SBMA chair reveals P6.33-M Subic Port Expansion plan

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator has revealed the P6.33-million port expansion plan for this premier Freeport.

Speaking before the participants of the Central Luzon Transport & Trade Conference 2024 held at the Hilton Clark Sun Valley Resort on May 24, Aliño presented Subic’s Port Expansion plan under the Japan International Cooperation Agency (JICA)-Regional Development Master Plan. 

“Subic Bay Freeport will have additional berthing facilities in the Boton Area alongside the expansion of the Boton Wharf with an approximate cost of P6.33-million. The plan would include the reclamation for a terminal expansion with a ten-hectare area, expansion and deepening of the existing wharf by 1.5 meters, and the inclusion of a general cargo and Roll-On Roll-Off (RoRo) terminal,” Aliño said.

He also said that the New Container Terminal 3 will also have an expansion plan to include additional berthing facilities and a quay with a length of 410 meters and width of 700 meters, a total area of 28.7 hectares, and a depth of 16 meters. The said project will cost P20-billion. 

The agency also plans to create additional berthing facilities at the San Bernardino Road which will have a multi-purpose terminal that has a quay length of 400 meters, an area of 17.4 hectares, and a depth of 12 meters.

“The construction of the 400-meter wharf will have warehouses and open spaces, an empty container yard, and a truck weigh scale area. The expansion at the San Bernardino Road will cost around P10 billion,” Aliño added.

Aside from the aforementioned expansion plans, the SBMA also aims to implement the Port Expansion Plan at the Redondo Peninsula that includes the construction of a P9.35-billion multi-purpose terminal with a 600m by 500m quay that has a total area of 30 hectares and a depth of 13.5 meters.

“This will also include the construction of a 600-meter wharf, warehouses, an admin building, truck parking, truck weigh scale, sentry gate, open storage, offices and facilities for workers,” Aliño also said.

A proposed multi-purpose terminal at the Lower Mau area of the Subic Bay Freeport is also in the works that includes a 570-meter quay with a total area of 17.2 hectares and a depth of 13 meters. The said facility will have the same amenities as the other multi-purpose terminals, but has an approximate cost of P10.19 million.

Aliño stated that the SBMA is bullish on the shipping industry, citing that Subic Bay Freeport can easily handle the shipping industry in the North and Central Luzon. “This is why we are pushing for these expansion plans, we want the world to know that Subic Bay Freeport is more than capable of handling their cargo,” he added. (MPD-SBMA)

Read More

SBMA more than happy to accommodate Hyundai Heavy in Subic Freeport

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Rolen C. Paulino welcomed the possibility of South Korean shipbuilder Hyundai Heavy Industries (HHI) investing inside this premier Freeport.

The statement came after outgoing Department of National Defense (DND) Secretary Delfin Lorenzana revealed that the South Korean shipbuilder plans to construct a maintenance depot at the former Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) shipyard in Redondo Peninsula.

“The company plans to have a maintenance depot here since many of our military ships are built by Hyundai. They would provide the maintenance needs of these ships,” he said.

Paulino said that the plans for the construction of HHI’s maintenance depot here would mean more job opportunities, and would generate income to the agency that can be added to the national coffers. He said that the construction of the HHI maintenance depot is more efficient rather than sending the ships back to South Korea for repairs.

Former Secretary Lorenzana cited that the country ordered the Philippine Navy (PN)'s first two missile frigates, BRP Jose Rizal (FF-150) and BRP Antonio Luna (FF-151) from the South Korean shipbuilder. He added that HHI also secured the P28-billion contract for the two anti-submarine corvettes last December and the P30-billion offshore patrol vessel (OPV) deal.

The company is also the contractor for the South Korean Navy's Pohang-class corvettes, of which one is now in service with the PN, with another expected to be transferred soon. The company and the DND signed a lifetime service support contract for the maintenance and upkeep of the two Jose Rizal guided-missile frigates.

Chairman Paulino said that it is only fitting that the company construct its maintenance depot at the former Hanjin shipyard since Agila Subic (now owner of the Hanjin shipyard) is housing the base operations of the Philippine Navy.

 The SBMA chief also cited that after HHIC left, thousands of skilled workers in the shipbuilding sector have been unemployed and are seeking other job opportunities, but were unlucky due to the recent pandemic.

“The investment of Agila Subic has revived the shipbuilding industry of the Subic Bay Freeport back to life. We can expect more job opportunities for skilled shipbuilders in the area since more and more companies are looking into investing into Agila Subic’s shipbuilding industrial park,” he said.

The Philippine Navy occupies the northern portion of the former HHIC-Phil shipyard that spans around 100 hectares of the site's more than 280 hectares.

The activation and subsequent operationalization of NOB Subic are in line with the Navy's scaled-up maritime operations to support the needed base services of the deep-draft vessels such as Jose Rizal-class missile-frigates, Del Pilar-class offshore patrol ships, and Tarlac-class landing docks.

The newly activated base will house select fleet marine units, maintenance, and replenishment facilities that will enable the fleet to sustain the operational requirements of the current and future capital vessels. (MPD-SBMA)

Read More

SBMA conducts inspection of future Agila Subic facility

The Subic Bay Metropolitan Authority (SBMA), along with local and foreign dignitaries, conducted a site inspection of the future Agila Subic facility last May 15 at the Redondo Peninsula here in this premier Freeport Zone.

SBMA Chairman and Administrator Rolen C. Paulino led the delegation along with Olongapo City Mayor Lenj Paulino, and the Philippine Navy.

Paulino said that one of the mandates given to him by President Rodrigo Duterte is to ensure a smooth transition of the company to the former Hanjin shipyard facility, and bring to fruition what the former administration of the agency had started.

Now called Agila Subic, the former Hanjin shipyard will be housing two tenants.

One tenant Vectrus, will be occupying most of the shipbuilding area of the facility, including the quays.  Meanwhile, the Philippine Navy is currently occupying the former Hanjin administrative office, mess hall, and barracks.

