First RP cruise ship makes Subic its homeport

The first cruise ship to fly the Philippine flag has made Subic Bay its homeport, giving an added boost to this free port’s claim of being one of the country’s most spectacular tourism destinations.

Esteban Tajanlangit, chairman of the 7107 Islands Cruise, said the 370-passenger ship will now start its twice-monthly inter-island tours here, after cruise line officials saw Subic’s advantage as a nautical gateway.

“This is the Philippines’ first cruise ship and Subic Bay is the ideal homeport for it,” Tajanlangit said when the ship first sailed to Subic on February 14.

He noted that Subic’s Alava Pier, where US warships used to dock, offers an instant panorama of the freeport zone, unlike in Manila where containerized cargoes blocked the view of the city.

“The 7107 Islands Cruise is committed to make Subic a takeoff point to our country’s 7107 spectacular islands, and today is just the beginning,” he said.

On its maiden cruise to Subic on Valentine’s Day, the Filipino cruise ship brought close to 300 vacationers who spent a day exploring some of the top attractions in this free port under tour packages arranged by the Subic Bay Metropolitan Authority (SBMA).

The tour destinations included theme parks like Tree Top Adventure, Zoobic Safari, and Ocean
Adventure, as well as duty-free shops and other leisure facilities in Subic’s central business district.

With the ship homeported at Subic, meanwhile, tourists from Central and Northern Luzon will now have the chance to join the ship’s island-hopping tours, said SBMA Chairman Feliciano Salonga.

“They can take the Subic-Clark-Tarlac Expressway (SCTEx) and be in Subic in no time for the scheduled tours,” Salonga said.

Tajanlangit said the succeeding 7107 cruise schedules will start from Subic, proceed to Manila to pick up additional passengers, then begin the hops to Puerto Galera, Boracay and Coron.

The ship will dock one or two days in each destination before sailing back to Subic Bay, he said.

The 110-meter long 7107 Islands cruise ship has 137 cabins with a total bed capacity of 370, a swimming pool, sauna and spa, poolside bar, and entertainment lounge that features professional bands and guest artists.

The cruise line also has tie-ups with destination resorts for diving, snorkeling, boating and other water sports activities.

The entry of the 7107 Islands cruise line in Subic was the result of the aggressive promotion campaign by the SBMA Tourism group, which has been busy creating various tour packages for Subic Bay.

A private firm has also developed areas at the SRF for a passenger terminal and tourist complex, and built a Bali-type resort along the waterfront.

Salonga said the passenger cruise industry is expected to energize Subic’s tourism sector and provide some steam to port and maritime-related businesses here in face of the global recession. (SBMA Corporate Communications)


PHOTO:
The 7107 Islands Cruise Ship steams into Subic Bay, its new home port.

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Customs vows 100% X-ray scanning of cargo in Subic

The Bureau of Customs (BoC) has vowed to fully implement the mandatory X-ray scanning of containerized cargo passing through the Subic Bay Freeport after the Subic Bay Metropolitan Authority (SBMA) offered assistance in the bureau’s revenue collection efforts.

Port of Subic customs collector Marietta Zamoranos assured the Congressional Oversight Committee chaired by Rep. Jeci Lapus of Tarlac that her office would ensure the proper use of the X-ray machine at Subic’s New Container Terminals (NCT-1 and 2) in order to plug any revenue leak and prevent the entry of anti-social goods.

“I believe that, at least with respect to the collection of fees, it can be done properly with the help of the SBMA,” Zamoranos said, after SBMA Administrator Armand Arreza proposed that boom gates be installed at the entry/exit to the container ports to facilitate X-ray inspection of containerized goods.

Lapus and oversight committee members Rep. Teodoro Casiño (Bayan partylist) and Rep. Ma. Carissa Coscolluela (Buhay partylist) conducted a hearing here last week to investigate reports that the X-ray machine installed here by the Department of Finance in late 2007 has not been utilized.

Kurais Jusman, BoC field officer for the X-ray inspection project in Subic, however, reported that only 20 percent of all containerized cargo passing through Subic from October 2008 to January 2009 were scanned.

Jusman told the committee that container truck drivers on their way out of the cargo terminal refused to stop for X-ray scanning even if they were flagged down by Customs agents.

He said that because of this, out of the total 2,125 containerized cargoes that entered the Port of Subic since October, only 433 passed through X-ray scanning.

Jusman also said that only 1,267 cargoes have been assessed for the container security fee (CSF), which is charged to help defray the $150-million cost of 10 X-ray machines installed in various ports throughout the country.

He added that in the same period, 834 cargoes were assessed for the CSF but were not scanned, while 361 did not pay the CSF and also bypassed the scanning requirement.

Arreza said that boom gates should be set up at the cargo terminal’s point of entry/exit to solve the problem.

“If this was relayed immediately to us, we could have gone after the business locators here who refused to have their cargo scanned,” Arreza said, adding that the SBMA will now take a more active role in seeing to it that Freeport locators comply with Customs scanning procedures as far as their incoming containerized cargoes are concerned.

With this, Lapus asked Jusman if the scanning requirement can be carried out once the boom gates are set up.

To which Jusman replied: “I will resign from my position if we fail to scan 100 percent of the containers.”

The X-ray scanning of all containerized cargoes in Subic is aimed at enforcing Executive Order No. 660, which imposed taxes on excess capital goods imported at the Subic Bay Freeport and Special Economic Zone to prevent technical smuggling.

Under EO 660, importations by Subic locators of capital goods in excess of what they need would be deemed brought into or sold within the customs territory and subject to taxes.

