SBMA pushes Subic port as one-stop logistics hub

SUBIC BAY FREEPORT, Philippines — The Subic Bay Metropolitan Authority (SBMA) is setting for the promotion of the Port of Subic as a one-stop logistics center, now aiming to establish and expand more facilities here to accommodate virtually all types of maritime cargo.

This would entail the complete privatization of the New Container Terminal-2 (NCT-2) and the Naval Supply Depot (NSD), the expansion of oil depots and the grain terminal in Subic, and the development of a floating logistics center for mineral transshipment.

“We’re all set to do all these this year so that we can promote more cargo traffic for Subic,” explained SBMA Administrator/Chief Executive Officer Armand Arreza. “I think that after we have built all the cargo terminals and related infrastructure, what remains now is the challenge to build up volume,” he added.

Arreza said the SBMA would pursue this year the privatization of the NCT-2, which has an annual capacity of 300,000 twenty-foot equivalent units (TEUs), and the NSD wharves which are ideal for break-bulk and general cargo.

“The New Container Terminal-2 has been bid out last year and, in fact, was scheduled for awarding in October. Unfortunately, because of the delay brought about by EO 2, we have not been able to announce the grant of award for the concession rights for NCT-2,” said Arreza.

As for the NSD project, the privatization process is now under review by the Office of the Government Corporate Counsel (OGCC), Arreza said. “We should be announcing shortly the award of the NSD to a private operator,” he added.

Regarding the expansion of oil depots, the SBMA executive said two projects are ongoing: one by Coastal Petroleum, for a one million barrel-capacity storage facility, and another by Pure Petroleum, for a half-million barrel-capacity facility at the Boton wharf.

“All in all, these two expansions would bring the total capacity for Subic Freeport to almost four million barrels handling capacity. That positions Subic as the largest in the Philippines and makes us a very strong regional player for oil storage,” Arreza averred.

In a statement, Arreza said the SBMA is now negotiating with a Brazilian company for the development of a floating logistics center for iron ore to be exported to China from South America.

This set-up is needed, Arreza explained, because the mother ship from Brazil cannot be allowed to dock in China because of depth requirements. Thus, feeder ships will be transshipping the ore from Subic Bay.

In order to build up the volume of container and cargo traffic in Subic, Arreza said that the SBMA also intends to invite more shipping lines to make regular ship calls in Subic, aside from the American President Lines (APL) and Wan Hai.

“We need at least five shipping lines to be able to reach a minimum of economy of scale. With five shipping lines calling, we will now have connectivity to Subic everyday,” he added.