Vectrus is a global service solutions provider to the United States government and across the world, which offers facility and base operations, supply chain and logistics services, information technology (IT) mission support, and engineering and digital integration services.

Former Hanjin workers who have been skills-trained will be hired by the company since it will require skilled workers.

29 workers have already been hired and the company hopes to employ more workers who used to work for the shipbuilding company.

Meanwhile, Mayor Lenj Paulino said that the city government plans to provide skills training to its residents as the re-elected official sees a boom in employment in the ship repair industry in the area. He added that companies, who are looking for skilled workers, would only need to contact the city government.

Recently, the Department of Finance stated that the Fiscal Incentives Review Board (FIRB) has approved the proposed tax perks as endorsed by the SBMA, for the rehabilitation of the ageing shipyard.

The project will be receiving special corporate income tax (SCIT), value-added tax (VAT) exemption from importation, VAT zero-rating on local purchases, and duty exemption on importation.

The total project cost is estimated at Php17 Billion. (MPD-SBMA)

Read More

US-based Cerberus acquires Hanjin shipyard in Subic Bay

United States-based private equity firm Cerberus Capital Management has completed its takeover of the shipyard previously run by Hanjin Philippines in Subic Bay with the recent conclusion of agreements on the facility, government officials confirmed.

"The completion of the Subic Bay shipyard will redound to benefits for the country, bring jobs to the local communities, increase economic activity, and at the same fortify our strategic security measure," Philippine Ambassador to the US Jose Manuel Romualdez was quoted as saying in a press release early Friday morning.

Manila's embassy in Washington said Romualdez made the remarks during a diplomatic reception on Apr. 19. The envoy also expressed his appreciation to officials of both countries along with executives of Cerberus for their efforts, which led to the conclusion of the deals.

"Great to see the completion of the acquisition of Hanjin shipyard in Subic Bay by a U.S.-based firm. An important example of U.S.-Philippine public-private partnership," Ely Ratner, U.S. assistant secretary of defense for Indo-Pacific security affairs, tweeted on Thursday.

Cerberus co-founder and co-chief executive officer Steve Feinberg also recognized the support offered by both the Philippine and American governments in ensuring the agreements' completion, said the embassy.

"Working with the United States on this project will help ensure that we are able to protect our interests not only for our country but the whole region," Romualdez said.

The facility at the former giant U.S. naval base has caught the attention of Chinese investors given its strategic location near the West Philippine Sea.

Details of the purchase, including the price, were not disclosed. Reuters reported last month that Cerberus was buying the debt-laden shipyard for $300 million.

Foreign Affairs chief Teddyboy Locsin called the transaction the "biggest public-private partnership in the 75-year history of Philippine-US relations." (CNN Philippines)

Source: https://www.cnnphilippines.com/news/2022/4/22/Cerberus-conclusion-agreements-Hanjin-shipyard-Subic-Bay.html 

Read More

RTC grants Hanjin petition for rehabilitation

The Olongapo City Regional Trial Court (RTC) Branch 72 on Monday (January 14) granted Hanjin Heavy Industries and Construction-Philippines’ petition for receivership and put the Korean shipbuilding firm under corporate rehabilitation.

On Jan. 8, Hanjin sought relief from the Philippine government, filing a petition with the Olongapo RTC to initiate voluntary rehabilitation under Republic Act 10142 or the “Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals.”

Hanjin, the fifth largest shipbuilder in the world and biggest investor at the Subic Freeport with $2.3 billion, revealed recently it owes some $400 million in outstanding loans from Philippine banks on top of another $900 million in debt with lenders in South Korea.

Stefani Saño, a former member of the Subic Bay Metropolitan Authority (SBMA) board as well former senior deputy administrator for investment and business group of SBMA, was appointed by the court as the rehabilitation receiver.

The financial losses allegedly stemmed from a slump in the shipbuilding industry.

Pursuant to RA 10142, Olongapo RTC Branch 72 Presiding Judge Richard Paradeza declared Hanjin under rehabilitation and asked the company to publish the Jan. 14 commencement order in a newspaper of general circulation for two consecutive weeks.

It also ordered the shipbuilding giant to serve a copy of the petition to its creditors – the Bureau of Internal Revenue, Securities and Exchange Commission, Bangko Sentral ng Pilipinas, Insurance Commission, Department of Labor and Employment (DOLE), Housing and Land Use Regulatory Board, Department of Trade and Industry and SBMA.

The court also tasked the company to serve a copy of the commencement order to its foreign creditors and ensure that they receive a copy within 15 days before the initial hearing set on Feb. 8.

In its order, the court said Hanjin’s creditors must file verified claims within five days before Feb. 8 or they will not be entitled to participate in the proceedings.

But the creditors may be entitled to receive distributions arising from the proceedings if recommended and approved by the rehabilitation receiver and the court itself.

The court also ordered creditors, government agencies and all interested parties to file and serve to Hanjin a verified comment/opposition to the petition, together with their supporting affidavits and documents within 15 days before the initial hearing on Feb. 8.

The court also prohibited the company’s supplier of goods and services from withholding their supplies and services in the ordinary course of business for as long as Hanjin makes payment from the issuance of the commencement order.

The court also authorized the company to pay for its administrative expenses as they become due.

It said contracts not confirmed in writing by Hanjin within 90 days following issuance of the commencement order will be considered terminated. (Bebot Sison Jr. with Sheila Crisostomo, Philippine Star)


https://www.philstar.com/headlines/2019/01/16/1885490/rtc-grants-hanjin-petition-rehabilitation#0ezcQ5IYvTgXVUm0.99

Read More

SBMA ‘saddened’ by Hanjin debt problem

Subic Bay Metropolitan Authority (SBMA) Chairman Wilma T. Eisma said she was saddened to learn that Korean shipbuilder Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) is facing serious financial trouble.