Early last month, SBMA senior deputy administrator for operations Ferdinand Hernandez issued a memorandum to all investor-firms in Subic to remind them about the required X-ray scanning of all containerized cargoes arriving in Subic. (SBMA Corporate Communications)


PHOTO: Members of the Congressional oversight committee (from left) Buhay partylist Rep. Ma. Carissa Coscolluela, Bayan partylist Rep. Teodoro Casiño, and committee chairman Rep. Jeci Lapus (Tarlac) conduct a probe on the use of X-ray scanning machine at the Port of Subic.

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Feature: LUB, SCTEX extends development in Freeport, Zambales

IBA, ZAMBALES—Less than a year into its opening, the Subic-Clark-Tarlac Expressway (SCTEX) is fast gaining prominence among tourists and businessmen, and a great number of investors within the Subic Freeport Zone gave nothing but praise to the tollway project.

John Corcoran, president of the Subic Bay Freeport Chamber of Commerce, Inc. (SBFCCI), said that the SCTEX will provide local and foreign visitors with better and faster access to Subic’s recreational facilities as well as commercial and industrial establishments.

“This is going to have such a positive impact all over the Subic Bay Freeport because the new highway has significantly cut travel time to Subic from Clark and from as far as Tarlac,” said Corcoran.

“I am sure that we will see more development along the Subic-Clark growth corridor,” added Corcoran, who is also president of Ocean Adventure, a popular marine theme park here.

Another Subic investor, Yvett Ocampo-Desiongco, CEO of the newly-opened Subic park Jungle Joe’s World, also expressed confidence that the SCTEX would bring in more business here.

“Subic can now count on more visitors not only from Metro Manila and South Luzon areas, but also those from North Luzon.”

“And the highway is awesome and world-class,” she added, saying the SCTEX reminds her of the highway going from San Francisco to Idaho in the United States.

The SCTEX, which covers a total distance of 93.77 kilometers and touted to be the longest four-lane expressway in the Philippines today, is also expected to open up more investment opportunities along the Subic-Clark growth corridor.

SCTEX: Luzon Urban Beltway’s priority component

A flagship project of Pres. Gloria Macapagal-Arroyo, the SCTEX was funded with a loan from the Japan Bank for International Cooperation (JBIC), and is composed of two packages: the 50.5-km Subic-Clark connection, and the 43.27-km span that connects Clark to Tarlac.

The tollway project is the backbone of the Subic-Clark Mega Logistics Hub and a part of the priority infrastructure projects designed for the Luzon Urban Beltway (LUB).

LUB is one of the regions included in the super regions concept eyed to usher development towards the countryside.

“Our resolve to provide the necessary infrastructure for growth and prosperity has heightened investors’ confidence in our ability to slug it out in the global arena…we have billion dollar investments coming in because they have seen us putting money, our own money, our own investment in infrastructure. “

These words, delivered by PGMA during the Luzon Urban Beltway (LUB) Infrastructure Conference at the Subic Bay Freeport Zone in Zambales almost two years ago, sum up the government’s determination to usher development all over the country through the super region concept.

Zambales: Gearing up, cashing in

Subic Bay Metropolitan Authority Administrator Armand Arreza announced that SBMA has maintained its status as the country’s leading investment agency after posting US$1.1 billion in committed investment employing nearly 70,000 workers this year.

“Our new challenge today is to bring investments to the nearby towns of Zambales and Bataan and Olongapo City. This will be easier now after the President issued Executive Order 675,” Arreza said.

With the EO 675, according to Arreza, new investors who are looking for bigger land area will be allowed to put up investment to other places near the Subic Bay Freeport and Clark areas.

“We are also preparing a plan for the construction of access roads going to some tourist and investment sites in Zambales. There are also new power plants to be built inside the Freeport zone that will provide lower power rates,” he said.

In a similar move, Zambales Governor Amor Deloso has announced that Zambales is gearing towards development as it vows to open major road networks that will connect the province to other economic zones in Northern and Central Luzon.

“There is a need to open new roads to expand the development opportunities of the provinces and maximize its potentials as a new investment site in the region,” said Gov. Amor Deloso.

He identified the new economic doors as the Santa Cruz-Mangatarem Road that will connect the northern town of Santa Cruz with the town of Mangatarem in Pangasinan and the Iba-Tarlac Road which will connect the province to Tarlac.

The roads are necessary to open new space for possible economic zones and to shorten travel going in and out of the province to and from Central Luzon, Northern Luzon and Western Luzon areas.

“The roads will also maximize the use of our Masinloc Port as a major seaport in the area benefiting investors, particularly exporters and importers, from Zambales and Pangasinan,” Deloso said.

The governor noted that the Tarlac-Iba Road, which would span to about 60 kilometers when finished, has already a plan that was approved during the administration of former president Ramos.

“The road will boost the potentials of the Masinloc Port which will be constructed under a built-operate-transfer (BOT) scheme by a Canadian business group to the amount of US$5 billion. When finished, Masinloc Port will become a major transshipment port in the region,” he said.

Meanwhile, the official said that the Mangatarem-Santa Cruz Road Project is about 82 kilometers and could be finished at the cost of P200 million. The road will shorten travel time going to Pangasinan from Iba, Zambales from six hours to about two hours.

Deloso has also announced that discussions have already been started to study the possibility of putting a 500-hectare industrial estate in the former San Miguel Naval Air Stations in San Antonio Zambales.

The proposed industrial zone will fast tract the many development programs of the province to turn the province into a tourism and light industry destination in the region.

