SBMA posts P1.2-billion port revenue in 2017

The Subic Bay Metropolitan Authority (SBMA) has recorded P1.2 billion in seaport revenue last year, surpassing its 2016 record by three percent, with an increase of 12 percent in the port’s containerized cargo volume.

SBMA Chairman and Administrator Wilma T. Eisma said that figures from the SBMA Seaport Department indicated a total income of P1,173,720,042 in January to December 2017 last year, compared to the P1.137 billion revenue collection in 2016.

“The continuing effort of the Seaport Department to upgrade its process flow minimized transaction time and attracted more and more importers and exporters to use the Port of Subic,” Eisma noted.

She pointed out that the volume of containerized cargo grew to 139,980 twenty-foot equivalent units (TEUs) in 2017 from just 124,707 TEUs in 2016. This increase in containerized cargo had offset a six-percent decrease last year in the volume of non-containerized cargo, which fell to only 6,646,322 metric tons as against 7,071,444 metric tons in 2016.

Accordingly, the SBMA Seaport Department processed 66,172 TEUs of imported containerized products in 2017, which was nine percent higher than the 60,593 TEUs processed in 2016. Meanwhile, the department processed last year 25,007 TEUs of exported containerized products, which was six percent higher than the 23,527 TEUs in 2016.

The increase in import-export volume that passed through the Port of Subic likewise resulted in a significant increase of containerized cargoes transshipped in the Freeport: 1,462 TEUs in January to December 2017 against 368 TEUs in 2016, or an increase of 297 percent.

Jerome Martinez, head of the SBMA Seaport Department, said much of the increase in revenue was due to the growth in imported products like vehicle parts by Foton Motor Phils., Inc.; paper materials by Trust International Paper Corp.; and rubber by Yokohama Tire Phils. Inc., which were all sourced from Japan.

Likewise, the growth in export revenue was attributed to increased export of tires by Yokohama Tires Phils. to Japan; Juken Sangyo Phils. for veneer lumber also to Japan; and HLD Clark Steel Pipe Co. for steel pipes to the United States.

Martinez also said that another factor in seaport revenue growth was the implementation of Republic Act 10668, also known as the Foreign Ships Co-Loading Act, which allowed arriving or departing ships to carry a foreign cargo to its Philippine port of final destination, after being cleared at its port of entry or exit.

“This law tends to decrease, in some instances, vessel activities going to the Port of Subic, particularly in the importation and exportation of goods,” Martinez said. “However, transshipment activities increase,” he added.

The devaluation of peso against the US dollar and the unstable global price of crude oil in the world market which caused a decline of the importation of petroleum products, also buoyed Subic seaport income, said Martinez.

SBMA Chairman Eisma also expressed optimism for the Port of Subic this 2018, pointing out that one of the world’s largest cruise ships will be arriving here in June for a 12-hour tour of the Subic Bay area.

Eisma said this was confirmed after Dr. Zinan Liu and other officials of Royal Caribbean International (RCI) spent a two-day assessment of the Subic Bay area last December for the purpose of including Subic in the itinerary of RCI’s Asian cruise program.

Subic reportedly checked out as a cruise ship destination after Liu noted that it has attractions for people interested in culture, history and religion, aside from the theme parks, beach resorts, hotels and other modern amenities found in the area.

Eisma estimated that should each cruise ship passenger spend US$100 during their stay in Subic, local businesses would gain millions in income during the visit. (RAV/MPD-SBMA)

PHOTO:

Containerized cargo boxes line up the New Container Terminal in the Subic Bay Freeport (AMD/MPD-SBMA)

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SBMA waives $200 accreditation fee for container shippers

The Subic Bay Metropolitan Authority (SBMA) has waived the $200 accreditation fee for all port-related businesses for a limited period as part of its efforts to turn Subic into a major transhipment center in the country.

SBMA Chairman and Administrator Wilma T. Eisma said port users could avail of the free accreditation program if they will guarantee to bring in at least one container within one month from filing of application or renewal of accreditation certificate.

The offer is good from October 18 to December 31, 2017 only.

With the hashtag #GoSubicBay, the SBMA began offering its open-window access initiative for container port-related businesses during the 43rd Philippine Business Conference and Exposition at the Manila Hotel on Wednesday.

Eisma said the agency’s port marketing program aims to showcase and broaden industry awareness of the use of the container terminal at the Port of Subic, as well as increase container port traffic and utilization rate.

“Subic Freeport has a faster turnaround time, there’s no red tape, has reduced processing time, no congestion, no traffic and no truck ban,” she told prospective port users during the program launch.

Eisma also pointed out that vessels using the Port of Subic can immediately dock upon their arrival, and gain from Subic’s built-in advantages of lower tariff and higher efficiency with ISO quality service by the SBMA.

“The hashtag #GoSubicBay actually has two meanings: first, it is an invitation to go to Subic Bay to use our port facilities, and second, it is a clarion call to let the industry know that the Port of Subic is ready to serve their businesses,” Eisma explained.

Eisma added that the SBMA’s port marketing program would also help decongest the Port of Manila and accommodate small and medium enterprises (SMEs) in pursuance of the agency’s commitment to promote inclusive business (IB).

SBMA Seaport Promotions Manager Ronnie Yambao said that under the SBMA’s open window access program, the agency will waive the $200 accreditation fee for the first 80 new business entrants and the first 20 accredited entities due for renewal of accreditation certificate.

The promotion covers ship agents, freight forwarders, brokerage firms and trucking services related to container movement.

Yambao stressed, however, that failure by applicants to guarantee the entry of at least one container would cause the Port of Subic to require the payment of the $200 accreditation fee.

Yambao also assured port users of the quality of service at the Port of Subic, pointing out that container port here is managed by the Subic Bay International Terminal Corporation (SBITC).

The SBITC, he added, is an affiliate of International Container Terminal Services Inc. (ICTSI), which is acknowledged as one of the best port management firms in the world. (JRR/MPD-SBMA)

PHOTO:

SBMA Chairperson and Administrator Wilma T. Eisma meets with PBC Chairman Jose Leviste Jr. (left) and PCCI President George T. Barcelon at the SBMA booth during the 43rd Philippine Business Conference and Expo at the Manila Hotel on Wednesday. The SBMA launched the "#GoSubicBay" open access program for container port-related businesses at the PBC exposition. (JRR/MPD-SBMA)

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Subic eyed as distribution hub for ultra-light flying boats

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

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

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

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

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

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

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

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

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

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

PHOTO:

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

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Evergreen adds Subic to Korea-Taiwan-Philippines service

Taiwan’s carrier Evergreen will add Subic to its existing Korea-Taiwan-Philippines (KTP) service from next month, utilising Subic’s New Container Terminals 1 and 2 operated by Manila-based International Container Terminal Services, Inc. (ICTSI).

