Subic Bay Freeport Zone

Administered and managed by the Subic Bay Metropolitan Authority

ROBERTO V. GARCIA
Chairman and Administrator
History
2 S U B I C B A Y F R E E P O R T Z O N E
Built in 1885 as a Spanish naval station
Served as a US naval base from 1898 to 1992
Transformed into a premier investment and tourist destination
The US Navy selected
Subic Bay as a repair
and supply depot.
1
9
0
9

Spanish Naval
Station
1
8
0
0
s


Spain
discovered
Subic Bay's
natural deep
harbor and soon
built a naval
fortress.
1
8
9
8

After the
Spanish-
American war,
US Forces
took control of
the Spanish
naval facility.
1800 1992
The Spanish Gate is the main
entrance from the harbor to the
inner Spanish Naval Station.
Subic during
WWII
The
Japanese
occupied
Subic.
1
9
4
2

The RP-US
Military
Bases
Agreement
1
9
4
7


The famous Seabees
started construction of
the Naval Base Station.
1
9
5
1

1
9
9
2

Turnover of
Subic to the
Phil. after
the Senate
rejected the
Treaty and
the Pinatubo
Eruption.
S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y
SEAPORT
AIRPORT
TELECOMMUNICATIONS, ROADS & HOUSING FACILITIES
TOTAL - $ 8 Billion
VALUE OF INFRASTRUCTURE LEFT BY THE U.S.
S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y
The first free port in the
Philippines
The first successful military
base conversion into a tax
and duty free zone
670 square kilometers,
consisting of the former US
Naval Base, the municipalities
of Subic in Zambales, Morong
and Hermosa in Bataan, and
the City of Olongapo
1,800 locators with US$9.3
billion cumulative investments
and 89,745 active workforce
Fenced Area of 13,601
hectares
5 S U B I C B A Y F R E E P O R T Z O N E
Subic Freeport and Special Economic Zone
A Seamless
Economic
Corridor
Integration of Subic and Clarks
world-class logistics infrastructure
to create an economic hub that
takes advantage of Central Luzons
abundant flat lands
- Subic, Clark and Luisita linked
by a 93.8km, 4-lane
expressway (SCTEP)
- Construction of 600,000
TEU capacity
Container Terminal in
Subic

