Erring company in Subic Freeport closed by SBMA

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan led the repossession of a 1,500-square meter land area from an erring company as part of the agency’s thrust to regain areas for reutilization for other investors.

“We are repossessing leased areas of companies that do not comply with the agreement between them and the SBMA, and offer these areas to other investors,” Tan said.

The repossession of property transpired today at the Silver Arrow Import and Export Services, Inc. located at Lot 1, Boton Area, Argonaut Highway. The 1,500-sqm. land area of the company was repossessed due to contractual defaults.

According to Tan, the company failed to comply with its Investment and Development Commitment as provided in Section 7, Article II of the Lease Agreement between the company and the SBMA. Part of the said default is the failure of the company to develop the area with a funding allocation of at least US$1,000,000.

He added that the development commitment on the Leased Property should have a minimum cost of US$500,000 which includes the construction of a warehouse within two years from the issuance of its building permit.

“Aside from the Investment and Development Commitment, the company’s contractual default also includes non-compliance with the Omnibus Policy on Performance Bond, and failure to submit documents for the issuance of a building permit,” he said.

The said building permit is for the construction of a warehouse as stated under the company’s Development Commitment. Tan added that this is so despite the unreasonable length of time that had already lapsed since the execution of the lease agreement last July 28, 2015.

The SBMA had already served two notices before executing the repossession, with the Final Notice of Default with Demand to Pay dated June 19, 2023 that was served on June 26, 2023; and the Notice of Pre-termination and Repossession dated July 28, 2023.

“We are following President Ferdinand Marcos Jr.’s mandate to streamline operations within the Subic Bay Freeport Zone, and fully utilize land areas that are not being developed. But we are leaving space on the table for negotiations with the erring company so that they may continue with their operations efficiently,” Chairman Tan said.

The official said that this is the first of many repossessions that the SBMA will conduct as the agency clamps down on erring companies who have skimped on their obligations to the SBMA. (MPD-SBMA)

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SBMA conducts oil spill exercise to boost emergency response

The Subic Bay Metropolitan Authority (SBMA), along with stakeholders in the maritime sector, conducted an Oil Spill Simulation Exercise (SIMEX) at the Boton Wharf here on Friday to strengthen capabilities in emergency response.

According to Diego Aviles of the SBMA Seaport Department, who was exercise director, the exercise was in line with SBMA thrust to improve its competency to respond in the event of an oil spill, as well as develop better coordination with concerned stakeholders here.

 Aviles said Pure Petroleum Corporation and the Subic Seaport Terminal Inc., including the motor tanker MT WRC1, participated in the simulation.

“Part of the exercise is to test the capabilities of the motor tanker vessel and the Boton port facility, identify concerns among those involved, assess the needed resources to sustain the oil spill response operation, activate the Seaport Emergency Response Team, and measure the deployment of the oil spill equipment and response time,” Aviles explained.

Some groups also joined the SIMEX as observers, he said. These included the SBMA Law Enforcement Department, SBMA Disaster Risk Reduction and Management Council, SBMA Harbor Patrol, SBMA Fire Department, and the Coast Guard Sub-Station Olongapo’s Marine Environmental Protection Group.

Aviles said an oil spill is defined as the release of liquid petroleum hydrocarbon into the environment, especially the marine ecosystem, due to human activity, and is a form of pollution.

He said the term is usually used for marine oil spills, where oil is released into the ocean or coastal waters, but spills may also occur on land.

He added that oil spills may be due to releases of crude oil from tankers, offshore platforms, drilling rigs and wells, as well as spills of refined petroleum products such as gasoline or diesel fuel and their by-products, heavier fuels used by large ships such as bunker fuel, or the spill of any oily refuse or waste oil.

At least nine shipping lines regularly make ship calls in the Subic Bay Freeport, which also receives port visits by military ships from time to time. Records show that ship calls increased from 874 in January to September 2020 to a total of 918 in the same period this year.

SBMA Chairman and Administrator Wilma T. Eisma said earlier that the agency further expects container ship traffic to grow this year after posting a 12 percent increase in containerized cargo volume in the third quarter. (MPD-SBMA)

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