“Roads will bind our resources- land, people and infrastructures. Due to the completion of the SCTEX, space for investment in Bulacan and Tarlac is getting scarce. Subic Freeport soon could not accommodate more factories. But Zambales has vast land space to offer and we have pier, ship repair facilities and a small airport for tourism,” Gov. Deloso said.(AMV/PIA-Zambales)

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RP-Taiwan meet inks four accords, launches incentives for Clark, Subic investors - MECO

Antonio Basilio, Manila Economic and Cultural Office (Meco) managing director and resident representative, said among the highlights of the 16th RP-Taiwan Joint Economic Conference (JEC) held recently was the signing of four major trade and investment agreements between the Philippines and Taiwan.

These are a memorandum of understanding on Philippine-Taiwan Cooperation on Industrial Technology Development; an MoU on Small and Medium Enterprise Food Development; an MoU on Intellectual Property Cooperation; and an MoU on Standardization and Conformity Assessment for Electronic Products.

At the luncheon meeting hosted by the Philippine delegation headed by Trade Secretary Peter Favila, an entirely new set of investment incentives uniquely packaged and formulated to meet the evolving requirements of Taiwan’s high-technology companies was launched.

The package includes unprecedented incentives for Taiwanese companies, and presented various development opportunities within the Clark and Subic Bay economic corridor. The package is designed to compete with current offerings by the Vietnam government to Taiwanese players.

“This set of incentives, never before offered to any foreign locator in the Clark-Subic economic corridor, is also designed to fill existing gaps in the Philippines’ electronics and information and communications technology (ICT) value chain,” said Basilio.

Basilio said another highlight of the JEC was the holding of the 21st Joint Meeting of the Chinese-Philippines and the Philippine-Chinese Business Council, while the Philippine Investment Seminar was held on Feb. 11, organized by the Chinese International Economic Cooperation Association, the Philippine Chamber of Commerce and Industry (PCCI) and the Meco.

Clement Yang, chairman of the Chinese-Philippine Business Council, delivered the opening remarks while Valentin Khoe of the Philippine-Chinese Business Council provided the response during the event.

Chairman Tomas Alcantara of Meco and PCCI chairman Miguel Varela also delivered their remarks during the affair.

Basilio said the plenary session and seminar proper focused on a number of investment opportunities including high-yield tourism, investing in the Philippine economic corridor, the RP-Taiwan ICT industry collaborative ventures, sectoral investment opportunities, and renewable energy.

Tourism Undersecretary Phineas Alburo gave his presentation on investment opportunities in the Philippine tourism development together with Philip Chao, deputy director of the International Affairs of the Tourism Bureau of Taiwan ’s Ministry of Transportation.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza presented the Master Plan of Development in the Subic Bay Free Port while Benigno Ricafort, president of Clark Development Corp. (CDC), delved on the Master Plan of Development in the Clark Free Port.

Meanwhile, on the topic of RP-Taiwan ICT Industry Collaborative Ventures, Arthur Young, chairman of the Semiconductor and Electronics Industries in the Philippines gave an overview of the Philippine electronics and semiconductor industry while Dr. Gwo-Jiunn Huang, fellow of Taiwan’s Institute for Information Industry, focused his presentation on the ICT industry.

Discussions on Exploring Sectoral Investment Opportunities particularly on aqualculture and agriculture were spearheaded by Philip Ong, president of Santeh Feeds Corp., and Dr. Cheng-Wei Chen, associate professor of the Department of Agriculture Economics, College of Bio-Resources and Agriculture, National Taiwan University.

For renewable energy, Felix Velasquez, president of Bataan Manufacturing Co. Inc. and Phillip Cheng, president of Cosmo Electronics Corp., spoke about investment prospects in the country.

An open forum followed the presentations after which Vice Minister Sheng-Chung Lin of Taiwan’s Ministry of Economic Affairs and Secretary Favila gave their closing remarks. (PNA)

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Interconnection of phone lines in Subic, Clark proposed

CLARK FREEPORT - The Angeles City council has endorsed a proposal for the interconnection of phone lines along the Subic-Clark growth corridor in a resolution unanimously approved by its members recently.

In the resolution sponsored by Councilors Jesus "Jay" Sangil and Ruben Maniago, the members of the city council stated they are "endorsing the move of the Metro Clark Advisory Council (MCAC) to press for the immediate interconnection of telecommunications facilities in Clark Freeport Zone with those in Tarlac and
Zambales."

"It would definitely fast-track business undertakings and greatly minimize costs to local residents," Sangil said, referring to the MCAC-initiated project which was earlier lauded by President Arroyo.

Sangil likewise called on other officials of local government units (LGUs) situated along the Subic-Clark corridor to support the move, saying this will attract investors and provide jobs for the people.

"I am urging our counterparts in government in the cities, towns along the SCTEx to follow suit and support the same as it will invite investors and eventually create employment for our constituents," Sangil said.

In the resolution, the city council stated that the "Clark Freeport and the Subic-Clark- Tarlac Growth Corridor are foreseen as one of the world’s major economic hubs and catalysts for development, hence a major employment generator in North Philippines."

Also, "the development and improvement of infrastructure facilities, including the
establishment of state-of-the art telecommunications facilities in the Metro Clark Area (Clark FZ, Pampanga and Tarlac) enhance the viability of the Metro Clark area as a choice investment destination.

"The city council noted the importance of providing interconnected telephone exchanges, saying it "is vital in minimizing costs to investors and their clientele that includes government offices."

"Interconnecting telephone exchanges in Metro Clark Area is in keeping with the integration policy of the National Telecommunications Commission (NTC) in which long distance and other toll charges are waived," the resolution also said.

"The general welfare clause of the Local Government Code, among other provisions, obliges us to support moves of major employment generators," it further stated. (Fred Roxas, Manila Bulletin)

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Subic - Kuwait flights inked; RP, Kuwait agree on more flights

MANILA - Local carriers can now mount more flights to Kuwait with the conclusion of air talks between the Philippines and the oil-rich Arab emirate.

