Subic container terminal bidding set for February

The Subic Bay Metropolitan Authority (SBMA) is all set to bid out the second phase of the New Container Terminal (NCT-2) in this free port in February next year, pending the completion of advertising requirements to formally start the bidding process.

The agency announced earlier that it is inviting shipping lines and port operators to bid for the operation and management of NCT-2, which has a cargo-handling capacity of 300,000 twenty-foot equivalent units (TEUs).

However, SBMA Administrator Armand Arreza clarified on Friday that the Port Commercialization project would have to wait until after formal bidding notices are published in international and national publications.

"This requirement somewhat deferred the bidding process, but this is necessary because we want to ensure that international players are duly informed so that they could participate," Arreza said.

"We're going to announce as soon as possible when bid documents would be available. Most probably, that will be by February next year," he added.

According to the SBMA Project Management Office, which was supposed to hand out bid documents to interested parties starting December 9, it has received a lot of inquiries from foreign embassies and global port operators after news on the NCT-2 bidding came out.

"This is very good news to the SBMA, but regrettably the bidders would have to wait awhile until the Special Bids and Awards Committee (SBAC) for Port Commercialization completes this particular requirement," Arreza said.

The NCT-2 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 related buildings and equipment.

The contract for the NCT-2 operation and management (O&M) would be effective for a period of 25 years, with an option to renew the agreement for another 25 years. (SBMA Corporate Communications)

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Solon urges congress to probe US$120-M hotel-casino project in Subic

QUEZON CITY-- A party list representative urged congress to fully investigate the "irresponsible accusations" made by renowned architect and urban planner Felino Palafox, Jr. against the Subic Bay Metropolitan Authority, even as she questioned Palafox' motives in "raising hell and high water" over the Grand Utopia project vis-a-vis his recommendation to transfer it to another project he designed in the Freeport.

In a privilege speech, Rep. Carissa Coscolluela called for a thorough congressional inquiry to clear the issues muddled in the "web of lies conveniently spun around a completely unrelated issue - an environmental advocacy campaign to save some trees in order to attract media attention and generate political and public support for the transfer of the resort project."

The congresswoman said she was "perplexed by the indiscriminate, arbitrary and irresponsible way that accusations have been hurled against the SBMA," - starting from the alleged cutting of trees at the site of the $120 million hotel casino project to accusations of extortion that Palafox alleged to have led to his disqualification from an earlier project - the redesign of the master plan for the Freeport's development.

"Since an outstanding member of the business community has made accusations against a government agency and its agents, let us fully investigate the matter so that truth may come out and those who might be found guilty can be punished and the innocent be spared," Coscolluela said in her privilege speech on Tuesday.

She cited the ever-changing statements Palafox and his spokespersons have been feeding to members of the media, which she said was unfair to SBMA.

"The reputation of the SBMA and its agents, including a nine-year old boy, was besmirched. They have been unfairly crucified in the court of public opinion in this trial by innuendo," said Coscolluela.

Palafox first claimed that his firm was disqualified from the master plan project's bidding since he did not come up with the 18% (of the contract price) allegedly demanded by a member of the SBMA Bids and Awards Committee (BAC).

Yet, Coscolluela stressed, records of the SBMA BAC clearly show that Palafox Associates was never disqualified from the bidding process as reported in the news, but was in fact among the final three firms short listed, added Coscolluela.

"Palafox Associates lost after all respective proposals of all qualified bidders were ranked in accordance with the set of criteria formulated under the Terms of Reference governing the bidding of the project," she revealed.

Coscolluela noted that Palafox subsequently said that his associate told him it was the son of SBMA Administrator Armand Arreza who was behind the extortion attempt - who was only nine years old at that time.

She added that Palafox later backtracked and said it could not have been instigated by Arreza or his son.

"Their (Palafox's camp) stories change everyday," said Coscolluela.

On Tuesday, she said a radio commentator revealed that sources close to Palafox identified the person behind the extortion attempt as a member of the SBMA Board of Directors named Boy Coscolluela.

"There is only one Coscolluela on the SBMA Board-- my father. He never spoke to Palafox or his associates about this project, and his name is not even 'Boy'," she said.

"Palafox and his cohorts cannot even get their lies straight," she added.

"To this day, Palafox hides behind all these people who speak for him and has not been man enough to name the alleged extortionist," she said.

The congresswoman reiterated that the matter must be brought to congress to set the record straight once and for all.

Meanwhile, Arreza said Palafox cannot accuse him of any environmental violations.

"We have made it clear that not one tree has been, or will be cut," said Arreza, explaining that the SBMA directive to project proponent Grand Utopia Inc. is to either incorporate the trees in the development plan, or ball and then relocate them.

Arreza wonders how Palafox has come up with the idea that centuries-old and heritage trees are in the area which, during the 50's until the early 60's, was reclaimed by the US Navy for leisure purposes, particularly as a mini-golf course.

