast— now they are experts,” said Hanjin quality assurance director Yoonha Kim.

He said that Filipino workers displayed “world-class efficiency” when hull construction and engine installation for the Turquoise was undertaken within the standard Hanjin timetable of 13 months.

Kim added the completion of the second vessel showed the increased efficiency and technical know-how of Filipino workers when compared to the construction of the MV Argolikos, which took 14 months.

“Our goal is to be at par with our South Korean counterparts in terms of efficiency and quality of work,” Kim said during the launching that was witnessed by other Hanjin officials, representatives of Dioryx, and the Paris-based conformity assessment, certification, inspection and testing firm Bureau Veritas.

The skills of Filipino workers at Hanjin’s shipyard here was earlier praised by President Gloria Macapagal-Arroyo when she called the Argolikos “a showcase of excellence for Filipino ship workers” during the ship’s formal naming ceremony last July.

Arroyo also said that the $1.7-billion Hanjin shipyard here is “a massive boost” to the country’s bid to be the best value for investment in Asia, with projected jobs expected to reach 21,000 during full operations.

Meanwhile, Capt. Thanos Gonis of Dioryx expressed satisfaction with Hanjin’s work, saying they have not experienced any problem with MV Argolikos, which has just finished its first round trip under the chartering of CMA CGM, the biggest container transportation and shipping company in France.

“We’re still waiting up to project No. 6,” said Gonis, whose firm has ordered from Hanjin six container vessels, each with a capacity of 4,300 TEUs, a gross weight of 41,000 tons, and measuring 258.9 meters in length, 19 meters high, and 32 meters wide.

Aside from container vessels, Hanjin would start building oil tankers and bulk carriers next year, Kim also announced. (SBMA Corporate Communications)

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Hanjin workers to get mandatory safety training

Construction workers employed at the shipyard here of Hanin Heavy Industries Corp.-Philippines (HHIC-Phil) will undergo a mandatory safety orientation course starting next week to help address safety concerns at the $1.6-billion shipbuilding facility.

The training was required by the Subic Bay Metropolitan Authority (SBMA) and the Department of Labor and Employment (DOLE), which have both expressed alarm over the number of fatal accidents at the shipyard since 2007.

“This will be a basic safety orientation course for construction workers, including safety officers, employed by both Hanjin and its subcontractors,” said SBMA Administrator Armand Arreza.

“Everyday, starting September 1, there will be 120 shipyard workers attending the safety course,” he added.

The safety appreciation courses, which will be conducted by the DOLE’s Occupational Safety and Health Center, will cover five topics each day.
The primary target audience for the courses are safety officers employed by Hanjin and its subcontractors. These key personnel are then expected to echo the topics discussed among employees belonging to their respective work units.

Arreza explained that the safety orientation course was deemed necessary because investigations of the 15 fatal accidents in the shipyard indicated some safety lapses committed by workers themselves, aside from those by subcontracting firms.

“There were cases when workers refused to wear hard hats because they found it uncomfortable. So we have to really inculcate a culture of safety among the workers, too,” he said.

Aside from the courses set for next week, health and safety personnel from the DOLE and the SBMA have also conducted trainings at the Hanjin shipyard recently, according to the SBMA Occupational Health and Safety Office.

One of these safety courses was conducted on August 21 by the DOLE’s Bureau of Working Conditions and the Association of Safety Practitioners, Inc., a private safety group.

A five-day construction safety training is also being conducted by a DOLE team since Tuesday, with 58 participants from Hanjin and subcontracting firms.

Arreza also said that as part of the SBMA’s action plan to foster safety at the Hanjin shipyard, the agency will set up an office at the site, to be manned by occupational health and safety personnel as well as employees from the SBMA Labor Department.

“We (the SBMA) want to establish a strong presence at the shipyard, so we can enforce adequate control,” Arreza said.

At the same time, Arreza gave the assurance that Hanjin subcontractors who were found to have violated regulations on occupational health and safety and other labor requirements “won’t be tolerated by the SBMA.”

He said that of the 42 companies subcontracted by Hanjin for various operations in the shipyard, 18 have been terminated due to infractions or failure to secure proper accreditation. These included UT Corporation, whose worker Efren dela Cruz became the 15th fatality at the Hanjin construction site.

The other subcontractors whose accreditation were not renewed are: Electro Dynamics Construction Development Inc., AFR Construction & Development Co. Inc., Canall Corp., Ron Daniel Construction Corp., Traffic Control Product Corp., General Corp., Geoscience Technology, A.V. Subia Garden, Beton Bau Phils. Inc., Doublefold Construction Corp., Inyoung Phils. Inc., Jeil Sanup Corp., KMI-KJK Inc., LC Builders & Developers Inc., R.P. Alejandro Construction Inc., Wierig Industrial Products Inc., and I. Stone International Corporation. (SBMA Corporate Communications)

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Conservationists teach Subic residents how to live with wildlife

Subic’s rich and diverse wildlife may appeal greatly to visitors to this free port, but some residents and business locators have lately expressed concerns about wild animals becoming “too comfortable” with people.