From only six, the Philippines is now entitled to 29 weekly flights to Kuwait.

The additional 23 entitlements were approved yesterday afternoon, said Porvenir P. Porciuncula, deputy executive director of the Civil Aeronautics Board.

The 29 flights are divided as follows: Manila, eight flights; Subic, 14; and Cebu, Davao and other airports, seven. A fifth freedom right was also given to flights from Clark, allowing carriers to pick up a passenger from Kuwait before flying to another destination in a third country.

The Philippine negotiating panel was headed by the acting board chairman, Doroteo A. Reyes. The Civil Aeronautics Board is scheduled to start air talks with Bahrain, Brunei, and Australia this year.

The government has been going after flight entitlements to several countries to address an expected increase in air travel.

Mr. Porciuncula downplayed any potential hesitation local carriers may have in competing with Middle Eastern airlines — which have access to cheaper fuel — noting that fuel costs have dipped.

Lance Y. Gokongwei, president of Cebu Pacific, said the low-cost carrier is considering flights to Kuwait."We are always looking at possible route network expansion and we are studying the possibility of mounting flights to Kuwait," Mr. Gokongwei said.

Officials of Philippine Airlines were not available for comment. (Jose Bimbo F. Santos, Business Online)

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Subic emerges as top sports venue, training hub

Due to its pristine environment and superb facilities, the Subic Bay Freeport is now emerging as a favorite venue for sports events, as well as a training center for professional athletes.

Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga said several international sports events are slated to be held in Subic this summer, including a bike festival in April and a triathlon event in May.

"We're getting some of the best events because athletes like to race in a healthy environment, and Subic definitely has this edge," said Salonga.

"Add to this the modern sports facilities that the SBMA has put in place, and there's no wonder why Subic is now a favorite venue both for training athletes and for staging sports events," he added.

According to Salonga, at least two groups have opened training camps for professional athletes in Subic in the past few years.

These are Team TBB (The Bike Boutique), which trains athletes mainly for triathlon and other bike-related events, and the Philippine triathlon team, which recently put up its High Performance (HP) Training Camp.

The TBB camp recently dominated the Subic elimination round of the Milo Marathon when 14 of its foreign athletes training in Subic finished in the top 10 for both the male and female divisions.

Salonga, who flagged off the Milo marathon participants, identified the Subic-trained TBB athletes as: Bella Bayliss of Great Britain, who placed first in the ladies division of the 21-km race; Erika Csomor (Hungary), who placed 2nd; Angela Elaine Naeth (Canada), 3rd; Maki Nishiuchi (Japan), 6th; and Lucie Zelenkova (Czechoslovakia), 8th.

TBB male athletes also topped the Milo marathon leg here: James Cunnama (South Africa), 3rd in the men's division; Crifrankreadel Indapa, 4th; Stephen Bayliss (Great Britain), 7th; and Hiroyuki Nishiuchi (Japan), who finished 9th in 21-km run.

Rolen Paulino, the Milo sports director for the Subic Bay-Olongapo area, also observed that most of the winners in major races now are foreigners who have trained in Subic.

Salonga said the Triathlon Association of the Philippines (TRAP) meanwhile had also reported similar success stories for athletes training in Subic.

According to TRAP president Tomas Carrasco Jr., the group's training program in Subic "has resulted in the best competitive season for our national team in a while."

Carrasco said the TRAP accomplishments in 2008 included several first places and numerous podium finishes in regional races the team competed in. These include the 1st place finish by Joash Serrano in the juniors division of the Hong Kong Triathlon and the Taipei International Triathlon; the 1st place finish by Monica Torres in the Singapore Duathlon; and the 2nd place finish by Kim Mangrobang in the juniors level of the Taipei International Triathlon.

Six other athletes who trained in Subic had placed third in other races in Hong Kong, Malaysia, and Singapore.

"These successes can be attributed to a training environment conducive to achieving excellence that Subic provides," Carrasco said in a letter to SBMA.

Last year, the TRAP staged two major events here in Subic: the ITU Subic International Triathlon 2008 held in May, and the first ITU 03 Asian Long Distance Triathlon held in August.

Subic Freeport also hosted last year the President's Cup Regatta / China Sea Race, the Terry Larrazabal Bike Festival, the 3rd Philippine Olympic Festival, a beach football competition by the Beach Football Association of the Philippines, the Goodyear President's Cup, the Marlboro Road Trip, the 4th National Summer Training of the Philippine Sports Commission, the Globe Platinum Independence Day Regatta, a tournament by the Philippine Sports Fishing Club, the PNP's Subic International Marathon 2008, a jet ski competition by the Jetsports Association of the Philippines, the run leg for the White Rock Triathlon, the Amazing Race of Mazda Philippines, and the Miata and BMW Motorcycle Club's "Hill Climb Race." (SBMA Corporate Communications)

PHOTOS:
[1] A foreign athlete completes the run leg of the last year's White Rock Marathon at the Subic Bay Freeport, which has become a favorite training ground for contenders in international races.







[2] Participants in the 2008 President's Cup Regatta maneuver their racing sailboats at Subic Bay.






[3] A bicycle race in the Subic Bay Freeport







[4] Archers compete at Subic's Remy Field during the Philippine Olympic Festival in 2008

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Rescued dolphin recovering in Subic

One of the dolphins stranded along the coastal towns of Pilar and Orion in Bataan the other day is now recovering under the care of animal health experts at the Ocean Adventure marine theme park here.