The addition of Subic to Evergreen’s KTP service will open the port to direct trade links with South Korea and Taiwan. The trade will also include transshipment service for overseas cargo.

Cargo unloading at the container terminal in Subic Bay Freeport

The first Evergreen container ship is scheduled to make its maiden call at Subic on 19 April. The weekly KTP service port rotation is Korea’s Incheon and Kwangyang, Taiwan’s Kaohsiung, the Philippines’ Batangas, Manila and Subic, and back to Kaohsiung.

Roberto R. Locsin, general manager of ICTSI subsidiary Subic Bay International Terminal Corp, commented: “Our inclusion in the KTP service is a clear indication that the markets of central and northern Luzon are growing, and will benefit from another large global carrier participating in this growth.”

In December 2016, the Taiwan Maritime and Port Bureau (TMPB) expressed interest to partner with the Subic Bay Metropolitan Authority (SBMA) to increase container transhipment traffic between the ports of Taiwan and Subic.

The Philippines has been able to capitalise on Taiwan’s ‘Southbound Policy’ which aims to strengthen trade and investment relationship between Taiwan and countries south of the latter’s territory.

Taiwan is the Philippines’ sixth biggest trading partner, facilitating around $7.85bn worth of bilateral trade in 2015. South Korea, on the other hand, is the Philippines’ fifth largest trading partner in 2015 with bilateral trade reaching $13.4bn in 2014.

Recently, SBMA has urged local government units around the Subic Freeport Zone to start developing industrial parks to accommodate the growing number of investors.

“We’re now seeing the results of our campaign to promote Subic. We are doubling our efforts to sustain the current momentum to ensure we don’t lose on the gains we have achieved in putting Subic at the center of economic growth in central and northern Luzon, ” said ICTSI’s Locsin. (Lee Hong Liang, Seatrade Maritime)

http://www.seatrade-maritime.com/news/asia/evergreen-adds-subic-to-korea-taiwan-philippines-service.html

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Subic expects increased port operations with Taiwan-based shipping lines

Port operations in the country’s premier Freeport is expected to experience increased activities as the Government of Taiwan expressed keen interest in forging a partnership with the Subic Bay Metropolitan Authority (SBMA).

In a recent visit to the free port, executive officials from Taiwan Maritime and Port Bureau led by Deputy Director General Lee Yuan-Wan manifested to SBMA OIC-Administrator Atty. Randy Escolango the possibility of building a transshipment partnership between Taiwan and Subic Bay.

The partnership aims to increase the volume of container traffic between the Port of Subic Bay and Taiwan Ports, thru Yang Ming Shipping Lines.

In response, Escolango urged the Taiwanese officials to encourage industries in Taichung to use the Port of Subic as their gateway in the region.

The visit of the Taiwanese delegation to the Port of Subic is a result of SBMA’s participation in the 22nd Philippines-Taiwan Joint Economic Conference held on October 27-28 in Taipei, Taiwan.

The "Southbound Policy" of the Government of Taiwan has initiated concrete measures in prioritizing countries south of Taiwan, including the Philippines, in the area of trade and investments.

Due to this paradigm shift, the Philippines is taking advantage of this opportunity to capture the matured growth of industries in Taiwan in the fields of high-value manufacturing, innovation, logistics and transshipment, renewable energy, e-commerce and financing.

Escolango noted that Taiwan is the Philippines' 6th trading partner with US$7.85 billion worth of bilateral trade in 2015.

At present, there are 52 Taiwanese companies in Subic Freeport, mostly inside the Taiwanese-run Subic Bay Gateway Park, with over US$500 million worth of investments generating 12,500 jobs. (RAV/MPD-SBMA)


PHOTO:
SBMA Office of the Administrator OIC Atty. Randy Escolango (left) explains the developments at the Port of Subic to visiting Taiwanese maritime officials.

(From left) Escolango, Taiwan Port and Maritime Bureau Deputy Director General Lee Yuan-Wan, Hsu Chia-Chu of International Affairs Planning Division and Maritime Affairs Administration Division Technical Specialist Tu Wen-Yun.

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Subic now most advanced logistics hub in Phl

The Subic Bay Freeport Zone is ready to accommodate rising demand in local and international trade with recent facility upgrades and enhanced logistics solutions, the Subic Bay Metropolitan Authority (SBMA) said.

SBMA chairman Roberto Garcia said Subic’s facilities now stand as the most advanced of its type in the country.

Garcia said the freeport’s available services likewise give locators in Asia and around the world the perfect venue for exports and imports while offering dealers, institutions, and companies a stable and secure location to store and trade products.

“Some of the best-known and biggest freeports like those located in Geneva, Singapore and Luxembourg have effectively attracted investments from small, medium and large industries through seamless logistics solutions. These are the same solutions available now in Subic and we expect more and more companies to come here to take advantage of what we can offer them,” he said.

According to SBMA, freeports were originally intended only to provide space to store goods in transit, but this role soon evolved to include the complete conduct of trade and business both inside and outside the country.

With recent developments, SBMA said Subic Bay Freeport has emerged as the main logistics hub for business and industries in Northern and Central Luzon.

“We’ve consistently provided cost-effective logistics for foreign and local industries in Central and Northern Luzon. That is necessary for the country’s competitiveness so that we can attract more foreign direct investments and propel the Philippines towards continued growth. More than that, we want to provide the necessary support to all companies in the Philippines that need access to the rest of the world,” Garcia said.

Located in Olongapo, Zambales, the Subic Bay Freeport is the largest in the country and is supported by the Subic Bay International Terminal Corp. (SBITC), a subsidiary of the International Container Terminal Services Inc. which operates New Container Terminals 1 and 2.

SBITC has terminals with a combined area of 28 hectares and an annual capacity of 600,000 twenty-foot equivalent units or the total number of container vans ships can carry in the terminal.

SBITC’s New Container Terminals 1 and 2 have a combined 11.14-hectare container yard with a modern fleet of mobile container handling units for moving and hauling duties. (Richmond Mercurio, The Philippine Star)

PHOTO:

The New Container Terminal 1 (NCT1) in Subic Bay Freeport Zone (AMD/MPD-SBMA)

http://www.philstar.com/business/2016/06/26/1596583/subic-now-most-advanced-logistics-hub-phl

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Subic now key logistics hub for industries in Regions 1, 3

THE Subic Bay Freeport Zone is primed and ready to accommodate the increasing demands of both local and international trade by serving as the main logistics hub for business and industries based in northern and central Luzon.

The Subic Bay Metropolitan Authority (SBMA) highlighted the free-port zone’s metamorphosis into one of the nation’s strategic gateways for international and local cargo shipping and handling, capabilities seen to boost efficiencies of business enterprises in Northern and Central Luzon provinces.

