Before President Ferdinand Marcos, Jr. reaches the maximum tenure of his term in 2028, the Subic Bay Metropolitan Authority will have a new airport and seaport. (SBMA) expects a significant upgrade in its seaport and airport facilities with an ultimate goal of modernizing infrastructure, boosting economic activity and solidifying Subic Bay’s position as a major gateway for trade and tourism.
This is in line with the Philippine Development Plan 2023-2028 of the Marcos administration.
The Plan states that existing airports will be improved and new ones will be strategically developed to address future demand. Existing airports will be upgraded to meet aerodrome design safety standards set by international and local airport authorities, including development and improvement of access roads. Meanwhile, the bundling of airports as possible Public-private Partnerships (PPP) projects will be pursued to encourage private sector investments, while gateway airports will be developed and connected to feeder airports to facilitate access to the country’s various tourist destinations. Development of new airports will consider optimal sites outside urban areas to allow rooms for future expansion and possible upgrade to international airports.
The Marcos administration is aggressively pursuing the Build Better More (BBM) infrastructure development program which seeks to expand the previous administration’s Build! Build! Build! (BBB) Program to help address the inadequacies of the country’s infrastructure. The BBM infrastructure program for 2023 to 2028 presently includes 198 high impact infrastructure flagship projects (IFPs) with an overall investment cost of P8.8 trillion.
“This premier Freeport is set to boost the country’s economic corridor by developing both its seaport and airport,” said SBMA Chairman and Administrator Eduardo Jose L. Aliño.
The airport and seaport expansion and modernization projects in Subic Freeport will cost an estimated Php28.18 billion. These projects are expected to boost port capacity, increase competitiveness, and generate more revenue.
Aliño said that these infrastructure projects support the Luzon Economic Corridor (LEC) Development initiative of Pres. Marcos’ administration, to be completed by 2028.
Aliño also disclosed that the first project, a Multipurpose Port Terminal (MPT) at the Lower Marine Amphibious Unit (MAU), will include a 570-meter wharf, with a depth of 12.9 meters. It will have a back-up area of 17.2 hectares for warehouses and open storage areas.
“This project will provide an additional capacity of 2.5 million metric tons bulk cargoes. As one of the identified projects under Public Investment Program of the National Economic Development Authority (NEDA), the project will spur economic growth through the additional berthing facility,” he said.
The second MPT will be at the Redondo Peninsula, which hosted the former Hanjin shipbuilding facility. It will have a 600-meter wharf, with a depth of 14 meters, and a back-up area of 30 hectares for warehouses, open storage, offices and support facilities. The project will increase the port capacity with additional 3 million metric tons cargoes. This is one of the identified projects under Public Investment Program of the NEDA, with a project cost of P11-billion.
“The high percentage of domestic and international commerce is by sea, therefore, the efficiency of maritime transportation has become increasingly essential to national competitiveness,” Aliño cited.
Small-scale entrepreneurs and local residents expressed gratitude over the expansion projects, noting the fact that it would be a big boost to their livelihood as well as the social and economic benefits of the local government units surrounding the economic zone.
For Delma Rodriguez, a business proprietor, “More jobs mean more opportunities for our community. My children will have better prospects, and our local businesses will thrive,” she mused.
Goddy Ferrer, former mayor of Hermosa, Bataan welcomed the expansion projects, which mean more revenues for the SBMA, part of which is shared annually with the local government units contiguous to the SBFZ.
“When I was the Hermosa mayor, our share provided by the SBMA from the locators’ revenues helped us in our local projects, especially the health and welfare of my constituents,” Ferrer said.
The SBMA also plans to construct a Cruise Passenger Terminal area with a project cost of P1.2 billion for phase 1, and P8.96 billion for Phase 2. The facility will have a double berth 380 meter pier with a depth of 12 meters, along with the reclamation of 20 hectares for Phase 2.
“International and local cruise operations will greatly benefit the local and national economies, with increased employment opportunities, revenue from port fees and dues, and increased tourism spending. This is vital to the National Cruise Tourism Program of the Marcos Jr. administration,” the official shared.
Also in the pipeline is the proposed improvement of existing buildings and the construction of new facilities inside the Subic Bay International Airport (SBIA) with a project cost of P7.02-billion. To modernize ports and allied industries and to decongest passenger traffic in Metro Manila, the Marcos administration will also undertake the improvement of the SBIA to be able to accommodate 6 million passengers annually.
A new hotel and parking facility within the airport complex that will promote the use of the SBIA and further boost the tourism sector in the Subic Bay Freeport is also in the offing.
“The project is currently under study and will cost around P4.3 billion,” Aliño said.
“Locators, port users and prospective investors will also benefit from upgraded and modernized airport facilities, with increased SBIA efficiency, capacity and revenue generation. With these improvements, the SBMA will have additional revenue generating facilities with the rise of a world-class airport hotel and multilevel carpark,” he added.
“Now for the Subic Bay International Airport (SBIA) to achieve its maximum potential, we are planning to expand the SBIA by upgrading and modernizing its facilities. Once in place, we are confident to increase both the handling and revenue generating capacity of the airport,” the chairman said.
The feasibility study on the proposed SBIA Expansion Project will include the extension of the runway from 2,745 meters to 3,300 meters in length, expanded aprons, relocated CAAP-ATC tower, and a new passenger terminal building.
The projects are expected to improve and provide a more efficient client and passenger accommodation. The improved and expanded airport is expected to generate a conservative revenue of P12.5 billion annually.
“This should significantly align to the objectives of the Luzon Economic Corridor,” Aliño said.
The Subic Bay Freeport has some 1,900 businesses with more than 162 thousand workers and residents in three housing areas.
SBMA Senior Deputy Administrator (SDA) for Port Operations Ronnie Yambao said Subic Bay Freeport has three important pillars in enhancing its capacity and operational efficiency: first is automation to make cargo movement seamless and transactions faster and more efficient; second is investment in infrastructure like port rehabilitation, the Vessel Traffic Management System or VTMS, and the acquisition of equipment; and third is by expanding the SBMA’s network thru trade missions and creating partnerships with different ports to increase trade and commerce.
Subic Bay Freeport is the only Freeport in the Philippines that has a complete logistics infrastructure in one location that is managed by the SBMA. It has an airport, and a seaport with a modern container terminal, and piers that can accommodate different types of cargo, to be connected to the Luzon Economic Corridor by a railway in the near future,” he said.
It is accessible by land, sea, air, and in the near future, by railway. It has an airport and a seaport with modern facilities and a container terminal. The freeport also boasts of four industrial parks with 15 piers that can accommodate commercial vessels and cruise ships.
Subic Bay is also a tourist and cruise ship destination. Currently, the SBMA is developing a facility to be used as a home port for cruise ships. A home port is a port where a cruise ship will take on or change over the majority of its passengers, while taking on stocks, fuel and supplies. The Marcos administration, under its PDP, also plans to connect cargo and freight rail infrastructure to strategic infrastructure such as ports. Railway development for cargo and freight will be prioritized, particularly for long-distance deliveries. Meanwhile, truck routes will be established to service medium- and short-distance deliveries. Dry ports and other inland cargo terminals will be connected by freight rail to ease the movement of goods to or from the ports.