The dolphin was transported to the marine facility here late on Tuesday after it was observed to be having problems in balancing itself.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza said that veterinarians from the Subic Bay Marine Exploratorium-Ocean Adventure (SBME-OA), as well as experts from Subic-based groups Wildlife in Need (WIN) and International Development and Environmental Shipping School (IDESS) are now monitoring the animal, which has shown signs of recovering.

At least 200 melon-head dolphins, which are considered as threatened species, were spotted in shallow waters off Bataan the other day for still unknown reasons.

Three of the mammals had since died as fishermen and personnel of the Bureau of Fisheries and Aquatic Resources (BFAR) tried to herd them into deeper waters.

The solitary dolphin that was brought to Subic as part of the government’s rescue effort, was very weak when it arrived here, said Olga Piaga, executive assistant to Ocean Adventure president John Corcoran.

She said the animal was placed in a circular pool and experts are tending to it around the clock.

“It’s very weak possibly because of dehydration, which causes it to lose balance,” Piaga said. “If we leave it alone, it might drown — even if it is an aquatic animal.”

Piaga said the dolphin will be staying in Subic for a couple of days before being freed into the open sea.

“We would like to determine what causes some of the dolphins to become weaker than the others,” Piaga added, saying that all the data collected by Ocean Adventure’s marine animal experts will be brought abroad for thorough study.

The results will only be available after next week, she said.

Arreza said animal health experts from the Subic marine park were tapped “for the medical aspect” of the rescue effort, while BFAR took responsibility for monitoring the movement of the dolphin pods.

“The primary concern now of our government is to keep these dolphins alive. And animal experts from the Ocean Adventure and WIN came in to help,” he said.

BFAR director Malcolm Sarmiento, Jr. said earlier that the dolphins may have been disoriented by a sea quake, or that the pod could have been following a sick or injured leader into shallow waters.

If the leader of the pod is weak or injured, it is easily disoriented and may lead the others in its pod to be beached, he added.

Ocean Adventure’s Piaga said the SBME-OA has successfully rescued several stranded dolphins in the past. However, it was the first time for the facility to respond in such mass stranding as that which occurred on Tuesday. (SBMA Corporate Communications)

PHOTO: Animal health experts at the Ocean Adventure marine park in the Subic Bay Freeport tend to a dolphin, which was weakened after getting stranded off the coast of Bataan on Tuesday.

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SBMA personnel volunteer for Coast Guard; Arreza now captain of Subic squadron

A déjà vu of what happened right after the U.S. Navy pullout from Subic in 1992 occurred here recently on a smaller scale but of equal significance when close to a hundred officials and employees of the Subic Bay Metropolitan Authority (SBMA) volunteered for Coast Guard duties.

Vice-Admiral Wilfredo Tamayo, commandant of the Philippine Coast Guard (PCG), inducted the volunteers on February 7 into the 102nd Squadron of the Philippine Coast Guard Auxiliary (PCGA), a civilian support group involved primarily in sea rescue and environmental protection.

SBMA Administrator and CEO Armand Arreza, who was among the 98 volunteers, now serves as commander of the 102nd Squadron, with the honorary rank of captain.

Members of the squadron serve purely on a voluntary basis, have undergone orientation seminars, and will undergo further trainings to help them discharge their duties better, Arreza said.

The entry of 98 SBMA personnel into the PCGA followed the signing of a memorandum of agreement on maritime cooperation between the two parties on January 9.

Arreza said this could be likened to the early days of the SBMA when some 8,000 volunteers helped to safeguard buildings and resources left behind by the U.S. Navy.

“This time, the SBMA employee-volunteers are going to protect the marine environment in Subic, as well as the robust development of maritime projects here,” he said.

Arreza pointed out that the Subic Bay Freeport boasts of an 8-hectare bay teeming with rich marine life, a maritime research center, as well as new container terminals, various ship repair facilities, and the largest shipyard in Asia, which is operated by Hanjin.

“These are assets that we must protect and guard against threats, abuse and degradation,” he added.

When asked about possible actions against illegal fishing in the Subic Bay area that covers parts of Bataan and Zambales, Capt. Arreza said it would be the first task of the 102nd Squadron to weed out predators in Subic Bay’s marine sanctuary.

“We know that they (illegal fishers) are only trying to make a living, but they are robbing the succeeding generations of Filipinos of their share of nature’s bounty,” Arreza said.

“This should serve as a warning: we’ll get them somehow if they don’t stop their illegal acts,” he said.

Arreza said that to help ensure maritime security in Subic Bay, the seven vessels acquired recently by SBMA under its port modernization program will be used by Subic’s 102nd Squadron.

These are the search and rescue vessels M/V Triboa, M/V Ilanin and M/V Cubic; the utility vessel M/V Maritan; the line-handling and search vessel M/V Redondo; and the fireboat and waste disposal vessel M/V Kalayaan.

The formation of the Subic PCGA squadron is an important step towards developing Subic as a top-notch maritime service and logistics hub, said SBMA Chairman Feliciano Salonga, a graduate of the U.S. Merchant Marine Academy, who also holds the rank of a commodore in the PCGA.

Salonga, who is an active PCGA official serving as the PCGA Deputy National Commander for Aids to Navigation, said the 102nd Squadron will assist the PCG in promoting safety of lives and properties at sea, conducting search and rescue operations, protecting the marine environment, disaster relief, and other maritime-related activities.

He added that PCGA membership is by invitation, and usually reserved to those who have distinguished themselves in their chosen professions. (SBMA Corporate Communications)


PHOTO: SBMA Administrator Armand Arreza (left), now also honorary Captain of the 102nd Squadron of the Philippine Coast Guard Auxiliary (PCGA), is congratulated by Vice-Admiral Wilfredo Tamayo, commander of the Philippine Coast Guard. Also in photo is SBMA Chairman Feliciano Salonga, who is an active PCGA official.

