FOCUS: Subic Bay Rising: The Strategic Heart of the Luzon Economic Corridor

The Luzon Economic Corridor (LEC) is rapidly transforming from an ambitious infrastructure vision into what could become one of the most important economic development programs in Philippine history.

Anchored on the strategic growth corridor linking Subic Bay, Clark, Manila, and Batangas, the initiative aims to modernize logistics, strengthen energy security, improve connectivity, and position the Philippines as a major manufacturing and supply-chain hub in the Indo-Pacific.

At the center of this transformation is the Subic Bay Metropolitan Authority and the broader Subic Bay Freeport Zone — a location increasingly viewed not only as a logistics center, but also as a strategic hub for energy, transportation, advanced manufacturing, aviation, and maritime industry.

From fuel infrastructure and freight railways to logistics, shipbuilding, and airport development, Subic Bay is becoming one of the Philippines’ most critical economic gateways.

Why Subic Bay Matters

Among the four major nodes of the Luzon Economic Corridor, Subic Bay possesses several strategic advantages that few locations in Southeast Asia can replicate.

The Port of Subic is one of the country’s deepest natural harbors, naturally protected from typhoons and positioned along vital regional shipping routes facing the West Philippine Sea and the broader Indo-Pacific region.

Unlike many developing industrial hubs, Subic already has a functioning Freeport ecosystem with modern roads, industrial estates, customs incentives, international port facilities, and direct access to major transport networks such as the Subic–Clark–Tarlac Expressway.

These advantages make Subic uniquely suited to serve as the western maritime gateway of the Luzon Economic Corridor.

Strengthening Energy Security Through Philippine Coastal Storage and Pipeline Corporation

One of Subic Bay’s most strategically important — yet often overlooked — assets is the facility operated by Philippine Coastal Storage and Pipeline Corporation.

Located within the Subic Bay Freeport Zone, the terminal is considered the largest independent petroleum import storage facility in the Philippines, with approximately 6.3 million barrels of storage capacity representing over 20 percent of the country’s total fuel import storage capability.

The facility plays a critical role in ensuring stable fuel supply for Metro Manila and Northern Luzon through its deep-water jetties, large-scale storage tanks, and fuel distribution infrastructure.

Beyond its existing operations, PCSPC is also planning the development of a new Subic-Clark pipeline system that would further strengthen fuel transport and energy logistics between Subic Bay and Central Luzon. The proposed project is expected to enhance the long-term energy infrastructure supporting the Luzon Economic Corridor.

Once pursued, the planned pipeline would help improve fuel distribution efficiency, reduce dependence on congested road-based fuel transport, and support the growing industrial, aviation, and logistics requirements of the Subic and Clark growth areas.

As global supply chains face increasing geopolitical uncertainty, energy infrastructure has become inseparable from national economic resilience.

This is why the PCSPC facility is highly significant within the Luzon Economic Corridor framework.

The terminal provides the Philippines with strategic fuel storage capability that supports industries, transportation networks, aviation operations, manufacturing facilities, and emergency energy reserves. Its location in Subic Bay also allows large fuel tankers to dock efficiently outside the congested Manila area.

Recent international investments into the facility further demonstrate growing confidence in Subic Bay’s role in regional energy logistics and infrastructure development.

The Subic-Clark-Manila-Batangas Railway: The Backbone of the Corridor

Perhaps the most transformative project under the Luzon Economic Corridor is the proposed Subic-Clark-Manila-Batangas (SCMB) Railway.

The railway is envisioned to become the logistical backbone connecting Luzon’s major ports, airports, industrial zones, and manufacturing centers into one integrated freight network.

Once completed, the SCMB Railway would connect:

• Subic Bay Port
• Clark International Airport
• Port of Manila
• Port of Batangas

This would significantly reduce cargo congestion in Metro Manila while improving freight efficiency across Luzon.

For decades, one of the Philippines’ major economic weaknesses has been fragmented logistics infrastructure. Goods moving across Luzon have long depended heavily on truck-based transport, leading to congestion, high logistics costs, and delays.

The SCMB Railway seeks to fundamentally change that.

The United States government, through the U.S. Trade and Development Agency (USTDA), has already committed technical assistance support for the railway’s development, including transport modeling, port-rail integration analysis, and institutional planning.

