Subic ties up with China ecozone

This free port is firming up ties with a counterpart economic zone in Suzhou city in Jiangsu, southern China, particularly in the fields of tourism, real estate development and business process outsourcing (BPO).

The Subic Bay Metropolitan Authority (SBMA) said in a statement yesterday that it recently hosted a trade and investment mission from the Suzhou Wuzhong Economic Development Zone.

A presentation on Subic’s investment policy and plans was conducted by SBMA Senior Deputy Administrator (SDA) for trade and tourism Stefani C. Saño, SDA for legal affairs Ramon O. Agregado and SBMA investment department head Kenneth G. Rementilla.

The visit was facilitated by Subic-based housing developer Grand Pillar International Development, Inc. Chairman Johnson Yang and Chief Operating Officer Josephine Chua.

The SBMA statement quoted Yu Xingnan, head of the delegation, as saying Subic Bay Freeport could be an ideal location for China firms engaged in BPO, noting the availability of skilled, English-proficient workers.

He added that this free port could be used as a transshipment hub for China-made products that are exported throughout the world, citing its strategic post in the Pacific region.

For his part, SBMA Administrator and CEO Armand C. Arreza said the state firm is promoting Subic as a haven for foreign retirees from Japan, US, Australia, Canada and China.

"We are presently developing a large area in Subic...to accommodate the growing needs of retirement homes for foreigners," Grand Pillar’s Ms. Chua said.

Mr. Yu also said Wuzhong and Subic could also be partners in tourism-related ventures that will require direct chartered-flights between them. He said Wuzhong will be actively engaged in IT development, as well as in tourism by developing the new South Suzhou Trade Circle and the Taihu Lake National Tourism Resort. (RMG, BusinessWorld)

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Pres. Aquino unveils PNP training school in Subic Freeport

President Benigno Aquino III yesterday inaugurated a police training facility here in his first visit to the Subic Bay Freeport as the highest official of the land.

Aquino, who flew into Subic via the presidential helicopter, arrived at the Subic Bay International Airport and then motored a short distance to the Naval Magazine area where the Philippine National Police School for Values and Leadership (PNP-SVL) is located.

Aquino was welcomed at the airport by PNP Dir. Gen. Jesus Verzosa, Interior Secretary Jesus Robredo, Subic Bay Metropolitan Authority (SBMA) chairman Feliciano Salonga, SBMA administrator Armand Arreza, Zambales governor Hermogenes Ebdane Jr., Bataan governor Enrique Garcia, and Olongapo City’s first lady Anne Gordon.

In his speech, the President stressed the importance of a strong police force, noting that police officers played a major part in quelling military uprisings that were launched during the administration of his mother, the late President Cory Aquino.

“Kaya pangunahing layunin ko ngayon ay magpasalamat sa taumbayan at sa Kapulisan na tumulong para sa pagpapanatili ng kapayapaan,” he said.

“Kailangang matugunan ang pangangailangan ng Kapulisan upang maging epektibong tagapangalaga ng mga mamamayan. Tulungan natin sila,” Aquino added.

Meanwhile, Verzosa expressed thanks for the support extended by the SBMA and the Philippine Anti-Graft Commission (PAGC) in establishing the police training school here.

Versoza said the SBMA provided a free 25-year lease for the 1.8-hectare school site, while the PAGC gave a P14-million grant for the construction of the buildings.

Versoza added that the training facility, which can accommodate 100 police officers at any given time, will be used to conduct refresher courses on values formation, leadership training, and personality development to transform police officers into servant-leaders.

Meanwhile, when asked whether he has already made new appointments for the SBMA, President Aquino clarified that he had so far not appointed any replacement for Salonga and Arreza.

“No. There is no new appointment yet. Wala pa,” he said. (SBMA Corporate Communications)


PHOTO:
President Noynoy Aquino gets a warm welcome at the Subic Bay International Airport in his first visit to the Subic Bay Freeport from SBMA Chairman Feliciano Salonga, Zambales Gov. Hermogenes Ebdane Jr., Bataan Gov. Enrique Garcia, and SBMA Administrator Armand Arreza.

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Aviation firm invests $1.1M in Subic airport

Efforts by the Subic Bay Metropolitan Authority (SBMA) to carve a niche in aircraft chartering service finally hit pay dirt, as an aviation company based in Guam decided to establish a world-class, full-service aviation center here at the Subic Bay International Airport (SBIA).

