SBMA's Salonga elected head of Asian ports network

Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano G. Salonga, credited for the successful re-focusing of Subic's development thrust into the maritime industry, was formally named the new chairman of the International Network of Affiliated Ports (INAP) here on Tuesday (October 28).

Members of the network, who attended the organization's two-day conference at the Subic Bay Exhibition and Convention Center, unanimously voted Salonga into the post.

Salonga, who holds the rank of a commodore in the Philippine Coast Guard Auxiliary, became the 10th INAP chairman, replacing Gov. Masanao Ozaki of the Kochi Prefecture in Japan, which hosted last year's conference.

In accepting the chairmanship, Salonga said he is willing to steer INAP "towards not only survival, but also expansion during these challenging times."

He said the INAP should expand further by forging deeper relationships between member ports and intensifying the recruitment of new members into the organization.

This is in response to the call of Ozaki, who remarked that this year's conference theme "Emerging Roles for Asian Ports," is timely because the current crisis in the global economy also affects the maritime sector.

"It is significant in terms of the philosophy of INAP that this year's conference was held here in the port of Subic Bay," Ozaki also said, as he urged INAP members to take Subic Bay as a prime example on how to cope with sudden changes.

Ozaki, who made history in Japan last year as the country's youngest governor in history, added that he admires the way SBMA has propelled Subic Bay from the devastating economic effects of the Mount Pinatubo eruption in 1991 and the pullout of the US Naval Base the following year.

"Now, Subic Bay Freeport's logistics infrastructure, including air, land and sea transportation systems, allows Subic to perform its role as one of the main driving forces of the Philippine economy," said Ozaki.

Salonga, meanwhile, recalled that Subic's port modernization project has barely began when the free port first hosted the INAP symposium in 2002.

"Subic Bay has gone a long way since then — the port modernization project is now a reality," he said, adding that the SBMA would be willing to share its experiences in developing Subic's maritime port with other members of INAP.

The group, which was formed in 1998, has seven members: the ports of Subic and Cebu in the Philippines, Kochi port in Japan, Mokpo Newport in South Korea, Tanjung Perak in Indonesia, Colombo in Sri Lanka, and Qingdao in China..

Aside from holding the convention and business meetings in Subic, INAP conference delegates are scheduled to meet with officials of the Clark Development Corp., which manages the Clark Freeport. (SBMA Corporate Communications)

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SBMA cites growing role of Subic port in maritime trade

The two-day general assembly of the International Network of Affiliated Ports (INAP) started here on Tuesday on positive notes of greater cooperation and further growth among members, as host Subic Bay Metropolitan Authority (SBMA) cited the growing role of ports in the global trade.

INAP, which was formed in 1998 as a venue for exchanging information and sharing technology and expertise on marine transport and logistics, held its 10th annual conference here as the global economic downturn began affecting major industries, including the maritime sector.

However, Subic port officials led by SBMA Chairman Feliciano Salonga and SBMA Administrator Armand Arreza said that Subic, like INAP's other member-ports, is still optimistic of attaining growth despite economic difficulties.

"The Port of Subic now boasts of thenewest operating container port in the country, and it possesses key infrastructure that can support a wide range of businesses," Arreza pointed out as he batted for this free port as an ideal maritime logistics hub.

"With this, Subic now responds to the growing requirements of seaborne trade in Northern and Central Luzon, and is ready for the capacity shortage of 14 million TEUs (twenty-foot equivalent units) projected for South East Asia," Arreza told conference delegates.

Arreza also said Subic's New Container Terminal-1, which was funded by the Japan Bank for International Cooperation (JBIC), has an annual capacity of 300,000 TEUs and equipped with two quay cranes capable of handling even post-Panamax cargo vessels.

The existence of nine other piers and cargo terminals in Subic, the massive logistics support infrastructure now existing in the Subic-Clark growth corridor, as well as the free port's strategic location in the center of the growing East Asian region, definitely gives Subic a solid foundation to gain more investments, attract more trade and weather the current economic storm, Arreza added.

Compared to ten years ago, Subic has come a long way," Arreza said, adding that the Subic Bay Freeport is now home to some 1,100 investor-firms that provide jobs to more than 85,000 workers.