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Korean student-volunteers bring hope to former mining village in Zambales

SAN MARCELINO, Zambales – After two devastating events that destroyed their properties, hopes and dreams, the former mining community of Pili in the remote village of Buhawen here is now eyeing a better future.

Recently, student volunteers from the Soongsil University in Seoul, South Korea returned to the village to continue their annual outreach program that has thus far brought villagers their first computers, a new day care center, and their first lessons in information technology.

This year, the Soongsil volunteers helped the community in building a better road to Pili.

“This is the fourth time since 2006 that the Korean volunteers have come to help us,” said Buhawen barangay chairman Edgardo Dueñas, as villagers honored this year’s batch of 33 volunteers in a simple program here late last month.

“Every time they arrive in Buhawen, we give them a warm welcome,” Dueñas said. “We’d like to show them how much we appreciate their assistance and their concern for us.”

Out of the Ashes

Any form of assistance is a cherished commodity nowadays for the people of Pili, who suffered a shattering reversal of fortune when the nearby Mt. Pinatubo erupted in 1992.

Pili used to be the golden village of Zambales after Benguet Corp., one of the country’s biggest mining firms, opened the Dizon Copper-Gold Operation (DCO) in this town in the 70s.

According to Benguet Corp., DCO was one of the most successfully mined ore bodies in the Philippines. In the 17 years that the firm operated DCO, some 750 million pounds of copper, 3 million ounces of silver and almost 2 million ounces of gold were produced in the area.

At its heyday, DCO boasted of one of the biggest mill tailings dam in the Far East, as well as a 900-unit township for its employees. Most of the folks of Pili, virtually awash with cash, had the latest in home appliances — televisions, stereo sets, and refrigerators.

However, the prosperous days for both the mining firm and the residents-miners abruptly ended in June 1991 when Mt. Pinatubo spewed great volumes of lahar and sulfuric ash into Pili and other areas around the volcano.
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Then two years later, Benguet implemented a phase-out program for the Dizon operation. In late 1997, the company turned over the property to Dizon Copper-Silver Mines Inc. (DCSMI), the owner of the claim.
Hope from Afar

The closure further devastated the mining folks of Pili, who had lost most of what they owned to the fury of Pinatubo.

“We did everything just to make ends meet,” Dueñas now recalled.

He said formers DCO workers ventured into gold panning, while Ayta villagers went back to upland farming. Others tried their luck on little businesses in the town market. And because of their remote location, reconstruction efforts by the government were slow in coming.

Then one day in 2006, Dueñas said, another ray of hope visited their village when a dusty jeepney brought in Rev. Pastor David Bang and his first batch of student-volunteers from Soongsil.

The first time they arrived in Pili, the volunteers obviously had no idea how they could help the community, considering the lamentable condition of the village from the ravages of the eruption and the subsequent lahar flows.

Yet villagers said the visitors showed a strong determination to help out and rebuild Pili in whatever way they can.

The first two years saw the Korean volunteers repairing classrooms and other community facilities like the day care center. Then last year, they constructed the computer room that they equipped this year with 10 computer sets. Then volunteers began conducting classes on computer operation and basic information technology.

“Now we have our own IT center that we call the Soongsil University Computer Room,” said Evangelina Yap, the principal of Buhawen High School.

“We have also included the Korean martial arts taekwondo in our curriculum to teach our students not only to defend them selves, but to instill among them the kind of discipline that we see among our Korean visitors here,” Yap added.

Two-Way Learning Rev. Pastor David Bang, who coordinates the Soongsil volunteer program, explained that the student-volunteers aim to assist communities and help promote understanding between cultures.

He added that the assistance is freely given “just as we have it free from the Lord.”

SUIV program coordinator Jimmy King, meanwhile, noted three reasons why the Soongsil volunteers kept going back to the remote village of Pili.

“When I came here the very first time, I noticed that the people around are very happy. And despite that their village is far away from the town, they looked so satisfied” he said.

King said the determination of the residents to adapt to their condition and situation made the Korean students decide to help.

Koreans could learn a lot from the Pili villagers, too, King added.

“I would tell my students how these people here stay happy in spite of their situation,” King said. “I would like to bring to Soongsil University this extraordinary happiness that I have seen among the people of Pili.” (SBMA Corporate Communications)

PHOTO: Korean Volunteers bond with local schoolchildren at the Pili community in Buhawen, San Marcelino, Zambales.

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DOLE seeks ‘win-win’ solution to Hanjin problem

The government and other concerned sectors should be able to come up with a “practical solution” to address safety problems at the Hanjin shipbuilding facility while guaranteeing the jobs of about 18,000 shipyard workers, a top labor official stressed recently.

Nathaniel Lacambra, director of the Department of Labor and Employment (DOLE) in Central Luzon, said that while the Hanjin Heavy Industries Co.-Philippines (HHIC-Phil) may be required to adhere strictly to safety standards, shutting down the facility would not be a good idea.

“Our laws allow the issuance of cease and desist order (CDO) to Hanjin. But to shut down the entire plant, I think, is not a win-win solution,” Lacambra said.

“If we shut down the entire plant just because one unit or one sector has violated labor standards, then we will be starving 15 to 17 thousand Filipinos,” he added.

Lacambra, who accompanied Senator Jose “Jinggoy” Estrada in inspecting the Hanjin facility last Thursday, was reacting to suggestions that work at the shipyard be suspended after 19 deaths had been recorded there since 2007.