Hanjin, which is currently the biggest foreign investor in the Subic Bay Freeport Zone, filed on Tuesday a petition at the Regional Trial Court in Olongapo City to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as “An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals”.

Hanjin officials, Eisma said, had revealed that the company owes some $400 million in outstanding loans from Philippine banks on top of another $900 million in debts with lenders in South Korea.

Eisma said she was informed that the company still has six pending multi-million new building projects at its Redondo Peninsula shipyard here, and that these may have to be cancelled if a rehabilitation plan does not materialize.

“The bottom line is that the company said it does not have enough cash to repay its loans, and that it cannot continue with its operations under these circumstances,” Eisma said.

“It’s really sad that Hanjin would be in dire financial straits after successfully building some of the world’s biggest ships here and putting the Philippines in the map as the world’s fifth largest shipbuilder,” she added.

HHIC-Phil, which has focused in building high-value vessels, was established in 2006 as a subsidiary of Hanjin Heavy Industries & Construction Co., Ltd., a multi-national company that provides shipbuilding, construction, and plant services in South Korea and internationally.

After frenzied construction of its 300-hectare shipyard began in May 2006, HHIC-Phil rolled out its first ship, the “Argolikos” in July 2008.

With some $2.3 billion in foreign direct investments here, the firm proceeded to manufacture some of the world’s biggest cargo and container ships, bulk carriers, liquefied petroleum gas carriers, very large crude oil carriers (VLCC) and very large ore carriers (VLOC).

According to company records, Hanjin has delivered since 2008 a total of 123 vessels to valued clients across the globe, thus cementing its foothold in the highly competitive shipbuilding market.

In the course of its operation, the Korean firm also became the biggest employer among all registered businesses in the Subic Bay Freeport Zone with some 30,000 employees at peak season, and was recognized by both the Philippine Exporter Foundation (Philexport) and the Department of Trade and Industry (DTI) as top export performer.

However, in the face of recent liquidity problem, Hanjin has laid off more than 7,000 workers last December, Eisma said. The firm is about to lay off another 3,000 early this year until just about 300 local workers and as few as seven Korean supervisors would remain in March to do facility maintenance, she added.

“The SBMA, of course, expressed its concern about the separation of shipyard workers, but we received assurances that those who were laid off were amply compensated. Still, we’re having this aspect checked out,” Eisma said.

She added that the SBMA is now working with Hanjin officials to find some way to keep the shipbuilder, which has helped build Subic’s huge reputation in the global maritime industry.

“I really hope that Hanin’s creditors would agree to some rehabilitation plan, or that the company would find some financial partner to continue with its shipbuilding operations in Subic,” Eisma also said. (HEE/MPD-SBMA)

PHOTO: 

Hanjin shipyard at the Subic Bay Freeport Zone

Read More

Subic Freeport gets new areas to host more investors

Subic Bay Freeport is getting additional 24,725 hectares, majority of which come from neighboring towns, to expand the former American naval base which has been running out of space it can offer to new investors and expanding existing locators.

Of this expansion area, five neighboring towns have initially allotted a total of 21,495 hectares of land to the Subic Bay Freeport, which has been running out of property to lease to more investors in the former American naval base.

Bird's eye view of the Subic Bay Freeport Zone

Data showed that six local government units have initially allotted these properties for Subic expansion. The biggest lot contributor is San Marcelino with 10,000-hectare allocation followed by San Antonio with 9,000, Olongapo with 900 hectares, Subic with 500-600 hectares, Hermosa 505 hectares, and Catillejos with 500 hectares.

Usually, Subic Bay Metropolitan Authority (SBMA) leases out properties to investors at certain rates. Under the plan, the San Marcelino lot would be used for mining, quarry and agriculture projects while San Antonio has been reserved for resort development and leisure industry.

The Olongapo LGU allocation would be used for housing, light industry and tourism projects while the 500-600 hectares in Subic could be offered for factories, agriculture and energy facilities.

Hermosa may be developed to house light to heavy industry, renewable energy, metal industry and staging of trucks auctions. The Castillejos land allocation can also be used for light to medium industry warehousing.

The remaining properties would come from the Redondo Peninsula with 3,000 hectares; infill development of 150 hectares and reclamation of 20 hectares. (Bernie Cahiles -Magkilat, Manila Bulletin)

Read more --> https://business.mb.com.ph/2018/07/02/subic-freeport-gets-new-areas-to-host-more-investors/

Read More

SBMA shelves Redondo industrial estate project

The Subic Bay Metropolitan Authority (SBMA) has temporarily set aside the development program for the Redondo Peninsula following the collapse of an agreement with a firm that proposed the construction of an industrial estate and solar farm in the area.

SBMA Chairman and Administrator Wilma T. Eisma said the agency’s Board of Directors has decided to take a step back and called for the development of a master plan for the entire Redondo Peninsula before opening it up again to investors.

“We’re basically back to square one, because the project proponent was not able to honor the commitments under its very own proposal,” Eisma said.

“The SBMA is still open to receiving proposals though, should these be consistent with the SBMA’s objective of developing Redondo into an industrial and maritime hub,” she added.

The SBMA Board of Directors had earlier revoked the lease and development agreement (LDA) with Dynamic Konstruk International Eco Builders Corp. (DKIEBC), invoking an automatic revocation clause under the agreement in case the proponent did not meet its obligations.

Eisma said that despite several extensions given by SBMA, DKIEBC still failed to deliver the required advance rentals and security deposit, thus leaving the Subic agency with no other recourse but to revoke the contract.

According to SBMA records, Dynamic Konstruk initially proposed in May 2016 to develop 982 hectares of land at the Redondo Peninsula, which also hosts the Hanjin shipyard and the coal-fired thermal plant project of Redondo Peninsula Energy Inc.

Calling the project “Redondo 200MW Solar Farm and Eco Dynamic Industrial City”, DKIEBC said it will devote 400 hectares of the project site to a solar-power generation farm and 582 hectares to an industrial hub.