The railway is expected to:

• Improve cargo movement between major economic hubs
• Support industrial growth zones
• Strengthen supply-chain resilience
• Reduce transport costs
• Decongest Manila ports
• Enhance export competitiveness

Most importantly, it firmly establishes Subic Bay as a central logistics gateway within the national economic system.

The Agila Facility and Subic’s Expanding Maritime and Industrial Role

Another key component reinforcing Subic Bay’s strategic importance within the Luzon Economic Corridor is the Agila Subic Multi-Use Facility.

The facility represents a major example of how international investment is helping transform Subic Bay into a modern industrial, maritime, and logistics hub.

American company Cerberus Capital Management led the rehabilitation of the former Hanjin shipyard into the Agila Subic Multi-Use Facility — now envisioned as a multi-purpose logistics and industrial complex supporting maritime and manufacturing activities within the Freeport.

A major milestone for the facility came through Agila’s partnership with HD Hyundai, which is expected to significantly enhance the Philippines’ shipbuilding and maritime industrial capabilities.

The collaboration highlights Subic Bay’s growing role not only in logistics and trade, but also in regional shipbuilding, industrial services, and maritime support operations.

Inspired by the progress of the partnership, Cerberus Capital Management has reportedly expressed interest in exploring future expansion opportunities in the Philippines, signaling continued international confidence in Subic Bay’s long-term economic potential.

Beyond its industrial significance, the Agila facility has become an important economic and strategic landmark within the Subic Bay Freeport Zone. The project has helped generate employment opportunities, strengthen international economic partnerships, support local industries, and contribute to broader national and regional security objectives.

Together with Subic’s ports, transport infrastructure, and energy facilities, the Agila complex reinforces the Freeport’s growing role as one of the Philippines’ most important strategic and economic gateways under the Luzon Economic Corridor initiative.

The Subic International Airport Project: Expanding the Corridor’s Cargo and Logistics Capability

Another major development expected to strengthen Subic Bay’s role in the Luzon Economic Corridor is the proposed modernization of the Subic Bay International Airport through an unsolicited proposal submitted by Cerberus Asia Pacific Investments LLC.

The proposal involves the upgrade, expansion, operation, and maintenance of the airport under a long-term concession arrangement aimed at transforming the facility into a modern, efficient, and high-capacity cargo hub serving Luzon.

The project is expected to complement Subic Bay’s maritime infrastructure by integrating air cargo, port operations, logistics facilities, and industrial zones into a more connected regional supply-chain network.

Once developed, the airport could significantly enhance cargo movement efficiency, attract logistics and manufacturing locators, and support the growing demand for integrated transport infrastructure within the Luzon Economic Corridor.

The proposed airport modernization also aligns with Cerberus’ broader investments in Subic Bay involving shipbuilding, logistics, industrial development, and infrastructure modernization.

In recent years, the Subic Bay International Airport has primarily handled military and chartered flights, but the proposed redevelopment seeks to reposition the facility as a strategic commercial cargo gateway supporting both domestic and international trade.

The project is currently undergoing the comparative challenge or Swiss challenge process under the Philippine Public-Private Partnership framework after Cerberus was granted Original Proponent Status by the SBMA.

More Than Infrastructure: A Strategic Economic Realignment

The Luzon Economic Corridor is not merely a collection of infrastructure projects.

It represents a broader strategic realignment of the Philippine economy.

For decades, economic activity has remained heavily concentrated in Metro Manila. The corridor seeks to redistribute growth across interconnected regional hubs while creating more resilient and globally competitive supply chains.

Subic Bay’s role in this transformation is especially critical because it already possesses the combination of:

• Deep-water maritime access
• Industrial capacity
• Energy infrastructure
• Logistics connectivity
• Maritime and shipbuilding capability
• Aviation and cargo potential
• Available development space
• Strategic geographic location

These characteristics position Subic as one of the country’s most important economic and strategic assets in the coming decades.

A Defining Opportunity for the Philippines

As the Luzon Economic Corridor gains support from the United States, Japan, and a growing coalition of international partners, the Philippines finds itself at the center of a major shift in Indo-Pacific trade and infrastructure development.

For Subic Bay, this moment may prove historic.

The continued development of the PCSPC energy terminal, the planned Subic-Clark pipeline, the Subic-Clark-Manila-Batangas Railway, the Agila Subic Multi-Use Facility, the proposed modernization of Subic Bay International Airport, and the Freeport’s expanding logistics infrastructure could transform Subic into one of Southeast Asia’s premier logistics, maritime, aviation, and industrial gateways.

