29 June 2008

Freeport Service Corporation Goes Lean & Mean

The Freeport Service Corp. (FSC), the wholly owned subsidiary of the Subic Bay Metropolitan Authority (SBMA) providing manpower and allied services needs of the Freeport and its locators, is optimistic of attaining profitable operations for this year.

Antonio S.Chan, FSC president and SBMA senior director, expressed confidence over the weekend as he announced FSC's new profit-oriented projects, boosting existing tourism facilities managed by the firm such as the full promotion of its beach resorts at the Cubi Point area, namely Dungaree and All hands and the eco-tourism Jungle Survival theme park(JEST).

FSC undertook a major reorganization of its top management following the death of Ret. Lt. Gen. Jose Calimlim, who headed the FSC as president since 2004. Chan, who held various posts at SBMA and currently a member of the SBMA Board of Directors, has been tapped to head the service oriented subsidiary.

Chan's first task upon assuming the post was to reduce the administrative staff of FSC from 710 people to 266. Chan explained that out of 710, about 280 employees availed of the voluntary retirement package offered while the others' employment contracts expired and were not renewed.

With a "lean and mean" support staff, FSC was able to reduce its huge monthly payroll budget amounting to P2 million, which was a big drain on its revenues. Aside from the administrative staff, FSC also provides 1,800 to 3,000 of the workers to SBMA, handling office and environment activities of the Freeport.

Moreover, after five months of Chan's leadership, FSC has achieved more than P30 million in revenue earnings from a zero balance, aside from its debt servicing with the Land Bank and its fuel suppliers. FSC operates two gas stations at the Freeport, which incurred huge losses under the former management.

In view of the increasing number of locators at Subic, FSC management is going into the outsourcing business to hasten the manpower needs of foreign and local firms setting up activities at the Freeport. (SBMA Corporate Communications)