Aviation Concepts Holdings (AC), an American-Canadian joint venture, is investing US$1.1-million to rehabilitate facilities at the SBIA and start operations by mid-September, said Anthony Decostes, the firm’s senior vice-president.

Decostes said they are committed to offer a full range of aviation services and facilities to clients. These include ground handling, maintenance repair and overhaul, FBO facility with VIP crew lounge and amenities, air ambulance, aircraft scheduling and recordkeeping, aircraft detailing, hangarage and technical stop services.

Decostes and AC aviation security head Edward Pooley signed the contract for the aviation service project here last week with Stef Saño, SBMA senior deputy administrator for business, and retired B/Gen. Marcelo Santos, head of the SBMA airport department.

SBMA administrator Armand Arreza, meanwhile, referred to the AC project as the “resurrection” of the SBIA, which has lain dormant since February 2009 when the Federal Express transferred its Asia-Pacific hub here to China.

He said that just as FedEx in 1995 ushered in the first wave of foreign business locators to this free port, the AC project could now open new opportunities by attracting intercontinental jets to the SBIA.

“Aviation Concepts has transformed an abandoned and dilapidated military hangar into Guam’s aviation center. SBIA will surely reap huge benefits from the expertise of this international firm,” Arreza also said.

Decostes echoed this optimism, saying the jets his company services will bring aircraft owners and VIPs here to see “what a wonderful area Subic Bay is, physically and business-wise.”


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“Our concept here is to basically copy what is in Guam, bring it here and expand it,” said Decostes, who also serves as AC’s country director in the Philippines.

AC, he said, began looking at the Philippines when their Guam operations “grew exponentially, but faced problems with actual, physical growth.”

In 2007, in partnership with Universal Weather and Aviation, Inc., AC opened the first aircraft scheduling center for business aircraft in Makati. Due to the success of this venture, AC targeted Subic Bay for a bigger operations program.

“Lucky for us the SBIA was vacated by FedEx. Everything seems prepared for us — world-class aviation facilities, minimal air traffic, availability of trained workforce. Everything we need is right here in Subic,” Decostes said.

Decostes also praised Subic’s easy accessibility via the Subic-Clark-Tarlac Expressway, and the ease of making transactions with the SBMA.

“Bureaucracy is better here than in Manila,” he commented. “I’m going to say that is a great factor for us.”

Decostes also said his company will hire 50 employees for its Subic operations, and that the workers will be trained to the highest level attainable. (SBMA Corporate Communications)

PHOTO: Officials of the Subic Bay Metropolitan Authority and Aviation Concepts Holdings sign the contract for a full-service aviation center project at the Subic Bay International Airport (L-R): SBIA manager Marcelo Santos, SBMA senior deputy administrator for business Stef Saño, Aviation Concepts senior vice-president Anthony Decostes, and AC aviation security head Edward Pooley.

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Udenna wins bid for Subic power plant

MANILA - Udenna Corp., the investment arm of Phoenix Petroleum Philippines Inc., owner Dennis Uy, won in the bidding yesterday for the 116-megawatt (MW) Subic diesel power plant (SDPP).

Informed sources said among the four pre-qualified companies, only Udenna submitted financial and technical proposals, prompting Subic Bay Metropolitan Authority (SBMA) to enter into a negotiated sale with Udenna.

The sources declined to give the identities of the other bidders but earlier reports indicated that Aboitiz Power Corp. and Pacifica Inc. had signified interest to join the SDPP bidding.

SBMA auctioned off the SDPP after it was turned over by the Power Sector Assets and Liabilities Management Corp. (PSALM) last year.

The plant was commissioned in 1994 through a build-operate-transfer (BOT) agreement between National Power Corp. (Napocor) and Enron Corp.

It was also learned that the SBMA board has ordered management “to enter into a consortium agreement with R-II Builders Inc. for purposes of the bidding or submission of the pre-qualification requirements and proposal for the SDPP project.”

Udenna owns minority shares at publicly-listed Phoenix Petroleum one of the most aggressive independent oil companies in the country.

Formerly known as Davao Oil Terminal Services Corp., Phoenix Petroleum is 68 percent-owned by Phoenix Petroleum Holdings Inc. The rest of the company’s shares are owned by Udenna Corp., Udenna Management and Resources Corp., Udenco Corp., and certain individuals.