The free port is the largest in the Philippines and is supported by the Subic Bay International Terminal Corp. (SBITC), a subsidiary of the International Container Terminal Services Inc. , which operates New Container Terminals (NCT) 1 and 2. These terminals are dedicated to providing the most cost-effective logistics solutions for foreign and local industries and the burgeoning tourism industry.

While SBMA continued to deliver seamless service as a partner in providing international cargo shipping services for multinational companies here in the region over the past years, it has recently shown eagerness in providing services to small and medium enterprises (SMEs). This interest is caused by the increasing opportunities for businesses and industries to capitalize on the nation’s continuing economic growth, along with various well-established locators and entrepreneurs who want to operate at a much faster, more efficient and highly productive way.

SBITC President Roberto Locsin said, “A lot of developments are happening now in Subic that provide immense business opportunities for SMEs, especially in the northern and central Luzon regions. Companies looking to broaden their networks and connect with markets and suppliers anywhere in the country, or the world for that matter.”

The opportunities for entrepreneurs and businesses have the definite potential to usher in logistical improvements in the country and provide a seamless transport of goods from Subic to other parts of the country. This would then spur much higher growth and make business operations more sustainable, allowing productivity improvements and other innovative solutions.

Originally, free ports were only intended to provide space to store goods in transit, but this role soon grew to include the complete conduct of trade and business both inside and outside the country.

Located in Olongapo, Zambales, the Subic Freeport allows for the rapid and highly efficient transfer of a wide range of export and import products and other valuable items. It offers efficient and effective logistic services, storage rooms and business solutions ranging from big-bulk item and small cargo transportation to providing access to fully managed exclusive industrial parks.

Subic’s port operator, SBITC, has terminals with a combined area of 28 hectares and an annual capacity of 600,000 20-foot equivalent units or the total number of container vans ships can carry in the terminal. SBITC’s NTC-1 and 2 have a combined 11.14-hectare container yard with a very modern fleet of mobile container-handling units for moving and hauling duties.

Subic Freeport terminals can be accessed via the Subic-Clark-Tarlac Expressway and soon, through a planned new connector and bypass road running through Bataan and into other parts of Luzon.

SBMA chairman Roberto Garcia said Subic’s facilities stand as the most advanced of their type in the country. Its available services give all locators in Asia and around world the perfect venue for exports and imports while offering dealers, institutions, SMEs, and other companies an efficient, stable, and secure location to store and trade products.

Garcia said, “Some of the best-known and biggest freeports like those located in Geneva, Singapore, and Luxembourg have effectively attracted investments from small, medium, and large industries through seamless logistics solutions. These are the same solutions available now in Subic and we expect more and more companies to come here to take advantage of what we can offer them.”

Subic Bay Freeport has become an emerging trade hub in the Philippines with its roster of resident companies that directly ship their goods to the many different parts of the country. It also allows the export of locally made products and the provision of logistics support to companies that export their products abroad. Truly, this is an ideal situation not only for many well-established companies but also for SMEs that need to reliably get their products to their clients while getting access to the best supplies from around the world.

“We’ve consistently provided cost-effective logistics for foreign and local industries in Central and Northern Luzon. That is necessary for the country’s competitiveness so that we can attract more foreign direct investments and propel the Philippines towards continued growth. More than that, we want to provide the necessary support to all companies in the Philippines that need access to the rest of the world,” Garcia said, adding SBMA has been consistent in its efforts to push the participation and presence of SMEs in regional and global markets as part of the Freeport’s commitment to the goals of the Asia-Pacific Economic Cooperation or APEC of 2015 on building inclusive growth in the region. (BusinessMirror)

PHOTO:
A cargo ship full of container vans leaves the New Container Terminal in the Subic Bay Freeport, as authorities project the Port of Subic to surpass its record-breaking performance last year with more cargo transshipment from nearby economic zones. (AMD/MPD-SBMA)

http://www.businessmirror.com.ph/subic-now-key-logistics-hub-for-industries-in-regions-1-3/

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Subic cargo volume seen to increase by 40%

Shipping volume at the port of Subic will hit around 130,000 TEUs this year, for a 40% increase from last year’s figure which stood at 77,000 TEUs, officials said Monday as they cited the boon from the recently signed Cabotage Law and continuing port congestion in Manila.

“The Subic port continues to do very well this year as we celebrate the anniversary of the New Container Terminal 1 (NCT1), Subic Bay Metropolitan Authority Chairman and Administrator Roberto J. Garcia said in a press conference.

As of July this year, the port of Subic has already hit its target of 73,000 TEUs, way before the peak months from September to December as far as imports are concerned, according to Garcia.

“Again we are going into the heavy months starting September and if the port congestion in Manila persists, we can expect more containers to come to Subic,” Garcia told reporters.

Garcia also welcomed the passage last month of the Cabotage Law (Republic Act No. 10668) that allows foreign vessels to transport and co-load foreign cargo for domestic transshipment and for other purposes, which he said will increase cargo traffic in Subic.

“Under the current arrangement, international sips are allowed to go to only one port of destination. Under the Cabotage Law, they can go to any port – from Subic to Puerto Princesa, to Iligan, wherever,” Garcia explained.

He said he believes the beneficial effect of the new law is that the local shipping lines will be more competitive, and consequently, shipping cost will decrease

“As you know, the Philippines has one of the highest interisland shipping rates, and reports have it that it is more expensive to ship a container from Manila to Davao than from Manila to Singapore,” Garcia said. “It doesn’t make sense, and that is not good for business,” he added.

The SBMA chair also said he followed up with the newly appointed Customs Collector Emelito Aquino his earlier request to send back to the ports of Manila the 15 containers of trash which came from Canada, and that the latter immediately endorsed this request to the Customs Commissioner.

“We made our position very clear – we don’t want that trash here,” he stressed. (Ansbert Joaquin, InterAksyon.com)

PHOTO:
Subic Bay Metropolitan Authority Chairman and Administrator Roberto J. Garcia. (Photo by Ansbert Joaquin)

http://www.interaksyon.com/business/115767/subic-cargo-volume-seen-to-increase-by-40

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NYK opens direct routes to Subic Freeport

Another international shipping line has opened a direct route between this free port and the major ports of Japan and Singapore, joining a growing number of shippers that now call on Subic following its classification as an extension port of Manila.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia announced on Wednesday that Nippon Yusen Kaisha (NYK) Line, one of the world's leading transportation companies, will open direct routes from Japan to Subic and from Subic to Singapore.

Garcia finalized an agreement for the new shipping route late last month with Capt. Chak Kwok Wai, chairman and managing director of the NYK Group; Ian T. Maambong, NYK sales manager for export; Dan Florentino, chief operating officer of the Transnational Diversified Group; and Tony Ramos, administrative officer of Subic Bay International Terminal Corp.

