SBMA, Thai firm OK feasibility study of major infra projects

The Subic Bay Metropolitan Authority (SBMA) had signed a memorandum of understanding (MOU) with the Bangkok-based Mahanakorn Partners Group Co., Ltd. (MPG) for the conduct of studies on the viability of various infrastructure projects proposed for construction inside this premier Freeport.

SBMA Chairman and Administrator Wilma T. Eisma and MPG managing partner Luca Bernardinetti on Tuesday signed the agreement here that would allow MPG to conduct studies free of charge on infrastructure undertakings under the proposed “Greater Subic Bay Freeport Multimodal Transport and Access and Logistics Support Projects.”

According to Eisma, the proposed projects are in support of President Duterte’s “Ten Point Agenda” to accelerate infrastructure spending and pump-prime economic development through productivity, trade and investment.

“The projects focus on the different infrastructure developments to be established in the Subic Bay Freeport Zone to catalyze its upgrading towards being a premier free port zone in Asia and the Pacific,” Eisma said.

“We want to help resolve congestion at the Port of Manila and ease traffic gridlock in the metropolis while shifting the momentum of development north toward the corridor of new wealth in Subic and Clark,” she added.

Eisma said that Subic and Clark are now at the epicenter of development as drivers of economic growth in the country.

Part of the study to be conducted will focus on the proposed construction of a 17.273-kilometer bypass road connecting the Subic seaport terminals directly to the Subic-Clark-Tarlac Expressway (SCTEX) to provide exclusive routes for cargoes brought in and out of Subic Freeport.

Another project for study is the proposal to build a 17-kilometer bypass road Subic seaport to Segment 7 of the North Luzon Expressway (NLEX), a two-lane cargo trucks expressway and railway system, and a 25-kilometer bypass road from Tipo Road in Bataan to Castillejos, Zambales en route to the Redondo Peninsula to open up a 3,000-hectare new industrial site.

The MOU also covers the proposed upgrading of the existing Subic Bay International Airport (SBIA) to world-class status, making it a viable alternative to the heavily congested Ninoy Aquino International Airport (NAIA), as well as a strategic transshipment and logistics hub in the Asian region.

Eisma said that under the agreement, the feasibility studies to be conducted by MPG on the proposed projects is free-of-charge and has no future legal or financial commitment from the SBMA.

The agreement between the two parties will remain in force for one year, but may be extended upon mutual consent.

The Mahanakorn Partners Group is a holding company based in Bangkok, Thailand. It is comprised of several firms providing services on business consulting, legal and trade finance, as well as property management and development, among others. (JRR/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma and Mahanakorn Partners Group managing partner Luca Bernardinetti sign a memorandum of understanding for the conduct of feasibility studies of major infrastructure projects in the Subic Bay Freeport. (AMD/MPD-SBMA)

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Subic-Clark railway project feasibility study now underway

The feasibility study for the Subic-Clark railway project being conducted by China Harbor Engineering Co. Ltd. (CHEC) is now underway.

The multi-billion-peso railway project was proposed to the national government by the Subic Bay Metropolitan Authority (SBMA).

CHEC is a world-renowned international contractor and provider of full services in engineering-procurement-construction (EPC), Build-Operate-Transfer (BOT), and Public-Private-Partnership (PPP) for both public and private sectors, providing prestigious services globally and becoming a world-renowned brand in the field of engineering.

SBMA Seaport general manager Jerome Martinez said the Subic-Clark Railway Transit project is part of the P100-billion elevated coastal highway and railway system that would link Subic to Clark Economic Zone and the Port of Manila.

Martinez said the multi-billion project is currently on its data gathering stage: counting the number of cargo trucks passing through, where the cargos are being sent or collected, and the rates.

Aside from CHEC, the official said that there are other proponents that expressed interest in funding the Subic-Clark Railway Transit project.

“There are, actually, many proponents that would like to join in the project. However, the project is still in its conceptual stage where they do data gathering related to the volume, rates and destinations of the cargoes, the range, elevation and other technical issues,” Martinez said.

Aside from the Seaport Department, other SBMA offices (Engineering Department, Project Development Office, Land Asset Management Department, Ecology Center, and Public Works and Transportation Services Group) are members of the technical group that are coordinating with the Bases Conversion and Development Authority (BCDA) in coming up with the feasibility study with engineering consulting firm Atkins.

