Civic group backs Subic joint venture

MANILA, Philippines - A civic group has expressed support for plans by the subic Bay Metroplitan Authority (SBMA) to enter into a joint venture with a major port operator for the management and development of five of its bulk and break-bulks terminals.

The Tanglaw ng Bayan lauded the proposed move, saying the planned joint venture with the Harbour Centre Port Terminal Inc. (HCPTI) “will have significant direct and downstream benefits.”

In a statement, professor and civic leader Bayani Santos Jr., Tanglaw ng Bayan spokesman, said the commitment of HCPTI to pump in up to P200 million for the development of the ports “will transform them into world-class facilities that will surely attract bigger and more business.”

“This actually looks like an overdue move on the part of the SBMA,” Santos said. “Subic has lagged behind other major ports in the Asian region because of the absence of all-out expansion and development,” he added.

“We believe SBMA should have scouted a long time ago for a major partner who is willing to pour in the huge amount necessary for such development,” he explained.

“But we are not blaming SBMA since we know its hands were tied due to its existing agreements with the present operators,” Santos said. “But we hope that this time, it will not forfeit this opportunity for Subic to catch up with other ports in the Asian region,” he underscored.

In addition to a commitment to pour in some P200 million for port expansion and development, the joint venture also guarantees SBMA a total minimum fixed revenue of $32 million over a period of 25 years. It also commits a variable revenue share of 15 percent per annum which moves up to 20 percent during the contract period.

According to Santos, SBMA “has a double benefit under the proposed joint venture.” It will earn bigger income while expanding its facilities without spending a single centavo, he explained.

Santos also questioned claims that the joint venture will result in job losses. Our view is that it will actually create more jobs,” he said. “With the growth of demand for allied services, there will definitely be additional need for manpower,” he added.

He urged SBMA “to act with dispatch since delays in the consummation of the joint venture agreement means growing opportunity losses not just for the government but also for the local business community.”