On the other hand, Arreza said that because of the economic crisis today it is important that INAP focus on its fundamental objectives. These include responding to the needs of the maritime transport industry, while strengthening cooperation among members, exchanging information and technology, and conducting regular interaction among members.

For his part, outgoing INAP chairman and current Kochi Prefecture of Japan Gov. Masanao Ozaki lauded the SBMA for promoting excellent investment and employment opportunities in Subic.

"For the significant increase in numbers of investors and jobs created in Subic, I would like to show respect to the people of SBMA for the hard work and generous effort in developing the local economy," Ozaki said.

The INAP conference here also began on Tuesday on another positive note for Subic as representatives of the member-ports unanimously installed SBMA Chairman Feliciano Salonga as INAP chairman for the year 2008- 2009.

Salonga, who said his election as INAP head is both a personal and professional milestone for him, promised to contribute his "humble share in steering INAP towards, not only survival, but also expansion especially during these challenging times. (SBMA Corporate Communications)



Outgoing INAP chairman Masanao Ozaki, who is also governor of the Kochi Prefecture in Japan, lauds the SBMA for creating investment and job opportunities in the Subic Bay Freeport.






Dancers in traditional Filipino costume welcome delegates to the 10th assembly of the International Network of Affiliated Ports (INAP) at the Subic Bay Exhibition and Convention Center. The conference was hosted by the Subic Bay Metropolitan Authority on October 28 and 29.

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Japanese traders in INAP conference to survey business prospects in Subic Freeport

Authorities at the Port of Kochi in Japan have urged port-related businesses in their area to join the 10th annual conference of the International Network of Affiliated Ports (INAP) here this week and survey possible business ventures in this free port.

According to Hiroshi Yamanaka, ports promotion director at the Kochi port, the Kochi Prefectural Government encouraged not only exchanges among (government) officials, but also among traders during the two-day Subic conference that begins on Tuesday.

This is because the business sector “is actually the one conducting trade in the ports belonging to the INAP group,” Yamanaka pointed out.

In turn the prefectural government, which administers the Port of Kochi, has enlisted 30 delegates to the Subic conference, with 20 coming from the private business sector, Yamanaka said in a email sent to the Subic Bay Metropolitan Authority (SBMA) on Thursday.

The Japanese business delegation, he said, is part of the “economic mission of businesses” they have formed in response to the establishment of INAP in 1998 as a forum for consultation, cooperation and exchange of information among member-ports.

As in missions to other INAP member-ports which involved private businesses, Yamanaka said, the Japanese delegation will check out developments inside the Subic Bay Freeport “in pursuit of possible economic exchanges or trade.”

“If we could encourage more such exchanges in the private sector, so that they happen not just once but several times a year, we would see greater results,” he said.

Yamanaka pointed out many companies in the Kochi area began pursuing overseas business ventures after attending last year’s INAP conference that was hosted by Kochi port.

This is because one special characteristic of INAP, Yamanaka said, “is not simply the one-on-one port relationship, but the network of alliance among ports that spans many different countries.”

He said that the ties among member ports “will lead to the advancement of their respective regions and countries.”

Yamanaka added that he himself became excited to come to the Philippines after hearing about serious efforts of the SBMA to transform Subic Bay into a leading maritime and logistics hub in the Asia-Pacific region, as discussed by SBMA Chairman Feliciano Salonga in the Kochi conference last year.

Kochi’s ports promotion division, which Yamanaka heads, served as the INAP secretariat since the port organization was established 10 years ago.

Meanwhile, Salonga, who is the incoming chairman of INAP, announced that representatives of the seven member-ports will meet here to discuss the emerging roles of ports in the Asian region.

The INAP members include the ports of Subic and Cebu in the Philippines, Port of Colombo in Sri Lanka, Port of Kochi in Japan, Port of Tanjung Perak in Indonesia, Port of Qingdao in China, and Mokpo Newport in South Korea. (SBMA Corporate Communications)

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Subic port to inject innovations in INAP conference

The Subic Bay Metropolitan Authority (SBMA) will be introducing innovations in the program for the 10th International Network of Affiliated Ports (INAP) that it will host beginning Tuesday next week.