Of the 336 trees in the area, 118 are considered as ornamental. More than half of the total have diameters less than 20 centimeters and are considered as saplings, Arreza said.

He clarified that the term 'urban jungle' is inappropriate, since the area, which was zoned for resort development as early as 1996, lies in the Central Business District, and is actually adjacent to SBMA offices.

"The Central Business District is where you would normally find entertainment structures like the proposed Ocean 9 Resort-Hotel," Arreza said. (SBMA Corporate Communications)

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SBMA prefers shipping lines to operate NCT-2

SHIPPING lines are the players preferred in the privatization of the second container terminal in Subic as cargo volume would be an issue that needs to be addressed at the earliest possible time, according to the Subic Bay Metropolitan Authority (SBMA).

SBMA Administrator Armand Arreza said his office is looking for a shipping line that would make Subic’s New Container Terminal 2 (NCT-2) its operations hub than award it to International Container Terminal Services Inc. (ICTSI), for example, a company that already operates the first terminal.

Arreza said a shipping line could guarantee to a large extent volume through the port it has cargo vessels, unlike a port operator that could only market the facilities to shipping firms.

“We hope that big liners participate and make NCT-2 its Southeast Asian hub where they will consolidate cargo rather than go elsewhere like Hong Kong, which is so expensive,” Arreza said.

He added, however, the SBMA would not prevent ICTSI from joining the bidding for NCT-2. ICTSI subsidiary Subic Bay International Terminal Corp. won the management and operations contract for NCT-1.

The facility could handle up to 350,000 TEUs (twenty-foot equivalent units) of cargo per year.

Even if ICTSI should win and monopolize Subic’s container terminals, the company still needs to create volume to recoup the expenses it would incur in operating and managing the new container terminal.

The Razon-controlled firm pays SBMA about P100 million a year to manage and operate NCT-1. Should ICTSI win in the NCT-2 bidding, it would have to pay P200 million a year, Arreza said.

NCT-2 is being eyed as a transshipment hub for shipping lines and has a handling capacity of 300,000 TEUs a year expandable to 600,000 TEUs. It has a potential revenue of about $6 million a year, including wharfage fees.

The management and operations contract for NCT-2 is 25 years, renewable for another 25 years.The government has invested $80 million for NCT-2 in the form of a loan from the Japan Bank for International Cooperation. (VG Cabuag, Business Mirror)

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Hanjin launches 2 more vessels in Subic Freeport

South Korean shipbuilder Hanjin Heavy Industries and Construction Co.-Philippines (HHIC-Phil) announced that it has launched two new vessels last week, the third and the fourth container ships it has built at its $1.6-billion shipyard here.

Pyeong Jong Yu, deputy managing director of HHIC-Phil, said the two vessels were launched from HHIC-Phil's dry dock # 5 on December 4.

The ships will be named Opal and Topaz, respectively, and will be delivered also to the Greek shipping firm Dioryx Maritime Corp., which has ordered the first six vessels scheduled for production at Hanjin's Subic shipyard.

The launching of Opal and Topaz at one time "is the first event not only for HHIC-Phil but for the Philippine shipbuilding history," Yu said in statement.

"True to our word, we have finished building these two 4,300-TEU container vessels within six-and-a-half months without compromising required high quality, starting from their keel laying works done last May 15, 2008," Yu added.

He also said that the achievement was made possible with the use of "up-to-date technology, state-of–the-art equipment, weather-proof dock shelter that enables working during rainy season, hardworking attitudes of our employees, systematic training at Skill Development Center that is deemed largest in the world, actual work-training in the shipyard thereafter, and the size of dry dock # 5, where four vessels can be simultaneously built together."

Yu also said that the company's "real secret in the successful completion of the ships is the ever-increasing number of skilled Filipino workers employed at our shipyard."

He said that more than 15,000 workers are now employed at the Hanjin shipyard in Subic's Redondo Peninsula.

"Certainly, our company expects to achieve its goal of launching more than 15 vessels next year as the workers will surely become better familiarized with shipbuilding works due to continuous training and enhanced work experience," Yu also said.

"This is revolutionary, not only for HHIC-Phil but also for the Philippine shipbuilding industry. In the middle of the world-wide recession, it could be expected that this would greatly contribute to the Philippine economy," he added.

HHIC-Phil has launched two other container vessels built in its Subic shipyard early this year. These are the MV Argolikos, which was delivered to the Dioryx Maritime Corp. on July 4, and the CMA CGM Turquoise, which was launched last August 30.

All the four vessels produced in Subic were 4,300-TEU container vessels that were each worth about $60 million.

According to HHIC-Phil officials, the company expects to produce more ships in Subic as the productivity in its shipyard here is fast catching up with Hanjin's shipyard in South Korea.

"Filipinos learn fast— now they are experts," said Hanjin quality assurance director Yoonha Kim during the launching of the MV Turquoise in August.