The company is engaged in trading refined petroleum products, lubricants and other chemical products on wholesale basis operation of oil depots and storage facilities; and allied services mainly in Mindanao. ((Donnabelle L. Gatdula, Philippine Star)

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Subic locator begins export of ‘E-scooter’

A Japanese-Filipino joint-venture company has begun exporting battery-powered electric scooters, riding the crest of the popularity of “green” products designed to help mitigate climate change.

World Green Inc. (WGI), which began operations here only last year, has already delivered 240 units of its “E-scooter” to Japan after only six months of operation, said Gemma Villaseñor, the firm’s general manager.

“Now, we have an outstanding order for 600 units more,” Villaseñor added.

WGI has invested $208,000 for its factory here at the Subic Gateway Park, engaging in the importation, assembly, warehousing and exportation of rechargeable scooters to various Asian countries.
Villaseñor said the company also hopes to capture the Philippine market before the year ends, as well as penetrate other Asian markets like China and Korea, where the popularity of the so-called green products is fast catching on.

“The E-scooter is very earth-friendly because it has zero-smoke emission. It is powered by rechargeable batteries and does not emit carbon dioxide into the air,” Villaseñor said.

She added that the E-scooter, which has a top speed of up to 60 kilometers per hour (kph), is “very ideal for short-distance travel” because of its maneuverability.

“With the size of a domestic bicycle, the E-Scooter also provides you hassle-free parking,” she added.

The company’s E-scooter weighs about 120 kilograms and comes in four colors—blue, red, orange and black. It is powered by eight pieces of 12-volt battery, which could be fully charged in just four hours. Parts used in the assembly of the units are manufactured in China and Taiwan.

Villaseñor said they are selling the E-scooter at a plan retail price of ¥238,000 (about P125,800), which includes tax and registration fee. (Henry Empeño, Business Mirror)

In Photo: A prospective buyer checks out an E-Scooter on display during the opening of World Green Inc.’s assembly plant at the Subic Bay Free Port.

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SBMA, Korean university launch cultural exchange program

The Subic Bay Metropolitan Authority (SBMA) and Youngsan University of South Korea (YSU) have signed a memorandum of understanding to enhance cultural cooperation between the two institutions.

SBMA chairman Feliciano Salonga said the MOU aimed to promote mutual understanding, collaboration and cooperation between SBMA and YSU through exchange programs that will mutually benefit YSU students and SBMA staff.

Salonga and university president Gu Wuck Bu signed the agreement recently after a YSU delegation composed of 27 students and three officials arrived here on June 30 for five days of community immersion under the university’s Global Overseas Volunteers (GOV) program.

The signing was witnessed by Sung Sim School chairperson Ro Chan Young and other officials from both the SBMA and YSU.

“This is another door of opportunity being opened for SBMA employees,” Salonga said, noting that under the MOU, the Korean school shall give scholarship grants to two SBMA nominees for one year, inclusive of tuition and application fees. On the other hand, SBMA will accept two YSU students each year for an internship program.

Salonga said that payments for board and lodging, book allowances, medical insurance and international travel fare shall be separately negotiated and approved by both parties when the exchange program is implemented.

Aside from the cultural exchange, the YSU delegation conducted community outreach projects at the Pastolan Aeta village in the Subic Bay Freeport.

A day before the MOU was signed, Salonga, Bu and Young inaugurated a basketball court in Pastolan, an Aeta village inside the Subic Freeport Zone.

The court was funded by the Korean group and constructed by the 27 student-volunteers in five days.

Won-Cheol Choi, project manager of the YSU GOV, said the volunteers also participated in community projects like the construction of playground, and the repair and remodeling of the day care center in Pastolan.

Choi said the five-day immersion activity has made Subic “a very special place for us now.”

“The volunteers enjoyed being with the members of the community,” Choi said. “They taught the Aeta children taekwondo, music and art, and beauty care and acupuncture to adults.”

On the other hand, Young said the agreement signified a better future for both the SBMA and YSU.

“We are delighted to mark the beginning of our new relationship with your beautiful community and the SBMA,” said Young. “We hope that this project will bring better opportunity and much joy, especially for the younger generation.” (SBMA Corporate Communications)

PHOTO:
SBMA Chairman Feliciano Salonga (right) and Youngsan University president Gu Wuck Bu conclude an agreement for a cultural exchange program.