Meanwhile, PDO manager Vicente Evidente, Jr. explained that the railway development project is one of the priority projects of President Rodrigo Duterte under the “Build, Build, Build” Program that includes Mindanao and Visayas.

For Subic, Evidente said, the railway system will be aligned to the Subic-Clark-Tarlac Expressway. This would save the government from right-of-way issues. There are also plans to connect it with the Clark-Manila Railway up to the Port of Manila. When finished, the rail system will open new investment opportunities and improve container and passenger traffic, as well as help decongest other ports, especially Manila.

The feasibility study is expected to complete by the third semester of the year, while the Subic-Clark Railway Transit project is expected to be finished before the end of the President’s term. (RAV/MPD-SBMA)

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NEDA makes new push for logistics corridors

The National Economic and Development Authority (NEDA) is making a new push to develop logistics corridors, starting with the Subic-Clark-Manila-Batangas (SCMB) corridor as part of a national transport plan.

Initial discussions on the infrastructure planning under the 2010-1016 Medium Term Philippine Development Plan (MTPDP) recommend the creation of "strategic logistics corridors," initially starting off with the SCMB then extending the same northward and then southward.

The MTPDP envisions these corridors as having intermodal transport network system to obtain efficiency.

"The SCMB must be developed to become a seamless intermodal logistics corridor," documents on the initial results of the infrastructure planning subcommittee said.

The documents show how an integrated multi-modal logistics and transport system could not only decongest Metro Manila but also create linkages between business centers and nearby provinces.

This, the NEDA papers said, would help facilitate the efficient flow of commodities and inputs to economic and industrial zones.

"The development of seamless intermodal transport and logistics systems along strategic corridors will promote productivity and competitiveness," the documents said.

The NEDA points to inadequate and unstable funding for the construction and development of facilities as the culprit in the deficiencies in our transport system.

"Assessment of the country’s transport infrastructure network indicates that its quality and capacity remain low, even if the quantity of transport compares favorably with most Asean countries," the papers said.

Subic and Clark are the nearest economic industrial zones to Metro Manila, one offering a port and the other an airport. Metro Manila is linked to the two zones through road networks, the North Luzon expressway and the Subic-Clark-Tarlac expressway.

Linked to Metro Manila by the South Luzon expressway down south is Calabarzon, home to specialized industries and processing activities. The corridors complement each zone’s strengths in agriculture and manufacturing.

The corridor now accounts for 80 percent of the national cargo and about half of yearly economic output. (Malaya Business Insight)

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NCC eyes Subic-Clark-Batangas corridor as international logistics hub

The National Competitiveness Council (NCC) has embarked on an ambitious project to convert the Subic-Clark-Batangas corridor into an international logistics hub in the country's bid to service the rapidly expanding intra-Asian trade and investments.

NCC has commissioned UP professor on urban and regional planning Hussein Lidasan to prepare the terms of reference (TOR) on which the masterplan will have to be based.

Under that agreement, NCC spelled out its vision of developing an inter-modal logistics system covering mega-Manila that will be integrated globally at competitive costs and quality.

The initiative was also designed to decongest Metro Manila by gradually shifting the cargo traffic from its ports to the new ports of Subic and Batangas.

As a prerequisite to making the detailed masterplan, the TOR will answer the questions, what needs to be done, what are the pressing issues and concerns that have to be looked at, what economic development concepts should be reviewed and evaluated that would really be appropriate for the corridor, what would give the private sector to actively participate in developing the corridor, and how would the development of the corridor's inter-modal logistics system be defined to be responsive to such development concepts.

After the TOR, a masterplan would be drawn up for the proposed Luzon integrated logistics hub that covers the economies of Metro Manila, Bulacan, Pampanga and Zambales in Central Luzon, and the Cavite-Laguna-Batangas stretch in southern Luzon. The proposed corridor already accounts for about half of the country's total output, said NCC.

The masterplan would cover cities and provinces along the corridor which would be later owned up and implemented by their local governments in tandem with the national government, strong involvement of public and private sectors, with the private sector coordinating activities leading to the realization of the plan.