Kim also praised Filipino workers for their "world-class efficiency" when hull construction and engine installation for the Turquoise was undertaken within the standard Hanjin timetable of 13 months.

He added that HHIC-Phil's goal "is to be at par with our South Korean counterparts in terms of efficiency and quality of work." (SBMA Corporate Communications)

Photo Caption:
PROUDLY SUBIC-MADE: Two more container vessels, the CMA CGM Opal and the CMA CGM Topaz, were launched by Hanjin Heavy Industries Co.-Philippines last week at its shipyard in the Subic Bay Freeport.

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Subic Aetas venture into farm project

A nine-hectare vegetable farm is now thriving at the hilly village of Pastolan in this freeport after members of the indigenous Aeta tribe converted part of their land into a green garden and demonstration farm with the assistance of the Subic Bay Metropolitan Authority (SBMA).

The green garden project, which was launched under the SBMA’s Corporate Social Responsibility (CSR) program, was aimed at increasing the household income of some 200 Aeta families living in Pastolan.

Kenette Fernando, SBMA Deputy Administrator for Corporate Communications, said the Aeta community had recently planted the farm with sweet potato, cassava, gabi tubers and black pepper.

“Now, they are looking forward to harvesting their first crop in March,” she said.

Pastolan village chieftain Conrado Frenilla said the green garden project started as a concept of the SBMA Public Relations Department and was implemented jointly by the Aeta tribal council and the department’s community relations officers.

“A few months ago, the SBMA brought us to a Taiwanese green garden and demo farm in Castillejos, Zambales and it was where we got some ideas on vegetable farming and marketing techniques that we hope to apply in our area,” Frenilla said.

He said clearing the nine-hectare project site was quite difficult because it was rocky and full of hardy grass, and they lacked suitable farming equipment. “But little by little, we coped and cleared the area using only jungle bolos, rakes and our albino carabao named Tisoy,” he added.

Frenilla also expressed appreciation to the SBMA “for its continuous support to various Aeta communities in Subic” in terms of employment, scholarship grants, livelihood skill trainings and infrastructure projects.

Aside from Pastolan, four other Aeta villages are located in the Subic Bay Freeport, most of them in remote hills and jungles where the natives used to forage for food.

Gigi Estalilla, an SBMA community relations’ officer who oversees the Pastolan green garden project, said work in the Aeta communities is hard but very rewarding.“Twice or thrice a week, we hike several kilometers from the main road up to the farm to check on the progress of the crops,” he said.

To start the project, 10 workers were hired through the SBMA Ecology Center, said Estalilla. “But soon, the villagers came to volunteer in clearing the land, tilling the soil, and planting the crops.”

The Aeta villagers also helped put up an irrigation system that used a network of bamboo tubes to bring in water from a nearby stream. The farm uses organic fertilizers made from composted leaves, tree bark and animal manure.

With the vegetable farm project now underway, Frenilla said, Pastolan villagers are now planning to develop another five hectares of land for a similar venture.

“We plan to plant this with fruit-bearing trees, and maybe put up a herbal garden, too,” Frenilla said, adding that the SBMA has promised to help them with marketing their farm produce. (SBMA Corporate Communications)

Photo Caption: Aeta tribesmen at the Pastolan village in the Subic Bay Freeport tend a vegetable farm, which was launched under the corporate social responsibility program of the SBMA.

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Subic hotel-casino to create 5,000 jobs

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza has expressed optimism that at least 5,000 new jobs will be created with the completion of the $120-million hotel-casino along the Waterfront Drive in this free port.

According to Arreza, the 15-story integrated resort-hotel, complete with convention center and casino, is expected to be completed within two years.

Arreza said the landmark development project, which will be known as Ocean 9 Casino and Hotel Resort, is designed to be the most beautiful hotel in the Subic Bay Freeport.

“This promises to be a significant landmark that will create meaningful jobs for Filipinos and transform the face of Subic Bay, making it the pride of Olongapo and Zambales,” the SBMA administrator added.

Arreza also emphasized that the Ocean 9 Casino and Hotel Resort project 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, he said.

Alava is also being used for berthing by visiting US Navy ships that regularly dock in Subic during military exercises between the Philippines and the United States, he added.

Earlier, Arreza, together with Moon-Sung Choi, chairman of the proponent-firm Grand Utopia, Inc., led the groundbreaking ceremonies. The event was witnessed by Philippine Amusement and Gaming Corp. (PAGCOR) chairman and CEO Efraim Genuino, Olongapo City Mayor James Gordon Jr., Zambales Vice-Gov. Anne Gordon and representatives of the Korean business community in Subic. (PhilStar)

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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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Subic hosts ICT convention

Identified recently as one the most viable information technology hubs in the country outside Metro Manila, the Subic Bay Freeport will host starting today (November 27) a two-day convention on information and communications technology (ICT) to help consolidate stakeholders in the booming industry.