To help residents and visitors live harmoniously with nature, the Subic Bay Metropolitan Authority (SBMA) and Wildlife in Need (WIN)-Subic recently launched an information-dissemination campaign dubbed “Living with Wildlife” — a series of presentations designed to familiarize people with wildlife found in this free port.

According to SBMA Ecology Center manager Amethya dela Llana-Koval, they have been receiving some complaints lately, mostly about monkeys becoming “too aggressive” in their foraging—overturning garbage cans and invading properties.

Koval said this prompted them to team up with WIN, a non-profit organization which has been promoting wildlife conservation here in 2003, and undertaking habitat protection and restoration, community-based action programs, public education, and professional training for wildlife protection.

“As you can see, nature and development sit side-by-side in this free port,” Koval explained, adding that it is not unusual for one to see snakes or wild boars crossing roads, or long-tailed macaque monkeys entering housing areas and raiding trash bins.

“We just have to learn how to deal with situations when we encounter wild animals,” said WIN president Gail Laude, who presented a slideshow describing the appearance and behavior of wildlife endemic to the Subic Bay Freeport.

According to Laude, it would be advisable for residents and visitors here to know how animals look like when they are afraid, defensive, confused or angry, so that untoward incidents could be avoided.

Monkeys, for example, bare their fangs when they are afraid, Laude said. “But you would know they are really angry when you see them pull their lips back at the same time that they show their fangs.”

Other animals, like monitor lizards, swish their tails when they are defensive.

Laude said that the best thing that people should do when encountering wild animals is to stay at a safe distance and to leave them alone.

Another rule, she added, is not to feed the wild animals, and to secure trash bins in order not to attract wildlife.

Laude said her organization believes that even with the fast-paced development of Subic, wildlife protection and conservation would still be possible in this free port where boundaries have been set to ensure that development will not creep into the habitats of wild animals.

“There will always be that kind of conflict—the competition for space,” Laude said. “But we believe there is a way for us—humans and wildlife alike—to live together and have enough space and freedom.”

Koval also clarified that while there is now a growing demand for residential and commercial spaces in Subic, the SBMA makes it a point not to sacrifice nature for industrialization.

She added that of the 55,102 hectares of land in Subic, the SBMA has classified a 3,000-hectare area as “core ecological zone” that environmentalists refer to as a “no-development zone.”

This serves as a wildlife sanctuary for the 122 animal species and 745 plant species that can be found in Subic, she added. (SBMA Corporate Communications)

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SBMA probes 18 Hanjin contractors

The Subic Bay Metropolitan Authority (SBMA)has started investigating the subcontractors of Hanjin Heavy Industries & Construction Philippines Inc. in the wake of workers’ deaths inside the shipyard of the Korean company in this Freeport.

SBMA Administrator Armand Arreza said the agency’s investigation of the latest death at the shipyard, involving Efren de la Cruz who was electrocuted on Aug. 12 while working at Hanjin’s motor pool, yielded a troubling pattern among the subcontractors.

“In all the deaths, the common problem is that these workers were not wearing, or did not have, their safety gear or PPEs (personal protective equipment). Either they
were not given any, or they weren’t using it for some reason,” said Arreza.

De la Cruz, hired by Hanjin subcontractor Unicorn T (UT) Corp., died before reaching the San Marcelino Hospital. He was the 15th worker reported to have died while working at the shipyard. On Aug. 7, Arvy Mahinay, 19, who was employed by Hanjin subcontractor Bodahh Inc., died when he fell from a roof while retrieving his helmet that was blown off by the wind.

Poor judgment

In a statement, the SBMA said De la Cruz was electrocuted while working at the shipyard’s motor pool. He and four other workers were using an electricity- driven tool when the accident happened, the SBMA said.

Pyeong Jung-yu, Hanjin general manager, earlier said De la Cruz died after a heart attack. Yu said they did not report De la Cruz’s death immediately to the SBMA or the Department of Labor and Employment because he did not die in an accident.Arreza said most of the deaths could be attributed to “poor judgment on the part of the worker or workers involved in an accident and/or negligence on the part of Hanjin or its subcontractors.”

Fake papers

He said UT Corp., which is owned by a Korean, had faked its certificate of registration and tax exemption (CRTE), a document that allows them to operate within the Subic Freeport without paying duties.

“We found out that UT Corp. was using fraudulent documents while conducting our investigation into De la Cruz’s death. Also, they were not giving their workers the proper benefits, or paying their SSS (Social Security System) contributions. Plus, most of their workers did not have the proper safety gear, like De la Cruz,” he said.

The SBMA has since banned UT Corp. from doing business inside the freeport while Hanjin has terminated its contract.Arreza said the SBMA began cracking down on the subcontractors in July, after worker Benje Gamolo died that month when he was hit by
an eight-ton steel beam.At least 18 of 42 Hanjin subcontractors were either unregistered or had expired registrations, SBMA reports said.

“Without the registration, they (subcontractors) cannot work. For those subcontractors [who have] expired registrations, they can continue [operating in the free port]. [There is] automatic renewal if they have no violations,” said Arreza. (Robert Gonzaga, Inquirer Northern Luzon)

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Subic, Clark harmonize customs procedures

The Subic-Clark Alliance for Development Council (SCADC), Subic Bay Metropolitan Authority (SBMA), Clark Development Corporation (CDC), and the Bureau of Customs (BoC) signed the other day an agreement to harmonize customs systems and procedures in the free ports of Subic and Clark.

