SBMA boosts tourism development in Subic Freeport

The Subic Bay Metropolitan Authority (SBMA) is preparing for further infrastructure development in Subic Bay Freeport’s 182.40-hectare central business district (CBD) to help boost tourism there and in surrounding areas.

"We’re trying to transform CBD into a high-end area," SBMA Administrator Armand Arreza said at Kapihan sa Sulo forum Saturday.

He said SBMA is discussing with possible partners its plan to expand tourist accommodation there within the next three years. ”We plan to increase from about 2,000 units now to 4,000 or even 5,000 units the total number of hotel rooms there,” he said.

There are also discussions on other possible tourism-development projects in the CBD. The ongoing international financial turmoil is not deterring SBMA from pursuing its tourism development plans as Arreza pointed out China, Korea and Japan –- not crisis-ravaged United States –- are the country’s major tourist sources.

He noted SBMA is keen on tapping China’s outbound tourist market which authorities estimated to reach 100 million people by 2015. ”Between 80 and 90 percent of tourists in Hong Kong are from the Chinese mainland so it’s only a matter of time before they begin looking for other destinations,” he said.

SBMA is particularly interested in attracting China’s ‘nouveau riche’ and gambling aficionados who frequent Macao. ”They want to see new things and to indulge,” Arreza noted.

SBMA came up with such plans as Arreza noted the freeport is near Diosdado Macapagal International Airport (DMIA) which the government projects to increasingly handle more tourist arrivals.

The freeport has several tourist sites which can draw in visitors: the 27.39-hectare Subic Gateway for shopping, exhibition and public performances; 9.38-hectare George Dewey Complex for residential and commercial use; 1.32-hectare Hidden Beach where most of Subic Bay’s marine life can be found, and 2,142.90-hectare Ilanin Forest which serves as natural habitat for several wild animals.Subic Bay Freeport's CBD itself is zoned into five areas, three of which are for tourism-related uses: 16.37-hectare Moonbay Marina for residential- commercial development, 1.18-hectare Greenwood’s Park where 3,400 square meters can be leased and 2.96-hectare Times Square Complex for commercial establishments.

”If plans push through, Subic can be a major international tourist destination in three to four years,” Arreza said.

Republic Act No. 7227 created the SBMA, the corporate body serving as government’s arm in operating and developing Subic Bay Freeport as a self-sustaining industrial, commercial, financial, investment and academe center.

Aside from tourism players, the freeport aims to have industries engaged in seaport operations, airport operations, shipbuilding, ship repair, aircraft maintenance, light and high-technology manufacturing, information and communications, logistics and distribution, power generation and distribution, water, telecommunications, land use, transportation and solid waste management. (Catherine J. Teves, PNA)

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Subic Board ssues ban on subcontractor, Hanjin spared from suspension

The board of the Subic Bay Metropolitan Authority has banned a subcontractor of the Hanjin Heavy Industries and Construction but spared the Korean shipyard owner, HHIC Philippines Inc., from suspension despite the death of 17 Filipino workers at the facility in Subic Bay Freeport since 2006.

SBMA administrator Armand Arreza said the board reached this decision in a meeting on Friday.

The certification of registration and tax exemption (CRTE) of contractor Philnorkor was cancelled because the number of workers killed at its job site had totaled two, the latest being Jose Vener Gil on Nov. 26.

P10,000 fine

He said the CRTEs issued by the SBMA to HHIC’s 39 subcontractors imposed a fine of P10,000 for the first offense and a cancellation of the CRTE for the second offense.

Arreza said the death of Gil, 42, was a result of the “negligence on the part of Philnorkor.” Gil died after a 250-kg air-conditioning unit fell on him as he was unshackling its duct, an HHIC report said.

2nd shipyard

“[Philnorkor] cannot anymore operate at the [Subic Bay Freeport],” Arreza said. Philnorkor could not be reached for comments.

The firm’s contract involved the construction of warehouses and sheds at the second shipyard of the HHIC Philippines Inc. on the freeport’s Redondo Peninsula. The cancellation of Philnorkor’s CRTE was effective Friday, Arreza said.

The board directed the HHIC, deemed to be the general contractor, to submit a compliance report on safety and labor standards.

“It’s not also fair to suspend HHIC because the negligence was not on its part,” Arreza said when asked why the board did not issue a cease and desist order on the Korean firm.

In July the SBMA issued a cease-and-desist order on HHIC following the death of a worker and injuries on four others at the construction site.