SBMA Chairman Feliciano Salonga said that for the first time in the 10-year history of INAP, the conference will feature business meetings among locators in the various member-ports, as well as an exhibition of products and services related to the maritime industry.

“These innovations will be introduced to maximize the opportunities that INAP conference may open to port operators and businessmen alike,” Salonga said.

“We want these new conference features to help in dynamically transforming the ports network into a bigger and more effective organization,” he added.

Salonga, who is the incoming INAP chairman to replace Gov. Masanao Ozaki of Kochi, Japan, also said that a total of 70 official delegates from INAP’s member-ports have confirmed their attendance to the conference.

The seven members of INAP are: Port of Subic, Port of Colombo in Sri Lanka, Port of Kochi in Japan, Port of Cebu, Port of Qingdao in China, Port of Tanjung Perak in Indonesia, and Mokpo Newport in South Korea, which joined the group last year.

Meanwhile, SBMA’s seaport general manager Perfecto Pascual, who is in charge of the preparations for the conference, said that the Port of Kochi has confirmed that about 20 Japanese businessmen will join Kochi’s official delegation to Subic.

“Korea is also coming in with some business representatives,” he said.

Among the local agencies, Pascual said that the Department of Trade and Industry (DTI) will also put up a booth at the exhibit hall of the Subic Bay Exhibition and Convention Center (SBECC) where the conference will be held.

The exhibits and business meetings will be important features of the conference because in the maritime community, Pascual explained, ports have multiplier effects in terms of employment, in generating major industries, and increasing export and import activities.

“These are the things that promote interrelationships among our ranks and promote commerce, not only here in Subic, but also with other member ports,” he added.

Pascual added that INAP officials will also consider during the conference here the organization’s policy on accepting new members.

“The current policy is that a port applying for membership should first have a sister-port agreement with any of the members,” he revealed. “But we might probably relax this policy, so that other interested ports can join even without a sister-port agreement with member ports.”

The proposed policy shift might help transform INAP into a bigger organization, Pascual said. (SBMA Corporate Communications

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Use Subic terminal, North and Central Luzon businessmen urged

The Subic Bay International Terminal Corp. (SBITC) and the Subic Bay Metropolitan Authority (SBMA) recently urged importers and exporters in Northern and Central Luzon to use the newly opened container terminal at the Subic Bay Freeport.

“We are inviting businesses and industries in the area to use the Subic container port. The strategic location of Subic to your manufacturing plants means a significant decrease in transport costs and faster delivery time of cargo,” said SBMA Senior Deputy Administrator for Operations Atty. Ferdinand Hernandez during the North Luzon Area Business Conference at the Grand Palazzo Royale in Angeles City, Pampanga.

The conference, organized by the Philippine Chamber of Commerce Industry (PCCI), gathered national government officials for trade, transportation, agriculture, infrastructure and human resources and over 300 businessmen in the region for a two-day meet to discuss how the region’s economic stakeholders could raise global competitiveness in Northern Philippines.

“Also, our new container handling facility in Subic complements the Philippine government’s over-all infrastructure development plan for the Metro Luzon Urban Beltway, especially the requirements of seaborne trade in Northern and Central Luzon,” Hernandez added.

SBITC, a subsidiary of International Container Terminal Services, Inc. (ICTSI) and operator of Subic’s New Container Terminal-1 (NCT-1), and the SBMA have been jointly marketing the Subic Bay Freeport as the prime trade link in Northern Philippines. Subic’s proximity to the economic zones of Northern and Central Luzon makes it the ideal international trading gateway in the region.

“With our strategic location, world class port infrastructure, competitive port tariffs, and the expertise of an international port operator, Subic is ready and positioned to serve industrial locators in the region. Thanks to the newly opened Subic-Clark- Tarlac Expressway, trucking transit times and fees are significantly reduced with Subic as gateway. Unlike other ports located in metropolitan areas in Luzon, Subic is traffic jam-free and has no truck ban,” Hernandez said.

The Subic container terminal, located at the Freeport’s Cubi Point, was developed through funding provided by the Japan Bank of International Cooperation. SBITC holds the 25-year concession for the operations of the port.The terminal has an area of 13.16 hectares and an annual capacity of 300,000 TEUs (twenty foot equivalent units).