During negotiations for the project’s 50-year lease, however, it became apparent that DKIEBC, a certified “A” PCAB licensee, as well as its partners, lacked adequate experience in solar power generation. It also seemed not to have enough funding to back up its US$798-million investment commitment.

Eisma said the SBMA Board required a P2.2-billion paid-up capital, and DKIEBC made a counter-offer to pay upfront the amount of P472 million, which is equivalent to 50 percent of its rental and security deposits.

“When DKIEBC also failed to honor this commitment, the project was considered revoked pursuant to a resolution of the SBMA Board,” Eisma added.

As of now, the SBMA has stopped dealing with the company on the aborted project. It had also warned the public on reports that some parties are still seeking investors to fund the project despite official revocation by the agency.

“This is already a closed issue. Anybody seeking funds for the Redondo industrial city and solar farm project is probably doing some scam operation, so we urge everyone to beware,” Eisma concluded. (HEE/MPD-SBMA)

PHOTO:

Perspective of the supposed development project proposed by Dynamic Konstruct at the Redondo Peninsula in Subic Bay Freport.

Read More

SBMA okays US$798-M solar farm and industrial city project

More manufacturing companies and light to heavy industries are expected to locate in this premier Freeport, as the Subic Bay Metropolitan Authority (SBMA) approved the development of a 982-hectare industrial estate at Subic’s Redondo Peninsula.

SBMA Chairman Martin B. Diño and SBMA Administrator Wilma T. Eisma announced the approval of the US$798-milion project proposed by Dynamic Konstruct International ECO Builders Corp. (DKIEBC), a duly-registered enterprise inside the Subic Bay Freeport Zone.

The proposed project site for the solar farm and industrial city at the Redondo Peninsula

“This project is our answer to the inquiry of investors looking for thousands of hectares of flat land for manufacturing and light to heavy industries inside the Subic Bay Freeport Zone,” Chairman Diño said during the State of the Freeport Address (SOFA) hosted by the Subic Bay Freeport Chamber of Commerce (SBFCC) last Monday.

He added that the SBMA has been conferring with nearby local government units to identify more areas suitable for the development of industrial estates that will be under the Subic Bay Freeport’s tax- and duty-free regime.

Administrator Eisma meanwhile pointed out that the proposed solar farm and industrial city, when fully realized, will generate about 50,000 new jobs.

“When the Subic Naval Base closed down in 1992, we were all so depressed to be losing the 35,000 jobs generated by the US Navy. But under the SBMA we have long surpassed those numbers— as of February 2017 our active workforce within the Freeport is 115,272—and we keep on working to bring about more employment,” she added.

The SBMA officials also clarified that out of the $798-million investment commitment, the DKIEBC will spend about $300 million for the proposed 402-hectare solar farm, which is designed to produce 200 megawatts of green energy to primarily supply the proposed 580-hectare industrial city.

The industrial city project will include commercial buildings, factories, warehouses, utilities for water and electricity, fire and law enforcement facilities, and sanitation and landfill facilities.

According to DKIEBC, the solar farm shall primarily benefit the investors and locators of the industrial city with green and low-cost energy supply and reduce the risk of exposure from the spot market. (NBM/MPD-SBMA)

Read More

RPEI-SBMA-PRC team trains Subic health workers on emergency response

Fifty health workers from the remote communities in the municipality of Subic, Zambales on Friday completed capability trainings on emergency response-related courses at the Travelers Hotel here.

The two-day training was sponsored by the Redondo Peninsula Energy, Inc. (RPEI) and in cooperation with the Philippine Red Cross (PRC), the municipality of Subic and the Subic Bay Metropolitan Authority.

Reynalita Santana, vice-president and External Affairs head Meralco PowerGen, said the training was specially designed for Rural Health Unit officers, Municipal Health Workers, Barangay Health Workers, Barangay Nutrition Scholars, who are detailed in areas that has limited access to transportation and communication.

Most of the participants came from Sitio Nagbayukan, Nagyantok, Nagtulong and Sampaloc, all coastal communities of barangay Cawag in Redondo Peninsula which are accessible only by one-hour boat ride from Subic town. Others were from barangay Matain, Calapacuan, and Pamatawan.

“They are dedicated workers who are committed to help the residents, specially the children, to be healthy and safe, though far from the access to electricity, communications or even transportation,” Santana noted.

She added that it is so even important that they receive refresher course or new knowledge that could help them familiarize and improve their skills and to apply them effectively in time of emergency.

The training included lectures and discussions on Emergency First Aid by Jeffrey Rodejo, RN, and Hazel Jane Quintero, RN, both certified instructors from the PRC; Communication Skills by Brian Bagtas, RN, of SBMA Public Health and Safety Department; and Disaster Preparedness by Jared Radovan of Baypointe Hospital.

The activity also included “Usapang Kalusugan,” a dialogue between Dr. Solomon Jacalne, head, SBMA PHSD; R. Leonardo Afable Jr., head, Subic Municipal Health Office; Mary Grace Molina and Maria Trinidad Gallardo of Subic RHU, where programs on how to improve health services in the communities and cooperation between RPE and LGUs were discussed.

RP Energy is the developer of an environment-friendly and state-of-the-art 600-MW Circulating-Fluidized-Bed coal-fired power plant in Subic.

Meanwhile, SBMA Administrator Wilma Eisma lauded RP Energy for initiating the training for the community health workers of Redondo Peninsula and other remote communities in Subic.

“It is very important that residents in our coastal communities, especially those from areas where transportation and communication are lacking, have a team of trained and skillful health workers who would respond in case of emergency,” said.

She said SBMA may have the best land and sea search and rescue group, but still, educating the stakeholders on various phases of disaster, such as, response, management and rehabilitation would minimize the effect of any unwarranted situation.

She noted that SBMA, through its Fire and Law Enforcement Departments, has continuous education programs that involve students and teachers, workers and investors and residents in earthquake and fire drills.