Contrast

The board’s Friday decision appeared in contrary to the July decision even though the two had similar circumstances.

Noel de Mesa, president of the Shipbuilding and Construction Workers Association, assailed the decisions of the SBMA board, saying the agency’s poor enforcement work on HHIC and HHIC Philippines Inc. “opens more Filipino workers to job-related risks or deaths.”

Sen. Pia Cayetano has not backed out of her plan to call for an investigation by the Senate labor committee to study the accountability of the Korean firms, SBMA and the Department of Labor and Employment in the deaths of the workers.

Prior to the work-related deaths, several workers have been reported stricken with malaria during the early stages of the construction of the Hanjin shipyard, which boasts of employing at least 8,000 workers. (Tonette Orejas, Inquirer Central Luzon)

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SBMA bids out 2nd New Container Terminal

The Subic Bay Metropolitan Authority (SBMA) is now inviting bidders for the operation and management of the New Container Terminal-2 (NCT-2), the second phase of the multi-million dollar project designed to strengthen Subic’s capacity as a globally-competitive maritime service and logistics port.

SBMA Administrator Armand Arreza said the NCT-2, which is located at Cubi Point in this free port, will be bid out as a transshipment hub for shipping lines.

“What we’re basically looking for is a shipping line or a port operator who has the capacity to manage and maintain the NCT-2,” said Arreza, who is also chairman of the Special Bids and Awards Committee (SBAC) for Port Commercialization.

“The NCT-2, like the NCT-1 or the first phase of the terminal project, is considered a critical infrastructure for the Port of Subic, so we’d like to maximize its potential to make Subic a world-class player in the logistics business,” he added.

The NCT-2, which has an annual cargo-handling capacity of 300,000 TEUs, was completed early this year.

Arreza said it has 14 hectares of newly-constructed container yard, a 280-meter long newly-constructed wharf, two units of 53-ton quay gantry cranes, as well as buildings, equipment and utilities within the area.

Arreza said that to be eligible in the bidding, the bidder should be an operator of an international container shipping line or a consortium of operators of international shipping lines.

He added that the bidder should be currently operating an international container port terminal that handles at least 2 million TEUs per year, or has an operating capacity of 100,000 TEUs, a figure which could be combined for a bidding consortium.

Further, the bidder or consortium of bidders should have a net worth of at least US$50 million, which could also be a combined net worth in case of a consortium.

As for financial qualifications, Arreza said the bidders should be able to submit audited financial statements for the last five years; a sworn statement that there has been no materials change in the financial condition since the last audited financial statement; and letters or testimonials from reputable banks that the bidder is banking with them.

Bidders will also be required to submit evidence of the availability of, or the capacity to raise the amount needed for the operation and management of NCT-2 in the amount of at least US$50 million.

Legal requirements also state that each bidder should be able to submit proof of legal eligibility and competence to undertake the operation and maintenance of NCT-2 in terms of corporate personality, government authorization and licenses; and that it has no tax accountability.

This requirement also applies to foreign bidders, whose documents must be duly authenticated by Philippine consular officials in the country of the foreign bidder, Arreza clarified.

He added, however, that the equity participation of a foreigner shall not exceed 40 percent of the total equity of the winning operator.

Arreza said that bid documents will be available starting December 9, 2008 at the Project Management Office, Bldg. 29 Waterfront Road Extension, SRF Compound, Subic Bay Freeport, upon payment of a non-refundable amount of PhP100,000 or US$2,500.

Submission of completed bid documents will be on or before 5:00 p.m. of January 22, 2009, also at the Project Management Office. (SBMA Corporate Communications)

Photo caption: The New Container Terminal-2, with its two gantry cranes and other facilities and equipment, is being bid out to shipping lines or port operators.

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Hanafil to fly in foreign golfers next year

Subic golf course operator Hanafil Golf and Tour Inc. is now preparing to fly in golfers from various parts of the world after the company began the re-development of the golf links here into a venue for professional tourneys.

Hanafil president and CEO Benjamin John Defensor III said the firm will tap an international airline to accommodate “junket flights” for golfers.

”We want to fully utilize the advantage of Subic Bay Freeport's location by using the Subic Bay International Airport (SBIA) as the entry point for international golfers," Defensor said.

"We are now working out a deal with an international airline to ferry golfers to Subic by January next year," he added.

