SBMA inks US tie-ups for Subic port expansion

Working overtime to realize further development and expansion of the Port of Subic, the Subic Bay Metropolitan Authority (SBMA) is now networking with various ports in the United States to gain strategic knowledge and best practices for local application.

In a meeting with port officials in Los Angeles and Virginia Beach during a Philippine trade mission in the United States last month, SBMA Chairman and Administrator discussed Subic’s port expansion plans and business potentials, as well as the necessary upgrades to make Subic a global maritime trade player.

“We’re definitely moving seriously now into the expansion and development mode for the Port of Subic because this is what Subic Bay is all about—global maritime business,” Eisma explained.

“We may have the most strategic location and we may have the best potential in the region, but if our assets remained underdeveloped and underutilized, we’d end up zero just the same. So this is very, very important for Subic—it must start now, and it must be completed within just a few years,” she added.

Eisma said that in partnership with sister-ports, Subic will be developing a workable plan and a realizable timetable.

“Along this line, I have signed last month a memorandum of understanding (MOU) with John Reinhart, the CEO of Virginia Port Authority, for us to share best practices both in port development and trade promotion,” the SBMA official said.

“Likewise, we would be signing in March 2018 a similar agreement with the Los Angeles Port Authority (LAPA), so that we can learn technical expertise, particularly in break-bulk operation and cruise ship terminal operation,” Eisma added.

Eisma said that Jim MacLellan, who is LAPA Trade Development Director, has recommended to maximize Subic’s potential to be the next cruise ship playground in the ASEAN region, not only by increasing cruise ship arrival and port revenues, but also by developing downstream industries like arts and crafts, culture, music and related industries to promote a sustainable cruise tourism program.

She said that a direct port-to-port service route from the Port of Los Angeles to Subic Bay Freeport has also been discussed. This is being considered to cater to container port traffic demand between the West Coast and the Philippines, as well as increase efficiency and lower the cost of shipping.

Eisma added that the consolidation of cargoes in the West Coast is being considered with the Port of Subic Bay emerging as the possible gateway and transhipment point in the Philippines.

Eisma also said that the plan by SBMA and the Bases Conversion and Development Authority (BCDA) to draft and integrate their master plans for the next phase of development of the Subic-Clark Economic Corridor “fits nicely in the overall design for Subic port.”

Other port-related developments from the November trade mission to the United States include the proposed use of the Port of Subic for the distribution of agricultural products.

According to SBMA Port Marketing Manager Ronnie Yambao, who joined Eisma in the trade mission, a Mexican company supplying avocado to Japan would like to use Subic’s proximity to Japan as a unique selling proposition.

Yambao added that there was also a proposal to use Subic for cacao farming and production and for eventual distribution worldwide, as well as for the shipment of US-bound commodities produced by manufacturers based in Palawan and Bicol.

Yambao added that the plan by Mober, the latest mobile app-enabled, on-demand cargo-delivery company, to launch its service in Subic Bay in June 2018 would further increase the attractiveness of Subic as a transhipment and distribution hub. (HEE/MPD-SBMA)

PHOTOS:

[1] SBMA Chairman and Administrator Wilma T. Eisma signs an agreement with Virginia Port Authority CEO John Reinhart to facilitate Subic’s strategic objective of expanding its global port network.

[2] SBMA Chairman and Administrator Wilma T. Eisma, along with other members of the Philippine trade delegation to the United States, observes shipping activities at the busy Los Angeles port complex.

[3] SBMA Chairman and Administrator Wilma T. Eisma joins other members of the Philippine trade delegation to the United States at the Port of Los Angeles.

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SBMA, Virginia Port Authority forge alliance of cooperation

WASHINGTON, D.C.- The Subic Bay Metropolitan Authority (SBMA) and Virginia Port Authority (VPA) established an Alliance of Cooperation on 05 March 2016 in a ceremony held at the Virginia International Gateway Terminal in Portsmouth, Virginia.

The Alliance was established by a Memorandum of Understanding signed by Roberto V. Garcia, SBMA Chairman and Administrator; and John F. Reinhart, VPA CEO and Executive Director.