- Upgrading of DMIA
SCAD Vision
To develop the Subic-Clark Corridor into a globally competitive
logistics hub for the efficient movement of people, goods,
services & data, in partnership with the private sector
Subic Seaport
Clark Airport
North Rail
North Luzon
Expressway
Subic-Clark
Toll Road
NLE Extension
(Clark-Tarlac Road)
Subic Clark Area Development
S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y
Advantages for Investors
Strategic location and
accessibility
Dedicated Administration
Attractive business incentives
Existing world-class
infrastructure
Readily available skilled
manpower
Magnificent natural setting
Unique combination of tourism
attractions
7 S U B I C B A Y F R E E P O R T Z O N E
City Flying
Hours
Sailing
Time
(Days)
Kaohshiung 1.0 <2.0
Taipei 1.5 2.0
Hong Kong 1.5 2.0
Ho Chi Minh 2.5 3.0
Bangkok 3.0 4.0
Singapore 3.0 4.5
Kuala
Lumpur
3.0 4.5
Shanghai 2.5 3.0
Seoul 4.0 4.5
Tokyo 4.0 5.0
Los Angeles 14.0 22.0
Subic Bay is strategically located in the center of the growing East Asian region
8
Strategic Location
S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y
---
Accessibility
9 S U B I C B A Y F R E E P O R T Z O N E
Diosdado Macapagal International Airport
One of the biggest aviation
complexes in Asia with its two
3.2 kilometer parallel runways
that will be extended to 4
kilometers to accommodate
new generation wide-bodied
aircraft.
Subic Bay International Airport
Air Linkages Sea Linkages
S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y
Dedicated Administration
The SBMA is the sole authority created to administer and develop the Freeport Zone.
Subic Bay Metropolitan Authority
Established in 1992 to manage and develop
the Subic Bay Freeport into a self sustaining
industrial, commercial, logistics and tourism
center
Employees: 3,700
Chairman & Administrator:
Roberto V. Garcia
One-stop investment promotion,
registration and regulatory agency for
the entire Subic Bay Freeport Zone
Key Functions: Investment Promotion,
Infrastructure Development, Port
Administration, Security and Law
Enforcement, Permitting and Licensing
11
Business Incentives
Exemption from all local and national taxes with only a 5% corporate tax
on gross income
Duty-free importation
Unrestricted entry of foreign investments
No foreign exchange control
Visas available to foreign nationals
12 S U B I C B A Y F R E E P O R T Z O N E
Infrastructure
Subic Bay has existing world-class key infrastructure
that can support a wide range of businesses.
13
South China Sea
New Container Terminal
Cubi Point
Subic Bay
International Airport
Subic Bay
Techno-Park
Subic Bay Gateway Park
(Phase 2)
Subic Bay Gateway Park
(Phase 1)
Naval Supply
Depot
(General Cargo)
Subic Bay Golf
Course
Central Area
Ship Repair
Facility
Boton Wharf
POL Pier
Marine Terminal
Sattler Pier
Rivera Wharf
Bravo Wharf
Yacht Club
Passenger Terminal
Leyte Pier
Nabasan Wharf
Camayan Wharf
Hanjin Heavy
Industries Shipyard
(240 ha)
Boton Logistics
Center
Naval Magazine
Ecotourism Zone
Cubi
Redondo
Peninsula
14
Subic is a complete port
There are a total of 15 operational piers and wharves capable of handling
all kinds of sea vessels
South China Sea
New Container Terminal
Cubi Point
Subic International Airport
Subic Bay Techno-Park
Industrial Park (Phase 2)
Industrial Park (Phase 1)
NSD Area
ENRON
Power Plant
Central Area SRF Area
Boton Wharf
POL Pier
Marine Terminal
Sattler Pier
Rivera Wharf
Bravo Wharf
Yacht Club
Passenger Terminal
Leyte Pier
Nabasan Wharf
Camayan Wharf
Port of Subic
15 T H E S U B I C B A Y F R E E P O R T H I S T O R Y
The Port of Subic is an integral part of the development of the Subic-Clark corridor. It has
two (2) new container terminals, and 15 operational piers and wharves for all kinds of sea
vessels plus a passenger terminal, a fertilizer terminal, a grains bulk terminal and a general
containerized cargo terminal .
New Container Terminals 1 & 2
16
The newest operating container port
in the country, financed by the Japan
Bank of International Cooperation
Responds to the growing requirements
of seaborne trade in Northern &
Central Luzon & the capacity shortage
of 14 million TEUs projected for South
East Asia
Terminal Area: 30 hectares
Annual Capacity: 600,000 TEUs
Berth Length: 280 meters
Controlling Depth: 13 meters
Equipment: 4 GCs (Post-Panamax)
S U B I C B A Y F R E E P O R T Z O N E
Other Terminals in Subic
17
Alava Wharf
Marine Terminal
Rivera Wharf
Bravo Wharf
Boton Wharf
Sattler Pier
Pol Pier
Nabasan Wharf
Leyte Pier
S U B I C B A Y F R E E P O R T Z O N E
Manpower
Central Luzon has a total labor pool of 3.5 million (3rd
largest in the Philippines).
Subic Bay Freeport and immediate environs: Working
population of 700,000


About 32,666 university graduates yearly
5,526 Engineering and Technology-related graduates
9,788 Business Administration and related courses (IT-enabled)
3,492 Mathematics and Computer Science graduates


More than 162 universities / colleges / vocational schools
in and around the Subic Freeport Special Economic Zone
18 S U B I C B A Y F R E E P O R T Z O N E
Well-Preserved Natural Environment
Subic Bays well-preserved natural environment provides everyone
a high quality of life.
19 S U B I C B A Y F R E E P O R T Z O N E
Conservation Areas
First-class living in the heart of nature
Luxurious living in the forest, mountain, and beach areas
20 S U B I C B A Y F R E E P O R T Z O N E
First-class living in the heart of nature
Luxurious living in the forest, mountain, and beach areas
21 S U B I C B A Y F R E E P O R T Z O N E
Unique Combination of Tourism Attractions
Subic Bay is ONE destination for all a place to indulge, to reinvigorate, to escape
22
YACHT CLUB JUNGLE SURVIVAL OCEAN ADVENTURE ZOOBIC SAFARI
CULTURE HISTORY NATURE HIKES SHOPPING
WATER SPORTS BEACHES GOLF SPA