The event, which includes a trade exhibition that will run until November 30, was organized by the Subic Bay Metropolitan Authority (SBMA) in close collaboration with the Subic Bay Freeport Chamber of Commerce and Industry (SBCCI).

The convention and exhibit will be held at the Subic Bay Exhibition and Convention Center (SBECC) under the theme "E-nnovative Governance: the SubIcTech Formula."

Plenary speakers include Oscar Sañez, president of the Business Processing Association of the Philippines (BPAP); Monchito Ibrahim, commissioner of the Cyber Services Group, Commission on Information & Communications Technology (CICT); and Ma. Lourdes Mediran, deputy executive director of the Center for International Trade Expositions and Missions (CITEM).

Guest speakers, meanwhile, include Senator Richard Gordon, Asst. Secretary Reynaldo Berroya of the Department of Transportation and Communication, and Buhay party list representative Ma. Carissa Coscolluela, who chairs the Bataan Olongapo Zambales Educational Development Organization's Information Technology Council.

SBMA Administrator Armand Arreza said that the convention and exhibit is expected to attract experts, industry leaders, and key decision-makers in the ICT sector.

"With this event, we aim to consolidate stakeholders in the ICT industry, so that the country, including Subic, can really take off as a world-class provider of ICT services," Arreza said.

"This is a booming industry, and we must have the necessary facilities to grab a big chunk of the growing market," he added.

Arreza said the ICT industry, considered as one sector with some of the most high-paying jobs in the country at present, experienced a growth rate of 70 percent from year 2000 to 2005.

In 2005, he added, the Philippines was considered a location of choice because of relatively less expensive operational and labor costs, making it one of the top 10 BPO destinations worldwide.

The potentials of the industry include Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), and other creative E-services like software and hardware development, wireless application, digital animation and games, Arreza added.

He also said that the new ICT trends, like E-commerce — the groundbreaking way of doing business through the Internet, and using telecommunications and computing tools for marketing and business exchange — is currently revolutionizing ways on how business and governance should be done.

As for the Subic Bay Freeport, Arreza said the SBMA has recently upgraded ICT facilities here to meet emerging demands in the industry.

"Subic is now ready with the required infrastructures, as well as a talent pool, to be a major player in the ICT business," Arreza said.

Organizers said the four-day ICT convention and exhibit expects over two thousand participants from prominent industry players, telecom companies, software and hardware manufacturers, IT schools, business and knowledge process outsourcing groups, as well as manufacturers of computers, mobile phones, and other electronic products.

The high number of participants was made possible trhough online registration at the website (http:/www.ictsubic.com), which was created and managed by the Comteq Computer and Business College, an ICT school based in the Subic Freeport. (SBMA Corporate Communications)

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$120-M hotel-casino resort breaks ground in Subic

A fifteen-story integrated resort-hotel worth $120 million will soon rise along the Waterfront Drive in this free port to provide a landmark development complete with convention center and casino.

The project, which will be known as Ocean 9 Casino and Hotel Resort, broke ground last Wednesday, with Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza and Moon-Sung Choi, chairman of the proponent-firm Grand Utopia, Inc., leading the ceremony.


The event was witnessed by Philippine Amusement and Gaming Corp. (PAGCOR) chairman and CEO Efraim Genuino, Olongapo City Mayor James Gordon Jr., Zambales Vice-Gov. Anne Gordon, and representatives of the Korean business community in Subic.

According to Arreza, the Ocean 9 resort-hotel complex is designed to be the most beautiful hotel in the Subic Bay Freeport.

“This promises to be a significant landmark that will transform the face of Subic Bay , making it the pride of Olongapo and Zambales,” he added.

Choi, who presented a project brief during the ceremony, said the main facility will be a 15-storey hotel that will occupy an area of 9,173 sq. meters, while the secondary building that will occupy 4,200 sq. meters will house a three-storey casino.

The project, which is expected to yield more than 5,000 jobs, is scheduled for completion within two years, he said.

“We will do our best to develop the business under the direction of PAGCOR and SBMA, as we aspire to be at par with some of the world’s best tourism and entertainment attractions,” Choi said.

“The hotel and casino complex will be built using cutting-edge technology and advanced architectural systems in order to make a unique design that will blend comfort with entertainment,” he added.

As planned, the Ocean 9 casino will feature a central stage for live entertainment and performances, as well as a lift-up type of walkway that could be used for fashion shows, said Choi.

The first floor of the casino, where some 500 gaming tables will be clustered, will also have an organic light emitting diode (OLED) system for visual effects, he added.

The OLED system could produce scenes like a waterfall orr volcanic activity, Choi said.

The other side of the main hall, meanwhile, will have from 60 to 120 shops that will sell luxury brands, including premium items from Italy and France .

On the other hand, the hotel-casino complex will also boast convention and business facilities to complement leisure activities intended for foreign and local tourists, said Choi.

