Presented by:

Roberto V. Garcia Chairman and Administrator

Subic Bay Metropolitan Authority

0 4 . 2 4 . 2 0 1 5

2nd Subic Bay Maritime Summit Subic Bay: Your Gateway to Central and Northern Luzon

Brief Background

of the Subic Bay Freeport

2

HISTORY OF SUBIC BAY FREEPORT ZONE

3 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 US Navy selected Subic Bay as a repair and supply depot.

19

09

Spanish Naval

Station

18

00

s

Spain discovered

Subic Bay's natural

deep harbor and

soon built a naval

fortress. 1

89

8

After the Spanish-American war, US Forces took control of the Spanish naval facility.

1800 1992

The Spanish Gate was the main

entrance from the harbor to the

inner Spanish Naval Station.

Subic during WWII

The Japanese occupied Subic.

19

42

The RP-US Military Bases Agreement

19

47

The famous “Seabees”

started construction of

the Naval Base Station. 19

51

19

92

Turnover of Subic to the Phil. after the Senate rejected the extension of the Treaty and Mount Pinatubo erupted.

The first and largest free port zone in the Philippines;

1,324 local & foreign investors;

More than US$ 9.1 Billion cumulative investment;

Over 96,958 workforce;

Home of the biggest shipbuilding facility in the Philippines;

The only Freeport in the country with an international seaport

& airport

Total area of 67,452 hectares;

Easy accessibility by sea, air, and land.

The Subic Bay Freeport Today

Subic is a complete port with 15 piers & wharves

capable of handling all types of sea vessels & cargo

5 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

South China Sea

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

Hanjin Heavy

Industries Shipyard

(240 ha)

Boton Logistics

Center

Naval Magazine

Ecotourism Zone Cubi

Redondo

Peninsula

New Container Terminal

Cubi Point

Boton Wharf

POL Pier Marine Terminal

Sattler Pier

Riviera Wharf

Bravo Wharf Access Pier

Alava Wharf

Leyte Pier

Nabasan Wharf

Camayan Wharf

Fisherman’s Wharf

Pure Petroleum Pier

Grande Island Pier

COMPLETE PORT INFRASTRUCTURE

The Port of Subic Bay is complemented with port facilities and

infrastructure that can support a wide range of businesses & cargo.

6 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

PIER / WHARF USE

Alava Wharf Foreign naval vessels, passenger

ships, ferry boats and general cargo

vessels (rice, corn, etc.)

Bravo Wharf Tug boats and cargo ships

Riviera Wharf Ferry boats, Philippine naval ships

and landing of small watercrafts /

general cargo

Access Pier Ship repair facility

Boton Pier Transshipment vessels, fishing

boats and bulk cargoes, fertilizers

terminal

Marine Terminal General cargo (rice, corn, etc.),

RoRo, cargo ships and tug boats,

tankers, fishing boats

Sattler Pier Grains and General Cargo

PIER / WHARF USE

POL Pier Oil tankers

Leyte Pier Grain terminals

Fisherman’s Wharf Yacht repair &

refurbishing

Pure Petroleum

Pier

Jetty used for

discharging of diesel

fuel

Nabasan Wharf Maritime training

facility

Camayan Wharf Eco-tourism area

Grande Island Pier Recreational area

New Container

Terminal

Containerized cargoes

New Container Terminal 1 & 2

7 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

Terminal Area: 26.32 hectares

Total Handling Capacity: 600,000 TEUs a year

Berth

• Length of quay: 560 meters

• Number of berth positions: 4

• Controlling depth: 13 meters

Container Yard

• Storage areas: 11.14 hectares

• Reefer stations: 84 units at 440 volts

Gates

• Truck lanes: 6

• Weigh bridge: 2 (60-ton capacity)

• Truck Holding Area: 0.7 hectares

• Constructed in 2008

• Financed by JICA Loan for 7 Billion Pesos

• 25yrs amortization for 250 Million Pesos

Subic Bay Maritime Conference and Exhibit

(23-24 August 2012)

“We’d like to get the shipping lines to call and get the key shippers

to ship to and from Subic.”

SBMA Chairman Roberto V. Garcia

welcomed more than 500 delegates who

attended the Subic Bay Maritime Conference

and Exhibit at the Subic Bay Exhibition and

Convention Center. The conference

brought together the key players in the

shipping industry — shippers from Clark,

Subic, and Central Luzon, as well as shipping

lines, brokers, forwarders, and other

stakeholders.

8 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

Vision:

Strategic Cost Reduction

Initiatives

10

Cheaper Port Fees for Shipping Lines

SHIPPING CHARGES

Regular Rate vis-à-vis Discounted Rate

Subic Port discounted rate:

83% lower than the regular rate for Harbor Fee; and

88% lower than the regular rate for Berthing Fee.

11 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

VESSEL CHARGES Regular Rate (US$) Discounted Rate (in US$)

Subic Batangas First 6 mos. Next 6 mos.