If sustained successfully, the Luzon Economic Corridor may ultimately redefine not only the future of Subic Bay — but also the Philippines’ role in global trade, energy security, manufacturing, and regional economic growth for generations to come. (SNL)

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SBMA Opens Competitive Bidding for Major Subic Airport Cargo Hub Project

The Subic Bay Metropolitan Authority (SBMA) has officially opened the competitive challenge process for the proposed redevelopment of Subic Bay International Airport into a modern cargo and logistics hub, signaling another major step in transforming Subic into one of the country’s key trade gateways.

The project stems from an unsolicited proposal submitted by Cerberus Asia Pacific Investments LLC, which has been granted original proponent status after undergoing detailed evaluation and negotiations with SBMA. With this status approved, other qualified investors are now invited to submit competing bids under the government’s comparative challenge process.

Under the proposal, the airport will undergo upgrading, expansion, operation, and maintenance for a concession period of 25 years, with possible extension. 

The initiative aims to convert the currently underutilized airport into a high-capacity cargo gateway that meets international standards and improves freight movement across Luzon.

Located inside the Subic Bay Freeport Zone, the airport has primarily served military and chartered flights in recent years. 

Once redeveloped, it is expected to strengthen supply chains, attract new investments, create jobs, and position Subic as a strategic logistics center alongside other major economic hubs in Central Luzon.

The bidding process will follow a single-stage right-to-match mechanism, where challengers may submit comparative proposals until August 17, 2026 — the same day bids are scheduled to be opened.

The planned airport transformation also complements the growing momentum in the Luzon Economic Corridor, where infrastructure, ports, airports, and industrial zones are being positioned to support regional manufacturing and global trade.

For Subic, this project could mark the return of the airport as a major economic asset — this time as a logistics engine for the future. (SNL)

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Aviation school at SBIA partners with DLSU-St. Benilde to provide academic, flight training program to students

An aviation academy located at the Subic Bay International Airport (SBIA) is set to provide academic and flight training to De La Salle University-College of Saint Benilde students as part of their curriculum. 

Subic Bay Metropolitan Authority (SBMA) Senior Deputy Administrator for Business and Investment Renato Lee III said that the Topflite Academy of Aviation and the De La Salle University-College of Saint Benilde signed a Memorandum of Understanding (MOU) at the SBIA on January 23, 2026. 

He explained that the MOU will integrate the academic program of St. Benilde with the ground and flight training of Topflite Academy to produce industry-ready aviation professionals.

Actor-director-turned-pilot Xian Lim led the MOU signing ceremony as master of ceremony. He earned his commercial pilot license (CPL) in June 2025 after completing his training at Topflite Academy here in Subic.

Meanwhile, according to Capt. Sahl Onglatco of Topflite Academy, the MOU stipulates that the aviation academy will provide ground and flight training that will be included in the degree programs of St. Benilde, initially under the Tourism Management Program. 

Meanwhile, the Civil Aviation Authority of the Philippines (CAAP) has approved St. Benilde as a satellite ground school facility of Topflite Academy, and it is expected to launch the program from 2026 to 2027.

Aside from the signing of the MOU, the Academy also opened its new aviation training facilities at the SBIA as its second flight operations hub. One is at Bicol International Airport in Daraga, Albay. 

Subic Bay serves as a premier aviation training hub in the Philippines, anchored by institutions like Topflite Aviation Academy. 

Located at the SBIA, aviation academies offer comprehensive pilot training programs, including the CPL, the Private Pilot License, and the Instrument Rating, utilizing modern fleets, advanced simulators (Redbird), and, for Federal Aviation Administration, brand-new Tecnam aircraft. 

SBIA boasts of a 9,000-foot runway and, for many years, served as a former US Naval air station, providing robust, high-quality, secure, and safe facilities for flight training. (MPD-SBMA) 

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₱4.135-B multi-modal logistics, transport hub to rise in Subic Freeport

 

A ₱4.135-billion multi-modal logistics and transport hub will soon rise in this premier Freeport, as the Subic Bay Metropolitan Authority (SBMA) and the Subic Bay Freeport Grain Terminal Services, Inc. (SBFGTSI) partnered to construct this project.

Senior Deputy Administrator for Business and Investment Renato Lee III and SBFGTSI Executive Vice President Lester C. Valdes recently signed the lease contracts and amendment to the existing contracts at the SBMA Corporate Boardroom on May 28, 2025.