“The opening of NYK’s direct routes to Subic is intended to provide an alternative solution to the port congestion in Manila,” Garcia explained.

“NYK has stressed that it opened the routes as a contribution to help solve the current concerns in Manila and in response to the Philippine government’s request to decongest Manila ports,” Garcia added.

The NYK Group, which is based in Japan, is a comprehensive global-logistics enterprise offering ocean, land, and air transport services.

Under the agreement, NYK will be providing Subic discharge and load options for urgent cargoes, thereby helping to minimize their vessel’s overall port stay in Manila.

Garcia said that NYK will start an adhoc call at the Port of Subic using its 2,300-TEU capacity target vessel MV Jakarta Tower exclusively for NYK bookings. Jakarta Tower is scheduled to make its first Subic call on November 22.

Daniel Ventanilla, general manager of NYK Fil-Japan Shipping Corp., said in a message to Garcia that NYK’s new line to Subic is marked by many milestones.

“This will be the first service in the Philippines to make a direct call from Japan to Subic, in addition to the regular Taiwan-Subic call,” Ventanilla said.

“It will also be the first service to call from Subic to Singapore, a major transshipment port providing numerous connections to East Asia, the Middle East, South Asia, Europe, Africa, North America, Australia and New Zealand ports,” he added.

The SBMA said earlier that the Southeast Asian shipping community is starting to notice the potentials of the Port of Subic as an ideal port to move and transship both containerized and bulk cargo shipments.
​
"With the entry of NYK, our port would virtually become a gateway to ASEAN, Africa, Europe, and North America," Garcia noted.

Last month, China-based SITC Container Lines Philippines, Inc. opened a direct route from Xiamen, China to Subic when its container ship MV Sicilia made its maiden voyage to Subic and unloaded 22 containers at the New Container Terminal (NCT) 2.

The cargoes included products from Guangxi, Sichuan and Shanghai, all in China, respectively for Orica Philippines in Limay, Bataan; Nestle Philippines Inc. in Cabuyao, Laguna; and Manila World Transport, Inc. in Metro Manila. (HEE/MPD-SBMA)

PHOTO:
NEW SHIPPING LINE: SBMA Chairman Roberto V. Garcia (left) meets with representatives of the NYK Group South Asia Pte Ltd. to discuss the potential of NYK Shipping Line calling on the Port of Subic. Present during the meeting are, from far left: Tony Ramos, admin officer of Subic Bay International Terminal Corp.; Ian T. Maambong, sales manager for export, NYK Group; Capt. Chak Kwok Wai, chairman and managing director, NYK Group; and Dan C. Florentino, chief operating officer, Transnational Diversified Group.

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Asian ports meet in Subic to strengthen regional integration

Leaders and delegates from eight major ports in Asia are meeting at the Port of Subic for the three-day 16th General Assembly and Symposium of the International Network of Affiliated Ports (INAP), which began Wednesday.

The delegates came from the INAP-member ports of Colombo in Sri Lanka, Mokpo New Port and Dangjin in South Korea, Tanjung Perak in Indonesia, Qingdao in China, and Subic and Cebu in the Philippines.

With the theme, “Opportunities of ASEAN Integration,” the gathering focuses on port innovations, as well as mutual opportunities for increased competitiveness, productivity, and cooperation.

The meeting also paved the way for outgoing INAP chairman Gov. Masanao Ozaki of the Kochi Prefecture in Japan to officially turn over the INAP leadership to Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia.

As head of the host port, Garcia opened the conference, pointing out that the event is very important, not only for the Philippines, but also for all the ASEAN countries that rely on their ports for increased commerce.

“As with the theme, we should take advantage of the opportunities of ASEAN integration and explore the business opportunities each port and host city is ready to offer,” Garcia said.

Garcia added that the Port of Subic is eyeing a major role in Philippine shipping after President Aquino declared Subic and the Port of Batangas as extensions of the Port of Manila, which has long suffered from port congestion.

Presenting the Subic Bay Freeport’s role in the ASEAN Integration, SBMA OIC-deputy administrator for business and investment group Ronnie Yambao noted that the Subic Freeport is being utilized as a manufacturing base and logistics center by local and foreign investors from the region.

He added that Subic, along with other Asian ports, has joined the Asian Cruise Terminals Association (ACTA), which is considered a strategic move to attract major cruise ships plying the Asian tourism route.

“With these developments, the Port of Subic is playing key roles in the ASEAN integration by serving as transshipment hub in this part of the region,” Yambao added.

Meanwhile, Prof. Paolo Jamil Francisco of the Asian Institute of Management (AIM) who talked about ASEAN integration, said that the concept is becoming accepted by ASEAN countries and is now being practiced by many investors and manufacturers.

Francisco cited as an example a popular car manufacturer, which produces parts in various ASEAN countries like Thailand, Malaysia, and the Philippines.

Francisco urged the attending INAP members to cooperate with the government, “co-opete” (compete-cooperate) with other firms, consolidate capabilities and strengths, and take advantage of the challenge.

“While competing with other firms, everyone must cooperate with them on how to improve their products, and meet the required materials and supplies,” he said.

Francisco’s statement was supported by Roberto Locsin, general manager of Subic Bay International Terminal Corp. (SBITC), saying two Japanese companies are now shipping cargoes via Subic as a result of the congestion in the Port of Manila. (RAV/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia (middle) links arms with other leaders of the International Network of Affiliated Ports (INAP) in front of the iconic Spanish Gate during the opening of the 16th INAP General Assembly and Symposium at the Subic Bay Freeport.  The three-day conference will focus on port innovations and the promotion of competitiveness, productivity and regional cooperation. (AED)

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Shipping is said to be cheaper at Subic, Batangas ports

Shipping from Subic and Batangas ports would be cheaper for traders, according to Roberto V. Garcia Subic Bay Metropolitan Authority (SBMA) chairman and administrator.

He said that importing from Subic would cost only $ 1,001.79 per 20 footer container compared with Manila’s rate of $ 1,142.26 per 20 foot container. To export from Subic also costs only $ 847.33 per 20 footer container compared with Manila’s rate of $ 990.81 per 20 Ft container.

Garcia cited Japan International Cooperation Agency (JICA) study which showed that out of the 2.8 million containers passing through the Port of Manila, 450,000 containers are destined for Central and Northern Luzon .

“We have the capacity of 600,000 TEUs so even if all the cargo that comes from Manila goes to Subic, we have the facilities to handle that , the location is very central. We are trying to promote Subic as transshipment hub” Garcia said.

Subic Bay Freeport Zone to date , has 1,800 locators with $ 9.3 billion total investments . It also has 90,092 active Freeport zone workforce, and 5.23 million visitor arrivals in 2012.