The Ocean 9 Casino and Hotel Resort project 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.

Alava is also being used for berthing by visiting US Navy ships that regularly dock in Subic during military exercises between the Philippines and the United States. (SBMA Corporate Communications)

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SBMA to honor the Subic Volunteers, outstanding workers

The Subic Bay Metropolitan Authority (SBMA) honors the Freeport's outstanding workers and the Subic volunteers as it commemorates on Monday, November 24, the turnover of this former US naval base to the Philippine government 16 years ago.

The turnover ceremonies on November 24, 1992 not only marked the end of nearly a century of US military control of Subic Bay but also signaled the start of efforts to transform the former naval base into a freeport.

The date has since been observed as Volunteers Day in Subic Bay Freeport and the nearby city of Olongapo – in grateful recognition of the indomitable spirit and sacrifice of thousands of men and women who worked without pay to maintain and operate the facilities left behind by the Americans in the early years of the Freeport.

"As one of the thousands-strong army of men and women who helped protect and preserve this former base land in 1992, I take immense pleasure in reliving with my fellow volunteers the years of toil and sacrifice that set the foundations for a progressive, sustainable and forward-looking Freeport," SBMA Administrator Armand C. Arreza said.

"Today, as one of the thousands-strong army of SBMA employees, I also take enormous pride in announcing that our collective actions in the past have not been in vain as the Freeport continues in its unflagging march forward — breaking new records in investments, revenues and jobs, and seeking greater heights as a world-class service and logistics hub that we can all be proud of," he added.

Highlighting the November 24 festivities here is the awarding of the 10 Outstanding Freeport Workers for 2008, to be held at the Subic Bay Exhibition and Convention Center (SBECC).

Now on its seventh year, this annual awards program - a joint project of the SBMA and the Subic Bay Workforce and Development Foundation, Inc.(SBWDFI) – gives due recognition to the crucial role of workers in the Freeport's rise as a premier investment and tourism hub.

This year's awardees are Ma. Adoracion R. Celeste of the SBMA Human Resource Department; Levi D. Dalida and Paquito T. Torres, SBMA Intelligence and Investigation Office; Arleen B. Dulay, The Lighthouse Marina Resort; Diosdado E. Ednave, SBMA Law Enforcement Department; Severino T. Jovero of Subic Bay Marine Exploratorium Ocean Adventure; Elizier Martin, SBMA Maintenance and Transportation Department; Vicente V. Salvador of Philippine Coastal Storage and Pipeline Corp.; Bernard D Sanchez of Nicera Philippines Inc.; and Jaime L. Villafuerte, Jr. of Wistron Infocomm. (Phils.), Corp.

The search for the best among the 80,000-strong active work force in the Freeport began as early as August this year. Atty. Severo C. Pastor, SBWDFI Chairman and SBMA Labor Manager, said that the foundation received 50 nominees from the different business locators here and the SBMA, which participated for the first time.

The SBWDFI was formed through the efforts of the SBMA and Freeport investors to provide a foundation that can provide a skills development program for thousands of workers here in the Freeport. The foundation has a Board of Trustees consisting of representatives from the Personnel Management Association of the Philippines, investors, Subic Bay Freeport Chamber of Commerce, SBMA-Labor Department and a representative of workers.

The SBMA Volunteers' Day opens with the flag-raising and wreath laying ceremonies in front of the administration building - at the very same spot where the formal turnover ceremonies were held 16 years ago.

SBMA Chairman Feliciano G. Salonga and Administrator Arreza, himself a former volunteer, will lead the flag raising, along with deputy administrators and former volunteers representing the different SBMA business units.

A wreath will be offered at the monument in the same area– that of the Children of the Sun Returning - which was built in 1996 by the first SBMA chairman and administrator, then Mayor Richard J. Gordon, and dedicated to Subic volunteers.

The Olongapo city government has also organized a grand reunion of Subic volunteers at a memorial built in their honor across the lagoon at The Bicentennial Park – the Volunteers' Shrine, where the Subic volunteers' names are engraved on granite panels. (SBMA Corporate Communications)

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15,300 new jobs created in Subic

A total of 15,330 new jobs were created in this free port in the first nine months after the Subic Bay Metropolitan Authority (SBMA) approved 141 new investment projects worth more than $239 million.

The new jobs include the 10,000 projected employment of Subic Neocove Corp., a joint venture between Korean and American firms for the construction and operation of an integrated sports and luxury resort facility at Subic's Redondo Peninsula.

SBMA Administrator Armand Arreza said the projected employment opportunities would increase Subic's active workforce by 18 percent.

According to the SBMA Labor Department, Subic's total labor force already stood at 83,428 as of September due to expansion programs undertaken by Subic-registered enterprises, as well as the operation of new investors..

While the bulk of the Subic workforce remains in the services sector with a total of 36,012 workers or 43.17 percent, employment in the shipbuilding and marine-related business is fast catching up, the SBMA said.