“Being alert and knowing what to do during emergency will always keep us all safe,” she said. (RAV/MPD-SBMA)

PHOTO:

Fifty health workers from the remote communities in the municipality of Subic, Zambales completed the two-day capability trainings on emergency response-related courses at the Travelers’ Hotel sponsored by the Redondo Peninsula Energy (RP Energy) and in cooperation with the Philippine Red Cross (PRC), the municipality of Subic and the Subic Bay Metropolitan Authority (SBMA). (AMD/MPD-SBMA)

Read More

Hanjin Philippines gets order to make 4 VLCCs at Subic

Subic Bay Freeport - The Philippines is set to become the country that will produce four of the biggest crude oil carriers in the world as Hanjin Heavy Industries and Construction-Philippines (HHIC-Phil) got an order yesterday for the production of four Very Large Crude-oil Carriers (VLCCs).

These VLCCs are the biggest in the world with a capacity of 320,000 deadweight tonnage (DWT) and is the first deal inked by Hanjin for this year.

HHIC-Phil shipbuilding facility inside the Subic Bay Freeport Zone

According to the company, the ships will be built inside Hanjin’s Redondo Peninsula Shipyard and have a deadline of until the second half of next year. With a measurement of 330 meters in length, 60 meters in width and 30.5 meters in breadth, these VLCCs will be equipped with an eco-design component.

“This contract carries very positive news for all stakeholders considering the stagnant shipping industry nowadays. We look forward to a more productive cooperation among our partners in producing highly cost efficient and technologically advanced commercial ships that shape the future of the shipbuilding industry today and beyond,” HHIC-Phil President Gwang Suk Chung said.

He added that each of the VLCC “can load more than 65.14 million barrels of crude oil or roughly the equivalent of 13-day crude oil supply requirement of the entire Philippines in 2015. This is the first-time that such type of vessel will be built on the Philippine shore, underscoring the potential of the country to be a landmark for maritime industry worldwide.”

The start of the year has been fruitful for the company as they delivered the 300,000 DWT VLCC to Navig8 Tankers while fabricating three more of the same vessel at the Subic shipyard. He said that two of those vessels will be delivered this year and the last will be delivered next year.

HHIC-Phil has begun its shipbuilding operations in the later part of 2007 following the completion of the construction of its Subic shipyard in the same year. It has started off with delivering a 4300 TEU containership in 2008. To date, HHIC-Phil has already delivered a total of 100 commercial ships including 57 container ships, 27 bulk carriers, 7 VLCCs, 4 LPG ships and five Marine Engineering Plants.

A Very Large Crude-Oil Carrier (VLCC) made by Hanjin seen during the sea trial

HHIC-Phil is scheduled to deliver this March three 11,000 TEU containerships and one 38K chemical carrier. HHIC-Phil is expected to deliver 14 more ships of various types before the current year-ends.

Hanjin Subic Shipyard occupies more than 300 hectares of land, with a 4km Quay Wall and two of the world’s largest docks with the size of 370m x 100m and 550m x 135m which is about seven times larger than a football stadium. It is home to more than 32,000 Filipino workers gainfully employed and is being recognized as a world-class shipyard with competitive edge. (Jonas Reyes, Manila Bulletin)

http://business.mb.com.ph/2017/03/08/hanjin-philippines-gets-order-to-make-4-vlccs-at-subic/

Read More

SBMA plans to develop Smart City, Green Zone

The Subic Bay Metropolitan Authority (SBMA) is set to develop a Smart City that is expected to spur investments and international trade in the country.

SBMA Chairman Martin Dino said in a statement that the Smart City will be developed in the Redondo Peninsula in Zambales where the shipyard of Hanjin Philippines, the world’s fourth biggest shipbuilding facility, is located.

Redondo Peninsula c/o Google maps

The SBMA proposes to convert 3,000 hectares of the narrow 15-km long rugged peninsula into a new industrial park he designated as Subic 2.

“This would become Subic’s Smart City – an exclusive enclave of modern high-tech corporations and a hub for scientific development and innovation. No other site in the country could match its advantage in location and accessibility,” Dino said ina statement.

In addition, SBMA plans to build Subic 3 in Morong, Bataan called “Green Zone”.

The Green Zone would be home to non-tech industries and a Mecca for commercial, financial investment and academic locators.

“We want to take Subic Bay Freeport to the next level of development. In line with President Duterte’s partnership for growth, Subic will continue to be a major contributor to the economic growth, countryside development and national progress,” Dino said.

Dino’s other plans include upgrading the Subic Bay International Airport to become regional logistics transshipment hub and air terminal for tourists, guests, investors and junket operators for tourism-and-entertainment related events.

With the “Smart City” and “Green Zone” as centerpieces of our economic vision, Subic would become one of the most exciting locations for businesses not only in the Philippines but all of Southeast Asia, and maybe Asia and the Pacific, Dino stressed. Subic earlier recorded P111.5 billion worth of investments for first three quarters of the year. These investments have the potential to create 55,000 new jobs.

To date, it has a combined investment of some $102.8 billion brought in by some 1,700 business locators, both foreign and local that provided jobs for 109,000 workers, since the former US naval base was turned into a special economic zone through Republic Act No. 7227. (Bernie Cahiles-Magkilat, Manila Bulletin)

http://business.mb.com.ph/2016/12/03/sbma-plans-to-develop-smart-city-green-zone/

Read More

Meralco names builder of Subic plant

Manila Electric Co. (Meralco) said Redondo Peninsula Energy Inc. (RP Energy) consortium has signed a construction contract with Azul Torre Construction Inc. and a supply contract with Doosan Heavy Industries & Construction Co. Ltd. for the construction of the 600 megawatts (MW) coal-fired power plant it is developing in Subic.

RP Energy which is currently composed of Therma Power, Inc., a subsidiary of Aboitiz Power Corp. and Taiwan Cogeneration International Corp. each owns 25 percent equity interest while Meralco PowerGen Corp. (MGen), a subsidiary of Meralco holds 47 percent equity interest in the plant projected to go online by mid-2020.