The agreement seeks to institutionalize partnership and cooperation between the parties to enhance the positioning and competitiveness of the two free port zones as a preferred international investment and tourist destination.

SCADC Chairman Edgardo Pamintuan, BoC Commissioner Napoleon Morales, SBMA Administrator Armand Arreza, and CDC President Benigno Ricafort signed the memorandum of agreement that also adopted the National Single Window (NSW) program in Clark and Subic.

The NSW is a system that enables a single submission and synchronous processing of data and information, resulting in a single point of decision for the release of cargoes by the BoC.

At the same time, the BoC, SBMA and CDC also put into effect a Joint Memorandum Order (JMO) on automated transit and admission declaration of cargo for Subic and Clark, which outlined the administrative and operational provisions for the automated cargo facility.

The event was witnessed by Trade Undersecretary Thomas Aquino, BoC-Subic Collector Marietta Zamoranos, Dir. Filas Chen of the Taiwan Economic and Cultural Office (TECO), and some Taiwanese locators in Subic and Clark.

Pamintuan said the agreement put into realization the vision of establishing an economic corridor to fully open trade linkages with Taiwan, particularly the Taiwan Export Processing Zone Authority.

He explained that the JMO intends to facilitate the conduct of business by providing, through the NSW program, a more efficient, less costly, and fully automated system for merchandise that are admitted, transited and transferred into and between the freeport zones.

“The MoA and JMO will be harmonizing the Immigration, Customs and Quarantine (ICQ) procedures and policies to facilitate a smooth and seamless transfer of goods and people from and to Subic and Clark, and the export processing zones in Taiwan,” Pamintuan said.

With the implementation of harmonized ICQ procedures, goods from Taiwan could be transshipped to Subic or Clark on real time — as envisioned by Pres. Gloria Macapagal-Arroyo, Pamintuan further said.

For his part, Morales said the new system will also be “our way of fighting corruption” as BoC offices in Subic and Clark will no longer be accepting cash for payments, which shall now be done on-line with banks.

Arreza said meanwhile that Taiwanese investors in Subic “are very happy” with the signing of the agreement.

“Our locators, particularly the Taiwanese firms, believe that through the harmonized ICQ program in place, doing business in Subic and Clark will be truly at par with world-class standard,” Arreza said.

“Now, we will have an environment where investors can see that their goods are being handled on time and processed in a transparent manner,” he added. (SBMA Corporate Communications)

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SUBIC-CLARK HARMONY: Clark Development Corp. President Benigno Ricafort, Bureau of Customs Commissioner Napoleon Morales, Subic-Clark Alliance for Development Council Chairman Edgardo Pamintuan, and Subic Bay Metropolitan Authority Administrator Armand Arreza sign a memorandum of agreement to harmonize customs procedures in the free ports of Subic and Clark.

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Firm allots $48-M to redevelop Subic golf course

A Korean-Filipino company is now set to pump in some $48 million to re-develop Subic’s 18-hole golf course into an all-weather championship fairways and to provide full-blown country club amenities therein.


According to Benjamin John Defensor, president and chief executive officer of Hanafil Golf & Tour, Inc., the firm’s multi-million development commitments include putting up additional nine holes, constructing a hotel and some villas, and improving the driving range at the Subic Bay Golf and Country Club.

The project is scheduled for completion within six years, he said, adding that the re-development would have to be phased after club members requested that the existing 18 holes be kept open while additional holes are constructed.

“We’re aiming for a full-blown country club concept,” Defensor told newsmen in a press briefing here. “The fairways would have to be reconstructed from scratch and some of the holes would have to be relocated.”

In re-designing the course, Defensor said his company is planning to engage the services of topnotch golf architects like Arnold Palmer or Robert Trent Jones II, who have both designed some of the world’s most exciting courses.

Palmer’s best courses include those at the Bay Hill Club in Orlando, Florida; the Classic Club in Palm Desert, California; and the Four Seasons Resort in Liberia, Costa Rica.

Meanwhile, Jones’s masterpieces include the Spanish Bay Links in Pebble Beach, California; the Prince Course in Kauai, Hawaii; and the Cabo Real Campo de Golf in Cabo San Lucas, Mexico.

In the same forum, Administrator Armand Arreza of the Subic Bay Metropolitan Authority (SBMA) revealed that Hanafil’s golf course project is but one of three leisure complexes to be established in the Subic Bay Freeport area within the next few years.

Arreza said the SBMA has also approved a 400-hectare site at Cawag in Subic’s Redondo Peninsula for a golf course and resort project by Neocove, another Korean company, while a third golf links will be established at the Morong area, which is being eyed as a resort and convention complex.

The three golf courses will be located in such a way that they won’t compete with each other, but instead ensure adequate facilities for the growing number of golf enthusiasts and visiting professional players, Arreza said.

The re-development of the Subic Bay golf course came after the SBMA awarded the project to Hanafil in a public bidding earlier this year.