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SBMA’s manpower subsidiary suspends operations

“We’ve exhausted all possible means to keep it operating,” this was how Atty. Ed Tamondong described efforts to resuscitate the manpower subsidiary of the Subic Bay Metropolitan Authority which he heads, the Freeport Service Corp. (FSC).

“(FSC has) no more source of revenue, we can no longer sustain the expenses for salaries and operations,” Tamondong said as he confirmed the decision of the board to mothball the company.

The FSC Board, which he has chaired since July last year, also decided last Friday (June 25) to give the remaining 240 employees separation pay equivalent to one month for every year of service.

The remaining FSC assets – two gasoline stations and a couple of beach facilities - have to be leased or put under private management to earn the amount needed to pay separation benefits and other obligations.

“Until we are ready to pay, we will not serve the retrenchment notice,” Tamondong added. FSC employees will be given 30 days notice before their separation from service takes effect.

Meanwhile, SBMA Administrator Armand Arreza directed Labor Department Manager Atty. Severo Pastor, Jr. to prepare a program to assist the workers who will be retrenched.

FSC was created in 1995 to provide manpower services needed by the SBMA. The SBMA leased out to its subsidiary several tourism facilities under a revenue sharing arrangement, with the SBMA share fixed at only 5 percent .

According to Tamondong, however, the FSC has never remitted any share to SBMA, prompting the agency to get back most of its assets over the past two or three years.
Since 2000, the SBMA has been subsidizing FSC to the tune of P 6 million monthly or P 72 million a year to cover salary and operating expenses.

The FSC’s financial problem was aggravated by its “bloated” manpower. More than 800 personnel were listed in its payroll before the first manpower reduction was undertaken in 2008.

“For the size of its business operations, 200 would have been enough,” Tamondong said.

In the first manpower reduction, some 652 FSC employees were absorbed by the SBMA. The SBMA also advanced some P 40 million for the partial payment of their separation benefits.

With the company’s manpower down to 240, the SBMA reduced its monthly subsidy to the FSC to P 4 million a month until it was totally scrapped by January this year.

With the revenues from its remaining assets barely enough to keep it afloat, the FSC borrowed another P 4 million from SBMA in January for personnel salaries. In the summer months, which was peak season for tourism, the beleaguered SBMA subsidiary survived from revenues from its gasoline stations and beach facilities.

“Now it’s the lean season again, walang kita,” Tamondong said, adding, “Rather than pile up debts, the board decided to implement its decision last February or March to mothball the company.” (SBMA Corporate Communications)

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SBMA to track down blue-plate vehicles

SUBIC Bay Metropolitan Authority (SBMA) is set to roll out its third major automation project for the year, which aims to create a system that will track the whereabouts of the shipments of blue-plate vehicles, among others, that will enter and exit the free port.

SBMA Administrator Armand Arreza in an interview said the agency will launch a system that will track all types of vehicles that will enter the country through the free port, which has been accused by other government agencies of being a haven of smugglers.

Arreza said SBMA and E-Konek Pilipinas are devising a way to place a global-positioning system tracking device on all vehicles that will be shipped through the free port.

E-Konek, which is headed by former Customs and Internal Revenue commissioner Guillermo Parayno, is one of the value-added service providers of the Bureau of Customs (BOC).

The Subic management, Arreza said, is trying to curb smuggling, because it is trying to promote the free port as a place that is investor-friendly but, at the same time, transparent and clean.

“Finally, we will know where the vehicles are being used,” he added.

When finally launched, the said system will be the third major automation project of SBMA this year.

By July 15, SBMA and the BOC will implement a gate-management system, under which no loaded cargo truck will be allowed to go out if the duties taxes due its cargo have not been paid to the BOC or the port and wharfage charges of the ship that brought the cargo are still unpaid.

The system has already been pilot- tested in May with PTT Philippines, an oil company, and Microbase Transport and Equipment Inc., which both used electronic-gate passes.

During the past years, BOC officials have been accusing Subic as one of the places where smuggling of goods, including oil products and other second-hand vehicles is rampant.

Earlier this year, Customs Commissioner Napoleon Morales ordered a crackdown on all unaccounted Subic blue-plate vehicle that were brought in through the free port but later sold outside Subic.

Morales created Task Force “Oplan Subic Blue Plates” to recover at least 184 motor vehicles that are subject to seizure and forfeiture pursuant to Customs Special Order 6-2010. (VG Cabuag, Business Mirror)

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