Bases Conversion and Development Authority (BCDA) President and CEO Engr. Joshua M. Bingcang said the expansion of the airside facilities to efficiently support the operations of three new foreign logistics firms at the Clark International Airport involves around P2.5 billion in investments.
In a media briefing on Tuesday, Jan. 16, Bingcang remarked that the expansion of the facilities is an urgent project that the BCDA must immediately plan and construct this year. This includes the construction of additional cargo terminals, aprons for plane parking, and taxiways, as well as widening spaces to accommodate continuous flights of up to 18 planes.
He said that the undisclosed firms, which have already signed a term sheet and memorandum of agreement (MOA), have given the BCDA two years to prepare the facilities since they are “eyeing a two-year period to start operations once they sign the agreement.”
Clark was chosen as the Asian hub of the logistics firms, providing a gateway to Japan, South Korea, China, and Hong Kong among other places, in line with their respective global operations.
Their hubs in Clark will be used more as a processing terminal, with sorting facilities to conduct the transshipment of goods.
The logistics firms will be occupying an estimated 20 hectares of land space in the airport. However, the airport can accommodate eight spaces for eight additional logistics companies which is around 70 hectares of land.
Once operational, Bingcang said the logistics firms can bring in additional revenues worth P1 billion annually, some of which can be accrued from lease, landing, and take-off fees among other charges at the airport.
Bingcang noted the importance of brand image that the foreign direct investment (FDI) will be able to harness for the country as they choose to operate in Clark, citing how the Philippines has long been bypassed in favor of other countries in Southeast Asia like Vietnam and Thailand.
Aside from that, around 3,000 to 4,000 jobs are expected to be generated when the logistics firms begin their operations.
The timeline of the logistics project is expected to be announced in the first quarter of the year. Currently, they are also coordinating with the Bureau of Customs (BOC) to ensure the local regulatory environment is conducive to these businesses.
The logistics firms that have already settled operations at Clark are multinational shipping company FedEx Corporation, Singaporean-owned SIA Engineering Company, and Hong Kong-based jet operator Metro Jet Limited.
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The article was originally published in Manila Bulletin and written by Khriscielle Yalao.
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