As planned, the so-called junket flights will be twice a week and using airliners capable of ferrying some 180 passengers, Defensor revealed.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza, meanwhile, said the entry of foreign golfers in Subic would certainly boost Subic’s tourism industry.

“It has been awhile since we had junket flights, which were organized previously by casinos to bring in players from all over Asia. This will be the first time that junket flights will be used to ferry golfers,” he added.

Arreza also expressed optimism that foreign golfers would enjoy playing in Subic, especially since Hanafil had initiated renovation of the Subic golf course to make it at par with some of the world’s best.

Hanafil’s Defensor said the company has recently installed a new irrigation system, built a new restaurant, and acquired new golf carts to upgrade amenities at the 18-hole course. It has also built its own nursery as part of the program to expand the course by an additional nine holes.

Defensor added that the expansion of the fairways was meant to accommodate the growing number of golfers coming into Subic Bay.

He added that the recent opening of the Subic-Clark-Tarlac Expressway (SCTEX) drew a remarkable increase in the number of golfers playing at Hanafil’s newly-renovated course, especially during long weekends.

Hanafil is a subsidiary of Hanatour, a company listed in both the London Stock Exchange and the Korean Stock Exchange. Hanafil, on the other hand, is a Philippine corporation registered with the Securities and Exchange Commission (SEC). (SBMA Corporate Communications)

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Top 10 Subic Freeport workers known

First, the Mt. Pinatubo eruption in 1991, then the subsequent pullout of the US Navy. Then after that came the Asian economic crisis.

What enabled this free port to triumph over these adversities and rise to economic heights cannot be credited primarily to the US$8 billion worth of infrastructure left by the Americans, but rather, to Subic ’s “greatest investment” — its exceptional workforce.

To highlight the crucial role of workers in the transformation of this former US military base into a premier investment and commercial hub, the Subic Bay Metropolitan Authority (SBMA) and the Subic Bay Workforce Development Foundation Inc. (SBWDFI) honored this year’s batch of the “10 Outstanding Freeport Workers” during the 16th anniversary celebration of the free port.

The workers awards, which is now on its seventh year, aims to promote among the entire Subic workforce the culture of excellence displayed by volunteers who are credited for rebuilding Subic from the ashes of Mt. Pinatubo , said SBMA Administrator Armand Arreza.

Arreza, who joined some 8,000 Subic volunteers in 1993, recalled that investors started to do business here primarily because of the volunteers’ exceptional display of nationalism and concern for the community.

“They saw that the facilities left by the Americans were intact, and operations of vital installations like the airport and power supply facilities were not halted because people lent their time and skills for free,” said Arreza.

He added that the recipients of the award “are of the same caliber as those of the SBMA pioneers.”

SBMA labor manager Severo Pastor, who is also chairman of the SBWDFI, said that this year, SBMA employees qualified for the awards for the first time, along with nominees from locator companies in Subic .

The awards body also acknowledged for the first time companies that made significant impact on the free port’s development through the “Administrator’s Corporate Award”.

The awardees in this category, Federal Express (FedEx) and the Subic Power Corporation, received the award for exemplifying good human resource practices by consistently keeping the balance between business interests and employees’ welfare, providing equitable work environments, as well as opportunities for professional growth, Arreza said.

Of the 51 nominees in the outstanding workers category, only 20 finalists were chosen, said Pastor. The finalists then underwent a tougher second screening by the board of judges composed of Aurelio Pineda, executive vice-president of the Olongapo Business Club; Capt. Areston Limos, of the Philippine National Police School of Values and Leadership; and former Philippine ambassador to Saudi Arabia Jonathan dela Cruz, who served as chairman.

Pastor identified the 10 outstanding workers of the Subic Bay Freeport as: Ma. Adoracion Celeste, a technical assistant at the SBMA Human Resource Department; Levi Dalida, special investigator at the SBMA Intelligence and Investigation Office; Arleen Dulay, housekeeping attendant at the Lighthouse Marina Resort; Diosdado Ednave, security officer at the SBMA Law Enforcement Department; Severino Jovero, marine mammal training supervisor at the Subic Bay Marine Exploratorium’s Ocean Adventure; Elizier Martin, foreman at the SBMA Maintenance and Transportation Department; Vicente Salvador, welder/pipe fitter at the Philippine Coastal Storage and Pipeline Corp.; Bernard Sanchez, production department head at Nicera Philippines Inc.; Paquito Torres, division chief at the SBMA Intelligence and Investigation Office; and Jaime Villafuerte, Jr., failure analysis engineering supervisor at Wistron Infocomm. (Phils.).

