SBMA signs in new investments worth $14.4 million

The Subic Bay Metropolitan Authority (SBMA) on Wednesday has approved 43 contracts of new investment commitments, as well as renewal of leases for investor-companies, worth some $14.4 million (P720 M).

“SBMA is on its way to another record-breaking year in terms of investment generation,” SBMA OIC Administrator Randy Escolango said during a mass contract-signing ceremony held at the Subic Bay Exhibition and Convention Center.

Escolango added that since the year 2012, SBMA has also sustained record revenue collections that saw the agency rise from a bleeding agency to become a top contributor to the national coffers among Government Owned & Controlled Corporations (OGCC), with accumulated funds of some P4B in the bank.

The new contracts and renewals involved 12 projects under the general business and investment department; two for information and communications technology; 18 for leisure; seven for logistics; and another two for manufacturing and maritime.

The new investments, Escolango said, manifest the continuing confidence of the investor community in the Subic Bay Freeport, pointing out that the SBMA has already approved a total of P111.5-billion worth of investments since January until September this year.

“With a 7% growth in the country’s gross domestic product (GDP) forecast for next year, and with Central Luzon contributing about 10-12% of the GDP, it cannot be denied that the Subic Bay Freeport Zone contributes significantly to national economic growth,” Escolango also said.

According to Ronnie Yambao, OIC Deputy Administrator for the SBMA Business Group, the projected investments to be generated under the 43 new contracts totaled $14,409,443. This is on top of the $728.6 million total that the said firms have initially committed to invest in this free port.

Leading the list of new companies with significant committed investments are Broadband Broadcast Services, Pte. Ltd., with P220 million for a cable and pay television services venture that would employ 88 personnel; and Autokid Subic Trading Corp., which has set aside P25 million for a project that would employ 25 workers.

Meanwhile, companies with substantial commitments for expansion projects include Subic Horizon Hotel, which has set aside P60 million for additional hotel facilities; Royal Duty Free Shops, which allotted P50 million for the renovation of its main store in this free port; and GigaMare Inc., with $204,500 worth of additional investments for its maritime training facility here.

It was the first time in almost six years that the SBMA again conducted a mass contract-signing ceremony for Subic-registered companies.

Rose Baldeo, president of Global Terminals & Development Inc. and chairperson of the Subic Bay Freeport Chamber of Commerce, said the occasion “is a sign that the SBMA is moving forward” despite a recent leadership row in the agency that has reportedly stalled some investor-related business operations.

In response, Yambao assured the business locators here that the SBMA is ready to provide them with “fast, flexible and friendly” service.

SBMA Sr. Deputy Administrator for Support Services Ramon Agregado also assured the agency's unwavering support to locators and its commitment to transparency, citing the recent launch of the one-stop shop and SBMA's continuous ISO and management reforms. (HEE/NBM/MPD-SBMA)

PHOTOS:
[1] SBMA OIC Administrator Randy Escolango (left) congratulates GigaMare President & CEO Jari Ullakonoja after signing a contract for business expansion during a mass contract-signing ceremony for Subic Freeport investors on Wednesday. (AMD/MPD-SBMA)

[2] SBMA OIC Administrator Randy Escolango (left) signs the contract with an official of Triboa Medtech, Inc., which renewed its lease contract with the SBMA during a mass contract-signing ceremony for Subic Freeport investors on Wednesday. (AMD/MPD-SBMA)

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Shoe manufacturer now in Subic Bay Freeport Zone (updated)

Construction of a manufacturing facility that will produce branded shoes for export is now in progress in this freeport.

Datian Subic Shoes, Inc. will have its 42,800-square meter area shoe facility located at Phase II of the Subic Bay Gateway Park.

A statement from Datian Subic said the company was established in Taiwan in 1972 and in China in 1992 and is now expanding its scale of business to suffice the capacity of production and comply with international trends.

The statement said the company has chosen the Philippines "thru Subic Bay Freeport Zone, being a strategic location as it is near the (sea) port and airport."

"Its secured environment, accommodating, friendly and well-educated workforce are the key factors why Subic was the choice among the rest of location that was studied for," it added.

Datian Subic will produce branded vulcanized shoes for export and is expected to generate additional jobs for communities around the freeport zone.

Datian Subic President Vincent Chen said the company is looking forward for a strong and harmonious relationship with the Freeport and its community.

"The company’s philosophy is to meet customers need, seek excellent quality service and primary welfare to all employees," Chen said.

"This will be a good start for the year 2017 with the new Freeport Leaders and will be the year for Datian Subic Shoes full operation," Chen added.


PHOTO:

A construction worker pushes his wheelbarrow in front of the building that will house the assembly line for Datian Subic Shoes, Inc. (AMD/MPD-SBMA)

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China’s Jovo to start ship-to-ship cargo handling in Subic

China’s leading clean energy service provider Jovo Group Company Ltd. Guangdong (Jovo) on Wednesday said it is ready to engage in ship-to-ship operations in Subic Bay.