The idea of making the Clark Special Economic Zone as the logistics hub in Asia was first proposed by President Gloria Macapagal Arroyo. The NCC's innovation was to include land, air and sea transport along the proposed logistics corridor to the rest of East and South Asia. (Edu H. Lopez, Manila Bulletin)

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P2-B expansion fund for Subic and Clark proposed

The Subic Bay Metropolitan Authority (SBMA) has proposed the creation of a P2-billion fund to enable the development of new economic zones in areas near the Subic Bay Freeport and the Clark Freeport.

The proposal was made by SBMA administrator Armand Arreza during a meeting with the Senate Committee on Government Corporations and Public Enterprises, chaired by Sen. Richard Gordon, and representatives of the Clark Development Corporation (CDC) and the Bases Conversion and Development Authority (BCDA).

Gordon, who has filed Senate Bill 0143, or the “3-3-1 Luzon Global Corridor Act of 2009”, has earlier proposed to develop other special economic zones in Luzon to optimize the three airports in Manila, Subic, and Clark, the three
seaports in Manila, Subic and Mariveles, and the highway and railway connecting these major ports.

The bill also seeks to strengthen the power of the SBMA and CDC, giving them the mandate to develop nearby areas into new economic zones.

To speed up the process, Arreza then proposed the creation of a fund to develop new zones.

“If we wanted for Subic and Clark to reach the level of Singapore, we will need investments the equivalent of either seven Texas Instruments or four Hanjins a year. But to start all these, we need to build roads first,” Arreza said.

Arreza recalled that when SBMA and CDC were formed, the primary intention was to create jobs for those affected by the eruption of Mt. Pinatubo in 1991 and the pull-out of the U.S. military from Subic and Clark in 1992.

However, he pointed out that the business model that supports the growth of Subic and Clark “to a certain level, is very limited, as they rely primarily on leases or income from land, which is a finite resource.”

Arreza noted that to carry out their new mandate of developing nearby communities, Subic and Clark would require a tremendous amount of annual investments in the next 10 years to fund various public infrastructures, such as roads, water and sewerage systems, as well as technical schools that would help reduce skills mismatch.

He also stressed that an eco-metric study made by the SBMA showed that Vietnam and China invested anywhere between 7-8 percent of their annual gross domestic product in infrastructure to boost their edge as investment sites.

In contrast, the Philippines spends only 3 percent of its GDP for the same purpose, Arreza added.

Responding to Arreza’s proposal, Gordon said he would file a bill that would set aside part of the taxes collected by SBMA and CDC in the next 20 years to develop more eco-zones in their areas.

Gordon added that Subic and Clark should be allowed to set aside parts of their income solely for infrastructure development within the area to make the Subic-Clark growth corridor constantly competitive.

Noting that Subic is remitting about P6 billion from its income each year to government coffers, Gordon said the contribution should be waived.

“Huwag na munang magbayad ang Subic (Subic should be allowed to waive payment),” said Gordon, who also served as the first SBMA chairman. “Can you imagine if we put the money generated from taxes and spread this in those areas to make industrial parks? We’ll have accelerated development,” he added.

Under his 3-3-1 Bill, Gordon has also identified other areas for development, aside from the Manila-Subic-Clark triangle. These include parts of Bataan, Zambales, Tarlac
and Pangasinan.

Gordon said these areas are ideal FOR THE development of industrial parks for factories, as well as heavy- and light to medium industries. He also wants “open skies” or a liberalized air transport system in these areas in order to attract more commercial planes and maximize the potentials of the existing air facilities.

“This will ensure development, because the more you improve the ports, the more investments will come in, and that is basically the use of this law,” the senator also said. (SBMA Corporate Communications)

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Here comes the roadtrain: Subic to launch cost-efficient trucking system via SCTEx

A trucking system popularly used in Argentina, Australia, Mexico, United States and Western Canada to efficiently transport bulky loads will soon be seen for the first time along the Subic-Clark-Tarlac Expressway (SCTEx).

Expected to hit the SCTEx in the fourth quarter this year, the so-called road train or “triples,” as it is known in the U.S. and Canada, will be introduced by the International Heavy Trucks Center (IHTC), a Subic-registered enterprise.

The roadtrain consists of a conventional tractor pulling not just one trailer, but two or three using a trailer truck dolly. A trailer dolly is a single-axled articulated fifth wheel that connects two or three trailers pulled by a tractor head.

IHTC said the use of the roadtrain at the SCTEx was arranged through continuous coordination with Philippine National Construction Corporation.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said that the use of trailer truck dollies via the SCTEx “will mean big savings and provide more efficient means of transporting goods between Clark and Subic.”