According to Lee, the construction of the multi-modal logistics and transport hub will integrate sections along San Bernardino Road within the Subic Port District and parts of the Subic Bay International Airport (SBIA).

The committed investment for the proposed development of these areas includes P660-million for Lot 4, P1.8-billion for Lot 5, P801-million for Lot 6, P20-million for Lot 7, and P854-million for Lot 8. 

These developments include a petroleum tank farm, grain storage, an airport logistics hub, dry storage and warehouse facilities, cold storage areas, a commercial and hospitality hub for cruise ships, and a new wharf for ultra-large cruise ships. 

This is also seen to generate employment for 798 workers. 

“This is a huge step for Subic Bay Freeport as it reaches its goal to have a more modern air and seaport which are expected to boost the port’s capacity, increase competitiveness, and generate more revenue,” Lee said.

Subic’s port development program aligns with the Luzon Economic Corridor (LEC) Development initiative of President Ferdinand Marcos Jr., whose projects are expected to be completed by the end of his term in 2028. These development projects inside the Subic Bay Freeport zone are part of the “Build Better More” project of President Marcos’ administration. (MPD-SBMA) 

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PBBM bullish on expanded, more modern seaport, airport for SBMA in 2028

Before President Ferdinand Marcos, Jr. reaches the maximum tenure of his term in 2028, the Subic Bay Metropolitan Authority (SBMA) expects a significant upgrade in its seaport and airport facilities with an ultimate goal of modernizing infrastructure, boosting economic activity and solidifying Subic Bay’s position as a major gateway for trade and tourism. 

This is in line with the Philippine Development Plan 2023-2028 of the Marcos administration. The Plan states that existing airports will be improved and new ones will be strategically developed to address future demand. 

The BBM infrastructure program for 2023 to 2028 presently includes 198 high impact infrastructure flagship projects (IFPs) with an overall investment cost of P8.8 trillion. 

“This premier Freeport is set to boost the country’s economic corridor by developing both its seaport and airport,” said SBMA Chairman and Administrator Eduardo Jose L. Aliño. 

The airport and seaport expansion and modernization projects in Subic Freeport will cost an estimated Php28.18 billion. 

These projects are expected to boost port capacity, increase competitiveness, and generate more revenue. Aliño said that these infrastructure projects support the Luzon Economic Corridor (LEC) Development initiative of Pres. Marcos’ administration, to be completed by 2028. 

Aliño also disclosed that the first project, a Multipurpose Port Terminal (MPT) at the Lower Marine Amphibious Unit (MAU), will include a 570-meter wharf, with a depth of 12.9 meters. It will have a back-up area of 17.2 hectares for warehouses and open storage areas. 

“This project will provide an additional capacity of 2.5 million metric tons bulk cargoes. As one of the identified projects under Public Investment Program of the National Economic Development Authority (NEDA), the project will spur economic growth through the additional berthing facility,” he said. 

The second MPT will be at the Redondo Peninsula, which hosted the former Hanjin shipbuilding facility. It will have a 600-meter wharf, with a depth of 14 meters, and a back-up area of 30 hectares for warehouses, open storage, offices and support facilities. 

The project will increase the port capacity with additional 3 million metric tons cargoes. This is one of the identified projects under Public Investment Program of the NEDA, with a project cost of P11-billion. 

“The high percentage of domestic and international commerce is by sea, therefore, the efficiency of maritime transportation has become increasingly essential to national competitiveness,” Aliño cited. 

The SBMA also plans to construct a Cruise Passenger Terminal area with a project cost of P1.2 billion for phase 1, and P8.96 billion for Phase 2. The facility will have a double berth 380 meter pier with a depth of 12 meters, along with the reclamation of 20 hectares for Phase 2. 

“International and local cruise operations will greatly benefit the local and national economies, with increased employment opportunities, revenue from port fees and dues, and increased tourism spending. This is vital to the National Cruise Tourism Program of the Marcos Jr. administration,” the official shared. 

Also in the pipeline is the proposed improvement of existing buildings and the construction of new facilities inside the Subic Bay International Airport (SBIA) with a project cost of P7.02-billion. 

To modernize ports and allied industries and to decongest passenger traffic in Metro Manila, the Marcos administration will also undertake the improvement of the SBIA to be able to accommodate 6 million passengers annually. 

