Subic eyed as distribution hub for ultra-light flying boats

An Italian company which manufactures ultra-light aircraft has relocated its base of operation in this premier free port to take advantage of Subic’s ideal position as product distribution center.

Ramphos Corporation, owned and operated by Italian designer Enos Gaiga, has been in the business of making ultra-light aircraft in Italy since 1998. However, seeing the huge potential of Subic in transhipping product to other parts of the world, Gaiga brought the business to Subic in 2015 and made his first ultra-light flying boat here last year.

“The reason we relocated here is the potential of transhipping our product to other parts of the world without much hassle,” Gaiga explained. “Moreover, Filipinos are great craftsmen when it comes to manufacturing boats and vehicles.”

Gaiga said the firm’s first ultra-light flying boat, which was called Ramphos amphibious, was made in 1998 for recreational use. The next year the model saw commercial production.

According to Gaiga, Ramphos flying boats are easy to fly and can be used for sight-seeing tours, fishing, adventure trips, search and rescue operations, sea and river patrol, light cargo delivery and even special military operations.

In 2003, Ramphos won the best trike of the year award at the Sun and Fun air show in Florida.

So far, Ramphos products have been sold in 32 countries worldwide, with the Ramphos amphibious priced at around P1.9 milion.

The flying boat has been certified under different civil aviation authorities, among them in Europe, United States, Australia, China, Canada and Mexico.

As a registered investor in the Subic Bay Freeport, the Ramphos Corporation plans to sell its ultra-light flying boats to resort owners and sports enthusiasts here.

Subic Bay Metropolitan Authority (SBMA) Administrator Wilma T. Eisma said the company is a welcome addition to the growing number of investors in Subic, and expressed optimism that more ultra-light flying boats are made in the Subic Bay Freeport. (JRR/MPD-SBMA)

PHOTO:

A Ramphos amphibious ultra-light flying boat takes off in Subic Bay last week, demonstrating the versatility of the leisure craft. (JRR/MPD-SBMA)

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Subic attracts P100-B new investments in first 7 months

The Subic Bay Metropolitan Authority (SBMA) has generated new investments of about P100 billion in just the first seven months of 2016, recording one of the biggest half-year investment turnouts for this free port since its establishment in 1992.

SBMA Chairman Roberto Garcia said in a media briefing here on Monday that several big-ticket projects were approved by the SBMA board of directors in the first half of 2016, compared to the previous four years when the SBMA attracted only P42-billion worth of new investment projects.

SBMA Chairman & Administrator Roberto V. Garcia

Garcia said the biggest of the new projects is the P60-billon joint venture by an Australian firm with Asian Institute of Aviation, an existing locator at the Subic Bay airport.

“They would transport agricultural products from Australia, mostly meat and seafood, repack them here, and then fly or ship them out to customers worldwide,” Garcia explained.

He added that the partners would put up an intermodal cargo terminal, use both airport and seaport, and expect to turn out around 60 containers per month for the Subic seaport.

“So that is going to be a big help,” Garcia said. “Their investment is going to be P60 billion for this project alone, and it will generate 800 jobs, not counting those for the construction work.”

Garcia said the project would also involve building new hangars, as the investors would bring in seven jets for their operations and offer maintenance and repair operations for jets, mostly from Hong Kong.

Garcia clarified that this commercial operation, which would occupy the northeast corner of the Subic airport, would not affect the proposed use by the Philippine Air Force of the southwest portion of the Subic airport for military training and logistics under the Expanded Defense Cooperation Agreement (Edca).

The SBMA board, Garcia added, has also approved an industrial estate project worth P34 billion in a 400-hectare area in the Redondo Peninsula, near the site of the Hanjin shipyard.

The proposed industrial estate project will include the development of a 200-megawatt solar plant and the construction of warehouses and logistics facilities, and the establishment of factories, and generate around 53,000 jobs.

Garcia also mentioned that Korean shipbuilder Hanjin has received the green light from the SBMA to put up its own 12-megawatt solar power plant at Redondo.

Another big project that was recently approved by the SBMA board of directors was the ship-to-ship transfer operation for liquefied natural gas, which will be worth another P5 billion.

“Things are looking good,” Garcia said, pointing out that aside from the big-ticket investments, the Subic agency has approved “a lot of smaller projects.”