Construction of the Subic coal plant estimated to cost $1.2 billion was halted when a Writ of Kalikasan was filed against it in 2012 but which was later junked by the Supreme Court (SC) for insufficiency of evidence.

Meralco also recently filed a power supply agreement application with the Energy Regulatory Commission to draw 225 MW from RP Energy once it is completed but is still pending for a decision.

Aside from RP Energy, other coal plant developments where MGen is involved in include the 455 MW San Buenaventura project and the 1,200 MW Atimonan both located in the Quezon province. (Malaya Business Insight)

PHOTO:
Artist's rendition of the power plant located at the REdondo Peninsula. RP Energy is building a $1.2Bn 600MW power plant within the Subic Bay Freeport Zone (SBFZ) using circulating-fluidized-bed technology.

http://www.malaya.com.ph/business-news/business/meralco-names-builder-subic-plant

Read More

No need to worry, Garcia assures Hanjin-Subic workers

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia has assured workers of Subic shipbuilder Hanjin Heavy Industries and Construction-Philippines (HHIC-Phil) that their company is not affected by the problem besetting Hanjin Shipping Corporation.

“I think that the Hanjin workers in Subic have nothing to worry about because the financial woes affecting Hanjin Shipping has no impact on Subic,” Garcia said.

The Hanjin shipbuilding facility at the Subic Bay Freeport (AMD/MPD-SBMA)

“They can rest assured that the Hanjin company in Subic is a separate entity and the one here is very stable,” Garcia added.

The Subic official issued the statement following inquiries from workers at HHIC-Phil’s Redondo Peninsula shipyard in this free port after Hanjin Shipping Co. Ltd., reputedly the world’s seventh largest shipping line, filed for bankruptcy protection in the United States last Friday.

Accordingly, the Korean shipping line was left bankrupt when creditor-banks rejected its debt-restructuring plan. Lately, Hanjin Group, which is its parent company, has announced it will out up $90 million to bail out the shipping line.

Garcia pointed out that the shipbuilding firm Hanjin in Subic Freeport and the bankrupt company Hanjin Shipping are two separate entities.

“HHIC-Phil is not related to Hanjin Shipping, so there is no need to worry,” he said, pointing out that the Subic shipbuilder has separated from the Hanjin Group in 2005.

Earlier, HHIC-Phil Managing Director for External Trade Yoo Hoan Jo also said that the Subic shipbuilding firm remains financially healthy and stable.

“Despite what is happening in the shipping industry, orders for container ships are still coming,” Jo said in a statement. He said the new orders include three Ultra Large Container Vessels (ULCVs) that will have the capacity to carry 20,600 twenty-foot equivalent unit (TEU) containers in one hauling.

The HHIC-Phil official added that the new projects “would likely mean additional workers for the completion of these three ULCVs.”

Jo said that “the tried and tested Filipino workers at the Subic shipyard” has helped Hanjin deliver 91 vessels since it started full operation at the Redondo Peninsula in 2008.

He added that the company has delivered 16 vessels last year and has numerous orders this year, including the three ULCVs.

Jo also said that the Subic shipbuilder now has 35,000 direct and indirect employees working on various operations at HHIC-Phil’s Subic facility. (JRR/MPD-SBMA)

Read More

BoI approves Subic power plant

Redondo Peninsula Energy Inc., led by Meralco PowerGen Corp., received a certificate of registration from the Board of Investments for its 600-megawatt coal-fired power plant in Subic, Zambales costing P63 billion.

“The registration entitles RPE to duty-free importation of equipment, materials and spares used for the power plant for a period of five years from date of registration. Also income tax holiday for four years from commercial operation,” RP Energy project development manager Joselito Lantin said Friday.

Lantin said RP Energy would build the project in phases. The company is currently negotiating for the engineering, procurement and construction contract covering the first 300-MW phase of the project.

He said the EPC contract would include an option for a second 300-MW unit.

“Targeted to start construction for phase one is fourth quarter 2016. Expected commercial operation is late 2019/early 2020,” Lantin said in a recent briefing.

Electricity generated by the project is covered under a separate power supply agreement with Manila Electric Co. accounting for 225 MW and Aboitiz Energy Solutions contracting 75 MW.

The company signed an amendment to the power plant site lease and transmission line right-of-way lease agreements with the Subic Bay Metropolitan Authority in February.

“We will do 300 MW and then [expand to] 600 MW, depending on our capability to interconnect with NGCP [National Grid Corporation of the Philippines]. It just takes a few months before you can start the phase two,” Meralco PowerGen chairman Manuel Pangilinan said earlier.

Meralco PowerGen is the power generation arm of Meralco, the country’s biggest power distributor, and owns a majority stake in RP Energy. (Alena Mae S. Flores, Manila Standard)

Full story: http://thestandard.com.ph/business/211878/boi-approves-subic-coal-plant.html

Read More

Redondo Peninsula to stagger construction of Subic power plant

MANILA, Philippines – Redondo Peninsula Energy Inc. (RP Energy) will phase the construction of its 600-megawatt (MW) coal-fired power plant in Subic pending the resolution of its transmission problems.

RP Energy is a consortium composed of Meralco Power Gen (MGen), Aboitiz Power Corp. and Taiwan Cogeneration International Corp.

The consortium has been evaluating whether to push through with the whole 600 MW in one go or to phase it due to issues in the capacity transmission facilities.

When asked for updates on the project, Meralco chairman Manuel V. Pangilinan said “the latest word is that we might phase it.”

“(We will start with) 300-MW first and then (another 300 MW) to 600-MW, depending on our capability to interconnect with NGCP (National Grid Corp. of the Philippines). If that takes a few months, then it’s just a few months before we can start the Phase 2,” Pangilinan said.

