Philippines: In order to develop Subic Bay into a service and logistics centre, the Subic Bay Metropolitan Authority (SBMA) is seeking to expedite the development of priority investment zones there this year.
SBMA administrator Armand Arreza said the agency has identified eight separate initiatives to develop more areas for business locators in the Subic Bay Freeport.
These include the redevelopment of Subic's Central Tourist District, rezoning of the Subic Gateway Park for commercial and mixed-use development, conversion of the 16-hectare marshalling yard into the Gateway Business District, establishment of anchor educational institutions at the Paradise lot, development of a maritime industrial complex around the Hanjin Heavy Industries shipyard, development of integrated resorts in Cawag and Minanga, redevelopment of the Subic Bay golf course, and the push for outward expansion.
Arreza said the development of new investment sites is crucial to sustaining Subic's development momentum in the face of Subic's limited available open space.
Developed mainly as a base for the US Navy, the Subic free port zone has a land area of only 55,102 hectares, most of which are triple-canopy forests designated as part of the National Integrated Protected Area System (NIPAS).
"We are very proud of the fact that we have attracted cumulative investments worth more than US$7.16 billion and almost 1,500 investment projects as of 2010. Unfortunately, these investments won't bring any economic benefit to us if they do not materialise for lack of space," Areza pointed out.
Among the investment initiatives at the Central Tourist Disrict are the redevelopment of the Subic Bay Yacht Club by a private group that recently purchased the property from Land Bank; and the development of a cruise ship terminal by Global Terminals.
Meanwhile, across Subic Bay, the SBMA is encouraging the development of a new maritime industrial cluster around the Hanjin shipbuilding complex. This will be a 50-hectare site to be developed as support industrial facility for the Korean shipbuilder.
Arreza explained that Hanjin is now both the biggest importer and exporter in Subic because it has to import practically 100 percent of the components used for its ships.
"We believe that to be able to capture more value and create more jobs here, it is important for us to begin the task of building a maritime industrial cluster to support Hanjin," Arreza said.
"Already, there is about US$4.8 billion worth of business that is available for companies who might want to supply Hanjin with steel, motor components, electrical components, gauges, panes, and other mechanisms necessary in manufacturing ships," he added.