Already, maritime-related industries employ 26,438 or 31.69 percent of the workers in Subic, SBMA figures showed.

The maritime sector is followed by the manufacturing sector, with 14,804 or 17.74 percent; and construction, with 5,628 workers or 6.75 percent. The rest of the active workforce is composed of domestic helpers and caretakers, with a total of 546 or 1 percent.

Arreza said the entry of Neocove Corp. and other big-ticket tourism projects would most likely keep the services sector as the leading employer here in the next few years.

"Subic is basically service-oriented, so as more industries locate here — whether in maritime or manufacturing sectors — we expect a corresponding increase in jobs in the services sector," Arreza said.

He added that aside from Neocove, nine other big investors that signed in this year would also be also labor-intensive.

These include the Korean construction firm Hanil E&C Subic, Inc., which has a committed investment of $11 million; Sultan Ahmed Lootah Enterprises corp., with $6.72 million; George Dewey Medical and Wellness Center, Inc., with $6.58 million; Hanafil Golf and tour, Inc., with initial commitments of $3 million; Australasia Marine Alliance Corp., with $2.31 million; Pacific Pearl Airways Aviation School, with $2.13 million; Palmgold Int'l Ltd., with $1.98 million;
Grand Pillar Int'l Development, Inc., with $1.9 million; and Buma Subic Development and Management Corp., with $1.5 million.

The 141 new projects worth some $239 million placed the total committed investments in Subic at $5.74 billion, the SBMA said.

Arreza also said that SBMA's job-generation program has been instrumental in addressing unemployment and underemployment in the Central Luzon region.

Citing figures from the Department of Labor and Employment's Bureau of Labor and Employment Statistics (DOLE-BLES), Arreza noted that the region's unemployment rate had decreased from 11.5 percent in 2007 to 9..4 percent as of July this year.

In the same period, Central Luzon's underemployment figures went down from 14.1 percent in 2007 to 9.2 percent as of July.

"I think our efforts to minimize labor gaps are now gradually paying off," Arreza said, pointing out that the agency is also facilitating regional dialogues not only to address unemployment, but to promote skills matching and industrial peace in the region.

He said the that in 2005, the SBMA linked with the Department of Labor and Employment, Commission on Higher Education, Technical Education and Skills Development Agency, Public Employment Service Office, and the Regional Development Council to start a series of conferences on job-skills mismatch to help address labor concerns in Central Luzon. (SBMA Corporate Communications)

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Trump eyeing investment in Philippine freeport

SUBIC BAY, Philippines - U.S. property tycoon Donald Trump is eyeing up a move to develop part of a new complex in the Philippine freeport of Subic Bay into a tourist center, a Trump company official said Wednesday.

The flamboyant billionaire is looking at joining a South Korean company that is already building a major complex in Subic Bay, which is located north of Manila.

Trump Organization executive vice-president Michael Cohen said he had met officials of the Heung-A Property Group to discuss the plan.

He said the two sides were working on “a definitive agreement” where the Trump group would be a key developer of the beachfront but added that no formal accord had been signed.

Heung-A Property owns Subic Neocove Corp., a venture that is developing a tourism complex. The company is planning an initial 250 million-dollar investment to build hotels, golf courses, a casino and residential areas.(The China Post)

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Fighting poverty ensures peace - Pres. Arroyo. Petron fuel plant inaugurated in Subic

SUBIC BAY FREE PORT—President Arroyo has underscored the importance of the government’s poverty-alleviation program, saying that strengthening the economy and bringing about human dignity to every Filipino brings about peace.

In a speech before the Central Luzon Local Peace and Security Assembly at the El Centro Convention Center here, President Arroyo also said the government has been making headway in curbing insurgency, which she said is rooted in lack of jobs,
land-reform problems and social injustice.

“A strong and growing economy has been the central pillar we have labored to create precisely to help ensure peace, order and instability in our country. And it’s paying off,” Arroyo told some 500 participants in the two-day assembly and workshop.

Before addressing the Central Luzon peace assembly Thursday, President Arroyo also inaugurated a $2.5-million fuel-additives blending plant put up by Petron Corp. at the Subic Techno Park.

Petron chairman and CEO Nicasio Alcantara informed the President at the inauguration that the facility will not only generate dollar revenues, but will also promote energy conservation and assist in environmental protection.The additives-blending plant, the first of its kind in Asia-Pacific, will export 80 percent of its products, mainly to Asian markets.

In addressing the peace assembly later, Mrs. Arroyo said, “Our economy is more resilient today than ever before, thanks to our fiscal reforms that manifested in a 7-percent-plus [gross domestic product] growth last year.” Almost 7 million jobs have also been created in the past seven years of her administration, she added.

However, she admitted that the current global financial crisis still hits Filipinos where it hurts most—at the kitchen table.“We are not insulated from the events taking place internationally, so we will have to monitor developments closely and take action where necessary, to ensure that any impact will be minimal or short-lived,” she added.