The ship-to-ship (STS) transfer operations will involve oil tankers carrying liquefied natural gas (LNG) from Asia Pacific that will be transferred to smaller vessels bound to ports in China. STS addresses the shipping of petroleum products to China as most of its ports cannot accommodate bulk carriers because of depth issues.

A petroleum carrier that transports LNG through ship-to-ship (STS) transfer

In a public consultation, Jovo International Business general manager Yuan Lu said the LNG will be brought to Subic Bay from Australia and Indonesia by Belgium-flag carrier, a 94,000-ton bulk carrier. The cargo will then be transferred while at sea to a smaller 47,000-tonnage capacity ship bound for China.

Lu said that the STS operations of Jovo in Subic will be assessed after five years, results of which will determine if a regional hub should be established here to accommodate delivery of LNG to the local market and the rest of Southeast Asia.

He said Jovo’s long-term plan is to introduce the LNG to local markets in the Philippines, especially those in the transportation sector as this kind of fuel is safe and environmentally friendly.

Lu said that company Jovo has decades of comprehensive experience in clean energy shipping, storage, processing and sales with zero accidents, and assured that LNG and the STS operation will be environmentally safe.

The consultation was attended by local fishermen, members of the Philippine Coast Guard, PNP Maritime Group and workers of Subic Bay Metropolitan Authority (SBMA) held at the SBMA Seaport Admin Building.

Fishermen belonging to Subic Bay Fisheries and Aquatic Resource Management Council (SBFARMC) said they are grateful to SBMA and Jovo for the holding of the consultations prior to the start of the STS operation in Subic.

“We are thankful for the invitation of SBMA headed by its new chairman Martin Diño and Jovo for this consultation for them to hear our concerns and enlighten us on this ship-to-ship operation that might affect our livelihood,” said SBFARMC chair Laureano Artagame.

Artagame noted that large ships oftentimes occupy the fishing areas of small fishermen in Subic Bay, but with the consultation, accidental “intrusion” can now be avoided.

Meanwhile, China Classification Society (CCS) senior engineer Fan Hong Jun, in his presentation, compared highly combustible gasoline or liquefied petroleum gas against LNG which has lesser greenhouse effect and is lighter than air, making it safer in case of spillage.

With a property temperature of -162 ̊C, LNG is hard to burn but evaporates rapidly, Fan explained, adding that if it spills into our oceans or even into our water source, it will not affect marine life, and our water remains safe to drink.

“It burns slowly, and does not mix with water nor kill fish or any other marine life. LNG is very environmental friendly,” he said.

In terms of revenue, Fan said the Port of Subic will earn tens of millions of pesos from services, including tug boat services, port services and anchorage. This does not include indirect revenue from payments for tugboats, chandlers, bunkering and food supplies. (RAV/MPD-SBMA)

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Fendercare Marine to start Subic Bay operations

Fendercare Marine, one of the world’s biggest ship-to-ship (STS) cargo transfer service providers, is opening its services in Southeast Asia by bringing its operation to Subic Bay.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said that among the investment projects approved by the SBMA board of directors recently was Fendercare’s proposal for ship-to-ship transfer of liquefied natural gas (LNG).

A world leader in ship-to-ship transfers, Fendercare operates from a global network of over 50 bases

The operations, Garcia said, will generate a minimum of P50 million a year in terms of port use only. This does not include indirect fees like payment for tugboats, chandlers, bunkering, and food supplies, Garcia added.

Jerome Martinez, manager of the SBMA Seaport Department, said the company is planning to start its operation in Subic Bay in the last week of September this year.

In connection with this, he said that Fendercare Marine business development manager William Barker and the company's Asia Pacific commercial manager Capt. George Mills recently conducted an orientation for Subic stakeholders to answer queries and concerns related to the their operations in Subic Bay.

“It is because of the location, the logistics available, and the assistance that the company is receiving from SBMA that Fendercare Marine has chosen Subic as the location for its operation in Asia,” Barker said during the briefings.

Barker noted that the operation would initially involve two ships: MV LNG Excel, a mother ship anchored at Subic Bay and loaded with LNG from Australia, which it would feed to MV LNG Lerici, a daughter ship, which in turn would deliver the cargo to Asian destinations, especially China.

The same officials also briefed fisherfolk in the coastal communities of Subic, Zambales, and Olongapo City on the project.

In the said briefings, Fendercare representatives also allayed fears of adverse environmental impact, saying that LNG is a very safe form of fuel that is why it is widely used in Japan where one shipload of LNG is said to be unloaded every 20 hours.

“It burns slowly, evaporates rapidly, and does not mix with water or kill fish or any other marine life. LNG is very environmental-friendly,” company officials said.

Fendercare Marine, which is a part of James Fisher and Sons plc, has been awarded a certificate of excellence for STS operations throughout 2015 for its exemplary safety record without any environmental accident since it began STS services in 2013, involving LNG transfer.

The company has provided ship-to-ship services to the oil and shipping industries globally since 1995. Today these services are provided from a global network of 50 bases, currently handling in excess of 2,800 transfers a year, the company website said. (RAV/MPD-SBMA)

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