Estrada himself, who heads the Senate labor committee, had proposed that Hanjin halt its operations here until it has complied with standards to ensure workers’ safety.

However, Lacambra said that a “practical” solution should be worked at for the benefit of workers.

One way to do this, he said, is to require HHIC-Phil to apply for variation orders to improve health and safety conditions in the shipyard and avoid being penalized.

At the same time, the government will require Hanjin to comply with the DOLE’s occupational safety standards (DOSS), he added.

As an example, Lacambra cited Hanjin’s request for a variation order from the Bureau of Working Conditions (BWC) regarding the 600-ton capacity “goliath” cranes that Hanjin uses in Subic.

Lacambra said that because no professional testing organization in the country could test the cranes, the variation order allowed that testing be made by Hanjin suppliers.

“If they could do that with the cranes, then probably they could do the same with the hospital or the medical facility requirements. That could be the win-win solution,” said Lacambra.

The labor official also pointed out that under the DOSS, firms are required to provide one doctor for every 100 workers they employ. In this case, Lacambra added, Hanjin which has about 18,000 workers should have from 150 to 200 doctors, who are to be assisted by full time nurses, dentists and first aid workers.

As a result, “we might be building a hospital here that is bigger than the (Philippine) General Hospital,” Lacambra said.

“So, we should be looking for the practical aspect and the practical side of it,” he added.

Meanwhile, Estrada said during last Thursday’s inspection that he gave Hanjin a poor rating for its poor implementation of occupational health and safety regulations.

“On a scale of 1 to 10, I am giving them a rate of 5 or 6,” Estrada said. “As you have seen there are some workers without safety helmets, and there are others wearing worn-out shoes.”

“Then there is this serious allegation from workers that they have to finish there work at all cost because they have a deadline to beat, even if it means more accidents. That is not fair on the part of the workers,” he added.

Estrada also noted the lack of regular medical personnel in the area, especially after 5:00 p.m., so that injured workers had to be brought to a hospital in Olongapo City which is about 20 kilometers away.

Estrada reiterated that he would like officials of Hanjin to answer more safety concerns at the shipyard safety when the Senate probe resumes on Wednesday.

Still, Estrada added that he will await recommendations from DOLE officials before taking actions on the Hanjin safety issues. (30)

PHOTO:
Hanjin director Pyeong Jong Yu (left) answers questions from Senator “Jinggoy” Estrada and DOLE Region 3 director Nathaniel Lacambra during an inspection on Thursday. The Senate labor committee headed by Estrada is now investigating unsafe conditions at the shipyard, where 19 workers had died since 2007.

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Sabal, Bayliss win Milo Marathon’s Subic elimination round

Former Philippine marathon king Cresenciano Sabal proved again that he is still capable of ruling the field as he bested 6,000 foreign and local runners in the regional elimination leg of the 33rd National Milo Marathon held here on Sunday.

The 30-year old Sabal posted a time of 1 hour, 9 minutes and 42 seconds to win the 21-kilometer race that also attracted world-class foreign triathletes.

“A lot of self-discipline and preparation went into my winning the gold medal today,” Sabal said after the race.

“It pays a lot if you prepare hard and persevere,” said the Army officer, who first earned his Milo Marathon title in 2005.

Sharing Sabal’s triumph was veteran triathlete Bella Bayliss of Great Britain who posted a time of 1:19:39 to win the gold in the women’s division.

Other winners in the Subic elimination race were: Bernardo Desamito Jr. (Phils.), with a time of 1:10:47 to bag the second place in the men’s division; James Cunnama (South Africa), 1:11:19, third; and Crifrankreadel Indapa, 1:12:50, fourth place.

In the women’s division, the winners were: Erika Csdmar (Hungary), 1:23:13, second place; Angel Naeth (Australia), 1:27:14, third; and Monica Torres (Philippines), 1:27:28, fourth place.

The winners will again try to outrun other competitors in the national finals of the Milo Marathon in Metro Manila on October 4.

Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga, who flagged off the marathon participants on Sunday, said that the Milo Marathon is just one of the many sports events regularly held in Subic Bay.

“Subic Bay is actually not only the best tourist destination in the country, but it is also a favorite place of athletes for their training,” Salonga said.

He added that organizers of local and international sports events are choosing Subic more than any other place in the country because of its superb environment and world-class facilities.

“Subic is actually a sports haven now and soon will be the region’s sports center,” he said.

Meanwhile, Rolen Paulino, the Milo sports director for the Subic Bay-Olongapo area, said that most of the winners in major races now were foreigners who have trained in Subic.

“That I would like to emphasize, puro foreigners ang nanalo and all of them have been training in Subic,” Paulino said.

This only proves that Subic is already an international sports center, Paulino added.

According to race records, of the top nine top finishers in the female division, five are foreigners who have trained in Subic under Coach Melvin Fausto. These include Bayliss, Csdmar, Naeth, Maki Nishiuchi of Japan (6th), and Lucie Zelencova, who placed eighth.

In the men’s division, of the top 10 runners, four were foreigners, namely: Cunnama, Indapa, Stephen Bayliss of Great Britain (7th), and Hiroyuki Nishiuchi of Japan, who placed ninth in the race. (SBMA Corporate Communications)

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Gordon remembers how FedEx was won

Dozens of workers showed up here before dawn Friday to bid goodbye to one of the last Federal Express (FedEx) planes to fly out of Subic.

Senator Richard Gordon, who signed up the US courier giant to set up its Asia-Pacific hub in Subic, was also here Friday to wave goodbye to FedEx for the last time.

“I came here when I heard they were leaving. I said I had to be here. I was here at the very beginning,” he told reporters.