The berth is a 280-meter wharf with a controlling depth of 13 meters, and is equipped with two post-Panamax quay cranes.The terminal design ensures optimal terminal operations and utilization of container handling equipment and facilities especially terminal space. Over 80 reefer stations are installed in the container yard, while the gate has six truck lanes for the smooth flow of trucks coming in and going out of the terminal.

“SBITC is investing to further improve terminal operations and to construct other support facilities. Additional container handling equipment will be purchased as the throughput of the terminal increases in the coming years. We have already invested in human resources training and development and a terminal operating system for gates and container yard management. Plans are underway to fully computerize operations,” said Aurelio Garcia, SBITC General Manager.

“SBITC will continue to focus its resources in developing, acquiring and implementing technology and best practices that will sustain efficacy of terminal operations. We are committed to provide services at par with the world’s leading container terminals,” he added.

Currently, SBITC’s shipping line clients include American President Lines, Wan Hai Lines and Tasman Orient. SBITC, established by ICTSI in 2000, is the exclusive international container terminal operator at the Subic Bay Freeport. It had operated the freeport’s NSD Terminal for seven years before transferring container handling operations to the NCT-1 last May.

ICTSI is a leading developer of international ports and terminals with a global port network spanning 11 countries in four continents. ICTSI is on its 20th year of operation, and continues to pursue container terminal opportunities around the world. (PNA)

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Transportation top brass to keynote Subic Int'l Ports Confab

Secretary Leandro Mendoza of the Department of Transportation and Communications (DoTC) will be the keynote speaker here next week during the annual conference and general assembly meeting of the International Network of Affiliated Ports (INAP).

The INAP conference, which will be held at the Subic Bay Exhibition and Convention Center (SBECC) on October 28 to 29, is expected to include a series of direction-setting and planning workshops under the theme "Emerging Roles for Asian Ports."


The organization is composed of the ports of Subic and Cebu in the Philippines, Kochi in Japan, Mokpo in South Korea, Qingdao in China, Tanjung Perak in Indonesia, and Colombo in Sri Lanka.

Mendoza, whose department is responsible for the country's rail, air, sea and communications infrastructure, said the event "will serve as an opportune venue to discuss and exchange ideas on possible multilateral economic opportunities for local and foreign businesses."

The conference theme, Mendoza also said in a message to INAP, "manifests your strong commitment towards the development of ports and harbors in the Asian region."

Aside from addressing the INAP assembly, Mendoza is scheduled to open an exhibit on maritime-related industries and products at the SBECC on the first day of the meeting.

The INAP conference will be formally opened at 9 a.m. on October 28 by Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza, who will deliver the welcome address.

This will be followed by the opening remarks from Governor Masanao Ozaki, head of the Kochi prefectural government in Japan, who is also outgoing INAP chairman.

Other speakers on the first day of the conference include Arreza, who will make a presentation on the role of the Port of Subic in Northern Luzon trade, Secretary Eduardo Pamintuan of the Subic-Clark Alliance for Development (SCAD), and Edgardo Abesamis, president of the Subic Bay International Terminal Corp., operator of the New Container Terminal-1 in this free port.

On the second day of the conference, representatives of INAP member-ports will also present plenary reports. These include Capt. Perfecto Pacual, SBMA seaport manager; Angelo Verdan, general manager of Cebu Port Authority; Ozaki, for the Port of Kochi; Achmad Baroto, general manager of the Port of Tanjung Perak in Indonesia; and Byeong Soo Choi, chief executive officer of Mokpo Newport in South Korea.

Two other Asian ports are expected to join INAP during the Subic conference: the Port of Kota Kinabalu in Malaysia and the Port of Kaohsiung in Taiwan.

SBMA Chairman Feliciano Salonga is also scheduled to be elected chairman of INAP during the conference here, replacing Ozaki who was elected last year. (SBMA Corporate Communications)

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SBMA's Salonga gets achievement award from USMMA

Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano G. Salonga recently received the Outstanding Professional Achievement Award from the U.S. Merchant Marine Academy (USMMA) — his second award from his alma mater for various achievements in the maritime industry.