Asian Terminals Inc. operator of Batangas Port said that the port remain as the better alternative to Manila Ports for Calabarzon (Cavite,Laguna, Batangas , Rizal and Quezon) cargoes as it has enough capacity to handle the 300,000 TEUs going to Calabarzon annually .

Sean Perez ATI vice president said during his presentation at the recent transport summit that the customers from Calabarzon would save trucking cost of at least 16 percent for export and 13 percent import in choosing Batangas rather than Manila Port.

Batangas Port has 350,000 TEUs capacity per year , 12 hectares of terminal space can handle 7,152 TEUs (4 high) at any given day expandable facility is needed . The Port volume has more than doubled to 3,819 TEUs in the first quarter of 2014 compared to previous year same period of 1,564 TEUs .

In 2013, ATI said Batangas Port handled its highest number of outbound passengers at 3.06 million. It also facilitated the seamless transit of 230,173 vehicles via the Mimaropa ( Mindoro, Marinduque, Romblon , Palawan) nautical corridor. Cargo operations which handled 580,054 metric tons of conventional cargo .

The government is promoting the use Subic and Batangas port as an alternative to Manila Port as the Manila City government plans to pursue the implementation of full truck ban in Manila by July this year.

Last February, Manila City government has implemented a truck ban gives a daytime window period from 10:00 am to 5:00 pm for loaded truck to ply in Manila. Empty container trucks, was banned to take to Manila’s streets. The daytime window period for trucks was expected to last for six months . (Myla Iglesias, Malaya)

http://www.malaya.com.ph/business-news/business/shipping-said-be-cheaper-subic-batangas-ports

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Maritime logistics confab set in Subic this August

A conference highlighting the Subic Bay Freeport Zone’s attractions as an investment and logistics hub and as gateway to Asia’s expanding market will be held here on August 23-24 at the Subic Bay Exhibition and Convention Center.

The Subic Bay Maritime Conference and Exhibit is expected to attract more than 300 investors, shippers, and logistics and supply chain executives and will look at the advantages of Subic as a vital investment area for shipping and logistics companies.

Themed “Subic Bay: Asia’s Emerging Logistics and Investments Hub,” the conference is being organized by the Subic Bay Metropolitan Authority in cooperation with the Subic Bay International Terminal Corp. (SBITC), which operates Subic’s New Container Terminal (NCT 1 & 2).

Organizers said prominent local and international speakers will be invited to give updates on projects and initiatives at the port complex, as well as provide insights on regional trade developments and their implications for the transport and logistics sectors.

There will also be discussions on the attractiveness of Subic Bay as a transshipment port and investment center, the synergy between Subic and Clark, trade facilitation initiatives by the Bureau of Customs in Subic, and the greater push to raise productivity and efficiency at the Subic container terminals.

The conference is also expected to tackle the impact of the Association of Southeast Asian Nations Plus China free trade agreement and best practices among ASEAN seaport operators.

The Subic Bay Freeport, which rose from the former US Naval Base, is now being developed by the SBMA as a prime maritime logistics and services hub.

The upcoming conference is being supported by the Philippine Maritime Industry Authority, Association of International Shipping Lines, Maritime Law Association of the Philippines, Subic-Clark Alliance for Development Council, Philippine Exporters Confederation, and the Subic Bay Freeport Chamber of Commerce, with Australia-based Baird Publications as media partner.

Interested parties may inquire on details of the Subic Bay Maritime Conference & Exhibit from event manager PortCalls at (632) 552-7072, 551-1775, 551-1972 or email info@subicmaritimeconference.com, info@portcalls.com. Regular updates will also be available at www.subicmaritimeconference.com or on Twitter @subicconference. (HEE/MPD-SBMA)

PHOTO:
A container ship unloads cargo at the New Container Terminal in the Subic Bay Freeport. A maritime trade conference to be held in Subic Bay in August will highlight the free port’s advantages as a maritime logistics hub and investment center.

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Vale, SBMA launch Subic Bay iron ore transshipment operations

Brazil’s Vale Shipping Holdings Pte. Ltd. (VSH), along with the Subic Bay Metropolitan Authority (SBMA), formally launched a partnership for the transshipment of iron ore from this free port.

In a ceremony held at the Lighthouse Marina Resort here on June 1, VSH executives led by Jose Carlos Martins, executive officer for ferrous minerals operations, and officials of the SBMA led by Chairman and Administrator Roberto Garcia, announced the start of Vale’s transshipment business here.

VSH is an affiliate of Vale SA, the world’s largest producer of iron ore, which also controls the largest share of the seaborne market for iron ore.

The company will carry out iron ore transshipment operations from its Valemax mother vessel to be anchored in Subic Bay, and then supply ore to smaller daughter vessels or feeders, which are either Panamax or Capesize types.

The project is expected to boost Subic’s port revenues by up to P70 million in the first year of operations alone.

In his message during the project launch, Martins thanked the SBMA for its warm reception of the project and expressed hope that the partnership between his company and the SBMA would continue to grow and benefit both the Philippines and Brazil.

“The Philippines is growing now at almost the same pace with China, and the Philippines is emerging in the world economy,” Martins noted. “With this opportunity, now is our time — now is the time for countries like Brazil and the Philippines.”

Garcia, meanwhile, said that the Vale project will help thrust the Philippines forward in the maritime industry and stressed its importance to the SBMA.

“In our strategic plan, we were very dead-set in continuing to promote the maritime business, and the Vale project is an important pillar of our strategy to maximize the use of Subic Bay,” he said.

“We have a very good future here,” Garcia added, pointing out that the Philippines is in a current state of rapid development, having achieved a 6.4 per cent GDP growth rate this first quarter compared to 4 per cent last year. “And what is outstanding is the fact that it is the second highest growth rate in the region, second only to China,” he added.

For his part, SBMA director and treasurer Joven Reyes said that the agency is much honored that VSH had chosen Subic Bay as its major transshipment port.

“We hope even more that your business continues to move from success to success and that this partnership, which we are officially launching today, would lead to better and greater developments for Vale, Subic Bay, and of course our country down the road,” Reyes said.

The Vale project began in late 2010 when SBMA and Vale proposed a solution that matched Vale’s transshipment operations model with SBMA’s logistics business model.

Stefani Saño, SBMA senior deputy administrator for business and investment development, said that Vale needed to optimize its large-scale iron ore distribution and delivery system and the SBMA offered the bay as a suitable offshore location.

“This logistics model would allow Vale’s huge vessels to tranship the commodity with maximum efficiency in terms of time and cost, given the scale of operations required,” Saño added.