“We’re sure that the trailer dollies will attract not only more investors and port users in Subic and Clark Freeport zones, but also other importers and exporters from Central and Northern Luzon,” Arreza said.

He explained that the introduction of the trailer dolly would also lower freight cost because two or three more trailers can now be connected behind the main trailer.

Arthur delos Reyes, SBMA consultant for special projects and economic development, said the IHTC will initially be using two trailer dollies that are about 90-feet long each.

The trailer dollies are “very safe and road worthy,” he added.

“Being the first in the Philippines, this cost-saving mechanism is expected to encourage heavy port users in Central Luzon to use Subic, thus increasing shipments in the Freeport,” Reyes said.

Reyes also said that the new transport concept will be used only in the SCTEx, which connects the free ports of Clark and Subic, because the roads leading to the ports of Subic and Clark are wider and hardly have any traffic problem.

The truck dollies, however, cannot be used presently in the North Luzon Expressway or South Luzon Expressway, he added. (SBMA Corporate Communications)

PHOTO:
The roadtrain, a cost-efficient trucking system expected to lower freight cost, will be introduced at the Subic-Clark-Tarlac Expressway.

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Gordon bill to expand Subic, Clark ecozones gains support

A proposal by Senator Richard Gordon to allow the Subic Bay Metropolitan Authority (SBMA) and the Clark Development Corporation (CDC) to develop more economic zones in neighboring areas gained more adherents during committee deliberations on Wednesday.

Gordon, who heads the Senate Committee on Government Corporations and Public Enterprises, received assurances from concerned national government agencies, government corporations and local government units (LGUs) that they would support development thrusts in the Subic-Clark growth corridor as envisioned in Gordon’s bill.

The agencies included SBMA and CDC, Bases Conversion and Development Authority (BCDA), Philippine Ports Authority (PPA), Department of Finance (DoF), and the Philippine National Railways (PNR).

Representatives from the provincial governments of Zambales and Bataan likewise attended the hearing and expressed support to the proposal.

According to Gordon, Senate Bill No. 143 seeks to maximize the vision of the Subic-Clark growth corridor to decongest Manila and open up more livelihood opportunities in areas between the Subic, Clark and Manila, as well as along the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEx).

Gordon also said that by creating more special economic zones near the two free ports, the government could optimize the use of the three airports in Subic, Clark and Manila, the two seaports in Subic and Manila, and the connecting highway and railway in Luzon.

Agreeing to Gordon’s proposal, SBMA Administrator Armand Arreza suggested that funds for the acquisition of lands for conversion into economic zones be sourced out from the 5 percent gross revenue tax collected by SBMA and CDC from their business locators.

“The challenge would be in the consolidation of the adjoining lands, and to spur the development of the prospective ecozones we shall need adequate funding,” Arreza said, pointing out that most of the lands along the SCTEX are already titled, based on a recent survey conducted by the Subic-Clark Alliance for Development Council (SCADC).

Meanwhile, PNR chairman Mike Defensor commended Gordon for coming up with a proposal to hasten the development of the Subic-Clark growth corridor.

Defensor revealed that his agency will be starting the Northrail project next month to enhance the benefits of the SCTEx and encourage more trade and livelihood opportunities in the Central and Northern Luzon regions.

“We will support the development of more economic zones,” Defensor pledged.

He added that, in particular, the Northrail project will further boost existing means to transport commuters and products in the area.

In the same hearing, Gordon also brushed off concerns by representatives of the Philippine Economic Zone Authority (PEZA) that Gordon’s proposal would duplicate the PEZA law by creating another agency to oversee economic zones.

“This is not a territorial tug of war. What I want to see out of this bill is just development,” Gordon added.

Aside from getting their support, Gordon also asked the concerned agencies and LGUs represented in the hearing to form a technical working group to collate suggested measures for incorporation in the bill.

“We’ll put the bill on the floor in two weeks,” Gordon said.

Two other measures seeking to amend Republic Act No. 7227, otherwise known as the Bases Conversion and Development Authority Act of 1991, are under deliberation by Senate committees.

The bills, which both seek to expand revenue allocations from the sale, lease, joint ventures and other transactions involving military bases and reservations in the country, are authored respectively by senators Jinggoy Estrada and Rodolfo Biazon. (SBMA Corporate Communications)

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