Salonga, who holds the rank of a commodore in the Philippine Coast guard Auxiliary, is largely credited for shifting the focus of the Subic Bay Freeport to the maritime industry since taking over as SBMA chairman in 2005.

The paradigm shift, SBMA officials acknowledged, ushered in investors in maritime trade like the Korean shipbuilder Hanjin Heavy Industries and Construction Co., which now operates a $1.6-billion shipyard here.

The award, according to the USMMA Alumni Foundation, is given to graduates of the academy who best exemplify the finest tradition of the merchant marine corps "Acta Non Verba" — or deeds, not words — by attaining personal achievement in their chosen field.

The USMMA, which is based in Kings Point, New York, trains men and women as officers in either the maritime industry, which is considered the fifth service in the US armed forces, or the army, navy, air force or coast guard.

Salonga entered the academy in 1949 as a scholar under the US government's Philippine Rehabilitation Act of 1946, and graduated from the prestigious school in 1953.

He is the first Filipino in the USMMA Class of '53 to receive the Outstanding Professional Achievement Award.

Prior to the recent award, the USMMA had honored Salonga with his first achievement award in 1988 when he was an executive of a private shipyard in Batangas.

During that stint, Salonga was instrumental in the successful negotiation to build three ships for ARAMCO — the country's first business contract for the giant Saudi Arabian petroleum firm.

The second USMMA award, however, "is truly special because I consider it as an affirmation of what I have kept close to my heart — the academy's tradition of 'Acta Non Verba'," Salonga said.

"This is what drives me to perform well, to pitch in my modest share in building a better future for the young generation of Filipinos," he added.

Since his appointment as head of the SBMA, Salonga has tapped his connection with the USMMA to introduce modern education to local students in the maritime industry.

Last year, Salonga proposed the establishment of the Subic International Maritime Institute (SIMI) and tapped the assistance of the Global Maritime and Transportation School (GMATS), a Kings Point-based institution which has a continuing education program.

The Subic project is envisioned as a collaboration with local maritime schools like the Philippine Merchant Marine Academy in San narciso, Zambales to produce more qualified seafarers, especially shipboard officers.

These efforts, Salonga said, "comes from a keen sense of obligation to give back what I have received from my scholarship at Kings Point."

"It is also what continues to drive me today to maximize resources in making a maritme powerhouse out of Subic," he stressed.

Salonga explained that it was his background in the maritime industry — and his education at the USMMA — that earned him the appointment by President Arroyo to head the SBMA.

"Knowing that Subic Bay is a huge maritime resource just waiting to be tapped, the President told me three years ago to run Subic. And look at what we're doing now — Administrator Armand Arreza and I really work ourselves to the limit to make Subic a leading maritime service and logistics center in the whole of Asia," he said.
Salonga is also slated to be elected chairman of the International Network of Affiliated Ports (INAP) during the group's 10th annual assembly here in Subic late this month. INAP is composed of seven international ports in the Asian region. (SBMA Corporate Communications)

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3rd Subic Chamber Blood Drive

The Subic Bay Freeport Chamber of Commerce, in cooperation with various organizations, conducted yet another successful blood donation program at the Subic Bay Arts Center last October 8, 2008. This year’s blood drive was SBFCC’s third since 2006.

SBFCC President John E. Corcoran hailed the 2008 SBFCC Blood Drive as another huge success.

Chamber Director and Blood Drive chairman Prof. Danny Piano commented that donors were already pouring in early in the morning. “It was uplifting to see so many volunteers helping out and even more heart-warming to see donors from all walks of life—employers and employees, rich and poor, young and old; no matter the gender, race, religion, or creed—voluntarily donate blood. These people are heroes because their donations will save lives. I am hoping that they will continue to be part of our Blood Drive programs. Donating blood is, after all, the right thing to do and one of the things in this overly complicated world where one feels good about one’s self afterwards.” he also said.

Contributing to the success of this drive was Ocean Adventure’s continued generosity in providing every donor and volunteer with a complimentary admission ticket to their facility. Other generous volunteers and participants included Absolute Service, Peninsula Lions Club, PAMET, PMAP, Jollibee Subic Bay, Rali’s Grill, Subic Water, and Grosse Pointe Medical.

