SBMA tags new investment areas

SUBIC BAY FREEPORT, Philippines –The Subic Bay Metropolitan Authority (SBMA) is expediting the development of priority investment areas here this year with the task of developing this free port into a service and logistics center.

“The SBMA has identified eight separate initiatives to develop more areas for business locators in the Subic Bay Freeport,” SBMA administrator/chief executive officer Armand C. Arreza told The STAR.

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 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.

 “We are very proud of the fact that we have attracted cumulative investments worth more than $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 materialize for lack of space,” Arreza pointed out.

Of the eight identified new investment zones, Arreza said that two are already under re-development. These are the central tourist district, which is anchored on a P3-billion Ayala mall project scheduled for completion in the fourth quarter of 2011, and the Subic Gateway Park, an industrial area that is being converted into a mixed-use district.

Among the investment initiatives at the central tourist district are the redevelopment of the Subic Bay Yacht Club by a private group that recently purchased the property from Landbank; the development of a cruise ship terminal by Global Terminals; the construction of the Harbor Point Mall; redevelopment of the Times Square commercial complex; and the establishment of a regional bus terminal.

On the other hand, Arreza said the Subic Gateway Park is “emerging to be primarily our business process outsourcing (BPO) center within the next few years.”

Aside from this, the area has recently attracted some hotels, eateries and a Ford showroom, with Mitsubishi also planning to put up a display room nearby this year. A five-hectare lot in the area has also been reserved for an anchor university to attract educational institutions in the area.

Next to the Gateway Park, a 16-hectare area used in the last 15 years as a storage area for second-hand equipment will become the new Gateway Business District, Arreza said. This area is expected to contain BPO firms, commercial establishments, as well as office spaces.

The SBMA is also 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 a 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 $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.

Arreza also reiterated SBMA’s push towards expansion outside of the present fenced-in portion of the Subic Bay Freeport.

He said that projects under this would include the development of integrated resort clusters at Minanga Bay in Morong, Bataan, and at Cawag in Subic, Zambales.