The Subic authority took over the operation of the facility last year after it terminated the lease agreement of the previous operator due to its ballooning debts that ran to some $150 million.

Atty. Von Rodriguez, officer in charge of the SBMA Legal Department, said the Regional Trial Court in Olongapo City has affirmed the validity of the SBMA takeover last year.

The Supreme Court has also upheld in 2000 SBMA’s rights to take over the operation of the golf course when it did so in 1997 due to the failure of the previous operator to honor its development commitments.

Defensor clarified, meanwhile, the firm has retained the services of some 70 workers who were employed by the previous operator and would employ more local workers upon the start of construction and re-development activities. (SBMA Corporate Communications)

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Subic exports hit $416-M in 1st half; Imports rise by 28% to $1.1-B

Subic-made products exported to various markets abroad raked in a total of $416 million in the first half of 2008, $1.5 million more than the total recorded in the same period last year.
According to the Subic Bay Metropolitan Authority’s Trade Facilitation and Compliance Department (SBMA-TFCD), Subic’s first semeter export figure was boosted by deliveries of electronic products, computer peripherals, and precision equipment, as well as the sale of the first subic-made ship by Korean shipbuilder Hanjin Heavy Industries Corp.-Philippines (HHIC-Phil).

Wistron Infocomm Phils., a Taiwanese computer manufacturer that has consistently topped Subic’s exporters list, remained the leader in this period with a freight on board (FOB) export value of $142 million.

The top slot for the month of June, however, was snatched from Wistron by HHIC-Phil, when it posted an FOB value of $59.5 million for delivering MV Argolikos, the first container ship built by the firm here.

The ship, which was delivered to the Greek shipping company Dioryx Maritime Corp., also made HHIC-Phil the second biggest exporter during the first six months.

Completing the list of top 10 exporters in January-June 2008 are: Hitachi Terminals Mechatronics Phils. Corp. (Taiwan) with $41.9 million; Sanyo Denki Phils. (Japan), $38.4 million; Lets Do Mobile Phils. (HongKong), $20.4 million; Juken Sangyo Corp. (Japan), $17.2 million; Tong Lung Metals Inc. (Taiwan), $11.9 million; Hitachi Air Conditioning Products Inc. (Taiwan), $10.6 million; Nidec Subic Phils. (Japan), $8.3 million; and Nicera Philippines, Inc. (Japan), with $7.4 million.

SBMA records indicated that almost 86 percent of the total FOB value recorded in the first semester were produced by the top 10 exporters.

Within the six-month period, the biggest FOB value was recorded in June — $107.3 million, with more than half of this amount contributed by HHIC-Phil.

Meanwhile, imports by business locators in the Subic Bay Freeport during the same period reached $1.1 billion, representing a 27.7 percent increase over last year’s record of $854.2 million for the first six months.

Topping the list of importers here was PTT Philippines Trading Corp., which deals in oil and petroleum products, with a total import worth $278.4 million in FOB value.

PTT was followed in the list by HHIC-Phils. with $169.5 million; Hanjin Heavy Industries and Construction Corp., with $119.1 million; Lets Do Mobile Philippines, with $111.4 million; and top exporter Wistron Infocomm, with $101.5 million.

The other importers that made it to Subic’s top 10 in January-June 2008 were:Tri-Solid Movers Services, Inc., with $38.5 million; Sanyo Denki Phils. Inc., $21.3 million; Hitachi Terminals, with $20.7 million; Honeywell Ceasa (Subic Bay) Co., Inc., $16.5 million; and Juken Sangyo (Phils) Corp., $12..9 million.

The firms in the top 10 recorded about 82 percent of Subic’s total import value in the first six months.

In the same period, the SBMA said that seaport revenue reached P114.5 million, which is equivalent to a 10.9 percent increase over the P103.2-million posted in the first semester of 2007.

The seaport revenue was derived mainly from charges to foreign and domestic vessels that called at the Port of Subic, including wharfage and storage fees.

The SBMA Seaport Department also said that the January-June revenue this year surpassed Subic’s target of P111.7 million by 2.26 percent. (SBMA Corporate Communications)

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Shipyard Worker Electrocuted

The Subic Bay Metropolitan Authority (SBMA) is set to issue another notice of violation to Hanjin Heavy Industries Inc. (HHIC) for “not enforcing the occupational safety regulations on its sub-contractors” following the death of another worker the other day (August 12, 2008).

The worker, identified as Efren de la Cruz, 23, native of Almasen, Hermosa, Bataan, was accidentally electrocuted while working at the shipyard’s Motor Pool (U-Ditch Area) using a power driven tool, together with four other workers of sub-contractor UT Construction.

Amethya Koval, manager of SBMA Ecology Center, said that initial investigation showed there was rainwater in the ditch about three inches deep.

“There were five of them in the group, however only three of them were wearing company-issued rubber boots,” Koval said.

She said that the jackhammer De la Cruz was using was connected to an extension wire that may have fallen or gotten in contact with the water in the ditch, thus electrocuting the unprotected worker.

The victim was immediately brought to the HHIC clinic for first aid treatment and transferred to the San Marcelino District Hospital for further medical treatment but was declared dead-on-arrival (DOA). The attending physician observed that the patient had “bleeding nose and ears, blackened lips and fingers” – manifestations that occur in electrocution cases.