Construction of the 600-MW coal-fired power plant is targeted in the first quarter of this year and completion in the second half of 2019. (Danessa Rivera, The Philippine Star)

http://www.philstar.com/business/2016/03/03/1558805/redondo-peninsula-stagger-construction-subic-power-plant

Read More

Hanjin hiring more workers for shipbuilding projects

Hanjin Heavy Industries and Construction – Philippines (HHIC-Phil) plans to hire more Filipino workers for its shipbuilding facility here to accommodate the growing number of orders from seafaring nations.

Hanjin top officials said that by next month, it will start building three Ultra Large Container Vessels (ULCVs).

These ULCVs will have the capacity to carry 20,600 twenty-footer equivalent unit (TEU) containers in one hauling.

The ULCVs were ordered by France’s shipping conglomerate CMA CGM.

Each ship has a measurement of 400-meter in length, 59-meter in breadth and depth of 33 meters, with a deck as large as four soccer/football fields combined.

HHIC-Phil Managing Director for External Trade Yoo Hoan Jo said that the new orders would likely mean additional workers for the completion of these three ULCVs.

The company has already delivered 91 vessels since it started its operation at the Redondo Peninsula, Subic Bay Freeport in 2008, boosting the country’s export portfolio over the years.

The company has delivered 16 vessels last year and has numerous orders this year including the three ULCVs.

“The synergy between Hanjin and the Filipino worker is really a great formula not just in shipbuilding, but in nation building as well. The company believes in the craftsmanship and hard work the Filipino is known for, and will continue to utilize the Filipinos’ capabilities in shipbuilding for years to come,” Jo said.

The company recently gave back to the community by donating P5 million to help the National Anti-Poverty Commission’s (NAPC) priority projects for the marginalized Filipinos.

The turnover of the donation was done last month at the NAPC office in Diliman, Quezon City.

The donation is part of the company’s thrust to help uplift the Filipino people.

Jo personally turned over the check to NAPC Secretary and lead convenor Jose Eliseo Rocamora, following the signing of a memorandum of agreement (MOA) between the two parties.

The MOA stipulates that the P5-million donation from Hanjin would be disbursed specifically to support NAPC’s priority projects for post-Yolanda fisher folk settlement in Palawan and Sicogon. (Jonas Reyes, Manila Bulletin)

PHOTOS:

[1] HHIC-Phil shipyard at the Redondo Peninsula in Subic Bay Freeport Zone (AMD/MPD-SBMA)

[2] Made in Subic: A ship being built at HHIC-Phil's Subic shipyard. (AMD/MPD-SBMA)

[3] HIC-Phil prides itself for having a Filipino workforce highly skilled in shipbuilding. (AMD/MPD-SBMA)

http://www.mb.com.ph/hanjin-hiring-more-workers-for-shipbuilding-projects/

Read More

SBMA to resume talks with consortium for Subic coal-fired power plant

Negotiations between the Subic Bay Metropolitan Authority and RP Energy for a 600-megawatt coal-fired power plant will resume soon after the Supreme Court upheld the validity of the environmental compliance certificate issued by the Department of Environment and Natural Resources to the Aboitiz-led consortium.

However, local government officials and an independent group of Subic Freeport locators vowed to press their opposition to the coal-fired plant despite the ruling of the high court, which also denied a petition for a writ of kalikasan against the power plant’s construction.

SBMA Chairman Roberto V. Garcia said they had been locked in negotiations with RP Energy -- the consortium of Aboitiz Power, the Manila Electric Co. and Taiwan Cogeneration Corp. -- when they were forced to stop by the petition for the writ of kalikasan.

The first issue, said Garcia, is the lease rate.

“Under the original lease agreement, the rental was for only P1 million per year. During our last negotiations, we were able to raise that to P200 million per year,” Garcia said.

The second issue was about which environmental standard to adopt in constructing the power plant.

“Because of (the need to protect) tourism, the SBMA board’s sentiment was that we should adopt higher air quality standards, which is the World Health Organization standard,” the SBMA chair explained. “Meralco’s position, on the other hand, was only to meet the Philippine standard, just like what is being imposed on other power plants.”

“Third, there were previous MOUs (memorandums of understanding) that were signed before involving local government,” he said. “Now, under the lease agreement, these rights were distinguished. In fact they did not have rights in the first place because there were only MOUs. That is the third point that we are discussing.”

“Now that the SC has finally decided on the issue, we will now continue discussions on these issues.”

However, the Subic Bay Freeport Chamber for Health and Environment Conservation, a group of locators, believes the fight against the coal-fired power plant is not yet over.

“The reversal of the validity of documents is not to say that the SC Justices favor coal as a fuel,” the SBFCHEC said in a statement.

“We believe that the coal is a dying fuel. It is on its way out of the world stage. We believe it will be banned by the world within 10 years, and it is foolish for RP Energy, Inc. to build something that will soon be banned by the world. It is foolish for the Philippines to allow such investments,” SBFCHEC president Gregorio Magdaraog stressed.

“Two hundred years ago, coal gained prominence during the industrial revolution and has become the basis of development. But since only few coal plants were established then, the plants did little in destroying the environment,” Magdaraog explained.

“Over the years, other energy options were discovered. But the American capitalists have already heavily invested in coal and related industries. The less than one percent who owns the world also owns coal so they are bound to protect coal, despite the existence of other energy generation options. That is the political economics of the coal industry. But sooner or later, they will junk coal, but they will sell coal first,” he added.

Magdaraog predicted that, “in ten years, we will almost be independent from Meralco for power supply because of other options like solar power.”

“If that is so, why should we embrace coal?” he asked. (Ansbert B. Joaquin, InterAksyon.com)

http://www.interaksyon.com/business/104510/sbma-to-resume-talks-with-consortium-for-subic-coal-fired-power-plant

Read More

SC clears way for long-delayed Subic plant

THE SUPREME COURT finally cleared the way for a Meralco-led consortium to build its long-delayed 600-megawatt coal-fired power plant in Subic, Zambales.

