The Subic Bay Metropolitan Authority (SBMA) is targeting P30 billion in investments this year as more manufacturing firms are relocating and expanding while service establishments have reopened their facilities after the pandemic and in anticipation of the huge operation of the US private equity firm Cerberus Frontier, which acquired the former shipyard of Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) at the Subic Bay Freeport.
“We are looking at P30 billion this year because we have lots of proposals and there are pipeline investments already,” said Rolen C. Paulino, SBMA chairperson and administrator, noting the 2023 investments target would surpass pre-pandemic performance.
Although the SBMA investments target for 2023 was lower than 2022, the new goal exceeds the Freeport’s performance pre-pandemic. Investments in Subic already reached over P50 billion from only P16.695 billion in 2021 and P1.379 billion in 2020. SBMA registered a total of P5.891 billion in 2019.
He shared of some inflows that are certainly coming in this year to include the expansion of the $500 million expansion of Nidec in the Freeport.
Another Japanese firm Sanyo Denki held a groundbreaking for a 30-hectare complex for its $10 million expansion of its computer parts manufacturing. Sanyo Denki is expected to hire additional 1,000 workers initially. Sanyo Denki is exporting its computer parts globally.
There are also several manufacturing firms, particularly electronics, that are expanding or relocating in the Freeport.
Several services establishments, such as hotels and restaurants and other recreational facilities, are ramping up operations and other facilities are being rehabilitated to cater to the needs of locators.
The opening of more services, he said, is also in anticipation of the resumption to full operation of Cerberus, which acquired the ship repair facilities left by the bankrupt
Paulino noted that Cerberus has already started operation for ship repair in August last year, but the Philippine Navy has already set up its base on one side of Hanjin facility ahead of the ship repair facility.
So far, Cerberus has already 200 employees. Paulino sees a “very big” Cerberus operation in 2024.
In addition, global logistics giants FedEx and DHL will be back in Subic although on smaller scale operations with probably one small plane daily for the distribution of cargoes to Manila and other parts in the country.
Paulino said that FedEx used to operate 10 flights a day when Subic was still its regional hub.
With more businesses, Paulino also expects the Subic ports to improve its transshipment operation. “We are a transshipment port unlike Manila, which is for distribution,” he added. At least five ocean-going vessels call in Subic port daily.
Its connectivity with Clark through the Clark-Subic Expressway is also complementing the connectivity of the two freeports.
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The article was originally published in Manila Bulletin and written by Bernie Cahiles-Magkilat.
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