In her report to SBMA Administrator Armand Arreza, Koval recommended the issuance of a Notice of Violation to HHIC Construction, stressing its failure to enforce occupational safety regulations on its sub-contractors and the “lack of supervision by its safety officers on critical working environment.”

“In fact, no job safety analysis was conducted and no Work Permit for that activity was issued,” she said.

Koval also noted that the victim’s employer, UT Construction, a sub-contractor of HHIC Construction, has no SBMA Accreditation and Permit to Operate (PTO), having submitted the accreditation requirements to the SBMA Business Group only on August 7.

“Due to blatant negligence of the contractor to work safety standards, particularly on work environment assessment and provision of appropriate personal protective equipment to its workers, it is recommended that said contractor should not be issued any business permit,” Koval recommended.

Earlier, Arreza has asked Hanjin to terminate the accreditation of three sub-contractors which were found negligent in the implementation of occupational safety standards in the work areas of the shipyard. (SBMA Corporate Communications)

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Hi-tech passports issued in Subic Freeport

About 1,000 residents from communities around the Subic Bay Freeport, mostly employees of the Subic Bay Metropolitan Authority (SBMA) and their dependents, availed of "high-tech" passports issued by the Department of Foreign Affairs (DFA) here on Saturday during a mobile passporting project.

The DFA project, which was held jointly with the SBMA, made the long trip to the DFA office in Manila or Clark unnecessary since the passport-processing centers "are brought to the people instead," said Atty. Robert Martinez, SBMA deputy administrator for administration.

"Applicants get to save a lot on transportation, food, time and worries," Martinez added.

Aside from the convenience, the Subic passporting project also delivered the latest machine-readable passports (MRPs), said Renato Villapando, chief of the DFA's Office of Consular Affairs (OCA).

Villapando announced that the maroon-colored MRPs launched in 2007 were now issued in place of the green-colored ones which used handwritten entries.

"This will be the first time that MRPs were issued in Subic," he said.

The new passports, he said, had lamination bearing holograms and special printing that are visible only under high-tech decoding lens. These are but some of the security features that make MRPs harder to forge, he added.

Villpando said the use of MRPs is undertaken in compliance with standards agreed to by contracting states of the International Civil Aviation Organization (ICAO), which includes the Philippines.

The DFA-OCA chief also expressed satisfaction with the way SBMA handled the passporting project, saying the Subic event "has been the most organized so far this year."

Previously, Villapando's team has conducted similar projects in Marikina, Pasig, Palawan, Puerto Princesa and Baler, Aurora, among others.

Martinez said the SBMA has handled several mobile passporting projects since 2003 as part of its efforts to serve the community.

"The service gets better since the process becomes more streamlined as we hold the event annually," he added. (SBMA Corporate Communications)

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Redondo worker falls to death; subcontractor suspended

Another worker of Hanjin subcontractor Bodahh, Inc. died at the Korean project site in Redondo Peninsula after falling off the roof of a structure.

He was the fourth fatality in the subcontractor's record since last year.

According to initial information from the Subic Bay Metropolitan Authority (SBMA), 19-year old Arvy Mahinay, a resident of Pasig City, fell off the roof of a shelter under construction after he tried to go after his falling helmet.

The accident occurred at about 4:10 p.m. on Wednesday at Hanjin's Dockyard No. 5.

SBMA investigators said the victim was wearing a safety belt hooked to a lifeline while at work on the roof.

However when his safety helmet accidentally fell off, Mahinay reportedly unhooked his lifeline as he tried to retrieve his helmet.

The victim reportedly slipped and subsequently fell 29 meters to the ground.

SBMA Administrator Armand Arreza said the agency is conducting further investigation into the incident, but announced at the same time that SBMA has ordered the suspension of any activity of the subcontractor.

Mahinay's employer, Bodahh manager Suk Ho Kang, was also given 72 hours to show cause why the company's certificate of registration should not be revoked.

Arreza added that SBMA is also studying the permanent cancellation of Bodahh's accreditation in view of its involvement in a number of accidents at the Redondo project site.

Previously, three other workers employed by Bodahh have figured in fatal accidents, including two who also fell off rooftops.

The first victim employed by Bodahh fell off the roof of an assembly shop on February 22 last year; the second, from a 9-meter high structure on March 11, 2008; and the third, in a vehicular accident only last June 11.

The latest incident is the 14th fatal accident to happen at the Hanjin shipyard here, where some 15,000 workers are employed by the South Korean shipbuilder and its subcontractors. (SBMA Corporate Communications)

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SBMA tops Region 3 First Aid Olympics

Exhibiting heightened skills and efficiency that brought it to the forefront of rescue efforts in various parts of the country, the Subic Bay Metropolitan Authority's Disaster Management Council (SDMC) reigned supreme in the 5th Regional First Aid and Basic Life Support Olympics held on Thursday at the Subic Bay Sports Complex here.

The event, which was conducted by the Regional Disaster Coordinating Council 3 (RDCC-3) in the observance of the National Disaster Consciousness Month, pitted 10 rescue teams from various provinces, cities and volunteer groups in Central Luzon.