Chamber members also enthusiastically supported the program in conveying their employees to the event. Donors also included PMMA cadets, Gordon College , SBMA SW AT team, SBMA Health & Welfare, LED, and Fire Department.

As we draw nearer to the holiday season in which blood banks are critically low, all are being encouraged to give the gift of life. This year’s campaign yielded 145 units of blood donated to the Philippine National Red Cross (SBFCC Secretariat)

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Subic Freeport to host int’l ports confab on Oct. 28-29

The Port of Subic will be hosting an international conference of ports on October 28-29, consistent with the thrust of the Subic Bay Metropolitan Authority (SBMA) to establish higher visibility and widen its circle of partners in the global maritime industry.

SBMA Chairman Feliciano Salonga said seven members of the International Network of Affiliated Ports (INAP) will meet here to conduct a series of direction-setting and planning workshops under the theme “Emerging Roles for Asian Ports.”

The INAP members include the ports of Subic and Cebu in the Philippines, Port of Colombo in Sri Lanka, Port of Kochi in Japan, Port of Tanjung Perak in Indonesia, Port of Qingdao in China, Mokpo Newport in South Korea.

Two other ports are expected to join this year’s conference, Salonga said.. These are the Port of Kota Kinabalu in Malaysia, which will be invited by Cebu, and the Port of Kaohsiung in Taiwan, which established a sister-port relationship with Subic last year.

Salonga, who will be this year’s conference chairman, said the INAP meeting will focus on crucial discussions about the state of the maritime trade in the Asian region in light of the current global economic crunch.

“Ports are the traditional gateways to local economies, and in today’s increasingly globalized economy they’re proving to be more and more indispensable than ever,” Salonga said.

“With the current economic turmoil experienced by global financial markets, we’d like to come up with strategies to lessen the impact on port operations,” he added.

Salonga added that the Port of Subic expects to benefit much from its membership in INAP since the group was primarily organized to facilitate the sharing of information and technology among its members.

“Our main interest now is for Subic to continue and expand its networking efforts to keep pace with developments in the maritime trade,” he said.

Meanwhile, SBMA deputy administrator for port operations Ferdinand Hernandez said the conference would discuss programs “to help small ports like Subic attain growth and become like China’s Qingdao port, which is now the tenth largest in the world.”

He said the Port of Subic would like to duplicate the well-organized conference prepared by the Port of Kochi, which hosted the INAP meeting last year.

The INAP organization was established in 1998 to provide member-ports with a forum for consultation, cooperation and exchange of information on expertise, know-how, and marketing.

It also endeavors to play a special role in creating environmental awareness, so as to minimize the ecological impact of modern civilization on the environment.

INAP is now undertaking initiatives to deepen the relationship of member-ports and to expand its role in the global maritime industry, said Salonga.

In the upcoming conference here, outgoing INAP chairman Masanao Ozaki, who is governor of Kochi Prefecture, will be turning over the post to Salonga, who will preside over the INAP general assembly session. (SBMA Corporate Communications)

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MMDA Chair supports bid for power plant in Subic Freeport

The plan by Aboitiz Power Corp. (APC) to build a 300-megawatt (MW) clean coal technology-fired power plant at the Redondo Peninsula here has received support the other day from Metro Manila Development Authority (MMDA) chairman Bayani Fernando.

Speaking at the sidelines of a conference by the Liga ng mga Barangay at the El Centro Convention Center here, Fernando said the power project would boost Subic’s thrust to attract more businesses.

“The construction of a coal-fired power plant here is a welcome development that would mean that business is booming in the Subic Bay Freeport, regardless of what other people say,” Fernando said.

“If it was proposed to be built in Marikina, we would have welcomed it with open arms,” he added.

Fernando also dismissed fears that the construction of a coal-fired power plant in Subic would lead to the destruction of the ecosystem, and lauded Subic Bay Metropolitan Authority (SBMA) officials for keeping their cool amidst criticisms that development has been encroaching into the well-preserved environment of the free port.

“With proper handling and management, the coal plant would be beneficial to the Subic Bay Freeport,” Fernando said.