 

A new hotel and parking facility within the airport complex that will promote the use of the SBIA and further boost the tourism sector in the Subic Bay Freeport is also in the offing. 

“The project is currently under study and will cost around P4.3 billion,” Aliño said. “Locators, port users and prospective investors will also benefit from upgraded and modernized airport facilities, with increased SBIA efficiency, capacity and revenue generation. With these improvements, the SBMA will have additional revenue generating facilities with the rise of a world-class airport hotel and multilevel carpark,” he added. 

“Now for the Subic Bay International Airport (SBIA) to achieve its maximum potential, we are planning to expand the SBIA by upgrading and modernizing its facilities. Once in place, we are confident to increase both the handling and revenue generating capacity of the airport,” the chairman said. 

The feasibility study on the proposed SBIA Expansion Project will include the extension of the runway from 2,745 meters to 3,300 meters in length, expanded aprons, relocated CAAP-ATC tower, and a new passenger terminal building. 

The projects are expected to improve and provide a more efficient client and passenger accommodation. The improved and expanded airport is expected to generate a conservative revenue of P12.5 billion annually. 

“This should significantly align to the objectives of the Luzon Economic Corridor,” Aliño said. 

The Subic Bay Freeport has some 1,900 businesses with more than 162 thousand workers and residents in three housing areas. 

SBMA Senior Deputy Administrator (SDA) for Port Operations Ronnie Yambao said Subic Bay Freeport has three important pillars in enhancing its capacity and operational efficiency: first is automation to make cargo movement seamless and transactions faster and more efficient; second is investment in infrastructure like port rehabilitation, the Vessel Traffic Management System or VTMS, and the acquisition of equipment; and third is by expanding the SBMA’s network thru trade missions and creating partnerships with different ports to increase trade and commerce. 

 

"Subic Bay Freeport is the only Freeport in the Philippines that has a complete logistics infrastructure in one location that is managed by the SBMA. It has an airport, and a seaport with a modern container terminal, and piers that can accommodate different types of cargo, to be connected to the Luzon Economic Corridor by a railway in the near future,” he said. 

Subic Bay is also a tourist and cruise ship destination. Currently, the SBMA is developing a facility to be used as a home port for cruise ships. A home port is a port where a cruise ship will take on or change over the majority of its passengers, while taking on stocks, fuel and supplies. 

The Marcos administration, under its PDP, also plans to connect cargo and freight rail infrastructure to strategic infrastructure such as ports. Railway development for cargo and freight will be prioritized, particularly for long-distance deliveries. 

Meanwhile, truck routes will be established to service medium- and short-distance deliveries. Dry ports and other inland cargo terminals will be connected by freight rail to ease the movement of goods to or from the ports. (Radyo Pilipinas)

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SBMA enhances capability to accommodate growing demand for multi-modal logistics in Asia

The Subic Bay Metropolitan Authority (SBMA) has enhanced this premier Freeport’s capacity and operational efficiency to keep up with the growing demand for multi-modal logistics in the Asian region. 

This was the statement made by SBMA Senior Deputy Administrator (SDA) for Port Operations Ronnie Yambao during the Super Terminal Expo 2024 held at the Hong Kong AsiaWorld-Expo on November 5, 2024.

The three-day expo is Asia’s pioneering design, construction and operations event that showcases the next wave of innovation in passenger and cargo terminal, while bringing together experts and decision-makers to shape next-gen airports.

The Super Terminal Expo's opening ceremony was graced by Michael Wong Wai-lun, acting Financial Secretary of the Government of the HK Special Administrative Region, Vivian Cheung, CEO of the HK Airport Authority, and other government officials and influential members from industry associations.

During a panel discussion, Yambao emphasized three important pillars in enhancing Subic Bay Freeport’s capacity and operational efficiency: first is automation, with systems in place to make cargo movement seamless and transactions much faster and more efficient; second is investment in infrastructure like port rehabilitation, the Vessel Traffic Management System or VTMS, and the acquisition of equipment; and third is by expanding the SBMA’s network thru trade missions and creating partnerships with different ports to increase trade and commerce.

He added that the automations installed in the SBMA are the Automated System for Customs Data (ASYCUDA), Electronic Transit Admission Permit System (ETAPS), and Automated Export Documentation System (AEDS), which are pursuant to President Marcos Jr’s thrust on the ease of doing business thru automation.