Representatives from the Office of Civil Defense (OCD), the Philippine National Red Cross Region 3 (PNRC-3), and the RDCC-3 evaluated the performance of the participants.

After various events in the one-day Olympics, the SBMA Disaster Management Team, headed by SBMA Law Enforcement Department chief Vicente Tolentino, emerged as champion in the provincial level.

It also won three special awards for best situational analysis, focus on severe bleeding and bandaging; best situational analysis, focus on immobilization; and best in cardio-pulmonary resuscitation and rescue briefing.

Teams from the provinces of Bulacan and Nueva Ecija, meanwhile, copped the 1st and 2nd runner-up spots, respectively, in the provincial level.

In the municipal level, the disaster management team from Sta. Maria, Bulacan was adjudged the champion. The team from Bulacan, Bulacan was named 1st runner-up, while third place went to the team from Balagtas, Bulacan.

The city level, meanwhile, was topped by Palayan, Nueva Ecija, with Tarlac as runner-up.

The First Aid Olympics, an annual event held by RDCC-3, has been instrumental in improving the capabilities of rescue teams in the region, said P/CSupt. Errol Pan, PRO-3 regional director and RDCC-3 chairman.

"RDCC's well-equipped first aiders and volunteers have done well in helping save lives and reduce the effects of injury and trauma through the efficient practice of first aid," Pan said in his message read by P/SSupt. Gil Meneses, his deputy for administration.

"The First Aid Olympics provides opportunities for the participants to develop leadership skills and character," Pan also said.

Because of this skills competition, he added, rescue teams from the SBMA and Olongapo City are now considered as among the best in the country, along with those from Pasig and Makati.

Meanwhile, Neri Amparo, executive director of the RDCC, noted during the opening ceremony that continuous training in first aid is necessary among rescue teams, since lack of awareness and knowledge in basic life support (BLS) and cardio-pulmonary resuscitation (CPR) is common cause of death in accidents and other emergencies.

"In times of disaster, a lot of deaths could have been avoided if most of the people in the affected areas have acquired the basic techniques of first aid and CPR," she said.

The rescue and disaster management teams that competed included those from the Bulacan PDMC, Nueva Ecija PDCC, Palayan City DCC, Tarlac City DCC, Bulacan (Bulacan) MDCC, Sta. Maria (Bulacan) MDCC, Sto. Tomas (Pampanga) MDCC, Balagtas (Bulacan) MDCC, Olongapo City DMC, which was the defending champion in the city level, and the host team of SBMA, which placed second in last year's contest. (SBMA Corporate Communications)

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Subic 1st half investments top $212-M; 3,500 new jobs assured

New investment projects approved by the Subic Bay Metropolitan Authority (SBMA) in the first half of this year reached a total value of $212 million, bringing cumulative investments in this free port to $5.7 billion.

The 94 new projects recorded in January-June 2008 will also generate up to 3,588 new jobs here — "a big boost to government efforts to stem rising unemployment in the Central Luzon region," said SBMA Administrator Armand Arreza.

"More than 90 percent of the new projects that passed the review of the SBMA board are FDIs (foreign direct investments) coming from Norway, Canada, Korea, Japan, Malaysia, US, Taiwan, and Pakistan," Arreza said.

"It is also notable that about 90 percent of the total investment pledges came from the top 10 biggest projects, and these include two Filipino-owned firms," he added.

SBMA records show that Korean firms once more dominated the field in terms of investment value, with five of the companies in the top 10 occupying the first three slots.

Korean resort developer and operator Subic Neocove Corp., which pledged $175 million in April for a 500-hectare resort and golf course project at Subic's Redondo Peninsula, emerged as the biggest new investor.

Neocove's investment represented about 82 percent of the total for the first half.

The next biggest investors are Korean construction firm Hanil E&C Subic, Inc., which will design, plan and build medium- to high-rise commercial and residential buildings, with committed investments of $11 million; Hanafil Golf & Tour, Inc., a joint Korean-Filipino venture for the operation of golf, tour and recreational facilities, with $3 million; Palmgold Int'l Ltd., a Malaysian company that will import gaming equipment and operate a slot-machine arcade, with $1.93 million; and Grand Pillar International Development, Inc., a Taiwanese real estate developer, with $1.9 million.

In the next slots at the top 10 list are Buma Subic Development and Management Corp., another Korean-Filipino business to operate a seafood restaurant, wellness spa, travel agency and merchandise trading, with investments of $1.5 million; the World HDGD Federation Philippine Association, a Filipino firm that will develop a training facility with health facilities, with $1.22 million; and Philkor Utopia Corp., a Korean firm that will put up a hotel and restaurant, spa, grocery and souvenir shop, and travel and tour services, with $1.2 million.

Tied in at the ninth spot with $800,000 worth of investments each are three firms: Filipino-owned Janburlai Corp., which will operate a tollway service facility along the Subic portion of the Subic-Clark-Tarlac Expressway; Pakistani-controlled M. Waseem International Corp., which will engage in printing press operation, as well as in import-export and transshipment of various products and equipment; and the Taiwanese firm Ta Zon (Phils) Color Paper Corp., which will import, manufacture, assemble, print and export various packaging materials.