Gordon, the first Subic Bay Metropolitan Authority (SBMA) chair, said that after he signed up FedEx to set up its hub here, DHL and UPS followed suit.

Surrounded by FedEx employees as the planes were taking off, Gordon said: “I remember
meeting one of their executives, Larry Hillbloom, who was quite a character. I was in a meeting with a senator at the time. When I went to the VIP room to meet them, there was a guy in a suit and another guy in jeans, T-shirt and dark glasses. I shook hands with the man in the suit who said, ‘I am not Larry Hillbloom. He’s my boss.’”

With a fond farewell, the government stands to lose P150 million a year after FedEx completes the transfer of its Asia-Pacific hub from the state-owned Subic Bay International Airport (SBIA) to the Baiyun International Airport in Guangzhou, China, this April.

FedEx pays P150 million annually in landing fees and warehousing to the SBMA, according to Armand Arreza, SBMA administrator.

Winding down

The US courier giant on Friday began winding down its Asian hub in the Philippines, shedding 800 staff as it starts full operation of a new regional facility in China, Arreza said.

The closure of FedEx’s operation comes in the wake of an announcement by Intel Corp. last month that it will let go 1,800 workers later this year, when the company shuts down its 35-year-old operation in the Philippines amid waning global demand for computers.

Arreza said the decision to shift the hub to China was made in 2004 and was based on “market reality” — the large cargo volume in China — not on Subic, being unable to meet the requirements of FedEx or the current global slump.

“The move has nothing to do with the financial crisis,” he said. “The volume and market conditions favored China because the volume in China dwarfed those in Southeast Asia, and China has opened the domestic market to FedEx.”

Business decision

Arreza said FedEx preterminated its 2010 contract to April this year, with options
to extend the use of the SBIA on a monthly basis as a back-up plan for its China project.The company will, for now, keep a skeleton operation in Subic.

“We understand that FedEx had to make this business decision,” he said. “Even if the economy is doing well … it’s never a good time if a company as big as FedEx [leaves]. We are sorry to see them go.”

FedEx officials were not immediately available for comment.

Largest tenant since 1995

In 1994, the SBMA obtained a $60-million loan from the World Bank to develop Cubi Point into the SBIA to entice the world’s largest freight-handling firm and attract more cargo and passenger airlines to operate from Subic.

FedEx has been the main locator at the SBIA since April 1995, serving 21 Asian cities.Arreza said the government tried to convince its largest tenant at the SBIA to stay.

SBMA Chair Feliciano Salonga and Arreza went to FedEx’s headquarters in Hong Kong to ask the company’s top executives to reconsider their plan.Trade Secretary Peter Favila also tried to convince FedEx to remain in Subic.

Generous separation pay

Arreza said FedEx would make intermittent flights at the SBIA until April or up to the extension period.

As it is, Subic is on standby, he said. He added that FedEx has not given an official closing date for its Subic operations. “We’re open to their return. We’re giving them the flexibility to extend.”

Arreza said about 800 workers of FedEx and its subcontractors will be affected. He added that the highly skilled workers could easily find jobs elsewhere in the economic zone.

He said the courier company facilitated job placements for former employees and gave “generous” separation pay and bonuses. (Robert Gonzaga & Tonette Orejas, Philippine Daily Inquirer)

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FedEx to maintain standby operations in Subic until April

The Subic Bay Metropolitan Authority (SBMA) said Friday that Federal Express will still have a maintenance component here and will be on standby until April this year.

In a press conference, SBMA administrator Armand Arreza clarified that Thursday night's operations were "the beginning of the transition for the move to China."

"Last night was the last full operations. They will still have standby operations up to the end of April. They have been testing their hub at Guangzhou for the last two months," Arreza explained.

Earlier, employees of Federal Express said the Thursday to Friday flights were the last flights of the Subic hub which has been operating for more than 13 years here.

Around 500 hundred employees will be affected by the move of Fedex to China. They, however, clarified that the international courier giant will still service the Philippines through the Ninoy Aquino International Airport (NAIA) in Manila. (John Bayarong, GMANews.TV)

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FedEx exits Subic

US delivery giant Federal Express (FedEx) closed its Asian hub in Subic yesterday.

FedEx planes began departing the freeport for various destinations for the last time before dawn, with the last taking off at around six in the morning.

FedEx, which used Subic as base for 14 years, is moving its operations to its new hub in Guangzhou, China.

The company, however, will conduct a re-integration program for more than 500 FedEx workers in the meantime it completes a two-month transition.

Armand C. Arreza, Subic Bay Metropolitan Authority (SBMA) administrator, estimated another 300 people, who are engaged in maintenance, food, janitorial, security and other services, would be affected by FedEx’s pullout.

Overall around 800 direct and indirect workers would lose their jobs after the completion of the FedEx transfer in April, at a time when thousands are getting laid off due to the global economic slump.

The SBMA is likewise bound to lose about P150 million in annual revenues from leased airport facilities and daily aircraft landing fees, among others

Mr. Arreza said the SBMA is currently negotiating with other foreign companies involved in regional transshipment, including a Dubai-based firm, as possible replacement for FedEx.

He also clarified that FedEx would continue its local airfreight and courier services through Airfreight 2100, its exclusive licensee in the Philippines.

Mr. Arreza also stressed FedEx’s decision to transfer its hub to China was made as early as 2004 and did not result from the current global economic slowdown. "The Chinese market dwarfs that of the entire Southeast Asia combined," he pointed out, citing how China accounts 60-70% of Asia’s cargoes.

"Another incentive given by China is that FedEx can handle domestic cargo or ’cabotage.’ The Philippine Constitution allows cabotage for domestic companies only," he added. (Rey Garcia, Businessworld)

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