SBMA Chairman Feliciano Salonga, meanwhile, praised Subic ’s top workers, adding that Filipino workers “always belong to the cream of the crop.”

“Anywhere in the world, Filipino workers stand out,” said Salonga, citing Filipino engineers in Dubai who were commended for building excellent roads, and in Pearl Harbor, where the top three workers at one time were Filipina welders. (SBMA Corporate Communications)

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More investors in hotels, condominiums and leisure facilities in Subic Bay

A number of property developers and other investors are rushing to construct hotels, condominiums and other tourism and leisure facilities at the Subic Bay Freeport in Zambales, according to the Subic Bay Metropolitan Authority (SBMA).

The investors, who recently signed contracts with the SBMA, include Global Dongsan Phils. Inc., which is spending $ 1.1 million for a commercial building; Cook Group and Pacific Associates, with $ 1.4 million to build camping and recreational facilities, and Buma Subic, with $ 36,585 for a restaurant venture.

The SBMA said the rest of the new investors are into manufacturing, logistics and services, and others.

Subic Daesung Corp. committed $ 15 million to engage in the construction and operation of mixed-use commercial buildings that include a condominium- hotel, restaurant and retail shop.

On the other hand, Subic Enerzone Corp., operator of the power distribution system in the area, will also construct hotels and condominiums.

Several existing business locators have also amended their contracts to expand into construction and property development.

These include GVC Subic Corp., a former computer parts manufacturer which will now develop, subdivide, exchange, lease and hold real estate of all kinds at the Subic Bay Gateway Park; and Maritan Subic Inc. which has expanded into constructing, developing, and operating commercial buildings.Other investors include the 7-Tower Properties and Management Consultants which has committed $ 125,000 for a real-estate management venture; Hanil E&C Subic Inc. which is putting up $ 11 million to engage in the design, planning, construction and development of medium to high-rise commercial residential buildings.

SBMA officials said Hanil, a Korean firm, will construct the $ 130 million Subic Ampelos Tower of the Korean property developer KT Global Subic Inc.The Ampelos Tower, which is planned to be a 17-storey, state-of-the-art condominium-hotel complex, will be Subic's second high-rise next to Hanjin's 22-storey edifice at the the Cubi-Triboa District.

The Global Terminals and Development Inc., which is developing the Alava Pier as a passenger terminal, has gained approval by the SBMA to develop a two-storey commercial building and 10 Bali-inspired villa-type hotel units at Subic's former Ship Repair Facility area. (Lynda B. Valencia - PNA)

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Hanjin Subic refused DOH safety training offer

Korean shipbuilding firm Hanjin Heavy Industries and Construction Phils. Inc., which has been plagued by work site deaths and injuries, has rejected the "standing offer" of the Occupational Safety and Health Center (OSHC) to provide more safety training to its thousands of workers, the head of OSHC said.

OSHC executive director Dr. Dulce Estrella Gust said OSHC gave training to workers of Hanjin and its subcontractors last September.

After that initial session, OSHC has offered to continue the program to inculcate to the workers the value of health and safety.

Gust said OSHC, which is attached to the Department of Labor and Employment, insisted on a continuing health and safety program because shipbuilding is a very, very dangerous industry.

She added that OSHC could not cultivate the culture of safety in the workplace in one or two sessions.But Hanjin refused the offer to have OSHC conduct follow-up trainings, Gust said.

"They told us that they want to finish 10 ships first," she said. "We offered it, we wrote straight to the president of Hanjin, but they declined."

Hanjin, she noted, makes about two vessels per year in its Subic base."It's unfortunate that they have this kind of attitude," Gust said.

There are around 12,000 to 15,000 workers in the Hanjin shipyard in the Subic Bay Freeport.

Since the company opened its shipbuilding operations in the Philippines in 2007, 17 workers have died in the workplace, DOLE said.

In the past two weeks, two more workers were killed and three others were injured in separate incidents in the site of one of Hanjin's subcontractors.

Pyeong Jong Yu, the company's deputy managing director, had stressed that the incidents were not related to shipbuilding work.

Gust said the number was "high," considering the industry and the length of time Hanjin was operating in Subic. "It's really worrying," she said.

Hanjin should also ensure that its contractors adhere to safety standards, she added.The Labor department has expressed alarm over the rising number of workplace deaths in the Hanjin shipyard.

