Using Subic cuts costs saves time, says SBMA

Traders are most likely to benefit from using the Port of Subic as trucking costs as much as 20 percent lower, travel time is halved, and port fees are considerably cheaper, a Subic Bay Metropolitan Authority official said.

Norberto J. Sosa, SBMA director, said in a presentation at a conference at the Subic Freeport that traders win north-bound business are the ones to benefit the most from using Subic port.

He said, for example, the travel distance from Manila to Bataan is 123 kilometers, extremely far compared with the Subic-Bataan route, which is only 20 km.

“Subic to Tarlac is only 60 km while Manila to Tarlac is 125 km,” Sosa said. He also said that Subic is only 60 km away from Clark, compared with Manila, which is 85 km away from the former US Air Force base.

In terms of trucking fees, Sosa said that the costs are trimmed by at least 10 to 20 percent.

Sosa estimated that the fee for trucking via Manila-Clark-Subic is P14,000, while it is only P12,000 for the Subic-Clark-Subic loop.

He likewise pointed out that port fees in Subic are far lower than those charged by Manila’s ports.

Subic Bay charges P1,481.78 for every 20-foot equivalent unit (TEU) container and P3,402 for every 40-foot equivalent unit (FEU) box. Meanwhile, the Manila International Container Terminal and the Asian Terminal Inc. charge P2,677.12 per TEU and P6,918 per FEU.

“Bay has lower tariff compared with other ports in the Philippines,” Sosa said.

Sosa said the Port of Subic is on the western side of Luzon off the Western Philippine Sea. It is geographically located at the center of the Asia-Pacific region and is the first and premier freeport of the Philippines at the Subic-Clark Corridor and Metro Luzon Urban Beltway.

“The Subic Bay is surrounded by mountain ranges and provides deepwater harbor that is protected from typhoons,” Sosa said. (Jennifer Ambanta, Malaya Business Insight)

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NCC eyes Subic-Clark-Batangas corridor as international logistics hub

The National Competitiveness Council (NCC) has embarked on an ambitious project to convert the Subic-Clark-Batangas corridor into an international logistics hub in the country's bid to service the rapidly expanding intra-Asian trade and investments.

NCC has commissioned UP professor on urban and regional planning Hussein Lidasan to prepare the terms of reference (TOR) on which the masterplan will have to be based.

Under that agreement, NCC spelled out its vision of developing an inter-modal logistics system covering mega-Manila that will be integrated globally at competitive costs and quality.

The initiative was also designed to decongest Metro Manila by gradually shifting the cargo traffic from its ports to the new ports of Subic and Batangas.

As a prerequisite to making the detailed masterplan, the TOR will answer the questions, what needs to be done, what are the pressing issues and concerns that have to be looked at, what economic development concepts should be reviewed and evaluated that would really be appropriate for the corridor, what would give the private sector to actively participate in developing the corridor, and how would the development of the corridor's inter-modal logistics system be defined to be responsive to such development concepts.

After the TOR, a masterplan would be drawn up for the proposed Luzon integrated logistics hub that covers the economies of Metro Manila, Bulacan, Pampanga and Zambales in Central Luzon, and the Cavite-Laguna-Batangas stretch in southern Luzon. The proposed corridor already accounts for about half of the country's total output, said NCC.

The masterplan would cover cities and provinces along the corridor which would be later owned up and implemented by their local governments in tandem with the national government, strong involvement of public and private sectors, with the private sector coordinating activities leading to the realization of the plan.

The idea of making the Clark Special Economic Zone as the logistics hub in Asia was first proposed by President Gloria Macapagal Arroyo. The NCC's innovation was to include land, air and sea transport along the proposed logistics corridor to the rest of East and South Asia. (Edu H. Lopez, Manila Bulletin)

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Feature: LUB, SCTEX extends development in Freeport, Zambales

IBA, ZAMBALES—Less than a year into its opening, the Subic-Clark-Tarlac Expressway (SCTEX) is fast gaining prominence among tourists and businessmen, and a great number of investors within the Subic Freeport Zone gave nothing but praise to the tollway project.

John Corcoran, president of the Subic Bay Freeport Chamber of Commerce, Inc. (SBFCCI), said that the SCTEX will provide local and foreign visitors with better and faster access to Subic’s recreational facilities as well as commercial and industrial establishments.

“This is going to have such a positive impact all over the Subic Bay Freeport because the new highway has significantly cut travel time to Subic from Clark and from as far as Tarlac,” said Corcoran.

