$3-B logistics hub in Clark operational in 5 years

CLARK FREEPORT ZONE, Pampanga, Philippines – The $3-billion business park Global Gateway Logistics City (GGLC), in the special economic zone, now formally known as the Sabah Al-Ahmad Global Gateway Logistics City, may be fully operational in as early as five to seven years.

Dennis L. Wright, president and CEO of Peregrine International said horizontal developments such as major road networks, storm culverts, water lines, electrical lines, and utility corridors have been laid out. The construction of vertical structures will begin next month.

“There is already $30 million worth of utilities underground. That is already $30 million physically in the ground that will not come out of the Philippines,” he said.

Construction in the business park began in late 2010. The project had its ground breaking in 2008 but formal construction did not formally start until 2010 because all derelict structures, trees and informal setters had to be removed from the site.

Wright said that next month, a retail gas station, a power station, and a 200-bed branch of The Medical City hospital would be constructed.

The conservative estimate by which the business complex will be finished is in 10 years, but Wright said the complex could easily be completed in as early as five years. 

“My personal opinion is that it will be built in about five years. The conservative estimate is 10 years. I think it will be much shorter. It will be five to seven years, not seven to 10 years,” he said.

A dedication ceremony was held here yesterday for the renaming of the business park after Sheik Sabah Al-Ahmad Al Jaber Al-Sabah, emir of Kuwait. An official marking on the business park was unveiled yesterday.    

The business park, which occupies 177 hectares in the Clark Freeport Zone, is being developed by Peregrine International, a privately-owned American company with a portfolio in project development, program management, engineering, construction, operation, maintenance, and logistics.

Peregrine selected Palafox Associates, a local architecture and engineering firm to undertake the detailed design and assist in the planning of the project.

Its principal investor is KGL Investment Company (KGLI), a business unit of Kuwait-based Kuwait and Gulf Link (KGL) Group, a 50-year-old international company with a portfolio in transportation, logistics, stevedoring, passenger transport, warehousing, supply chain management, and port operations.

Aside from the Philippines, KGL group currently has operations in Kuwait, United Arab Emirates, Jordan, Tunisia, Oman, Namibia, Morocco, Pakistan, Germany, Ireland, Cayman, Mauritius, Egypt.

The park is divided into four zones. The logistics park caters to warehouse housing, distribution, and light manufacturing operations, the business park for office requirements, and the aero park for research, development and modelling and simulation, IT projects and institutions of higher learning such as universities. The town center will have retail and shopping facilities. 

The business park will receive total investments of $3 billion from Kuwait.

Mark Williams, investment director of KGL Investment, said the investments would come from a combination of sovereign and private funds.

Upon completion, the business park will have 4.2 million square meters of residential and commercial space. The businesses are is expected to create over 250, 000 jobs. 

The park is expected to stand out in among other business parks in the area by focusing on businesses catering to aviation and logistics.

“We are talking to several aviation companies. We are going after all aviation manufacturing and logistics companies,” said Wright.