23
SUBIC BAY A THEME PARK Destination
24
Under construction
1. Holy Land Subic
2. Subic Aviary and Bird Park
3. Treetop Expansion Cubi
4. Treetop Mangrove Park
5. Moonbay River Walk
SUBIC BAY A THEME PARK Destination
SUBIC BAY An Eco-tourism Destination
Natural Attractions
Forest Trails
Falls
Mangrove Area
Turtle Nesting Areas
S U B I C B A Y F R E E P O R T Z O N E
25
SUBIC BAY Meetings, Incentives, Conventions and Events Destination
S U B I C B A Y F R E E P O R T Z O N E
26
S U B I C B A Y F R E E P O R T Z O N E
27
Year No. of Participants No.of Events
2012
128,628 293
2011
107,107 141
2010

92,000

389
SUBIC BAY Meetings, Incentives, Conventions and Events Destination
Subic Bay Exhibition and Convention Center - 1.2 hectare area, 10,000 persons capacity
Development of Subic Bay as MICE Destination
Tourism
MICE








S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 29
Meetings/Incentives/Conventions/
Exhibitions
No. of Participants
Classification 2011 2012 Increase 2011 2012 Increase
International 11 20 82% 2,725 8,955 229%
Local 131 273 108% 104,382 119,673 15%
TOTAL 141 293 108% 107,107 128,628 20%
SUBIC BAY: A Sports Tourism Destination
23rd South East Asian
Games satellite venue for
archery, canoe/kayak, sailing
and triathlon
Philippine Olympic Festival
FEI World Jumping
Challenge (Equestrian)
Milo Marathon Regional
Race
China Sea Race
Annual Sports Events
Subic International
Triathlon
Philippine International
Open Chess Challenge
ITU Asian 02 Long
Distance Triathlon
S U B I C B A Y F R E E P O R T Z O N E
30
Tourism
SPORTS








S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 31
Sports Events
Classification 2011 2012 Increase
International 8 15 88%
Local 27 33 22%
TOTAL 35 48 37%
SUBIC BAY: A Top Dive Site & Bird-watching Site
One of the top ship wreck dive
sites in the Philippines
USS New York (Battleship)
Oyuru Maru Hellship
Seian Maru
Landing Craft Utility, Patrol
Boat & Landing Ship
USS Lanikai
El Capitan / USS Majaba
San Quintin




Declared in 2009 by DOT as one
of the countrys 13 bird-watching
sites
Sites: Hill 394, Nabasan Area,
Triboa & Bee-eater Colony
48 recorded bird species,
including Brahminy Kite,
Crested Serpent Eagle, Red
Junglefowl, Green Imperial
Dove, Philippine Scops-Owl,
etc.
Ideal road-side birding site



32
S U B I C B A Y F R E E P O R T Z O N E
SUBIC BAY: A Medical Tourism Destination
Two (2) existing hospitals, and five
(5) out-patient / clinic facilities:

1. Baypointe Hospital (2011)
2. George Dewey Medical
Center (2009)
3. Totalmed Corp.
4. Triboa Medtech
5. Borough Medical Care
6. Laceda Medical Clinic
7. Gross Pointe Medical
Services
33
S U B I C B A Y F R E E P O R T Z O N E
SUBIC BAY: A Cruise Ship Destination













The SBMA is one of the founding
members of the Asian Cruise
Terminal Association (ACTA),
together with Singapore, Japan,
Korea and China.
Why Subic Bay?
Natural deep harbor located along major
international shipping lanes
Quay-side passenger embarkation &
disembarkation
Modern passenger terminal
A unique combination of tourist
attractions & facilities for all ages
34
S U B I C B A Y F R E E P O R T Z O N E
Investment Opportunities
35
Port Operations