“Subic Bay Freeport is the only Freeport in the Philippines that has a complete logistics infrastructure in one location, that is managed by the SBMA. It has an airport, and a seaport with a modern container terminal, and piers that can accommodate different types of cargo, to be connected to the Luzon Economic Corridor by a railway in the near future,” he further said.

It is accessible by land, sea, air, and in the near future, by railway. It has an airport and a seaport with modern facilities and a container terminal with a capacity of 600,000 TEUs that can be expanded to handle one million TEUs.

The freeport also boasts of four industrial parks with 15 piers that can accommodate commercial vessels and cruise ships. There are 1,900 companies operating in the Freeport with a total of USD12-billion worth of investments.  

“Locators in this Freeport enjoy fiscal incentives under the CREATE Law and all the ancillary services are available to complete the logistics ecosystem in this premier port. Lastly, the SBMA offers competitive rates in port services, in fact, we are 20 percent cheaper compared to Port of Manila,” he said.

Qualified export enterprises shall be entitled to four to seven years Income Tax Holiday (ITH) to be followed by 10 years five percent Special Corporate Income Tax (SCIT) or Enhanced Deductions.

Subic Bay is also a tourist and cruise ship destination.  Currently, the SBMA is developing a facility to be used as a home port for cruise ships. A home port is a port where a cruise ship will take on or change over the majority of its passengers, while taking on stocks, fuel and supplies. 

Team Philippines joined key global leaders in airports, aviation and logistics industries for the Super Terminal Expo 2024 where over 800 international and local aviation professionals were in attendance.

The SBMA is part of Team Philippines led by Department of Transportation Undersecretary for Airports and Aviation Roberto C.O. Lim. Yambao was part of the delegation along with Subic-Clark Alliance for Development (SCAD) Executive Director Amee Fabros, and Clark International Airport Corporation (CIAC) Chief Business Development Officer Melissa Feliciano. (MPD-SBMA) 

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SBMA bares seaport, airport projects for completion in 2028

This premier Freeport is set to boost the economic corridor of the country by developing both its seaport and airport.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Eduardo Jose L. Aliño said these port infrastructure projects support the Luzon Economic Corridor (LEC) Development initiative of President Ferdinand Marcos Jr.’s administration, which are expected for completion by 2028.

Speaking before stakeholders at the Build Better More Infrastructure Forum held at the New Clark City (NCC) in Capas, Tarlac, Aliño disclosed that the first project, a Multipurpose Port Terminal (MPT) at the Lower Mau, will include a 570-meter wharf, with a depth of 12.9 meters. It has a back-up area of 17.2 hectares for warehouses and open storage areas.

“This project will provide an additional capacity of 2.5 million metric tons bulk cargoes. As one of the identified projects under Public Investment Program of the National Economic Development Authority (NEDA), the project will spur economic growth through the additional berthing facility,” he said.

Another MPT that is set to be constructed at the Redondo Peninsula, will have a 600-meter wharf, with a depth of 14 meters and a breakwater. It has a back-up area of 30 hectares for warehouses, open storage, offices and support facilities. The project will increase the port capacity with additional 3 million metric tons cargoes. This is one of the identified projects under Public Investment Program of the NEDA, with a project cost of P11-billion.

“The high percentage of domestic and international commerce is by sea, therefore, the efficiency of maritime transportation has become increasingly essential to national competitiveness,” Aliño said.

The SBMA also plans to construct a Cruise Passenger Terminal area with a project cost of P1.2 Billion for Phase 1, and P8.96 Billion for Phase 2.  The facility will have a double berth 380-meter pier with a depth of 12 meters, along with the reclamation of 20 hectares for Phase 2.

“International and local cruise operations will greatly benefit the local and national economies, with increased employment opportunities, revenue from port fees and dues, and increased tourism spending. This is vital to the National Cruise Tourism Program of the Marcos Jr. administration,” the official shared.

Also in the pipeline is the proposed improvement of existing buildings and the construction of new facilities inside the Subic Bay International Airport (SBIA) with a project cost of P7.02-billion.

To modernize ports and allied industries and to decongest passenger traffic in Metro Manila, the Marcos administration will also undertake the improvement of the SBIA to be able to accommodate 6 million passengers annually.

A new hotel and parking facilities within the airport complex that will promote the use of the SBIA and further boost the tourism sector in the Subic Bay Freeport is also in the offing. “The project is currently under study and will cost around P4.3 billion,” Aliño said.