The MOU will provide a framework for information sharing aimed at generating new business by promoting the all-water route between the Subic Bay Freeport and The Port of Virginia. The Alliance will also explore joint marketing efforts; share non-confidential data that may be useful for developing the bilateral relationship of the ports; exchange information resulting from market studies that may be mutually relevant; look at the possibility of developing joint- or cross-training seminars; and transfer technical or technological capabilities.

Chairman Garcia underscored the MOU’s importance to deepening the Philippines-US economic relationship.

“This MOU is landmark and pioneering. It provides an opportunity for Subic Bay Freeport and the Port of Virginia to learn from each other with a view to cooperating on areas of mutual interest and concern in pursuit of economic development. The choice of Subic Bay Freeport also reaffirms the long-standing historical ties and friendship between the Philippines and the United States,” Chairman Garcia said.

Russel J. Held, Vice President for Economic Development of the Virginia Port Authority, expressed optimism that the MOU will allow the two ports to share best practices with each other, and positively impact on jobs creation, tax space, and the economic well-being of the communities outside the gates of the two ports.

“Learning from each other is what the agreement is all about,” said Mr. Held.

The signing ceremony was witnessed by Benjamin Antonio III and Wilfredo Pineda, Members of the SBMA Board of Directors; Marcelino Sanqui, SBMA Senior Deputy Administrator for Operations; Ronnie Yambao, SBMA Deputy Administrator for Business and Investments; Warren Harris, Executive Director of the Virginia Beach Economic Development Office; Scott Hall, Deputy Executive Director; and Ms. Naomi Estaris, COO/VP of Sister Cities Association of Virginia Beach.

In a statement, Philippine Ambassador to the United States Jose L. Cuisia, Jr. also welcomed the signing of the MOU.

“This Alliance clearly reaffirms the dynamic and robust Philippine-US economic partnership. It is our hope that this Alliance of Cooperation between SBMA and VPA can deepen and strengthen not only the relationship of the Subic Bay Freeport and the Port of Virginia, but also trade and investment between the Philippines and the United States,” Ambassador Cuisia said.

At a meeting organized by the Virginia Beach Economic Development Office after the signing ceremony, Chairman Garcia and his delegation also met with Delegate Ron Villanueva, a Filipino-American member of the House of Delegates of the Commonwealth of Virginia, who is the Chairman of the House Committee on Transportation.

The Philippine delegation and Delegate Villanueva had a wide-ranging discussion on issues relating to transportation, shipping, port operations, and opportunities for investments in the Subic Bay Freeport Zone. At the same meeting, the delegation also fielded questions from the heads of a number of Virginia SMEs who are seriously interested in investing in the construction, real estate, and manufacturing sectors.

The SBMA is the Philippine agency that administers and manages the Subic Bay Freeport Zone, including the Subic Bay Freeport. The Port of Subic Bay is strategically located along major shipping routes in the South China Sea, which makes it an ideal transshipment point to and from the trans-Pacific, Japan, Korea, China, and the rest of Southeast Asia. It has a natural deep navigational channel with berthing facilities, and is easily accessible by land to and from Metro Manila as well as North and Central Luzon.

The VPA administers the Port of Virginia, which comprises six general cargo terminals. It is also strategic with deep shipping channels, zero air-draft restrictions, located in the US Mid-Atlantic with access to two-thirds of the US population within a day’s drive or two-day double-stack rail to/from the Midwest, quick access to the open sea and friendly labor relations.

The initial idea for such an Alliance was developed during a visit by a Virginia Beach delegation to SBMA. Olongapo City and Virginia Beach are sister cities.

PHOTOS:

[1] SBMA Chairman and Administrator Roberto V. Garcia and VPA President for Economic Development Russel J. Held exchanged copies of the Memorandum of Understanding establishing an Alliance of Cooperation between SBMA and VPA on 05 March 2016 at the Virginia International Gateway Terminal in Portsmouth, VA, USA.

[2] SBMA Chairman Roberto V. Garcia (2nd from right) exchanges views with Delegate Ron Villanueva, Chairman of the Transportation Committee of the Virginia House of Delegates (leftmost). At right is SBMA Director Benjamin Antonio III.

http://www.philippineembassy-usa.org/news/4907/300/SBMA-VIRGINIA-PORT-AUTHORITY-FORGE-ALLIANCE-OF-COOPERATION/d,phildet/

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