SBMA proposes 100-km coastal road

The Subic Bay Metropolitan Authority asked the government to build a multi-modal 100-kilometer coastal highway from Subic Bay to the Port of Manila to help decongest traffic in the metropolis at a cost of P100 billion.

The “most viable and doable solution to the traffic congestion lies outside the metropolis,” Subic Bay Metropolitan Authority chairman Martin Dino said.


He said the project’s indicative cost “is the equivalent of only 34 days of cumulative business losses resulting from Manila’s traffic congestion.” The country is losing an estimated P3 billion a day from the traffic mess.

Construction could be completed in 48 months, he said.

Dino said he would ask for Malacañang’s approval to have it included for financing under the Philippine-China Framework of Cooperation.

“Many economic and social forces are now at play and our rapid and efficient response is critical to creating the environment conducive to promoting further growth and development,” Dino said.

“The economic benefits from the project would be immediate and enormous,” he said. (Darwin G. Amojelar, Manila Standard)

http://thestandard.com.ph/business/224433/sbma-proposes-100-km-coastal-road.html

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House leaders back vital Subic-Manila coastal highway

HOUSE Leaders yesterday endorsed the construction of the 65-km coastal highway from Subic Bay to Manila to dramatically unclog the premier international shipping gateway to the country and decongest traffic in the metropolis.

In separate interviews, Quezon City Rep. Winston “Winnie” Castelo, Ako Bicol party-list Rep. Rodel Batocabe, and Eastern Samar Rep. Ben Evardone joined Subic Bay Metropolitan Authority (SBMA) chairman Martin Diño in seeking the approval of President Rodrigo “Rody” Duterte to prioritize the project.

“Any road development towards MM is welcome due to the magnitude of the traffic problem. However, we should study further the best infrastructure available as the best alternative,” Castelo said.

“I am one hundred percent behind this proposal. However, let us start to lessen the centralization of economic activities in Metro Manila and prioritize the dispersal of industries to the provinces. And we can not start this process if we continue building structures going to Manila,” Batocabe, president of the Party-List Coalition (PLC) and chairman of the House special committee on climate change.

For his part, Evardone, who chairs the House committee on bank and financial intermediaries, said: “Any good plan that will help decongest Manila and its worsening traffic should be supported.”

Diño was referring to the new multi-modal highway for rail cargo and vehicular traffic, linking the Subic and Manila ports by the shortest route possible, dovetails with the Freeport’s planned expansion of its Container Terminals 3 and 4 to increase its handling capacity to 1.2 million TEUs or Twenty-Foot Equivalent Unit.

He said the SBMA would boost as well the handling capacity of the Naval Supply Depot Compound and Bulk Cargo Port Wharves for loose cargoes, and rehabilitate the Sattler Pier, as modernizing its port facilities and rebuilding its aging infrastructure shift to high gear.

Diño said he has also sought the help of Public Works Secretary Mark Villar to provide technical assistance for the proposed widening of the narrow Tipo Road, which links the Freeport facility to the Subic-Clark-Tarlac Expressway (SCTEX), into a four-lane highway and the construction of a new tunnel and bridge to accommodate the new lanes are also among his priorities.

He stressed that these projects should be undertaken simultaneously in this “golden age of infrastructure” as the Philippines rides the momentum as the best-performing economy in the region.

Also considered a vital part of the new road network is the 17.273-km bypass road for cargo trucks that would connect the Freeport terminals directly with the SCTEX in Hermosa, Bataan to provide easy transport for goods and services at the export processing zones in the area and in nearby towns in Pampanga, he said.

The bypass road would also relieve traffic buildup at the steep Tipo Road for vehicles and heavy trucks going in and out of the Freeport.

“Our goal is to connect Subic to Manila and the economic zones in Luzon,” Diño said. (Ryan Ponce Pacpaco, Journal Online)

PHOTO:
Aerial shot of the Port of Subic showing its container terminal, piers and warehouses.

