Olongapo SubicBay BatangGapo Newscenter

Friday, August 11, 2006

Subic-Clark eyed as RP's first mega logistics hub

by Emma C. Tabalanza

San Fernando, Pampanga -- Subic and Clark will be transformed as the country’s first mega logistics hub.

This was recently disclosed by Secretary Edgardo Pamintuan, chairman of Subic-Clark Alliance for Development (SCAD), adding that the agenda of President Gloria Macapagal-Arroyo is not only to further develop Subic and Clark but to utilize them as the primary anchors of the economic progress of the entire Central Luzon region.

The President’s vision, Pamintuan said, is to synergize the transformation of the two former US military bases as the country’s first logistics hub.

According to Pamintuan, not only the people of Central Luzon will benefit from this project but the whole economy which will be expected to boom. He believed that thru the Subic Clark Mega Logistics Hub, “we will be attracting an influx of foreign investors which would mean more jobs”.

Pamintuan stressed that with the phenomenon of rapid economic globalization, no country in the whole world can expect to survive, much less be competitive, without modern logistics facilities and infrastructure to allow the efficient movement of goods, products and services. In modern times and in our region, this has been the secret of Singapore , Hong Kong and lately of Thailand and Malaysia which have been enjoying high economic growth rates, Paminutuan explained.

Singapore and Hong Kong, Pamintuan said, are small compared to Subic and Clark yet they are the busiest ports in the region, making them economically progressive all because of their modern and high-tech logistics hub.

Pamintuan compared the importance of a logistics hub with that of the farm-to-market-roads in the far-flung barangays engaged in farming for decades. Said farm-to-market –roads are very important in transporting the agricultural products to the business center to sell their products – this is how important a modern logistics hub is as it serves as the carrier of products around the globe.

“We need a logistics hub to be able to reach the big league of global markets, for even the erstwhile isolationist economy of China has begun developing its own international logistics platforms, foremost of which is the one in Shenzhen and Guandong”.

Subic and Clark were chosen as our country’s first mega logistics hub because as former military installations of the United States, the two economic zones operated as an integrated naval and air base complex in the Asia Pacific region. Their inherent strategic importance as military bases can be utilized easily to our present economic advantages, added Pamintuan.

Feliciano Salonga, chairman of the Subic Metropolitan Authority (SBMA) said that Subic’s port is presently capable of handling 120, 000 TEUs per year and with the ongoing $215 million port development project of the present administration, Subic’s cargo handling capacity will increase to some 600,000 TEUs by middle of next year.

Salonga said that at present there are 657 locators in Subic dominated by 198 logistics-type firms, with an estimated committed investments of P 171 billion, with P2.62 billion taxes and duties generated in 2005, with an increase of nine percent over 2004’s P2.4 billion with 60,673 workers as of May 2006.

Philip Panlilio, vice chairman, corporate services Clark Development Corporation (CDC) stressed that Clark has an expensive aviation complex measuring 2,400 hectares in all; with the Diosdado Macapagal International Airport (DMIA) in the middle, it has enough space for three parallel runways, bigger cargo and passenger terminals, warehouses and forwarding facilities, aircraft manufacturing and repair centers, and other aviation related projects.

According to Panlilio, last year they had already approved a Master Development Plan for the entire aviation complex of Clark. Thus, they now have the blue print for DMIA’s full development as an important component of the mega logistics hub; what they need right now is the continued support of the government on how they can raise necessary funds to complete the DMIAs development.

At present, Panlilio said, there are 357 locators in Clark, dominated by 112 industrial-type firms, with P83 billion committed investments and P1.15 billion generated from taxes and duties in 2005 with an increased revenue of 25 percent over 2004’s of P 914 million with a strong work force of 42,792 as of May 2006. (PIA-Pampanga)

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