Another Korean company occupied the tail-end of the top investors list: Kumboindustry Corp., which will engage in steel fabrication and production works for the Korean shipbuilder HHIC-Phil, with investments worth $725,000.

Arreza said that in terms of investment value by nationality, Filipino-owned firms were second only to Korean companies during the first half of 2008 with total investments worth $6.5 million.

Taiwanese firms ranked third with $2.7 million; Malaysians, fourth with $2.1 million; and Pakistani, fifth with $800,000.

Other new FDIs came from Japan, with a total of $417,000; Norway, with $161,000; United States, with $50,000; and Canada, with $40,000.

The SBMA also said the 94 new investment projects approved in the first half are projected to employ 3,588 workers.

Among the top 10 biggest new investors, Hanafil is set to employ the biggest number, at 1,495.

The SBMA said that the number of workers has consistently increased in the first half — from a total of 73,482 in January to 77,336 in June. The half year total represented a 12.35 percent increase over the first half total in 2007.

The biggest employers in Subic today are KC Tech, a Korean contractor at the HHIC-Phil shipyard, with 8,830 workers; Hanjin Heavy Industries & Construction Corp., with 4,960; Japanese firms Nidec and Sanyo Denki, with 2,451 and 2,226 employees, respectively; and Taiwanese computer manufacturer Wistron Infocomm Phils., with 1,629 workers. (SBMA Corporate Communications)

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Subic signs sister-port pact with Guangxi, China

In a bid to establish mutually-beneficial relations with major economic growth centers in the Asia-Pacific region, the Subic Bay Metropolitan Authority (SBMA) has recently signed a sister-port agreement with Guangxi, considered to be China's gateway to the ASEAN countries.

Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga signed the agreement recently with Ye Shi Xiang, who chairs the Guangxi Beibu Gulf International Port (Group) Co., Ltd.

The company administers three major ports in the Guangxi Zhang Autonomous Region, and is now undertaking projects for a marine terminal and a logistics base.

Salonga said that upon his invitation, Ye has also agreed to attend this year's conference of the International Network of Affiliated Ports (INAP) that will be hosted by the SBMA on October 28-29 at the Subic Bay Exhibition and Convention Center here.

The SBMA head said the sister-port agreement between Subic and Guangxi is expected to pave the way for stronger economic ties with China, which is emerging as a global economic power.

"Our proximity to China is one edge that Subic must exploit to its advantage," Salonga explained.

In the case of Guangxi, the demand for mineral products like iron ore and nickel "could be the basic platform to jumpstart the volume of shipment between the two ports," he said.

"We must also learn to match the use of our country's resources with current and emerging global situations," Salonga said.

"This is why we have fast-tracked the completion of the 600,000-TEU New Container Terminal (NCT 1 and 2) project here in Subic to boost our bid to become a major maritime industry player," he added.

Salonga said that since the SBMA has refocused its development efforts towards the maritime industry as a cornerstone, the port of Subic had initiated tie-ups with major ports around the world, aside from playing a more active role in INAP of which it is a founding member.

In October last year, a cooperation agreement between Subic and Maryland's Foreign Trade Zone led to a sister-port link-up between Subic and the port of Baltimore, now the top-ranking port in the U.S. East Coast.

This month, another sister-port agreement will be signed by Subic with the port of San Diego, in California, he said.

Salonga also said that as host of the coming INAP conference, the SBMA had already sent invitations to member ports, including the ports of Colombo in Sri Lanka, Qingdao in China, Tanjang Peak in Indonesia, Kochi in Japan, Iquique in Chile, Mokpo Newport in South Korea, and the port of Cebu.

In the conference to be held here in October, INAP is expected to be joined by two other ports: Kota Kinabalu in Malaysia, and Kaohsiung in Taiwan.

South Korea's Mokpo Newport, meanwhile, has requested the SBMA for additional invitations for its governor, mayor and the director-general of its maritime office, Salonga said. (SBMA Corporate Communications)

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$1-M 'sports hotel' rising in Subic Freeport

A $1-million "sports hotel" featuring an Olympic-sized swimming pool will soon boost the Subic Bay Metropolitan Authority's thrust to promote Subic as a major sports destination not only in Luzon or in the Philippines, but in Asia as well.

According to SBMA deputy administrator for tourism Raul Marcelo, the Korean firm Platinum Sports Subic, Inc. (PSSI) is now building a four-story, 45-room hotel on a 5,992-sqm site near the free port's main gate.

"This is a benchmark for Subic's sports tourism program," said Marcelo. "This hotel would feature facilities primarily geared to sports professionals and enthusiasts, hence the tag 'sports hotel'."

PSSI corporate secretary Elma Caquilala said the concept was inspired by a similar establishment in Dubai, which has attracted a huge patronage because of its unique amenities.

"We targeted this particular niche since we saw the emergence of Subic as a sports destination, aside from the fact that the investor is a sports enthusiast himself," said Caquilala.

She added that Subic is an ideal location for a sports hotel because of its strategic location, the soothing environment conducive to sports activities, and the security offered by SBMA.

As approved by the SBMA board of directors in August last year, the project would include a state-of-the-art gym, sports shops, a kids' pool, and PSSI's major commitment to the SBMA — an Olympic-sized swimming pool.