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Subic-Clark cargo railway sees fruition under Duterte's massive infra push

The Subic-Clark corridor will finally have its cargo railway system that will link the port of Subic to Clark's international airport, boosting cargo transport efficiency in the two free ports and at the same time decongest traffic in Metro Manila.

This, as the Duterte administration is set to launch the biggest infrastructure push in Philippine history to propel economic growth in the next five-and-a-half years.

The Subic-Clark Cargo Railway Project under the Duterte administration's infrastructure plan

Big-ticket infrastructure projects, specifically roads and bridges, mass urban transport and alternative green city solutions are among the key investments to be made by the Philippine government. These will solve the problems brought about by traffic congestion, inadequate mass transport facilities, air pollution, and the lack of healthy, green liveable community spaces.

The development mantra is: build, build and build.

The Duterte administration sees increased infrastructure spending as key to move the country forward and improve the lives of the Filipino people by generating massive investments, creating millions of jobs and lowering prices of commodities.

The country's lead infrastructure agencies are working in close coordination to build new facilities. The National Economic Development Agency (NEDA), Department of Transportation (DOTr), Department of Public Works and Highways (DPWH) and the Bases Conversion and Development Authority (BCDA) are crafting the Duterte Infrastructure Plan. In three to five years, new and better roads, bridges, railways, rehabilitated airports and a new metropolis are envisioned to benefit the Filipino people.

According to the Philippine Institute for Development Studies (PIDS) 2017 National Expenditure Program, in the first year of the Duterte presidency, infrastructure spending will represent 5.4 percent of the country's Gross Domestic Product. This will be the highest since the Marcos era spanning 21 years when infra spending was at 3.2 percent of GDP.

Among the "game-changing solutions" of the DOTr that guarantee better transport and passenger experience are the Metro Manila Clark Railway which will assure one-hour travel from Metro Manila to Clark International Airport; the Metro Manila Bus Rapid Train System which will yield on-time trips along EDSA; and the Mindanao Railway which will provide the much-needed connection of people and goods across Mindanao.

For its part, the DPWH will build new linkages to ensure better connectivity between key destinations. These include the Santa Monica-Lawton-BGC Viaduct which will directly link BGC going to Ortigas; the UP-Miriam-Ateneo Viaduct which will cut down travel by 80 percent in Katipunan Ave at CP Garcia; and the NLEX-SLEX Connector Road which will reduce travel time to 30 minutes going to Alabang from Balintawak.

BCDA also eyes big-ticket projects in Central Luzon and Metro Manila. The Clark International Airport New Terminal Building is envisioned to be a world-class airport which will reduce traffic at the NAIA. BCDA also will continue to build a new city proximate to Metro Manila, a 9,450-hectare smart, green and disaster-resilient city that will be a long-term solution to traffic congestion in main urban centers.

Another project is the BGC to NAIA Bus Rapid Transit that will facilitate a 15-minute travel time from Fort Bonifacio to NAIA, preventing delays for passengers rushing to catch their flights whether for leisure or business.

The Philippines has been lagging behind its Asian neighbors in attracting foreign direct investments due to poor infrastructure, which has been traced to government underspending on such projects.

The International Monetary Fund (IMF) reported: "At 21.8 percent of GDP [gross domestic product] in 2014, the investment rate in the Philippines is well below regional peers, as reflected in its low capital stock and infrastructure quality.”

Given the Duterte administration's development platform, a complete turnaround is expected in the next six years with bold solutions and swift action in responding to the pressing needs of the public through massive infra spending.

At present, feasibility studies are being done for the infra projects of the DPWH, DOTr and BCDA. These projects will be subject to public tender following stringent Philippine government procurement rules. In two years, these are envisioned to break ground, with a launch eyed in three to five years. (MARO-PCO)

http://news.pia.gov.ph/article/view/2131478178859/build-build-build-duterte-to-launch-biggest-infrastructure-program-in-ph

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Subic investments reach a record PHP111.5 billion in Jan.-Aug. 2016

The Subic Bay Metropolitan Authority recently announced the inflow of PHP111.5 billion into this Freeport in the form of newly approved investment projects in just the first seven months of 2016.

