SBMA tops H1 investment target
Fresh investments approved by the Subic Bay Metropolitan Authority (SBMA) reached $ 1.383 billion in the first half of the year surpassing the $ 1 billion target investments haul for the year of the country’s premier freeport zone and are expected to generate 9,853 fresh jobs..
SBMA administrator Armand C. Arreza said the investments have been committed by the 10 companies led by $ 684 million investments of Korea’s giant shipbuilder Hanjin Heavy Industries and Construction (HHIC).
The additional Hanjin investments would underwrite the remaining work under the first and second phase of the company’s project and increase HHIC’s investment in the Subic Freeport to US$ 1.684 billion. The expansion was made in response to the increasing number of vessels being ordered from the company, which currently stands at 33 container vessels.
In the meantime, HHIC recently began the fabrication of its first container vessel, costing some US$ 70 million, in its Subic Freeport shipyard.
The Korean company is also scheduled to deliver 33 medium-sized container vessels worth almost US$ 3 billion in the next two years, and build 82 large-sized ones from 2009 to 2011.
Currently, Hanjin directly employs almost 3,000 employees for its shipbuilding operations while its expansion plans are expected to open up more than 13,000 direct jobs by next year and 15,800 by 2011.
The second biggest investment registered in the January to June period is the cogeneration power project of Redondo Peninsula Energy Inc. at $ 431.64 million.
Other huge investments are from KT Global Subic Inc., $ 127 million; Subic Bay International Terminal Corp. (SBITC), $ 89 million; Philip Morris Philippines Manufacturing Inc., $ 20 million; Shin Young’s Corp., $ 5.37 million; Baypointe Hospital and Medical Center Inc., $ 4.067; Pacific Peal Airways.Com Corp., $ 2.12 million; Orient Pearl Entertainment & Management Ltd., $ 1.42 million, and Carag & Cook C4 Solutions Inc., $ 1.39 million.
Arreza noted that Philip Morris Manufacturing Inc. may actually invest a total of $ 100 million that will transform Subic Bay into its Asian tobacco leaf logistics hub should the freeport beat Singapore in terms of efficiency of operations, Subic Bay Metropolitan Authority administrator Armand C. Arreza said.
Arreza told reporters that SBMA has recently signed a memorandum of agreement with Philip Morris for the lease of Building 8120 in the Boton area for use as the company’s temporary tobacco leaf warehouse where the American firm is going to invest an initial of $ 20 million to convert the old warehouse as its temporary staging area for tobacco leaves for the region.
The initial $ 20 million investments would be use to remodel the Building 8120 warehouse and fit it with the necessary equipment like fire suppression equipment, humidity control, among others, the preserve the quality of the tobacco leaves.
But Philip Morris would only be using the retrofitted warehouse for two years until it can decide where to put up its permanent Asian tobacco leaf logistics hub.
Arreza said that once Philip Morris chose Subic as its permanent hub, then it is going to invest an additional $ 80 million to convert the four-hectare facility into a permanent location. This American firm has a huge cigarette manufacturing in Batangas.
"It is a question of cost and efficiency but from a standpoint of cost we can be competitive with Singapore but they want to check our efficiency," Arreza said. The American giant cigarette-maker is expected to make a decision in a year’s time of their choice.
Manila Bulletin
"If we are chosen then we will be considered as a transshipment point in Asia," he said.
The concept is that the Subic warehouse would serve as its logistics hub for all the tobacco leaves coming from different countries in Asia including the Philippines. From the Subic warehouse, the tobacco leaves may get deployed in different countries as well. SBMA will turnover the warehouse in August this year.
SBMA administrator Armand C. Arreza said the investments have been committed by the 10 companies led by $ 684 million investments of Korea’s giant shipbuilder Hanjin Heavy Industries and Construction (HHIC).
The additional Hanjin investments would underwrite the remaining work under the first and second phase of the company’s project and increase HHIC’s investment in the Subic Freeport to US$ 1.684 billion. The expansion was made in response to the increasing number of vessels being ordered from the company, which currently stands at 33 container vessels.
In the meantime, HHIC recently began the fabrication of its first container vessel, costing some US$ 70 million, in its Subic Freeport shipyard.
The Korean company is also scheduled to deliver 33 medium-sized container vessels worth almost US$ 3 billion in the next two years, and build 82 large-sized ones from 2009 to 2011.
Currently, Hanjin directly employs almost 3,000 employees for its shipbuilding operations while its expansion plans are expected to open up more than 13,000 direct jobs by next year and 15,800 by 2011.
The second biggest investment registered in the January to June period is the cogeneration power project of Redondo Peninsula Energy Inc. at $ 431.64 million.
Other huge investments are from KT Global Subic Inc., $ 127 million; Subic Bay International Terminal Corp. (SBITC), $ 89 million; Philip Morris Philippines Manufacturing Inc., $ 20 million; Shin Young’s Corp., $ 5.37 million; Baypointe Hospital and Medical Center Inc., $ 4.067; Pacific Peal Airways.Com Corp., $ 2.12 million; Orient Pearl Entertainment & Management Ltd., $ 1.42 million, and Carag & Cook C4 Solutions Inc., $ 1.39 million.
Arreza noted that Philip Morris Manufacturing Inc. may actually invest a total of $ 100 million that will transform Subic Bay into its Asian tobacco leaf logistics hub should the freeport beat Singapore in terms of efficiency of operations, Subic Bay Metropolitan Authority administrator Armand C. Arreza said.
Arreza told reporters that SBMA has recently signed a memorandum of agreement with Philip Morris for the lease of Building 8120 in the Boton area for use as the company’s temporary tobacco leaf warehouse where the American firm is going to invest an initial of $ 20 million to convert the old warehouse as its temporary staging area for tobacco leaves for the region.
The initial $ 20 million investments would be use to remodel the Building 8120 warehouse and fit it with the necessary equipment like fire suppression equipment, humidity control, among others, the preserve the quality of the tobacco leaves.
But Philip Morris would only be using the retrofitted warehouse for two years until it can decide where to put up its permanent Asian tobacco leaf logistics hub.
Arreza said that once Philip Morris chose Subic as its permanent hub, then it is going to invest an additional $ 80 million to convert the four-hectare facility into a permanent location. This American firm has a huge cigarette manufacturing in Batangas.
"It is a question of cost and efficiency but from a standpoint of cost we can be competitive with Singapore but they want to check our efficiency," Arreza said. The American giant cigarette-maker is expected to make a decision in a year’s time of their choice.
Manila Bulletin
"If we are chosen then we will be considered as a transshipment point in Asia," he said.
The concept is that the Subic warehouse would serve as its logistics hub for all the tobacco leaves coming from different countries in Asia including the Philippines. From the Subic warehouse, the tobacco leaves may get deployed in different countries as well. SBMA will turnover the warehouse in August this year.
Labels: arreza, investment, sbma, Subic Bay
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