Last September, DOLE instituted a zero-accident program in the Hanjin site.The program entails that Hanjin institute a system that would correct, update, and disseminate information on potential hazards and risks to its workers especially the newly hired ones. (Kristine L. Alave - Philippine Daily Inquirer)

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Ban on Hanjin subcontractor pressed

The Subic Bay Metropolitan Authority has recommended the banning of a subcontractor of the Korean shipbuilder Hanjin after the recent deaths of two workers at the firm’s work site.

SBMA Administrator Armand Arreza said his agency investigated the death of Jose Vener Gil, 42, and found that Philnorkor (not PhilNokor as earlier reported), a subcontractor of Hanjin Heavy Industries and Construction Philippines Inc. (HHIC), had violated proper work procedures.

A 250-kilogram duct whose shackle Gil was unhooking fell on him on Nov. 26. Gil, who was employed by Philnorkor, died while being brought to the hospital.

“We found [that] Philnorkor used improper shackles in moving the ducts,” said Arreza. “This is the company’s (Philnorkor’s) second death. We will recommend cancellation of Philnorkor’s CRTE (certificate of registration and tax exemption) to the board,” he said.

The CRTE allows a company to operate within the Subic free port without paying duties. In effect, SBMA’s move to cancel the CRTE bans Philnorkor from doing business inside the free port.

On Nov. 20, Philip Mendoza, 40, died when a metal structure fell on him when the truck he was riding in crashed into an area of the shipyard where he was working.

Mendoza’s three other companions—William Liberato, Rolex Alog and Kong Jong Sik, a Korean who was driving the truck—were hurt.

In a statement, Pyeong Jong Yu, deputy managing director of Hanjin, said the previous accident “was not in any way related to the shipbuilding operations. It was “caused by a vehicular accident as a result of human frailty,” he said.

Yu, in an accident report sent to Arreza, said the company had started an investigation “to ascertain whether the unfortunate event was the result of an industrial mishap, unavoidable human error, or simply the negligence of Philnorkor during the construction work.”

“If investigation reveals that the accident was caused by laxity in the observance of rules and regulations on occupational safety, the immediate superiors and authorities concerned with the implementation of safety policies will be made answerable, regardless of nationality,” Yu told Arreza.

“If negligence on the part of Philnorkor is the proximate cause, HHIC shall take all necessary steps to hold the contractor liable in every aspect,” he added. (Robert
Gonzaga, Inquirer Central Luzon)

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Taiwanese lockmaker opens $5-M new Subic plant; targets export of 1 million locksets a month

Taiwanese company Tong Lung (Phils.) Metal Industry Co. Ltd., a designer and maker of doorknob and lock sets, recently unveiled its new $5-million zinc-die casting and plating facility here, targeting the production and export of one million lock sets a month.

Tong Lung Chairman Tony Ho said that despite the global economic recession, the company looks forward to making its offshore facility in Subic its the second primary base in Asia.

Tong Lung, which was founded in Taiwan in 1954, exports its products to various markets in Asia, America, Europe and Africa. Both its Taiwan factory and Subic unit undertake production using computer-aided design and automated precision machinery.

"Although the global economy seems to be in an economic recession period, I am happy to announce the expansion of our facility," Ho said during the inauguration of the new Tong Lung plant at the Subic Bay Gateway Park here.

"We now have a thousand suppliers and sub-contractors, and I hope to see that the Subic plant will become the second base for hardware production for Tong Lung Co. in Asia," he added.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza, who joined Ho in inaugurating the new plant, noted that groundbreaking for the $5-million facility was done only late last year.

"Now, the new facility is set for production and we're thankful to Tong Lung for manifesting in a very concrete way its confidence in the Subic Bay Freeport," Arreza said.

Chung Yu Wang, the firm's vice chairman, said meanwhile that the firm's new facility in Subic will open up 1,000 new jobs when fully operational.

He also cited the company's "very solid relationship" with its Filipino workers, saying this paved the way to Tong Lung's success.

Tong Lung's expansion in Subic, meanwhile, "enables us to provide more job opportunities to Filipinos," Wang added.

Aside from producing lock set brands like EZ Set, Passion and Lucky, the company also supplies products to tools-and-equipment specialist Black and Decker, said Wang.