Saño also said that apart from Vale, the SBMA is also trying to attract more logistics companies to invest in the Freeport. He said that at least two logistics companies engaged in different line of commodities for offshore-based distribution operations have expressed interest in locating at Subic Bay. (FMD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia welcomes Jose Carlos Martins, executive officer for ferrous minerals operations of the Vale Shipping Holdings Pte. Ltd. ( VSH), during the June 1 ceremonial launch of the Vale iron ore transshipment operations in Subic Bay. Looking on, at left, is SBMA chief operating officer Joven Reyes.

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Brazil’s Vale invests to get around Chinese megaship ban

Brazilian diversified mining major Vale, the world’s number two mining group in terms of market capitalisation, has announced that it is to establish a second floating iron-ore transfer station, in Subic Bay, in the Philippines.

This station will transfer iron-ore from the miner’s giant Valemax bulk carriers to smaller Capesize and Panamax ore carriers, which will then convey the ore to ports in China.

The first of these floating transfer stations, also in Subic Bay, started operations in February and cost the Brazilian group $52-million.

The Valemax ships are the largest bulk carriers in the world. Each of them has a length of 362 m, a beam of 65 m and is able to carry 400 000 t of iron-ore. Each Valemax can carry three times the cargo of a Capesize bulk carrier – Capesize ships currently carry 80% of the world’s seaborne iron-ore.

Vale has ordered 35 Valemax ships, of which eight have been delivered. But Chinese shipowners, alarmed by the competitive threat they pose, have persuaded the Chinese authorities to ban them from that country’s ports.

The floating transfer stations are Vale’s response. They allow the company to deliver its iron-ore some 85% of the distance from Brazil to China on board the more cost-efficient Valemax ships, and then conclude the last 15% on the smaller vessels.

In addition, Vale has an operational land-based distribution centre in Oman and is building a second such centre in Malaysia. Together, these floating transfer stations and the distribution centres will be able to absorb the total capacity of all 35 Valemaxes, which comes to 60-million tons of iron-ore a year.

However, Chinese steelmakers, eager to benefit from the cost reductions the Valemax ships could bring, are reported to be pressurising the Chinese government to lift the ban on the vessels. One of the first Valemax ships successfully docked at Dalian last year, before the ban was imposed.

Moreover, nearly half of the Valemax ships – 16 out of 35 – are being built in China by Rongsheng Heavy Industries, an order worth $2.1-billion. (The rest are being built in South Korea. One of the South Korean ships recently developed cracks in its hull on its maiden voyage, but Rongsheng states its ships are very safe.) Not all the Valemax ships will be owned by Vale, but those that are not owned by the group will be on long-term lease to it.

Should the Chinese government change its policy and allow the Valemax ships into its ports, this will not render the floating transfer stations superfluous. As each transfer station is actually a modified bulk carrier, they will simply be moved to new locations to serve other markets in Asia and South-East Asia.
The development and deployment of the Valemax ships has had a severe impact on the value of Capesize vessels. The website VesselsValue.com last month reported that new Capesize ships that had been worth $69.9-million in April 2010 were now worth $39.9-billion. The website also reported that, as a result of the Chinese ban, the value of Valemax ships had fallen by 36%. But, for Vale, it is the value of the iron-ore and the utility of the ships that are important; the book value of the vessels is a secondary issue.

Meanwhile, closer to home, the Brazilian miner’s Mozambican operation has ordered 33 200 railway sleepers from agriculture and forestry company Montara Continental, which operates in Mozambique and Tanzania and is 75%-owned by the British Obtala Resources group. The railway sleepers will be delivered over the next seven months and will be used in the upgrading of Vale-owned railways in Mozambique and Malawi and in the construction of a new line in Malawi. (Keith Campbell, Creamer Media's Mining Weekly)

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Brazil's Vale offers spot iron ore from Subic Bay, Philippines

SINGAPORE - Brazilian miner Vale has offered spot iron ore for tender Monday, sailing from its Floating Transfer Station at Subic Bay, Philippines, market participants said Monday.

Previously, most of Vale's spot offers have been for cargoes loaded on vessels passing through Singapore within two weeks from the date of sale, but the shipment sailing from Subic Bay will be able to reach the Chinese port of Qingdao in a shorter time span of four-and-a-half days.

Vale is offering a 175,000 mt cargo of 65%-Fe Brazilian sinter feed Carajas fines in a tender closing Monday, 1730 Beijing time (0930 GMT) on a CFR China basis. The cargo will load from the Floating Transfer Station at Subic Bay by Wednesday.

China's Ministry of Transport in January applied stricter administration procedures for large dry bulk vessels. Those with a capacity of more than 350,000 dwt have to go through new demonstration-appraisal-approval procedures before they can call at Chinese ports.

Sources said the Carajas fines spot cargo offered was probably unloaded from Very Large Ore Carrier, or Valemax, vessels at Subic Bay before being loaded into smaller Capesize vessels prior to sailing for China.

"It is the first time I heard Vale offering an iron ore spot shipment that sails straight from Subic Bay," a Hong Kong-based trader said.

Another Singaporean trader said: "Shorter traveling time between the Philippines and China will be popular among steel mills who need very prompt loading cargoes, but it may not be equally popular with traders who have a shorter time to sell their cargoes."

Vale wasn't immediately available to comment. [Melvin Yeo, (Platts) Singapore]

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Vale Starting Subic Ore Transshipment

SINGAPORE (Reuters) – Brazil's Vale will begin its iron ore distribution operations in the Philippines this weekend, the Philippine port operator said, from where the world's top miner of the raw material will transfer China-bound ore brought in by big ships.

Vale is taking a more costly route to deliver iron ore to China, its top market, which has barred the miner's giant dry bulk vessels from entering its ports to shield its domestic shipping industry.

The miner has set up a transshipment hub in the Philippines' Subic Bay port using a floating storage vessel which will start operations on Feb. 12. It is also building a $1.3-billion iron ore distribution hub in Malaysia's northern Perak state, which could be ready to handle the giant ships by 2014.

China last week barred Vale's mega ships called Valemaxes – which at 400,000 deadweight tons each are the world's biggest dry bulk carriers – to protect its shipping sector hit hard by the economic downturn and freight rates that have fallen to their lowest in more than a quarter century.

''When Vale starts full operations on Feb. 12, we expect the SBMA (Subic Bay Metropolitan Authority) to earn some 70 million pesos ($1.64 million) in additional income in the first year alone because of the projected increase in ship calls,'' Roberto Garcia, chairman of SBMA, said in a statement late on Monday.

Vale's Ore Fabrica, the world's largest dry bulk floating storage vessel, arrived in Subic Bay last week. The 280,000-deadweight-tonne vessel will serve as a platform to transfer iron ore from the Valemaxes to smaller vessels for transport to Asian markets led by China.

A Valemax, Vale Brasil, is expected to arrive in Subic on Feb. 12, Reuters shipping data showed. SBMA said it expects Vale Brasil to dock a day later.