At the same time, President Arroyo criticized communist insurgents for impeding progress and development in some rural areas, and said the government is taking on a new tack to end “all forms of armed rebellion in the country.”

She said the new premise of the government’s peace efforts now focuses on “authentic dialogues with the people in communities,” and not on negotiating with armed groups.

“By talking directly with the people, we aim to generate a national consensus against armed struggle as a means of achieving political and social change,” the President explained.

She added that the overall framework of the government’s peace process will be composed of disarmament, demobilization and reintegration (DDR).“DDR, as espoused by the communities, will be a notice to armed groups of their rejection of armed struggle, and a way of showing that the force of arms does not entitle them to representing our people,” she added.

For its part, the assembly presented President Arroyo with a resolution and action agenda for peace, security and development, which was the result of the two-day workshop, spearheaded by National Security Adviser Norberto Gonzales.

The resolution supported the “wisdom and spirit of the New Peace Paradigm [of] multitrack dialogue, peace education and development cooperation,” and expressed the participants’ determination to make Central Luzon an agro-industrial heartland, international gateway, tourism haven, and transshipment and logistics hub.

The resolution was signed by representatives of six workshop groups that included participants from local and national government units, nongovernment and people’s organizations, academe, business, religious and basic sectors. (Henry Empeño - Business Mirror)

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Subic to exceed P5.3-B revenue record

Revenues derived from duties and taxes in this free port this year are expected to breach the P5.3-billion record in 2007, as total collections at the end of 3rd quarter 2008 already reached P4.08 billion.

Subic Bay Metropolitan Authority (SBMA) Administrator and CEO Armand Arreza said the 3rd quarter figure meant an increase of 6.41 percent over the P3.83-billion tally made in the same period last year.

With the 3rd quarter collection record just short by P1.2 billion from last year’s total, the SBMA expects to exceed the 2007 figure of P5.3-billion, he said.

“By all indications, Subic is defying the odds,” Arreza enthused. “While there is some slowdown in the global economy, we continue to make consistent growth in revenue, import, export, as well as investment and employment.”

“The continued growth of these indicators brings about the rise in the taxes and duties collected in Subic,” he said.

According to data released by the SBMA, the Bureau of Customs (BoC) reported a total cash collection of P2.97 billion from January to September 2008, while the Bureau of Internal Revenue (BIR) showed a P1.11 billion tally.

The BoC figure represented a growth of 5.82 percent over its P2.81 billion cash collection as of 3rd quarter 2007.

The Customs office in Subic traditionally sourced its earnings from importation duties and taxes on oil, motor vehilces, general merchandise and Fedex operations.

Arreza said that despite the current economic crisis, importations by manufacturers and traders here had grown steadily in the last two years, from $1.62 billion in 2006 to $1.79 last year.

Aside from its cash collection, the BoC reported non-cash receipts worth P4.53 billion, for a total of P7.5 billion in cash and non-cash transactions from January to September.

In the nine-month period, the Subic BoC made its highest collection in September with P430.7 million.

The BIR report, meanwhile, indicated that its P1.11 billion tax collection represented an increase of 8.02 percent when compared to the P1.02 billion accumulated in the first nine months last year.

The BIR office here derived its collections from income and profit taxes, value-added tax, percentage tax and other taxes paid for by employers and employees in the Subic Bay Freeport.

The revenue collection agency also reported that its collection peaked in the 2nd quarter when it recorded P423.4 million, with P210 million collected in April alone.

Arreza said that revenue collection in Subic will further increase with the entry of more than 141 new investment projects approved by the SBMA in the last nine months. (SBMA Corporate Communications)

photo caption: Container ships unload cargo at Subic’s Sattler Pier. The Subic Bay Metropolitan Authority said a steady growth in imports, as well as investments and employment, contributes to the rise of revenue collections in the Subic Bay Freeport.

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SBMA, Zambales LGU endorse Neo-Cove resort project in Subic

Officials of the Subic Bay Metropolitan Authority (SBMA) and the province of Zambales have given their unqualified support to a proposal by a Korean-led consortium to build a high-end leisure facility at Subic's Cawag area, a short distance from the Hanjin shipyard.

In a meeting with project proponents on Tuesday, SBMA Chairman Feliciano Salonga and SBMA Administrator Armand Arreza said that the agency "stands solidly behind the resort project," which is billed to be the largest master-planned community in Asia.

"The next step now is to break ground," Arreza suggested, pointing out that the SBMA has already worked out the inclusion of the project site with the Subic Bay Freeport.

Zambales Gov. Amor Deloso, for his part, gave the assurance that the project would not meet resistance from the local community.

"This project is good for the local economy and for the tourism industry of Zambales. It will also generate some 10,000 jobs," he said.

"There will be no problem with the people at the site," he added, saying that the project has been formally approved by the Zambales provincial board recently.