“So as far as I’m concerned, we have a lot of activity in the pipeline for the next three to five years,” Garcia added. (HEE/MPD-SBMA)

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Singapore-based Interflour Group starts US$30-M flour mill in Subic

Singapore-based Interflour Group (Interflour), one of the producers of the finest flour in the world, commenced on Tuesday the construction of its Philippine mill in Freeport as part of its expansion program to meet the flour needs in South-East Asia .

The ground-breaking ceremony was attended by Interflour managing director and chief executive Greg Harvey, Subic Bay Gateway Park president Jeff Lin, Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, Interflour Group COO Jack Joseph Cwach, Mabuhay Interflour Mill Inc. (MIMI) president Angel Umali, MIMI general manager Vicente Magbanua, SBMA Deputy Administrator for Investment Ronnie Yambao, and SBMA COO Joven Reyes.

“The entry of Interflour in Subic Freeport is a big sign of the vibrancy of the Freeport today,” said SBMA Chairman Garcia, adding that Subic has increased its revenue collection by 15 percent this year.

Further, Garcia said that the flour mill facility will help realize the vision for Subic to become an international hub in Asia.

He noted that with the flour mill now in Subic, time and expenses incurred in hauling and transporting flour from Metro Manila to parts of Central and Northern Luzon would be reduced to as much as 50 percent.

In June 2014, Interflour signed a 50-year lease contract with SBMA, paving the way for the construction of the flour mill under the business name Mabuhay Interflour Mill Incorporated (MIMI), at a committed investment of US$30 million.

This will also mean additional revenue for SBMA, estimated to reach P5.5 million a year, for the use of ports for transport ships (usually Panamax vessels) coming from wheat-growing countries, primarily Australia, United States, and Canada, as well as Europe and the Black Sea countries.

Harvey explained that Interflour will engage in milling wheat into food flour for sale direct to consumers, distributors, and retailers in the country and for exports.

The Philippines is essential to the development of the flour industry and is one of the biggest flour markets in Asia.

The new mill in Subic, he said, is capable of producing 500 metric tons a day of the finest flour intended for the local market, particularly in Central and Northern Luzon.

“We hope to bring to the country affordable but high quality flour to help local bakeshop entrepreneurs,” Harvey said.

He added that the milling facility to be constructed in a 5.2-hectare lot inside the Subic Bay Gateway Park Phase II is expected to be completed in early 2017.

During construction period, more than 500 workers will be employed, while during commercial operation, the flour mill will need more 100 personnel, Harvey said.

Interflour Group is one of the biggest flour milling companies in the world with nine flour mills located in Vietnam, Indonesia, Malaysia, and Turkey with a combined wheat milling capacity of around 6,400 tons per day, which is equivalent to 1.6 million tons of flour produced each year.

It holds international certifications, manifesting its world-class technology, including Good Manufacturing Practice (GMP) and Halal Certification. It also has ISO 22000:2005/HACCP and ISO 9001:2008 for constantly providing its customers with optimum and consistent quality products and know-how. (RAV/MPD-SBMA)

PHOTOS:

[1] SBMA Chairman and Administrator Roberto V. Garcia (7th from left) and Greg Harvey, Managing Director and Chief Executive of Interflour Group, and other officials during the ground-breaking ceremony of Interflour’s milling facility in the Subic Bay Freeport. (AMD,EVS/MPD-SBMA)

[2] SBMA Chairman Roberto V. Garcia (extreme right) and Greg Harvey (4th from right), Managing Director and Chief Executive of Interflour Group, joins other officials in the ceremonial ground-breaking of Interflour’s milling facility project in the Subic Bay Freeport. (AMD,EVS/MPD-SBMA)

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Subic is new hub of US-based cargo forwarder Atlas

Atlas Shippers International Inc., one of the leading door-to-door cargo forwarders in the country today, has signed up as a business locator in this free port, setting up a new distribution hub here for balikbayan boxes sent from abroad.

Atlas used the port of Subic as an entry point for the first time on Thursday, officially marking the US-based firm’s intent to establish its hub for Northern Luzon operations here.

The first cargo, a 40-foot cargo container that held 420 balikbayan boxes, took off from the Atlas branch in Covina, California, on June 24 and arrived here on July 15.

Atlas president Joel Longares said they decided to locate in Subic to take advantage of tax incentives in this free port, as well as lower tariff rates compared with charges at the Port of Manila, complete support facilities and infrastructures, faster document processing, and strategic location made more accessible by the Subic-Clark-Tarlac Expressway (SCTEx).