Vale was hoping its planned fleet of 35 Valemaxes would slash its shipping costs to China to help it better compete with Australian rivals BHP Billiton and Rio Tinto.

But some analysts have said the cost of the transshipment centers would unlikely outweigh any savings from using the Valemaxes.

Vale has said its plan to build a fleet of 35 giant ore carriers, of which six are already in service, had not changed despite China's ban. (Manolo Serapio Jr., Manila Bulletin)

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Subic Freeport eyes P70-M income from Vale transshipment project

The Subic Bay Metropolitan Authority (SBMA) expects to generate additional revenue of as much as P70 million with the transshipment operation here of Brazil’s Vale Mining, the world's biggest iron ore producer.

SBMA Chairman Roberto Garcia said the agency, which also administers the Port of Subic, has entered into an agreement with Vale Mining, making this free port the hub of Vale’s iron transshipment operations in Asia and turning Subic into a major player in the maritime logistics industry in the Asia Pacific Region.

“The main reason why Vale has located its operations here is Subic’s strategic location in the Asia-Pacific region,” Garcia said. “And it’s all about economies of scale. Vale will haul its ore products to Subic using its big carriers, then transfer the iron ore to smaller vessels, which the smaller ports in China will be able to accommodate,” he said.

“This is a very fortuitous development for SBMA because Subic will be at the very center of what is expected to be the biggest ship-to-ship transfer operations in the world in terms of volume,” Garcia noted.

“When Vale starts full operations on February 12, we expect the SBMA to earn some P70 million in additional income in the first year alone because of the projected increase in ship calls, as well,” Garcia added.

According to SBMA deputy administrator for port operations Redentor Tuazon, Vale will utilize its Valemax carrier vessels, which have a capacity of up to 400,000 deadweight tons (DWT), to deliver iron ore to several ports in China, now the world’s biggest user of iron ore.

The company will carry out its iron ore transshipment operation from its Valemax mother vessels, supplying ore to smaller daughter vessels, or feeders, which are either Panamax or Capesize types. The especially-designed floating terminal that will supply feeder ships will be anchored in Subic Bay.

Tuazon said that preparations are now underway for the initial transshipment operations with M/V Ore Fabrica, the floating terminal station that arrived here last Monday, January 31, and M/V Vale Brazil, which is set to arrive on February 13.

Owing to the magnitude of the transshipment operation, Tuazon said that various marine safety measures have been put into place, including the conduct of hazard and operability (HAZOP) analysis jointly made by representatives of Vale Brazil, SBMA, and agent companies involved in the operations.

All of the vessels to be used in the operation are insured and covered with protection and indemnity insurance, Tuazon added.

The SBMA has been aggressively pushing for the Port of Subic Bay to be a premier marine logistics hub in the region, as it continues to develop the market for the full utilization of Subic’s container terminals.

Recently, it has also offered various incentives to shipping companies for the development of new shipping routes to Singapore and Hongkong.

The arrival of Vale Brazil here would help Subic secure its place on the map in terms of floating terminal operations, Chairman Garcia said. (SBMA Corporate Communications)

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With China shut, Vale iron ore ships head to Philippines (Two of Vale's giant ships to arrive in Subic Bay)

SINGAPORE - Two of the world's biggest iron ore carriers are due to arrive in Subic Bay Freeport for the first time next month, shipping data showed, as Brazilian mining giant Vale looks to use the Philippines as an alternative base to reach Chinese ports.

China, the world's largest iron ore importer and Vale's top market, has yet to fully open its seaports to the giant vessels after domestic ship owners strongly protested the arrival of the first and only vessel of the type into the country in late December.

With accessibility to Chinese ports uncertain, Vale has been forced to rely on its transshipment hub in the Philippines, a costlier alternative that involves employing more vessels and workers.

"I'm not surprised that Vale is sending its ships to the Philippines. They have no choice with China's ports still closed off to them," said a Singapore-based ship broker.

"They have to keep these ships moving or face major losses."

The 400,000-deadweight-tonne Vale China is due to arrive in Subic Bay Freeport, located in the Philippines' main Luzon island, on Feb. 22, shipping data showed.

That is 10 days after similar-sized Vale Brasil is expected to dock.

'A LOT OF MONEY'

Draught measurements indicated the two ships were fully loaded, each likely carrying around 350,000 tonnes of iron ore, traders said.

At current iron ore prices, the value of each cargo is nearly $50 million.

"That's quite a lot of money. Vale may be struggling to sell shipments of 200,000-300,000 tonnes in one go and so it makes more sense for them to break it up," said an iron ore trader in Singapore.

Vale's plan is to set up a floating storage vessel in its planned transshipment hub in Subic Bay from where iron ore would be transferred to smaller vessels such as panamaxes or capesizes and then transported to buyers in Asia.

Keeping readily available iron ore in Subic Bay would also allow Vale to quickly meet China's requirements, the Singapore trader said, since vessels from Brazil take at least a month before they reach China, versus about a week from the Philippines.

Vale officials in Singapore declined to comment.

Vale is also setting up a transshipment centre in Malaysia as an alternative to Chinese ports.

The Brazilian miner in October broke ground for a $1.3 billion iron ore distribution centre in Malaysia's northern Perak state, which could be ready to handle the giant ships by 2014.

Vale is banking on a fleet of 35 Valemaxes to slash shipping costs to China and better compete with Australian rivals BHP Billiton and Rio Tinto .

The 388,000-tonne Berge Everest was the first and only Valemax allowed into China, docking at Dalian Port on Dec. 28 to unload iron ore that has yet to be sold.

The China Shipowners Association has helped keep further ships from arriving at its domestic ports. The group fears the fleet will give Vale a monopoly on both the shipping and iron ore markets at China's expense. (Randy Fabi and Manolo Serapio Jr., Reuters)

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Brazilian iron ore ship heads for Philippines

SINGAPORE­ -- A giant iron ore vessel owned by Brazil’s Vale, a multinational mining company, is on its maiden voyage to the Philippines and is expected to dock at Subic Bay in early February, Reuters data and shipping sources said on Monday.

The 400,000-deadweight-ton (dwt) Vale Brasil would be the second of the company’s so-called Valemaxes, which are very large ore carriers, to sail to Asia.

The first vessel, the 388,000-dwt Berge Everest, unloaded at Dalian Port on Dec. 28, 2011, ending months of delays in getting the world’s biggest dry bulk ships into China, Vale’s top market.

The cargo, estimated at 350,000 tons, has yet to be sold, however, and is sitting in storage, traders said.

Vale is banking on a fleet of 35 Valemaxes to slash shipping costs to China and better compete with Australian rivals BHP Billiton and Rio Tinto.

Reuters Freightviews and independent shipping data showed Vale Brasil is scheduled to arrive in Subic Bay on Feb. 11. Draught measurements indicated the vessel was fully loaded with cargo.

