Subic woos Dubai investor
The Subic Bay Metropolitan Authority plans to allocate at least 100 hectares of land along the Subic-Clark-Tarlac Expressway for the 51 auctioneers of used vehicle imports that face eviction from the Freeport.
SBMA administrator Armand Arreza told reporters that the relocation of the auctioneers and importers of used vehicles outside of the Freeport would facilitate the entry of Dubai’s Jafza International, the world’s fourth-largest marine terminal operator.
Jafza Dubai earlier announced plans to invest between $200 million and $250 million over the next three to five years to re-develop the Freeport as its logistical hub in the region. It operates Economic Zones World, a free trade zone in Dubai with 6,000 locator-companies. Arreza said some of these companies, which handle logistics operations, also wanted to offer their services in Asia.
The Dubai-based company is choosing among four areas within the Freeport—the Industrial Technopark, Boton Wharf, the Subic Bay International Airport and the residential Cubi area for its proposed industrial and logistics zone.
Arreza said the ideal place for such an investment is the Boton area, where the auctioneers are located. He said the area needed further development to Jafza’s requirements.
“We can perhaps allocate 100 hectares along the SCTEx [for the Subic auto auctioneers] and compensate them for any improvement or expropriation made in Boton,” said Arreza.
The 51 auctioneers occupy around 55 hectares in the Boton area, each with their own auction yard.
Arreza said the Boton area was being leased to the auctioneers for P30 per square meter against the going rate of $1.25 per sq. m. or roughly P50 per sq. m. The contracts with the auctioneers range from 25 to 50 years.
“Should they agree to the relocation, they can still unload the used vehicles in Boton but the actual auction would be done some place else,” said Arreza.
He said a delegation from Jafza was expected to arrive between February and March to negotiate directly with the auctioneers. The Dubai firm is proposing to expropriate or buy out the rights of the auctioneers over the property.
He said SBMA could also help the auctioneers by providing them incentives for investments in the new site. A new Malacañang directive gave SBMA the power to grant incentives to an expanded area outside of the Subic Freeport, including Olongapo City and other areas.
Arrez said it was about time that Subic Bay Freeport was redesigned into a logistics zone.
“Subic is being eyed as the logistics hub in the country and there’s an opportunity to tie up not only with Jafza but also its sister company, Dubai Autozone,” said Arreza.
Dubai Autozone is the largest second-hand auto trading company in the world. It provides used vehicles to the rest of the Middle East market and Africa.
“We’ve invited them to come here also to re-export their used vehicles to Africa and the rest of Southeast Asia,” said Arreza. Dubai Autozone, he added, re-exports at least 30,000 units per month to Middle East, Africa, South and Southeast Asia as well as Pakistan.
The investment commitment from Jafza Dubai was among those raised by the official visit of President Gloria Macapagal Arroyo to the United Arab Emirates last month.
By Elaine Ruzul S. Ramos - Manila Standard Today
SBMA administrator Armand Arreza told reporters that the relocation of the auctioneers and importers of used vehicles outside of the Freeport would facilitate the entry of Dubai’s Jafza International, the world’s fourth-largest marine terminal operator.
Jafza Dubai earlier announced plans to invest between $200 million and $250 million over the next three to five years to re-develop the Freeport as its logistical hub in the region. It operates Economic Zones World, a free trade zone in Dubai with 6,000 locator-companies. Arreza said some of these companies, which handle logistics operations, also wanted to offer their services in Asia.
The Dubai-based company is choosing among four areas within the Freeport—the Industrial Technopark, Boton Wharf, the Subic Bay International Airport and the residential Cubi area for its proposed industrial and logistics zone.
Arreza said the ideal place for such an investment is the Boton area, where the auctioneers are located. He said the area needed further development to Jafza’s requirements.
“We can perhaps allocate 100 hectares along the SCTEx [for the Subic auto auctioneers] and compensate them for any improvement or expropriation made in Boton,” said Arreza.
The 51 auctioneers occupy around 55 hectares in the Boton area, each with their own auction yard.
Arreza said the Boton area was being leased to the auctioneers for P30 per square meter against the going rate of $1.25 per sq. m. or roughly P50 per sq. m. The contracts with the auctioneers range from 25 to 50 years.
“Should they agree to the relocation, they can still unload the used vehicles in Boton but the actual auction would be done some place else,” said Arreza.
He said a delegation from Jafza was expected to arrive between February and March to negotiate directly with the auctioneers. The Dubai firm is proposing to expropriate or buy out the rights of the auctioneers over the property.
He said SBMA could also help the auctioneers by providing them incentives for investments in the new site. A new Malacañang directive gave SBMA the power to grant incentives to an expanded area outside of the Subic Freeport, including Olongapo City and other areas.
Arrez said it was about time that Subic Bay Freeport was redesigned into a logistics zone.
“Subic is being eyed as the logistics hub in the country and there’s an opportunity to tie up not only with Jafza but also its sister company, Dubai Autozone,” said Arreza.
Dubai Autozone is the largest second-hand auto trading company in the world. It provides used vehicles to the rest of the Middle East market and Africa.
“We’ve invited them to come here also to re-export their used vehicles to Africa and the rest of Southeast Asia,” said Arreza. Dubai Autozone, he added, re-exports at least 30,000 units per month to Middle East, Africa, South and Southeast Asia as well as Pakistan.
The investment commitment from Jafza Dubai was among those raised by the official visit of President Gloria Macapagal Arroyo to the United Arab Emirates last month.
By Elaine Ruzul S. Ramos - Manila Standard Today
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