SBMA, San Antonio to jointly develop 10,000-ha. ecozone

SUBIC BAY FREEPORT – The municipal council of San Antonio, Zambales formally turned over to the Subic Bay Metropolitan Authority (SBMA) an area covering 10,000 hectares for development into an economic zone.

The turnover was made possible by virtue of Sangguniang Bayan Resolution No. 13-080, which declared over 10,000 hectares of land and water as the San Antonio Economic Development Area, and allowing it for conversion as an additional secured area of the Subic Bay Freeport Zone.

The resolution further declared that the areas of Sitio Silangin, Nagsasa and Talisayin in the Redondo Peninsula be included within the additional area and entitled to the tax- and duty-free privileges of the Subic Freeport.

The resolution was passed by the San Antonio town council on November 19, 2013.

SBMA Chairman Roberto V. Garcia formally received a copy of the resolution from San Antonio municipal mayor Estela Antipolo during a turnover ceremony here on Monday, December 2.

Garcia said that he was pleasantly surprised by the swift action of the San Antonio municipal council in passing the resolution.

He added that the decision is very timely, since the Freeport is already lacking available land area for development.

“Many foreign investors are inquiring, and we are having a hard time to respond to them due to the lack of available land,” Garcia said, pointing out that there are only less than 300 hectares of land available within Subic’s fenced area.

The SBMA official, who just returned from an investment mission in Japan to promote the Subic-Clark Corridor, related that Japanese investors are very interested in doing business in the country.

“So the resolution comes at a very good time because of the high interest of foreign investors in the Philippines in spite of the difficulties that we are having right now because of Yolanda. We should take advantage of this,” Garcia said, stressing that investor confidence in the country remains strong.

Antipolo, for her part, said that the town council came up with the resolution to ensure the progress of San Antonio.

“We are doing this for the welfare of the people, to ensure economic prosperity, increase revenue for the local government, and provide employment opportunities for the people of San Antonio,” she said.

Antipolo assured everyone that the local government of San Antonio will do its part in attracting investors through programs that will promote transparency in government and cut red tape in business transactions.

“On behalf of the people of San Antonio, I look forward to an enhanced cooperation between our offices,” Antipolo told Garcia and other SBMA officials. (FMD/MPD-SBMA)

PHOTO:
Mayor Estela Antipolo of San Antonio, Zambales hands over to SBMA Chairman Roberto V. Garcia a copy of the resolution declaring a portion of the town's southern coastal tip as economic development zone. The area is being eyed for development by the Subic Bay Metropolitan Authority under its expansion program. Also in photo are members of the San Antonio town council led by Vice-Mayor Lugil Ragadio and other SBMA officers.

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Subic Freeport, Nayong Pilipino turning in profits

CLARK FREEPORT—The financial viability of the Subic Bay Metropolitan Authority (SBMA) and the Nayong Pilipino sa Clark Expo (Nayong Pilipino) appears to have turned for the better lately in spite of prevailing global economic uncertainties brought about by slow-downs in First World markets (the US and Europe) and political turmoil besetting the Middle East.

SBMA Chairman and Administrator Roberto V. Garcia reported that the country’s first free-port zone sustained a profitable operation this year that began in 2012 ending a losing streak since it opened for business in 1992.

But due to increased expenditures, this year’s SBMA gains would somewhat be lower than last year’s P800 million on the back of projected year-round total operating revenues of P1.476 billion. In 2012 operating revenues reached P1.151 billion.

On the other hand, the losing Nayong Pilipino also began posting moderate gains beginning in 2012, when gross revenues soared to P24 million.

Nayong Pilipino trustee and Executive Director lawyer Apolonio B. Anota Jr. said the facility is now stronger financially both in gross and net revenues.

Anota traced the turnaround in the cultural-cum-resort venture of Nayong Pilipino in this free port to increased visitor arrivals in the past 20 months from a measly annual number of 20,000 to 300,000 as a result of improved management and introduction of new attractions.