Vale Brasil was supposed to be the first of Vale’s huge ships to arrive in Asia, but was diverted last June to Italy after the Chinese government failed to provide permission for the ship to dock at Dalian Port.

A source at Subic Bay Freeport said they had not yet been advised of the Vale Brasil’s arrival.

“But we are ready anytime to accept the ships,” the source told Reuters, adding the port is deep enough to accommodate Valemaxes.

Vale aims to turn Subic into an iron ore transshipment center, where it can dock its Valemaxes, transfer cargo to smaller vessels and then use these to supply its clients in other parts of Asia.

Sources at Subic Port had said they expected the transshipment operations to start in late January or early February, as soon as Vale’s ship arrives.

The Philippine facility would be the first of at least two transshipment centers Vale is planning to open in Asia.

The Brazilian miner in October broke ground for a $1.3-billion iron ore distribution center in Malaysia’s northern Perak state which would be ready to handle the Valemaxes by 2014.

The China Shipowners Association has opposed Vale’s fleet, worried that the vessels will give the miner monopoly on both the shipping and iron ore markets at China’s expense.

The influential group has also raised concerns about the safety of the huge ships after Vale Beijing, the newest member of the Valemax fleet, developed cracks in its hull on its maiden voyage last month. (Reuters)

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Clark and Subic Economic Zones: Positioned to compete globally as logistics and transportations hubs

LOS ANGELES – Dennis L. Wright is the American president of Peregrine Development International. When he talks about the Philippines, he is more knowledgeable about the topic compared to some Filipinos. “The optimism in the Philippines is based on what you can see, and you only have to drive around Metro Manila to know this,” he told Asian Journal last week during a forum on Clark and Subic Bay Freeports at a hotel near Los Angeles International Airport.

Wright had lived in the Philippines for about thirty years, and had been married to a Filipina for twenty-five years. “I have watched the Philippines up close and personal. I can tell you right now that the Philippines is the darling of the investment community,” Wright said. “Three years ago, you would not see a single sky crane anywhere in Metro Manila,” Wright offered. “Today, you look out and see them all over. If you go to Subic (Bay) there is no lay of land that you could do a project on. If you look at the number of hotels feeding the tourist industry, and the signs of medical tourism, it is happening. The container ports are there. No matter where you go, you are seeing a building boom,” Wright asserted. “It is really happening now; it is materializing.”

This was Wright’s response to a question from one of the journalists who asked why progress has not trickled down to the impoverished and middle-class Filipinos despite the ongoing construction boom and economic activities.

To buttress his assertions, Wright drew compared the movie, The Perfect Storm to the current economic environment in the Philippines. “In the movie, several everyday occurrences and events came together at precisely the right time and in an unprecedented manner to create “the perfect storm on the open sea,” he explained. “The same phenomenon is now occurring in the Philippine economy – except in this case, it is the forces of the market and business communities acting in unison.”

“The first force is the effect of the Chinese economy, which is the world’s third largest and is poised to outpace the US, along with the Philippines’ strategic position on the doorstep of China,” Wright explained. “The second influence impacting Philippine growth is the country’s geographic position in the center of Southeast Asia and at the crossroads of the Pacific,” Wright said.

His company, Dubai-based Peregrine Development International, has made a $2.5 Billion investment at Clark called Global Gateway Logistics City – a 177-hectare master planned aviation-oriented logistics and business center aimed at serving aviation and logistics-related businesses, including warehousing, distribution, and transportation.

Confronted with the devastating financial crisis in the West, many Middle Eastern investors, including Peregrine, are looking to diversify to minimize their risk. Many Arabs have looked to other markets such as Southeast Asia and the Philippines.

“This optimism is not something in the future,” Dwight said. “I went to a Pussycat Dolls concert (in Manila) about two weeks ago,” he revealed. “30,000 Filipinos went and the most expensive seat was PhP6,650; the next was PhP5,000. Why? Filipinos have money that they are spending. It’s trickle-down economics.”

Wright said that the despite the global recession the Overseas Filipino Workers (OFW) remittances are on track of what it was last year: $15 Billion again this year. “Why? The mix of overseas Filipinos that are going is higher. You have more professionals, nurses, train operators, engineers. A lot of Filipinos are in recession-proof jobs, and the Saudis depend on the OFW workforce, and they are not going to let them go,” Wright explained.

The Philippine government has converted Clark and Subic into viable economic zones since they were taken over from the United States in 1991. Initially, after the bases’ conversion into economic zones, the bases operated independently from each other. Today, these zones, although being run by two different government agencies, are working with each other to achieve the same goals, positioning themselves as globally competitive air, ship and logistics hubs in the Southeast Asian-Pacific region.

“We are now not only talking business but also doing business,” declared Secretary and Internal Affairs Adviser Edgardo Pamintuan. “This is now walking the talk,” he quipped. “Of course all these would not have been possible were it not for the genius and foresight of President Gloria Arroyo, to transform these bases into bastions of economic activity,” Pamintuan commented.

He said that Clark is now the home of the Diosdado Macapagal International Airport, which is being managed by the Clark International Airport Corporation. The DMIA complex is comprised of a 2,367-hectare area within the Clark Freeport Zone. The airport is now designated as a new international gateway. “Last year, DMIA had an international traffic of 500,000 passengers,” Pamintuan announced. “This year, we will have no less than 20 per cent of growth.” Pamintuan said that the DMIA has become the favorite airport of low-fair airlines.

The DMIA is now handling international flights to Korea, Singapore, Kuala Lumpur, Malaysia, Hong Kong, Macau and Kota Kinabalu. There are now 11 domestic flights to Cebu and to Boracay.

Since the construction of the 100-kilometer highway connecting Subic Bay with Clark -- the umbilical cord between the two zones -- standards and processes have been laid down between the two free ports.

Pamintuan also announced that a North Rail system connecting Clark to Manila is in the pipeline. At Subic, two new terminals have been added that are capable of handling up to 600,000 containers. “We can do more during the last 10 months of this administration,” Pamintuan said, at the same acknowledging that poverty is still rampant. “There are still lots of people who are living in quagmire and poverty,” he said. “You cannot do it overnight.”

He said that the country has achieved the highest gross domestic product (GDP) of 7.2 per cent in 2007, at the time that the global economy was creeping in. Last year, despite the recession, the country still managed a 4.6 per cent growth in GDP, and this year, still managed to grow by 1 per cent. “We have been paying off our debts ahead of schedule,” Pamintuan revealed.

“But the opposition does not want to look at the doughnut,” Pamintuan observed. “They like to look at the hole of the doughnut. They do not want our projects to be successful. They do not want us to look pogi.” (They do not want us to look good). (Rene Villaroman/AJPress)

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