“Locators, port users and prospective investors will also benefit from upgraded and modernized airport facilities, with increased SBIA efficiency, capacity and revenue generation.  With these improvements, the SBMA will have additional revenue generating facilities with the rise of a world-class airport hotel and multilevel carpark,” he added.

“Now for the Subic Bay International Airport (SBIA) to achieve its maximum potential, we are planning to expand the SBIA by upgrading and modernizing its facilities. Once in place, we are confident to increase both the handling and revenue generating capacity of the airport,” the chairman said.

The feasibility study on the proposed SBIA Expansion Project will include the extension of the runway from 2,745 meters to 3,300 meters in length, expanded aprons, relocated CAAP-ATC tower, and a new passenger terminal building.

“This will improve and provide a more efficient client and passenger accommodation as the proposed airport is expected to generate a conservative revenue of P12.5 billion annually.  This should significantly align to the objectives of the Luzon Economic Corridor,” he said. (MPD-SBMA)

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SBMA takes over aviation services company for failure to pay almost 20M dues

The Subic Bay Metropolitan Authority (SBMA) has taken over the facilities of Aviation Hub Asia, Inc., an aviation services company inside this premier Freeport, for failing to comply with the agency’s lease agreement.

According to SBMA Chairman and Administrator Jonathan D. Tan, the SBMA Board of Directors has approved Resolution No. 23-10-0296 that pre-terminates the lease agreement of Aviation Hub Asia on October 3, 2023.

The issuance of the resolution from the Board came after the company failed to settle unpaid lease rentals, comply with development commitments, and the non-submission of Performance Bond.

The erring company has an outstanding obligation amounting to P19,122,335.97 and US$106.02 in unpaid lease rentals, penalty on performance bond, among others.

The company has continuously failed to comply with its development commitment and non-submission of Performance Bond within the period stated in the Notice of Default with Demand to Pay dated September 30, 2022. The SBMA pre-terminated and cancelled the company’s lease agreement and repossessed their properties.

The properties that the company leased included portions of a hangar area, office space, shed and open space located at Building 8066, Subic Bay International Airport (SBIA) Southwest Apron, Subic Bay Freeport Zone.

Tan said that the development commitment that the company failed to comply includes the renovation of five maintenance, repair and overhaul (MRO) hangars and offices, storeroom and pilot briefing rooms, two additional new aircraft hangars for refurbishment and MRO within three years from the signing of their lease agreement dated March 19, 2019.

SBMA served a notice of re-entry into, repossession and take-over of leased premises with demand to pay dated October 17, 2023 that was received on November 3, 2023. The notice took effect on Monday, some 30 days from the receipt of the notice.

This is in line with the SBMA Chairman's determination to clear out erring locators engaging in the practice of landbanking or failing to do good with their development commitment. 

With this action, Tan believes that new and honest investors will be in the offing. (MPD-SBMA)

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US Marine contingent arrives in Subic Bay ahead of the Balikatan exercises

A contingent of the US Marine Corps arrived at the Subic Bay International Airport in preparation for Balikatan 2022 to begin next week.

Approximately 8,900 members of the Armed Forces of the Philippines (AFP) and the U.S. Military are teaming up for Balikatan 2022, one of the largest-ever iterations of the Philippine-led annual exercise taking place across Luzon from March 28 to April 8.

The 3,800 AFP members and 5,100 U.S. military personnel will train shoulder-to-shoulder focusing on maritime security, amphibious operations, live-fire training, urban operations, aviation operations, counterterrorism, and humanitarian assistance and disaster relief. 

“Balikatan is a critical opportunity to work shoulder-to-shoulder with our Philippine allies toward a ‘free and open Indo-Pacific that is more connected, prosperous, secure, and resilient,’ as our Indo-Pacific Strategy calls for.  The U.S. is proud to continue our participation in this long-standing exercise,” said U.S. Embassy in the Philippines Chargé d’Affaires ad interim Heather Variava. 

“During Balikatan, the U.S. military and AFP will train together to expand and advance shared tactics, techniques, and procedures that strengthen our response capabilities and readiness for real-world challenges,” said Maj. Gen. Jay Bargeron, 3rd Marine Division Commanding General.  “The friendship and trust between our forces will enable us to accomplish any mission across the spectrum of military operations.” 

The exercise also includes a command post exercise that tests the AFP and U.S. forces’ ability to plan, command, and communicate with each other in a simulated environment.  This training will bolster the collective security and defensive capabilities of the alliance. 