Both Garcia and Anota were guests in Friday’s double media forum “Balitaan,” hosted weekly by the Capampangan in Media Inc. at its headquarters at the Bale Balita (House of News) here.

Garcia reported that locators’ committed investments in the SBMA this year could hit P24.8 billion, a hefty jump from the preceding year’s P2.3 billion.

The SBMA’s current 1,000 locators, which provide some 89.921-percent employment opportunities, are forecast to register a 33-percent dip in export receipts to $650 million this year from $963 million the previous year due to the global economic slowdown.

But there’s excitement in the Subic free port, Garcia said, brought about by the rising number of prospective locators, as well as those that have actually implemented their plans, led by the rising P20-billion complex of Resom Resort City Subic and the expansion of the floating terminal of Vale Holding Shipping Pte. Ltd., which services major iron-ore suppliers to China.

The SBMA, together with this free port, has been picked to host the senior ministerial meeting of next year’s scheduled Apec summit the Philippines is hosting, which could trigger the realization of the planned Subic-Clark business corridor, Garcia said.

As envisioned, the land on both sides of the Subic-Clark-Tarlac Expressway connecting Clark and Subic is to be developed into commercial-industrial areas to attract more local and foreign business locators.

“We’re also looking forward to generating fresh revenues from the prospective transfer of some of the operation of the Philippine Air Force to Subic,” Garcia said.

With its improving financial muscle, Garcia expressed optimism that the free port could finally pursue the programmed upgrading of its port and other facilities, as well as an increase in the compensation of SBMA personnel.

Sources said that the SBMA management has submitted to the Office of the President its proposed P65-million wage-hike package for SBMA employees. (Ashley Manabat, Business Mirror)

http://www.businessmirror.com.ph/index.php/en/news/economy/22632-subic-freeport-nayong-pilipino-turning-in-profits

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Emirates’ maiden flight brings bright prospects for Clark, Subic

CLARK FREEPORT — With the arrival of the inaugural flight of Emirates Airlines from Dubai to Clark on October 1, more investors are mulling over of moving into this vibrant free port which was once a former US military facility located some 80 kilometers north of Manila.

Economic indicators show that this free port and Subic, a former US naval base which lies some 50 kilometers west of this free port, are beginning their transformation into world-class business and travel hubs with the overhaul of the Clark International Airport (CIA) in preparation for Emirates Airlines and as the Philippines’ new international gateway.

“The renewed and increased economic activity and the positive future of tourism up north of Metro Manila make investors bullish about investing,” Gigie Baroa, Emirates Philippines country manager, said. This renewed development has also prompted the First Philippine Industrial Park Inc. (FPIP) of the Lopez group of planning to develop industry parks here and in Subic, complementing the rise in investor confidence.

Business indicators also show that industrial parks, offices and residential developments are on the rise, further fueling the area’s potential for economic and tourism development.

The same is true with the upcoming investments and expansion of manufacturing and business-process outsourcing (BPO) firms, which in turn, drive higher demand in the retail market. (Ashley Manabat, Business Mirror)

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Lopez group eyes industrial park in Clark, Subic

MANILA - Lopez-led conglomerate First Philippine Holdings Corp says it is eyeing Clark and Subic to be the site of the next industrial park it is building.

This comes amid increasing demand from foreign manufacturers following the country's winning back-to-back investment grade ratings and improving infrastructure.

The Lopez group has already expanded its existing industrial park in Sto. Tomas, Batangas from 300 hectares to now a 450-hectare economic zone after it attracted 5 new locators - Japanese printer companies Canon and Brother, electronic components producer Murata, aircraft interior fabricator BE Aerospace, and Danish maker of hearing aids, Sonion.

That brings the number of locators in Sto Tomas industrial park to over 60, employing 40,000 and by 2014, up to 50,000.

But FPH CEO Federico Lopez said they're in talks with five more new locators, mostly Japanese, so that they'd need more room for them.