The resort project will incorporate hotel and vacation complexes, a 54-hole golf course and leisure-sports facilities, an eco-park, spa and therapy centers, as well as an international hospital and an international school.

Youn Jae Lee, chairman of the Heung-A Property Group (HAPG) of Korea, said his company is combining resources with Westgate Resorts Asia Ltd. and the Trump Organization "in exploring various real estate opportunities in Asia."

The consortium's initial project will be the $250-million integrated leisure, sports and entertainment facility to be built at a 457-hectare beachfront property in Subic, he added.

But a representative of Imagine Realty Corporation, a firm headed by former peace adviser Roberto Aventajado, said the Subic resort development will be made in several phases and will eventually be worth around $1 billion.

The first phase will be undertaken from 2008 to 2010, and the second from 2010 to 2011, he added.

In the same meeting, Trump executive vice president Michael Cohen said his firm has already signed a letter of intent with CIG, one of the Korean partner-firms for the Subic Neo Cove project.

With the entry of Trump, Cohen added, the Subic project would have "the finest quality resort and golf course anywhere in the (Asian) region."

Mark Waltrip, chief operating officer of Westgate, meanwhile said that his firm's involvement would ensure that the project would be fully integrated with local culture — a mark, he said, of Westgate, which operates the largest chain of family-oriented resorts in the United States today.

HAPG chairman Youn Jae Lee, on the other hand, noted that the Subic Freeport has "wonderful infrastructure" already in place. But with the planned resort project, there would be better opportunities for the business community in Subic, he added.

HAPG is said to be one of Korea's progressive conglomerates with interests in real estate, shipping, and logistics. It will undertake the Subic report project through its wholly-owned subsidiary, the Subic Neo Cove Corporation. (SBMA Corporate Communications)

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Subic,Clark approve e-TAPS implementation

Subic and Clark authorities have approved the use of the Automated Transit Admission Permit System (e-TAPS) to ease trade flow in the two ports.

Officials of the Subic-Clark Alliance for Development Council (SCADC), Clark Development Corp., (CDC) and Subic Bay Metropolitan Authority (SBMA) signed the joint memorandum order for the implementation of the e-TAPS at the Clark International Airport Corp., (CIAC) Board Room.

The e-TAPS design intends to simplify procedures and accelerate approval time in the processing of applications for tax and duty-free importations of locators and enterprises.

SBMA Administrator and CEO Armand Arreza, SCADC Chairman Secretary Edgardo Pamintuan, and CDC President and CEO Benigno Ricafort signed the memorandum.

Customs accredited value-added service provider (VASP) Intercommerce Network
Service (INS) provides the remote lodgment facilities for the preparation and lodgment of the Transit Admission Permit (TAP) to the Freeport Authorities.

It will be processed and approved with system generated Freeport Zone Authority reference number.

The Freeport authority through INS shall approve the TAP and transmit the approved
TAP with electronic signature and prescribed data through the National Single Window Program of the Bureau of Customs.

The new procedure allows the importer/broker to create the import entry / Transit
Single-Administrative Document (SAD) using the approved TAP data. This simplifies the workflow, eliminate the physical validation of the data in CDC/TAP and the Customs IEIRD form.(Malaya)

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Execs: Subic has come long way

Top officials of the Subic Bay Metropolitan Authority (SBMA) are optimistic about the freeport's prospects in the global maritime sector.

SBMA Administrator Armand Arreza, in his address during the general assembly of the International Network of Affiliated Ports (INAP) here on Wednesday, said compared to 10 years ago, Subic has come a long way.

He said Subic is now home to some 1,100 investor-firms that provide jobs to more than 85,000 workers.

Arreza said Subic, which has the newest operating container port in the country, possesses key infrastructure that can support a wide range of businesses.

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 Southeast Asia, Arreza told conference delegates.

He said the existence of nine other piers and cargo terminals in Subic, the logistics support infrastructure in the Subic-Clark growth corridor and the freeport's location in the center of the East Asian region would give this free port access to more investments.

During the conference, representatives of INAP's member-ports installed SBMA Chair Feliciano Salonga as INAP chair for 2008 to 2009.

Salonga said he would steer Inap to survival and expansion, especially during these challenging times.

INAP, 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.

Masanao Ozaki, governor of the Kochi Prefecture in Japan and outgoing INAP chair, lauded the SBMA for promoting investment and employment opportunities in Subic.

"For the significant increase in [the] number 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.

Hiroshi Yamanaka, ports promotion director at the Kochi port in Japan, said the Kochi government encouraged not only exchanges among government officials, but also among traders during the Subic conference.

The Kochi government had 30 delegates to the conference, 20 of them coming from the private business sector, Yamanaka said.

The Japanese delegation, he said, checked developments inside the Subic Bay
Freeport in pursuit of possible economic exchanges or trade. (Philippine Daily Inquirer)

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