“Exercise Balikatan is a testament to the strength of the Philippines and United States’ security relationship,” said Maj. Gen. Charlton Sean Gaerlan, AFP Exercise Director for Balikatan 22.  “The experience gained in the exercise complements our security cooperation endeavors and will help to enhance existing mutual security efforts.” 

The AFP and U.S. military will also conduct multiple humanitarian and civic assistance projects during this year’s Balikatan, including the renovation of four elementary schools, multiple community health engagements, and the exchange of advanced emergency rescue and lifesaving techniques. 

These construction projects, health engagements and community relations events improve local infrastructure, facilitate the exchange of lifesaving medical skills, and strengthen ties between Philippine communities and Philippine and American military forces. 

COVID-19 mitigation remains a priority for both nations. U.S. forces will comply with all Philippine government COVID-19 travel regulations and will maintain social distancing and wear face masks during exercises as operationally feasible. 

“Balikatan” is a Tagalog term that means “shoulder-to-shoulder” or “sharing the load together,” which characterizes the spirit of the exercise and represents the alliance between the Philippines and the United States. 

“Balikatan 22 coincides with the 75th anniversary of U.S.-Philippine security cooperation and a shared commitment to promoting peace,” said Maj. Gen. Bargeron.  “Our alliance remains a key source of strength and stability in the Indo-Pacific region.” 

Exercises like Balikatan strengthen international partnerships and the participating militaries’ abilities to rapidly respond to crises throughout the Indo-Pacific region.  The United States is proud to participate in this Philippine-led exercise to improve both nations’ capabilities across a wide range of military operations.  (SNL)

https://ph.usembassy.gov/37th-iteration-of-balikatan-exercise-set-to-begin-in-the-philippines/

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PAL ends repatriation flights via Subic Freeport

After almost nine months of flying home overseas Filipino workers (OFWs) and other returning Filipinos via this free port, the Philippine Air Lines (PAL) landed its last “Bayanihan” repatriation flight here on Tuesday, Feb. 22.

The last flight into Subic consisted of 77 passengers from Koror City in Palau, an archipelago of islands southeast of the Philippines with a substantial population of Filipino contract workers.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma said the government’s repatriation flights to Subic Bay was stopped after aviation authorities increased the capacity of inbound international passengers at the Ninoy Aquino International Airport (NAIA) when Covid-19 restrictions were eased.

“So, there’s no more need for PAL to reroute OFW flights via Subic. It is a bittersweet moment for us because PAL’s repatriation flights here somewhat revived our airport operations and brought much- needed income to Subic hotels during the Covid-19 pandemic,” Eisma said on Tuesday.

“Still, the lifting of passenger capacity limit at the NAIA is a sign that we are going back to normal and this is most welcome,” she added.

Eisma said that at the height of the government OFW repatriation program, Subic was connected to 10 cities and major destinations in the Indo-Pacific area. These are Riyadh and Dammam in Saudi Arabia; Bahrain; Dubai and Abu Dhabi in the UAE; Doha in Qatar; Macau, Palau, Kuala Lumpur in Malaysia, and Diego Garcia.

She added that the use of Subic as an alternate port of since July last year has resulted in increased international aircraft and passenger movements, as well as improved income for the Subic airport.

According to Zharrex Santos, manager of the Subic Bay International Airport (SBIA), PAL has made a total of 82 repatriation flights here since July when the SBIA was made an alternative hub under a government program to facilitate the return of OFWs during the Covid-19 pandemic. These did not include nine flights diverted to the nearby Clark Airport due to inclement weather.

With the 82 Bayanihan flights, a total of 20,522 passengers were processed through the Subic airport, then brought to Subic hotels for mandatory quarantine.

As of Feb. 6, the SBIA has generated more than P4.2 million in direct income from the PAL repatriation flights, Santos said.

Meanwhile, PAL consultant Charlie Yu expressed his gratitude to the SBMA, Bureau of Immigration (BOI), Bureau of Customs (BOC), Philippine National Police (PNP), Philippine Coast Guard, Overseas Workers Welfare Association (OWWA), and the Bureau of Quarantine (BOQ) for handling the repatriation program via the Subic airport.

He also thanked quarantine hotels and other tourism stakeholders in the Subic Freeport for their support and service to the inbound OFWs and other returning Filipinos who flew home through Subic. (MPD-SBMA)

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