Longares said the first container to arrive through the port of Subic will be a test run to determine the viability of this port as the sole discharging point for Luzon.

“We’ll have to determine if we could save money this way,” said Longares, explaining that boxes for delivery to Southern Luzon will be trucked from Subic to their hub in Las Piñas City.

Longares also predicted that other shipping lines and cargo handlers may follow suit.

“It’s only a matter of time before the others locate here,” he said. “Aggressive marketing is just what the Subic free port needs [to attract other shippers].”

Longares said the company’s cargo load, which come from branches in Australia, Hong Kong, Italy and the United States, is expected to peak at about 30 containers per month.

With this projection, Atlas will hire about 50 employees for its Subic hub, where they will also install cargo-sorting equipment.

With Subic as their hub of operations, Longares said he expects the company to grow significantly and even expand to service outbound cargoes.

The company’s warehouse in Las Piñas will be maintained for their Southern Luzon operations, he said.

Meanwhile, Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza noted that the business sector is now taking notice of the advantages of using the port of Subic, which boasts of two container terminals with a combined capacity of 600,000 ten-foot equivalent units.

“This is a small beginning towards greater things to come,” said Arreza, referring to the Atlas decision to use the port of Subic.

He said the SBMA’s efforts to promote Subic Bay as a maritime gateway for Luzon and a prime logistics hub for Southeast Asia is now really paying off. (Henry Empeño, Business Mirror Online)

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‘Balikbayan box’ distribution center opened in Subic free port

Atlas Shippers International, a Filipino-owned freight forwarding service provider yesterday opened its distribution center here with the launching of its maiden shipment.

Atlas Shippers President and Chief Operating Officer Joel P. Longares said Subic will now be its distribution hub of ’balikbayan’ boxes.

Mr. Longares said Subic, which has modern seaport facilities and highly skilled workers, is an excellent location for freight forwarding services.

"We decided to change port destination from Manila to Subic because of several advantages that the free port has to offer," Mr. Longares told reporters here.

He added that his firm would also be banking on the free port status of Subic that ensures fast movement of cargo.

Mr. Longares said tax incentives enjoyed by free port companies will allow his firm to "save more" from its operational expenses.

He also pointed to the strategic location of the Subic free port in serving clients from Northern and Central Luzon, citing the newly built Subic-Clark-Tarlac Expressway.

Subic Bay Metropolitan Administration chief Armand C. Arreza said the setting up of business of Atlas in Subic free port was an off-shoot of a recent government trade mission to US.

The agreement with Atlas Shippers was signed on June 24.

"This is part of our efforts to develop Subic into a major logistic and distribution hub," Mr. Arreza said.

Trade and Industry regional director Blesila Lantayona told the BusinessWorld the government is encouraging local exporters from the region to use Subic to ship their products.

She noted that all cargo containers of Atlas Shippers would be empty after the shipment of balikbayan boxes in Subic, and said it would be a great opportunity to use Philippine-made export products as "back load" for cheaper freight charges.

"We are conceptualizing a business plan for Filipino exporters to have a tie-up with Atlas Shippers, for them to use those empty cargo containers for outbound shipment of local products abroad," Ms. Lantayona added.

Mr. Longares also said the company is preparing to operate a warehouse for its sorting facilities.

He said he was expecting more Filipino freight forwarding service companies to also use the Subic free port as its distribution hub.

"The international freight forwarding industry is so big that’s why I am encouraging them to come and also do business in Subic," Mr. Longares said.

The inaugural shipment of cargo container consisting of more than 400 balikbayan boxes was held at the Subic Port Container Terminal I, which is being operated by the Subic Bay International Terminal Corp., a subsidiary of the Enrique K. Razon, Jr.-led International Container Terminal Services, Inc.

Atlas Shippers started in January 1993 in Covina, California providing door-to-door cargo services to Filipinos in United States.

Five years after, the company took advantage of an opportunity to expand all over the US midwest, the East Coast, Alaska, and Hawaii.

On 2001, Atlas Shippers opened its doors to the international market by putting up branches in Hong Kong, Italy and Singapore to serve Filipino communities in Asia and Europe.

Other services offered by the firm are travel and tour services, air cargo service, and remittances. (Rey M. Garcia, BusinessWorld Online)

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