According to the APC, which has recently teamed up with the Taiwan Cogeneration Corp. to form the Redondo Peninsula Energy, Inc. — the corporate vehicle for the proposed power facility, the project is needed to avert a possible power shortage between 2010 and 2012.

The plant, estimated to cost $450 million, is designed to burn bituminous and/or subbituminous coal and will be equipped with two 150-MW steam turbines and equipment using clean-coal technology, said APC vice president Wilfredo Bacareza.

Bacareza earlier said the APC expects to secure an environmental compliance certificate (ECC) this month. Eventually, another 300-MW plant will be added to double the facility’s power-generating capacity, he added.

In the same occasion, Fernando also complimented SBMA chairman Feliciano Salonga and SBMA administrator Armand Arreza for instituting mitigating measures for the environment, such as the policy of replacing trees affected by development projects.

“We also have that kind of program in Manila where we plant 10 seedlings in place of a tree that needs to be cut down,” Fernando explained.

Fernando also bared his program for developing the Marikina River into a recreational site by December of 2009.

He said that the river project would have five water treatment plants, making the river water clean for everybody to swim in. This, Fernando said, is considered a luxury that few residents in Manila now experience.

He added that making residents aware of what they do to the river would also have a positive impact on the lives of the people in Marikina and Metro Manila. (SBMA Corporate Communications)

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Subic ATM-parts maker expands operation

While most exporters face growing difficulties due to the global effects of the financial crisis in the United States, a Japanese electronics manufacturer here is expanding its operations to cope with growing market demand.

Hitachi Terminals Mechatronics (Phils.), Corp. (HTMP), maker of automated teller machine parts and card readers and the third biggest exporter here last year, broke ground last week for a new warehousing facility at the Subic Techno Park (STEP), where most of the Japanese firms in Subic are located.

HTMP president Kiyotaka Adachi said that the new facility will allow the $12-million firm to compete in the global market despite the financial woes besetting economies worldwide.

"The building of the new warehouse is part of our business strategy to control cost and to improve our efficiency," Adachi said.

"It is a sign that HTMP is willing to compete strongly in the world market," he added during the groundbreaking ceremony last week.

The event was witnessed by Senior Deputy Administrator Ramon Agregado of the Subic Bay Metropolitan Authority (SBMA); Kazuya Hori, vice president of Hitachi Omron Terminal Solution, HTMP's mother company; Takashi Jinguji, managing director of Asia Hitachi Transport, and other Japanese business executives based at the (STEP).

The new warehouse, which will have a total floor area of 3, 564 square meters, will be used for receiving goods, stocking, controlling, and handling of materials for production. It will also be used for "picking" or the withdrawal of parts to be delivered either for production or for shipping.

"HTMP is competing hard to gain lead commission in quality cost worldwide.. Last year marked the highest sales for HTMP, but it took us a lot of effort and hard work," Adachi noted.

Meanwhile, SBMA's Agregado lauded the company's continued support to the SBMA's efforts to make the Subic Bay Freeport Zone a success.

"Let me note the progressive management and untiring workers of the HTMP who never stop improving their performance that led them to the top," he said in his message during the groundbreaking rites.

Agregado noted that HTMP was ranked third among the top exporters in Subic last year, with its total freight on board (FOB) export value of US$54.21 million.

The firm was also ranked eighth among the top importers, with a total of FOB import value of more than $24 million, and was the eighth biggest employer in the free port with a total of 703 employees.

He also praised the effort of HTMP to become one of the first companies in Subic to "go 'green' and become more environment-friendly."

Recently, HTMP joined the Green Philippines program launched by the European Union to promote the integration of sustainable development principles with fast paced industrialization, by using the so-called "Ecoprofit" approach.

The HTMP said that by applying Ecoprofit principles, which involved innovative, integrated and environment-friendly technologies, it was able to save millions of pesos in power and water consumption.
..
Among the simple practices that HTMP adopted were the use of auto shut-off water faucets and low-wattage fluorescent bulbs, mandatory turning-off of lights and air-conditioning system during break time, and the promotion of a paperless, pencil-less office through the use of intranet computer networks. (SBMA Corporate Communications)

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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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