This represents the highest approved investments ever for the same span of time since the Subic Freeport’s establishment in 1992. The record-breaking performance also surpasses the Freeport’s total new investments of PHP18.5 billion in 2015 by more than 500 percent, and its 2012-2015’s total of PHP 47.9 billion by 132.77 percent.

So far, the biggest investment in Subic this year came from Australasia Cold Storage Logistics and AIA Airways Company, Inc. with a committed investment of PHP70.5 billion.

The logistics investment project will involve transporting agricultural products from Australia, mostly meat and seafood; repacking them in Subic; and then flying or shipping them out to customers worldwide. Also included in the project are the putting up an intermodal cargo terminal and the use of both airport and seaport with an expected turnout of around 60 containers a month for the Subic Port.

Another significant new investment is the solar and industrial estate project of Dynamic Konstruk Enterprises with an investment pledge of PHP34 billion and a projected employment of 40,000-50,000. The proposed industrial estate project will include the development of a 200-megawatt solar plant, the construction of warehouses and logistics facilities, and the establishment of factories in a 400-hectare area in the Redondo Peninsula near the site of the Hanjin shipyard.

Once on stream, the two new projects and other approved new investments are expected to generate a total of 54,973 new jobs in the Freeport, which traditionally sources the manpower requirements of its locators from Olongapo, Bataan, and Zambales; as well as from Pampanga, Tarlac, NCR, and other areas. (AMF/CorCom-SBMA)

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P60-B project to boost Subic Freeport as logistics hub

A P60-billion investment project to be implemented by an Australian firm here is expected to push this premier free port into the ranks of top global logistics centers today.

This was announced by Subic Bay Metropolitan Authority (SBMA) Chairman Robert Garcia yesterday at a press briefing here, wherein he also cited other new investment projects that had been approved by the SBMA board of directors.

According to the SBMA official, Asian Institute of Aviation (AIA) will occupy seven hectares of land near the Subic Bay International Airport (SBIA) and will build hangars and food processing stations for its intermodal logistics business.

Garcia said that AIA will be joined by an Australian firm, which will buy into the company for the new operations.

“The business model of the company is to export from Australia to China, Japan, and other Asian countries, via airplanes,” Garcia said. “The company will import meat, sea food, and other agricultural products from Australia by plane or by ship to Subic Bay, and will process and package these products according to customer orders and then deliver them to customers.”

Garcia explained that the Australian partner has been doing the processing already in Australia, but because the processing in Australia entails higher labor cost, it has decided to do the processing in Subic.

The operation, Garcia said, will become intermodal. “They will ship out by air since they have seven jets; they will also ship out via seaport, and their volume for the seaport is 60 containers per month,” Garcia said.

Aside from the P60-billion investment, the project will generate 800 jobs, aside from those during the construction of facilities, and the company “has also shown interest in providing new equipment for the tower at the Subic airport,” Garcia said.

The new investor also plans to build hangars for maintenance and repair operations (MRO) that will cater to jets in Hong Kong. “Mahal magparada ng jet dun. You pay $3,000 just to park it outside without a hangar,” Garcia added.

The new investment has been approved in principle by the SBMA board after the proponents showed proof of funds, Garcia said, adding that the construction of proposed facilities will still be subject to detailed engineering design.

“This is a good project for us,” Garcia said. (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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NEDA makes new push for logistics corridors

The National Economic and Development Authority (NEDA) is making a new push to develop logistics corridors, starting with the Subic-Clark-Manila-Batangas (SCMB) corridor as part of a national transport plan.

Initial discussions on the infrastructure planning under the 2010-1016 Medium Term Philippine Development Plan (MTPDP) recommend the creation of "strategic logistics corridors," initially starting off with the SCMB then extending the same northward and then southward.

The MTPDP envisions these corridors as having intermodal transport network system to obtain efficiency.