Warehousing

Airport Operations

Transshipment



Shipbuilding

Ship repair

Industrial Park
Development

Electronics /
Components
Manufacturing

Consumer Goods

Renewable Energy

Garments






Hotel / Resort
Development

Housing Development

Retirement
Communities

Golf Course

Gaming and Leisure

Ecotourism

Medical Tourism

Retail / Restaurants
Software design

Call Center

Business Process
Outsourcing

Animation



School Complex
Development

Primary
Secondary
Tertiary
Post Graduate

Skills Development
Center

Research &
Development
36
Subic Bay Investments
3,789
5,502
5,752
5,958
7,168
7,830
7,900
0
1,500
3,000
4,500
6,000
7,500
9,000
2006 2007 2008 2009 2010 2011 2012
Cumulative Investments (US$ 000)
Subic Bay is a choice investment destination of 1,180 companies with more
than US$8.4 billion worth of investments.
0
200
400
600
800
1000
1200
1400
2004 2005 2012
Number of Investors
INVESTOR PROFILE
37
Top 10 Countries with Investment Projects in SBFZ
in Terms of Committed Investments
Rank No. of Projects Country of Origin
Committed Investment
(US$)
1 223 KOREA 3,620,660,864.92
2 656 PHILIPPINES 681,854,762.14
3 52 TAIWAN 260,640,089.36
4 24 CHINA 103,430,870.99
5 7 INDIA 102,381,565.22
6 34 JAPAN 35,436,283.66
7 37 U.S.A. 14,006,959.33
8 11 U.K. 10,823,204.50
9 1 SWITZERLAND 7,000,000.00
10
1
U.A.E. 6,720,000.00
S U B I C B A Y F R E E P O R T Z O N E
Major Investments in Subic Bay Freeport
HANJIN (2007)
Hanjin Heavy Industries
and Construction Co., Ltd.
(Korea)
4th biggest shipbuilding
facility in the world
US$2.54 billion
committed investment
NIDEC (2001)
Nidec Subic Philippines,
Inc. (Japan)
Manufacturing of micro
motors
US$80 million actual
investment
WISTRON (1996)
Wistron Infocom (Phils)
Corp. (Taiwan)
Manufacturing of
personal computers,
mother-boards
US$140 million actual
investment
AYALA LAND (2009)
Subic Bay Town Center
(Philippines)
Commercial Mall
US$70 million actual
investment
S U B I C B A Y F R E E P O R T Z O N E
39
Greater Economic Activity
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2005 2012
59,764
89,104
Active Wokforce
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2005 2012
$720
$1,927
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2005 2012
3.41
7.62
Govt Revenues from BOC
& BIR Cash Collections
(in Php Billion)
Exports
(in US$ Million)


Jobs

S U B I C B A Y F R E E P O R T Z O N E
Tourism
TOURISM TRAFFIC (Arrivals via SCTEX only)


S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 40
Year
Visitor
Arrivals
Tourist
Arrivals
Hotel
Guests
Hotel
Occupancy
Rate
2012 5,228,434 1,252,217 1,208,151 69%
2011 4,631,696 1, 150,637 1,106,571 71%
Variance
13% 9% 9%

2%
S U B I C B A Y F R E E P O R T Z O N E 41
Investment Prospects in Tourism

- Ayala Mall development
S U B I C B A Y F R E E P O R T Z O N E 42
Investment Prospects in Tourism

- Subic Waterfront Development Project
S U B I C B A Y F R E E P O R T Z O N E 43
Investment Prospects in Tourism

- Subic Waterfront Development Project
S U B I C B A Y F R E E P O R T Z O N E 44
Investment Prospects in Tourism

- Pedestrianization of Linkage Road
S U B I C B A Y F R E E P O R T Z O N E 45
Investment Prospects in Tourism

- Subic Waterfront Redevelopment Project
S U B I C B A Y F R E E P O R T Z O N E 46
Investment Prospects in Tourism


- Ilanin West development
S U B I C B A Y F R E E P O R T Z O N E 47
Investment Prospects in Tourism


- Minanga area development
S U B I C B A Y F R E E P O R T Z O N E 48
Investment Prospects in Tourism


- Cawag area development
End of Presentation
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