In en banc session on Tuesday, justices voted 13-0 to uphold the validity of the coal power project of Redondo Peninsula Energy, Inc. (RP Energy) in Barangay Cawag.

The ruling upheld the validity of the environmental compliance certificates issued by the Department of Environment and Natural Resources (DENR) on December 2008 and July 2010. It also upheld the validity of the June 2010 Lease and Development Agreement with the Subic Bay Metropolitan Authority (SBMA).

Associate Justices Estela M. Perlas-Bernabe and Mario Victor “Marvic” F. Leonen voted in favor of RP Energy, but with qualifications, Supreme Court Public Information Office (PIO) Chief Theodore O. Te said in a briefing.

The high court also unanimously voted to deny the petition for writ of kalikasan filed by former Bayan Muna Rep. Teodoro A. Casiño and other individuals, as well as the organizations Advocates for Wildlife and Environment Protection, Wildlife in Need, Subic-Olongapo Cancer Foundation, Inc., and PAMALAKAYA (National Federation of Small Fisherfolk Organization in the Philippines).

Associate Justices Arturo D. Brion and Francis H. Jardeleza took no part in the voting, with the former being on leave and the latter inhibiting due to his previous involvement as Solicitor-General.

A full copy of the decision has yet to be issued.

The decision reversed the January 2013 ruling by the Court of Appeals invalidating the project’s amended environment compliance certificate (ECC) due to RP Energy’s failure to conduct a new environmental impact assessment.

The appellate court’s earlier decision was also based on the supposed lack of consent from the local government and the National Commission on Indigenous Peoples (NCIP) to support the Lease and Development Agreement with SBMA.

RP Energy is a joint venture of Meralco PowerGen Corp., Aboitiz Power Corp., and Taiwan Cogeneration International Corp..

The project was originally expected to go online by the this year’s dry season but development was halted because of the writ of kalikasan filed against the project.

The Supreme Court first released a resolution on the writ dated July 31, 2010, against Environment Secretary Ramon Jesus P. Paje, the Subic Bay Metropolitan Authority and RP Energy.

Such writs serve as a judicial remedy to protect against projects inflicting possible environmental damage that affects inhabitants.

The petitioners claimed RP Energy violated its environmental impact statement and environment compliance certificate (ECC).

The petitioners also claimed the ECC was issued without complying with the conditions of affected indigenous people and without prior approval of local government units.

While the project proponents have yet to receive their respective copies of the court’s decision, they welcomed the development saying this would help the energy industry.

“We have yet to read the decision. Assuming it’s all positive, then it’s good for the industry,” said Alfredo S. Panlilio, senior vice-president of Manila Electric Co., the parent firm of Meralco PowerGen.

Stephen G. Paradies, senior vice-president of Aboitiz Equity Ventures, Inc. (AEV), also said AboitizPower has yet to receive a formal copy of the decision.

AEV is the parent company of AboitizPower.

“We intend to pursue this project. It’s very good news,” said Mr. Paradies. (Claire-Ann M. C. Feliciano and Vince Alvic A. F. Nonato, BusinessWorld)

http://www.bworldonline.com/content.php?section=Economy&title=sc-clears-way-for-long-delayed-subic-plant&id=102060

Read More

‘Hanjin town’ bracing for impact of development

CASTILLEJOS, Zambales—This third-class municipality is now expecting more benefits from business investments that accompany the growth of Hanjin, the South Korean company that has established a successful shipbuilding operation at the Subic Bay Freeport’s Redondo Peninsula.

While the Hanjin shipyard is geographically in Subic town, it is Castillejos, Subic’s next-door neighbor, that has experienced the most dramatic development impact from the growth of the Hanjin shipyard over the years.

“Since Hanjin started building its facility in 2006, Castillejos has experienced its biggest economic boom ever,” remarked Mayor Jose Angelo Dominguez last week, as he appeared at a dental and medical outreach project conducted by the shipbuilding company at the Hanjin Village here.

He said that, in particular, the influx of Hanjin workers—about 25,000 at last count—had resulted in the booming of businesses here in Castillejos, which is now easily the biggest “bedroom community” for shipyard workers.

Dominguez said most of the workers at Hanjin came to settle at Castillejos because the main road they take to their job site passes through the town’s Barangay Balaybay. The number of settlers increased faster in 2012 when Hanjin built its low-cost housing project here at Barangay Nagbunga.

“Balaybay and Nagbunga are now the biggest barangays in our town in terms of population,” Dominguez said. “The workers sleep here, so houses, apartments and rooms for rent flourished. Then, they also buy their food and other household needs here, so local businesses are growing,” the mayor added.

According to town records, Castillejos has experienced the biggest population growth spurt after Hanjin started operation.

In 2000 the town, which has the smallest land area among the 13 towns in Zambales, had a population of only 33,108. In 2007 when the Hanjin shipyard opened, the population of Castillejos rose to 42,910, with a growth rate of 3.64 percent yearly.

Just three years after, in 2010, the town’s population was already 48,845, with the growth rate now registering 4.83 percent.

The coming of Hanjin also coincided with the establishment here of the town’s first automatic teller machine booths, first mini-shopping mall, first restaurant franchise and first 7-Eleven convenience store, said Bernie Chiong, the mayor’s secretary.

In areas where most Hanjin workers rent their rooms, food stalls and videoke bars have also sprung up, adding to the income of local entrepreneurs, Chiong noted. He also said that, with more Hanjin workers in town, the shops in Castillejos now remain open until midnight, when these used to close at 5 p.m. owing to slow business.

Aside from providing economic benefits, Hanjin also regularly undertakes health and education outreach projects, Dominguez said, adding that the company even put up a new public elementary school at the Hanjin Village in time for the opening of classes this year.

“If this economic boom continues, Castillejos may eventually grow to become a city, thanks to Hanjin,” Dominguez added. (Henry Empeño, BusinessMirror)

http://www.businessmirror.com.ph/hanjin-town-bracing-for-impact-of-development/

Read More