24 November 2014

Bright outlook for Subic all the way to 2016

The stability of the SBMA (Subic Bay Metropolitan Authority) and its unyielding performance, coupled with the current business in-flow in the Freeport will definitely create a strong economic surge in the Freeport Zone in 2015 and in 2016.

This was the prediction of Subic Bay Freeport Chamber of Commerce (SBFCC) President Rose Baldeo during the Subic Bay Outlook Towards 2016 Economic Employment Summit held at the Olongapo City Convention Center last week.

The prediction Baldeo made was based on SBMA’s accomplishment of besting 2012’s net profit record of P824 million with last year’s P1.2-billion net profit, highest in the entire 21 years of existence.

SBMA Chairman Roberto Garcia also stated that the agency’s gross revenue last year of P2.09 billion and the Earnings Before Interest Taxes Depreciation Amortization (EBITDA) of P992 million are the highest levels in the history of the SBMA.

Garcia also pointed out the increase in port traffic as this Subic Freeport became the alternative port for Manila, thanks to Executive Order 172. Garcia said that Subic’s cargo volume is expected to hit more than 70,000 TEUs this year from 38,000 TEUs last year.

Nippon Yusen Kaisha (NYK) Line made its first direct call at the Subic Port to help solve the current concerns in Manila. According to NYK Manager Mary Grace Golez, the Subic call is marked by many firsts, opening more opportunities for Philippine shipping.

“This will be the first service in the Philippines to make a direct call from Japan to Subic, in addition to the regular Taiwan-Subic call. It will also be the first service to call from Subic to Singapore, a major transshipment port providing numerous connections to East Asia, the Middle East, South Asia, Europe, Africa, North America, Australia and New Zealand ports,” she said.

Baldeo said, “Outlook-wise, we as locators and investors are beginning to feel the change of the business climate in the Subic Bay Freeport. Slowly and steadily, the SBMA has begun to adjust to the needs of its investors businesses.”

“But these positive outlooks require a great cooperation; we the locators see the need for an improved working relationship or partnership with the local governments, the educational institutions, the SBMA, and other concerned government agencies including the local businesses in the city and in the nearby provinces,” she said.

To help entice more shipping lines to use Subic, the SBMA cut its port fees starting October 1, even if this would result in losses of about $10 million to $15 million for the state agency. (Jonas Reyes, Manila Bulletin)

SUBIC SHIPPING SHAPES UP — A truck hauls off a cargo container from the ‘M/V Jakarta Tower,’ a cargo vessel chartered by the Nippon Yusen Kaisha (NYK) Line, after docking at the NCT-1 of Subic Bay Freeport. The NYK Line made its first direct call at the Subic Port to help solve the current concerns in Manila.