The inauguration of Tong Lung's new facility was graced by John Co, an officer at the Taiwan Economic and Cultural Office (TECO), as well as representatives from Black and Decker. Aside from Arreza, Olongapo City Mayor James Gordon, Jr. and Zambales Vice-Gov. Anne Gordon joined Ho and Co in inaugurating the new plant.

Arreza noted that Tong Lung is one of the pioneering investors in Subic, and had since expanded operations in this free port.

"As you can see, Tony Ho is not just a million-dollar man. He is indeed a man of action. When he said that he is ready to go full force in Subic, he actually does that. And I'm very thankful for the support and confidence that you have shown us," Arreza said.

He added that the expansion by Tong Lung is "a very encouraging sign that Subic remains to be a competitive and viable investment destination."

"Tong Lung will be exporting about a million lock sets a month starting next year," Arreza said. "This additional production means more revenue for Subic, and these locksets mean more jobs," he added. (SBMA Corporate Communications)

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Trees at the proposed casino project

Trees — including ornamental palms — at the proposed hotel-casino project site bear inventory markings in preparation to balling and relocation.

The relocation, according to the SBMA, is just an option if the trees couldn't be incorporated in the development plan.

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SBMA: Tree-cutting yarn a non-issue

Officials of the Subic Bay Metropolitan Authority (SBMA) yesterday reiterated their
position that no trees will be cut to make way for a $120-million hotel-casino project at Subic's central business district.

Reacting to allegations by architect and urban planner Felino Palafox Jr. that the project would destroy more than 300 trees, SBMA administrator Armand Arreza said he has directed the project proponent Grand Utopia, Inc. to "exhaust all means to save the trees."

"The SBMA directive to Grand Utopia is clear — either they incorporate the trees in their development plan, or ball them and relocate them to another place," Arreza said.

"And as far as we can tell they're complying, because they have applied for a permit to ball the trees," he added.

"So I don't know why some quarters are bitching about this supposed issue, when not one twig has been cut off and the trees are still there," he added.

Palafox has said in several media reports that more than 300 trees would be destroyed by the hotel-casino project. He also alleged that 37 of the affected trees are century-old.

This was the reason, Palafox claimed, why he broke ties with Grand Utopia, which had reportedly tapped him to design the project.

He added that he would have been paid $1 million for the design, but he learned later that the developer had tapped a Japanese designer and that he will simply be asked "to sign on other people's work."

Arreza said, however, that the issue about Palafox's aborted deal with Grand Utopia "should be treated separately from the yarn about cutting trees in Subic."

"This story about cutting century-old trees is simply a non-issue because it isn't true. He's just barking up the wrong tree," Arreza said.

He added that experts from the University of the Philippines in Los Baños doubted whether there are century-old trees in the area, because geological studies of
the project site indicated that the area was reclaimed by the US Navy.

"That being the case, the UP group said that the so-called urban jungle in the project site couldn't be a natural-growth forest. Ergo, the possibility that there are century-old trees present is quite nil," Arreza explained.

An SBMA official who asked not to be identified because he was not authorized to speak on the matter, meanwhile, said that Palafox should "not hide behind the skirt of environmentalism when his issue is really about his failed consultancy."

The official recalled that Palafox had earlier allowed the paving of a turtle-nesting site in Subic when he designed a hotel and entertainment district along Subic's waterfront in 2004.

More than 100 camachile trees were also cut to make way for the project, he said.

"That project pushed through even without an ECC (environmental clearance certificate) and it was Palafox who designed it," the official added. (SBMA Corporate Communications)

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Private Submarines: Made in Subic

SBMA Administrator Armand Arreza (third from left) joins proponents of a personal submarine project in the Subic Bay Freeport, from left: George Ramirez, president of McGram Fusion Inc.; Kiyotaka Miyagawa, CEO of Amuza Co. Ltd. of Japan; and Keisuke Imada, Amuza's mechanical technologist. The team successfully conducted sea trials for the personal submarine prototype last week at Subic Bay. (SBMA Corporate Communications)

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Japanese firm to produce 'personal submarines' in Subic

First gaining attention as a manufacturer of world-class limousines, Japan-based firm Amuza Co. Ltd. is now set to produce in Subic what it called "leisure submarines", in partnership with a business locator here that specializes in fiberglass and composite materials construction.

This was announced on Thursday by Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza, after Amuza conducted a successful sea trial of its private submarine prototype here last week.

Amuza, which has been working on the submarine project for 10 years, has partnered with former Subic locator Taiyo Sangyo Trading and Marine Service Ltd., which in turn referred them to McGram Fusion Inc. in Subic, said Arreza.