"That is exactly what Subic lacks," Marcelo said, pointing out that when Subic hosted the 3rd Philippine Olympic Festival qualifying games in April, the swimming events had to be conducted outside the free port for lack of facilities.

"That would not be the case anymore with this project. Finally, Subic could now host swimming competitions," he said.

The Olympic-sized pool, which is being built according to world standards, will be located near existing sports facilities here like the Remy Field oval, the Subic basketball gym, and tennis and badminton courts.

Construction of the hotel was started on May 20 by contractor Vision 3000, with completion scheduled in December.

Marcelo also said that the Subic Bay Freeport is fast becoming a major sports venue, which has hosted several national and international sports events like the 23rd Southeast Asian Games in 2005, the Philippine Olympic Festival, as well as international chess tournaments, regattas and triathlon events.

He added that the SBMA is continuously improving its facilities to draw more sports-tourism events here, and has recently solicited proposals to convert the golf course here to world-class, professional tournament venue.

He also announced that Subic will be hosting several sports events in the coming weeks. These include the Petron Ladies' Beach Volleyball Tournament on July 25-26, the ITU-Asian 03 Long distance Triathlon on August 2, the Philippine Sports Fishing Club's fishing tourney at the Alava Pier on August 3, and the Jet Sports Association of the Philippines' jet ski competition on August 23. (SBMA Corporate Communications)

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‘Ecoprofit’ practices save millions for Subic’s ‘green’ companies

Greenhouse effect. Global warming. High fuel cost. Expensive power. While world leaders are busy finding ways to minimize these problems, some investors in this free port have found simple, practical and inexpensive solutions.


“We applied the ‘Ecoprofit’ approach and techniques that we’ve learned from joining the Green Philippines program, and we’ve found that they really work!” said Lyn Amor Doble, deputy manager of Hitachi (Leadus) Terminals Mechatronics Phils. Corp., Subic’s second biggest exporters last year.

Hitachi’s “ecoprofit” measures included the conservation and monitoring of water consumption, the scheduling of aircon maintenance, monthly energy audit patrol, re-use of packaging materials like cartons, and the strict implementation of waste segregation.

The results, said Hitachi’s comptroller Kazuhiro Yasuda, were “really surprising.”

The firm was able to reduce 226,700 kilowatts of its energy consumption, resulting to annual savings of P1.18 million, and to decrease its water consumption by 4,600,000 liters, thus saving another P193,500 per year.

The firm, however, only invested a total of P300,000 for these measures, and realized the payback after only 2.6 months.

The Ecoprofit approach, Doble said, was taught under the Green Philippines program, which was backed by the European Union to promote the integration of sustainable development principles with fast paced-industrialization programs.

“It is actually the process of reducing the environmental impacts of industrial activities within urban regions, while strengthening the environment and promoting sustainable economic development,” Doble explained further.

“You may not know it, but the solutions are already there, just waiting to be utilized,” added Yasuda, who helped form the company’s waste management committee composed of workers and management-level personnel.

He said the company now plans to implement more “ecoprofit” measures like the installation of additional plastic curtains, improvement of thermal heat chamber, replacement of fluorescent and hi-bay lamps to compact fluorescent lamps, further education on water conservation, and revision of the company’s waste disposal process.

Hitachi’s waste management committee has also started the mandatory switch-off of lights and air-conditioning systems in offices and halls during break time, and the promotion of a paperless, pencil-less office set-up where communications were routed through in-house computer networks, or intranet.

Yasuda added that as part of the company’s corporate social responsibility (CSR) program, Hitachi has asked all its personnel and executives to participate in annual tree planting activities initiated by the Subic Bay Metropolitan Authority (SBMA).

Meanwhile, Tailin Abrasives Corp., another leading manufacturer and exporter based at the Subic Bay Industrial Park, has been benefiting hugely from similar ecoprofit techniques.

“When we first introduced the program in our company, there was strong resistance from among the workers who thought the management was simply being a miser by putting up the auto shut-off faucets,” said Daniel Escusa, the firm’s pollution control officer (PCO).

“But as they began seeing the benefits for them, they started to cooperate,” he said.

Escusa revealed that Tailin spent some P500,000 to implement Ecoprofit systems at its abrasives factory here, and in return generated savings that were almost double the installation costs.

Aside from converting conventional faucets to auto-shutoff types to minimize wastage of water, Tailin also implemented garbage segregation and recycling, replacement of oven-door gaskets to minimize temperature loss during product curing, and reducing layers of packaging wrapping from five layers to just two layers.

Because of these measures, the company realized annual savings of P158,500 in electricity consumption, P134,100 in water consumption, P84,000 in reduction of mixed wastes, and P109,000 by a 60 percent reduction of plastic foil consumption.

“We also realized that by simply adopting environment-friendly measures, like improving natural ventilation in our work areas, we could substantially reduce man-hours lost due to sickness and thereby improve our production output, too,” he said.

The Green Philippines program was introduced here recently by the SBMA’s Ecology Center as part of the agency’s initiatives to promote environmental protection and sustainable growth.(SBMA Corporate Communications)

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