“I am sure that we will see more development along the Subic-Clark growth corridor,” added Corcoran, who is also president of Ocean Adventure, a popular marine theme park here.

Another Subic investor, Yvett Ocampo-Desiongco, CEO of the newly-opened Subic park Jungle Joe’s World, also expressed confidence that the SCTEX would bring in more business here.

“Subic can now count on more visitors not only from Metro Manila and South Luzon areas, but also those from North Luzon.”

“And the highway is awesome and world-class,” she added, saying the SCTEX reminds her of the highway going from San Francisco to Idaho in the United States.

The SCTEX, which covers a total distance of 93.77 kilometers and touted to be the longest four-lane expressway in the Philippines today, is also expected to open up more investment opportunities along the Subic-Clark growth corridor.

SCTEX: Luzon Urban Beltway’s priority component

A flagship project of Pres. Gloria Macapagal-Arroyo, the SCTEX was funded with a loan from the Japan Bank for International Cooperation (JBIC), and is composed of two packages: the 50.5-km Subic-Clark connection, and the 43.27-km span that connects Clark to Tarlac.

The tollway project is the backbone of the Subic-Clark Mega Logistics Hub and a part of the priority infrastructure projects designed for the Luzon Urban Beltway (LUB).

LUB is one of the regions included in the super regions concept eyed to usher development towards the countryside.

“Our resolve to provide the necessary infrastructure for growth and prosperity has heightened investors’ confidence in our ability to slug it out in the global arena…we have billion dollar investments coming in because they have seen us putting money, our own money, our own investment in infrastructure. “

These words, delivered by PGMA during the Luzon Urban Beltway (LUB) Infrastructure Conference at the Subic Bay Freeport Zone in Zambales almost two years ago, sum up the government’s determination to usher development all over the country through the super region concept.

Zambales: Gearing up, cashing in

Subic Bay Metropolitan Authority Administrator Armand Arreza announced that SBMA has maintained its status as the country’s leading investment agency after posting US$1.1 billion in committed investment employing nearly 70,000 workers this year.

“Our new challenge today is to bring investments to the nearby towns of Zambales and Bataan and Olongapo City. This will be easier now after the President issued Executive Order 675,” Arreza said.

With the EO 675, according to Arreza, new investors who are looking for bigger land area will be allowed to put up investment to other places near the Subic Bay Freeport and Clark areas.

“We are also preparing a plan for the construction of access roads going to some tourist and investment sites in Zambales. There are also new power plants to be built inside the Freeport zone that will provide lower power rates,” he said.

In a similar move, Zambales Governor Amor Deloso has announced that Zambales is gearing towards development as it vows to open major road networks that will connect the province to other economic zones in Northern and Central Luzon.

“There is a need to open new roads to expand the development opportunities of the provinces and maximize its potentials as a new investment site in the region,” said Gov. Amor Deloso.

He identified the new economic doors as the Santa Cruz-Mangatarem Road that will connect the northern town of Santa Cruz with the town of Mangatarem in Pangasinan and the Iba-Tarlac Road which will connect the province to Tarlac.

The roads are necessary to open new space for possible economic zones and to shorten travel going in and out of the province to and from Central Luzon, Northern Luzon and Western Luzon areas.

“The roads will also maximize the use of our Masinloc Port as a major seaport in the area benefiting investors, particularly exporters and importers, from Zambales and Pangasinan,” Deloso said.

The governor noted that the Tarlac-Iba Road, which would span to about 60 kilometers when finished, has already a plan that was approved during the administration of former president Ramos.

“The road will boost the potentials of the Masinloc Port which will be constructed under a built-operate-transfer (BOT) scheme by a Canadian business group to the amount of US$5 billion. When finished, Masinloc Port will become a major transshipment port in the region,” he said.

Meanwhile, the official said that the Mangatarem-Santa Cruz Road Project is about 82 kilometers and could be finished at the cost of P200 million. The road will shorten travel time going to Pangasinan from Iba, Zambales from six hours to about two hours.

Deloso has also announced that discussions have already been started to study the possibility of putting a 500-hectare industrial estate in the former San Miguel Naval Air Stations in San Antonio Zambales.

The proposed industrial zone will fast tract the many development programs of the province to turn the province into a tourism and light industry destination in the region.

“Roads will bind our resources- land, people and infrastructures. Due to the completion of the SCTEX, space for investment in Bulacan and Tarlac is getting scarce. Subic Freeport soon could not accommodate more factories. But Zambales has vast land space to offer and we have pier, ship repair facilities and a small airport for tourism,” Gov. Deloso said.(AMV/PIA-Zambales)

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