"There will be more suppliers/contractors coming in to be close to their main customers (like Canon, now a locator at First Phil Industrial Park)," Lopez told a media briefing after the company's annual stockholders meeting.

Industrial parks contribute about 15% to FPH's revenues. (ABS-CBN news)

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2013 a productive year for Subic - SBMA chief

Subic Bay Metropolitan Authority Chairman and Administrator Roberto Garcia announced several huge projects for Subic Bay Freeport this year.

Garcia said most of the negotiations with different investors done last year would be pushing through in 2013.

Resom Resort Co., Ltd project in Minanga, in Morong, Bataan was sidelined because of a land dispute but this year, but Garcia said it will pursue three major builds.

Garcia said the first will be a multi-million dollar luxury hotel at the former mini golf area along the famous waterfront road.

The second will be a hotel, casino and spa in Cubi and a golf course in Minanga in Morong, Bataan.

Resom will invest an estimated P600 million in the projects, Garcia said.

Ocean Nine, which was also side-tracked last year due to a legal problem will start to renovate the former Legenda Hotel.

“Included in their license which is expected to come out this week is for the operation and renovation of the former Legenda hotel and the El Centro Convention Center,” Garcia said.

“These two project will infuse $30 million,” he added.

Another company in the leisure industry which will be doing a project in Subic this year is Holiday Inn with an estimated investment of P1.8 billion.

The agency is also looking for an investor to lease out the current administration building along waterfront road.

The administration building is considered as a historic landmark in Subic to some because this building was the former command center of the United States Navy.

Talks are currently being held with companies into aircraft and maintenance service, he added.

“We are also talking to several Hong Kong companies who are considering to relocate operation in Subic.” Garcia said.

“One company we are talking to right now has 16 and the other one has 36 charter jets, if all goes well, the airport will be a busy place this year,” he said.

Vale, an iron ore transshipment company who brought around P60 million in revenues for Subic last year is looking at doubling its revenues this year, he said.

Subic’s port is also expected to be busy after Garcia said Purefood, San Miguel and another fertilizer firm expressed keen interest in it.

Black and Decker, a US-based powertool manufacturer, will also be setting up shop in Subic soon, Garcia said.

“With all this investments coming this year, we are confident that Subic will prosper this year and we hope that we can sustain all of this and add more,” he added. (Anthony Bayarong, Philippine Star)

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2 European firms to invest $600M in shipbuilding

Subic Bay Metropolitan Authority chairman Roberto Garcia yesterday reported that two European companies will invest $600 million building small ships in Subic, encouraged by the success of Hanjin Heavy Industries.

Garcia declined to elaborate further, saying that inquiries were made last year. Garcia said during a break in the Philippines Ports and Shipping Conference at the Manila Peninsula yesterday that Subic has become an ideal investment destination for maritime and tourism.

He also reported that SBMA was able to turn around from 2011’s losses of P1.2 billion to profit of P789 million last year.

Garcia attributed the turnaround to increased revenues, reduced operating expenses and a favorable exchange rate.

SBMA raised 16 percent more in revenues last year than in 2011 on the entry of new major projects in seaport operations such as the Vale ore transshipment project and the start of commercial operations of the Phase 2 of the New Container Terminal.

Coupled with an aggressive collection campaign on existing accounts, new revenue streams were created through increased admission fees on importations and the imposition of fees to defray municipal expenses that were previously subsidized.

Operating expenses decreased by 7 percent versus 2011, as the SBMA implemented a comprehensive austerity program.

Salaries similarly dropped by 7 percent as a freeze hiring policy was implemented and the manpower count decreased. Repairs and maintenance expenses likewise fell 46 percent and advertising expenses were slashed by 35 percent from 2011 levels. As a result, earnings before interest, taxes and depreciation (EBITDA) jumped from P329 million in 2011 to P629 million – a 91 percent increase.

Due mainly to favorable exchange rates, SBMA registered an unrealized foreign exchange gain of P1.1 billion in 2012, versus the previous year’s forex loss of P566 million. (Irma Isip, Malaya)

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