McGram Fusion, which manufactures car body kits made of fiberglass, carbon fiber and Kevlar, has agreed to fabricate the vessel's hull and other visible components, while electronic parts and systems will be shipped in from Japan.

The two-seater leisure submarine weighs four tons and is about the size of a typical car — two meters wide, four and a half meters long, and two meters high.

Underwater, it sucks in water which adds to its weight, for a total of 4.8 tons.

Powered with a lithium-ion battery, which Amuza currently develops, the leisure sub on a full charge of 10 hours can navigate for up to 50 nautical miles (about 90 kms) and dive up to 150 meters deep.

Underwater, the vessel's speed tops 5 knots per hour.

Amuza chief executive officer Kiyotaka Miyagawa said the firm has so far spent about $1.7 million for the prototype tested here last week.

He added that Amuza wants to produce 10 units of the submarine by the end of the year.

"Basically, this is a toy for rich people," Arreza said. "So production would be low, slow, cautious, and of the highest quality."

Amuza mechanical technologist Keisuke Imada said the unique submarine can be maneuvered to perform stunts like an aircraft.

"This is the most acrobatic submarine in the world," Imada said with pride. "The idea was to make it more mobile, as opposed to the traditional sub which can only go up and down."

Imada said buyers of their craft must first secure a license from a pilot training station they are planning to set up in Subic Bay.

Imada, who served time in Japan's navy, said he is very familiar with the Subic Bay Freeport, so he insisted that it be the venue for sea trials and the training school.

Initially, the firm plans to invest US$5 million for the training school, which will employ 50 to 100 divers, mechanics, and helpers, he said.

"Subic Bay's proximity to Japan, its preferable environmental factors, coupled with a workforce possessing excellent maritime capabilities, make it an ideal site for this venture," said Imada. (SBMA Corporate Communications)

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SBMA: Trees won’t be cut for hotel-casino project

The Subic Bay Metropolitan Authority (SBMA) will not allow the cutting of trees to make way for a multi-million hotel-casino project here, officials said on Wednesday.

SBMA Administrator Armand Arreza said the agency has told project proponent Grand Utopia, Inc. that the trees should be saved and incorporated in the development plan, which will be subject to SBMA review.

“We won’t stand for the cutting of trees. Definitely, we won’t allow it,” Arreza clarified.

He added that a news report saying that the project would destroy some 300 trees in the two-hectare site is speculative.

The report quoted architect Jun Palafox, who said that he was initially tapped to design the project but backed out when he found out that the management “intended to cut the trees.”

Arreza said, however, that he did not know why the deal between Palafox and Grand Utopia fell through.

“But the trees are still there, because all that the developer has done at this time was to fence in the area and inventory the number of trees preparatory to balling, which was the procedure we have recommended,” Arreza said.

“It’s pure speculation that 300 trees will be destroyed because, in fact, Grand Utopia has already applied for a permit to ball the trees,” he added.

Arreza also pointed out that the area, which previously contained a mini-golf course built during US Navy Days, has been classified under SBMA zoning regulations as a commercial area.

“It’s true that because of the density of the trees at the mini-golf course, our Ecology Center has classified that part of the site as an urban jungle. But it’s still within the commercial zone where development is allowed,” he explained.

“This is why the recommendation from Ecology was to incorporate the trees in the development plan, or if that won’t be possible, to ball the trees and transfer them to a new location,” Arreza said,

The SBMA Ecology Center said that several mature trees affected by development projects in the Subic Bay Freeport have been successfully transferred.

Technicians at the Center said balling is “relatively a simple procedure“, although the recovery stage for relocated trees “would be the hard part.”

“But we’ve been doing it,” they added.

The Center also said the SBMA has required developers to provide replacements on a ratio ranging from 10 to 50 saplings for each affected tree. On top of this, developers pay a considerable amount for the maintenance of saplings.

Arreza said the Grand Utopia project, which will be known as the Ocean 9 Casino and Hotel Resort, is considered to be a critical infrastructure in Subic’s bid to attract more foreign tourists to the growing number of holiday destinations in this free port.

The hotel will be located near Subic’s Alava Pier, which is being developed by another firm as a passenger terminal for cruise ships.

The casino-hotel resort is expected to employ more than 5,000 workers once operational. The project is scheduled for completion within two years. (SBMA Corporate Communications)

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