"The SCMB must be developed to become a seamless intermodal logistics corridor," documents on the initial results of the infrastructure planning subcommittee said.

The documents show how an integrated multi-modal logistics and transport system could not only decongest Metro Manila but also create linkages between business centers and nearby provinces.

This, the NEDA papers said, would help facilitate the efficient flow of commodities and inputs to economic and industrial zones.

"The development of seamless intermodal transport and logistics systems along strategic corridors will promote productivity and competitiveness," the documents said.

The NEDA points to inadequate and unstable funding for the construction and development of facilities as the culprit in the deficiencies in our transport system.

"Assessment of the country’s transport infrastructure network indicates that its quality and capacity remain low, even if the quantity of transport compares favorably with most Asean countries," the papers said.

Subic and Clark are the nearest economic industrial zones to Metro Manila, one offering a port and the other an airport. Metro Manila is linked to the two zones through road networks, the North Luzon expressway and the Subic-Clark-Tarlac expressway.

Linked to Metro Manila by the South Luzon expressway down south is Calabarzon, home to specialized industries and processing activities. The corridors complement each zone’s strengths in agriculture and manufacturing.

The corridor now accounts for 80 percent of the national cargo and about half of yearly economic output. (Malaya Business Insight)

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Study on Subic-Clark-Batangas logistics corridor completed

MANILA, Philippines - The pre-feasibility study leading to the drawing up of a master plan making the Subic-Clark-Batangas corridor into a logistics corridor that positions Luzon as an international transshipment point in Asia has been completed.

This was announced by National Competitiveness Council (NCC) private sector chairman Cesar Bautista.

Ambassador Bautista said the initial study lays down the term of reference and scope of a more detailed study whose main output is a master plan for a seamless intermodal logistics corridor across the three fastest growing regions in Luzon.

The master plan will take another one and a half year to complete, Bautista said.

“The Subic-Clark-Batangas region, despite its considerable potential for being the principal logistics hub in the country, has experienced very limited growth due to inefficient logistics operations. As such, an integrated logistics program aimed specifically at increasing trade volumes, agricultural production as well as the diversification of economic activities is needed. This now comes in the form of a Subic-Clark-Batangas Intermodal Logistics Corridor Master Plan,” The study pointed out.

It noted that President Arroyo first raised the idea in 2007 when she declared that Luzon should be developed as a major transshipment and logistics hub in Asia. Since then, several big-ticket infrastructure projects interconnecting the corridor have been completed including the upgrading of the south and north expressways, opening of the Subic-Clark-Tarlac Expressway and other projects.

“It is also important to address major transport policy issues critical to the development of the corridor,” the study stressed.

The corridor provides specialized industries and processing activities in Subic and Clark Special Economic Zones, textile, garments and consumer electronics factories in the Calabarzon, prime agricultural production south and north of Manila and port related industries in Batangas.

The corridor now accounts for 80 percent of the national cargo throughput in the country and about half of yearly economic output.

In pushing hard for the master plan, Ambassador Bautista said that it is not enough that one announces it is building a new superhighway from Commonwealth Avenue in Quezon City to Tuguegarao, Cagayan or a bullet train from Manila to Laoag without taking into consideration if those projects will bring down costs of shipping goods.

The master plan was envisioned not only to address the high cost of shipping goods across Luzon but between the island and other ports in the country and in the Asian region.

The initial study suggested that building a logistics corridor will have to be pushed in stages, the first of which will be the building of a transport corridor. Second stage will be a multimodal corridor that integrates land, sea and air transportation plus storage and other support facilities then into a logistics and later, an economic corridor.

“The whole point is to develop the corridor as an alternative transshipment hub in Asia and to open up new economic activities towards the eastern seaboard of Luzon,” Bautista pointed out.

So far, he added, there have been so many plans and programs including unsolicited proposals on building roads and railway systems but these have not been integrated into a master plan designed to speed up economic growth in Luzon and the rest of the country. (Philexport News and Features )

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