1. Harbor Fee

(per GRT) 0.0460 0.0810 0.0080 0.0410

2. Berthing Fee

(per GRT per day) 0.0345 0.0390 0.0040 0.0200

24% Cheaper Cargo Handling for Importers

12 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

Cargo Handling (US$)

Subic Bay

Port MICP Difference

Subic is

Cheaper %

Stevedoring 65 91 27 -29%

Arrastre 42 85 42 -50%

Stripping/Stuffing 74 180 106 -59%

Wharfage Fee 13 12 -1 -8%

Trucking

Clark - Subic 386

Clark - Manila 409 23 -6%

TFCD- Processing Fee

Per SAD 12.5 Rate: $1 = Php44.00

Total Cost in US$ $ 592 $ 776 $ 184 -24%

23% Cheaper Cargo Handling for Exporters

13 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

Cargo Handling (US$)

Subic Bay

Port MICP Difference

Subic is

Cheaper %

Stevedoring 65 91 27 -29%

Arrastre 35 69 35 -50%

Stripping/Stuffing 74 180 106 -59%

Wharfage Fee 6 7 0 -8%

Trucking

Clark - Subic 386

Clark - Manila 409 23 -6%

AEDS Charge 13 Rate: $1 = Php44.00

Total Cost in US$ $ 578 $ 755 $ 177 -23%

Sample Computation for a Clark Locator

14 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

POL/POD: Subic-Japan Base Ports (Export)

(Export from Subic to Japan Base ports)

USD

Variance Percentage MLA SUBIC

DESCRIPTION UNIT US$ US$

FREIGHT

Basic Ocean Freight Per Container 500 600 (100) 20%

Docs Fee Per BL Same same

Terminal Handling Charges Per Container Same same

Telex Release Per BL Same same

Seal Fee Per Container Same same

SERVICE CHARGES

Processing / brokerage Per BL Same same

Trucking Fee Per Container 409 386 23 -6%

Chassis Rental Per day 1,000 500 500 -50%

RECEIPTED CHARGES

Stevedoring Per Container 91 65 27 -29%

Arrastre Per Container 69 35 35 -50%

Stripping/Stuffing Per Container 180 74 106 -59%

Wharfage Per Container 6 6 (0) -8%

Total 2,255 1,665 590 -26%

Longer Free Storage Period in Subic

15 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

Free Storage Period (days)

Subic Bay Batangas MICP

Import 10 5 5

Export 10 4 5

Strategic Service

Improvement Initiatives

16

One Stop Shop Center

@ the New Container Terminal 1

17 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

Fully operational as of

17 April 2015

With a 4-mbps

fiber optic

connectivity (SBMA-BOC-SBITC)

EO 172 Cabinet Cluster / IRR Formulation

E.O. 172, declaring the Port of

Batangas and the Subic Port as

extensions of Manila (MICT/South

Harbor) during congestion and

other emergency cases.

The Subic Port Team has been

proactive in working with the

Philippine Ports Authority for the

drafting of the IRR.

18 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

ONE DAY ACCREDITATION PROCESS!

For Brokers, Forwarders, & Truckers

For FULL ACCREDITATION, an additional clearance from SBMA

Ecology Department is required.

19 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 Lane for trucks bound for NCTs

20 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

1 2 3 4

Shorter Turn-Around Time of Cargoes

21 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

SHORTER DISTANCE

ROUTE Distance

(Km) ROUTE

Distance

(Km)

Subic - Bataan 20 Manila - Bataan 123

Subic - Clark 60 Manila - Clark 85

Subic - Pampanga 50 Manila - Pampanga 65

Subic - Tarlac 60 Manila - Tarlac 125

SHORTER DELIVERY TIME

TO/FROM

SUBIC MANILA

Distance (Km) Estimated Travel

Time (Hrs) Distance (Km)

Estimated Travel

Time (Hrs)

MANILA 138 4

TARLAC 60 2.5 125 4

BATAAN 20 1.75 123 4

PAMPANGA 50 2.5 57 3

ZAMBALES (IBA) 80 3 210 5

CLARK 60 2.5 85 3

Enhancement and Implementation of

The Subic Port Marketing Plan

22 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

NCT Performance

23

CONTAINER VOLUME INCREASED BY 106% VS. 2013

24 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

Shipment 2010 2011 2012 2013 2014

Import 17,496 17,466 19,147 20,277 40,679

Export 7,772 9,890 8,166 8,359 13,342

Transshipment 393 315 759 684 621

Empty In 115 936 815 311 398

Empty Out 8,543 4,966 7,417 7,840 17,361

S3 Cargoes - - - - 4,776

Total 34,318 33,573 36,304 37,469 77,177

-

10

20

30

40

50

60

70

80

2010 2011 2012 2013 2014

Tho

usa

nd

s

Actual Container Traffic 2014 vs. 2013 (TEU)

25 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

FY2014

NCT Others Total

January 2,563 231 2,794

February 3,452 223 3,675

March 3,443 366 3,809

April 4,072 263 4,335

May 3,579 359 3,938

June 2,724 379 3,103

July 6,145 392 6,537

August 8,784 204 8,988

September 6,388 261 6,649

October 8,105 322 8,427

November 14,176 450 14,626

December 10,455 314 10,769

Total 73,884 3,764 77,648

FY2013

NCT Others Total

January 2,734 169 2,903

February 2,162 191 2,353

March 2,855 266 3,121

April 2,796 315 3,111

May 3,358 324 3,682

June 2,718 250 2,968

July 3,136 219 3,355

August 2,552 265 2,817

September 3,051 378 3,429

October 3,254 399 3,653

November 2,835 297 3,132

December 2,828 118 2,946

Total 34,278 3,191 37,469

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

January

February

March

April

May

June

July

August

September

October

November

December

Others

NCT

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

January

February

March

April

May

June

July

August

September

October

November

December

Others

NCT

106% Increase

in Total

Volume

1ST QUARTER 2015 VOLUME VS. AVERAGE 2014

INCREASED BY 77%

26 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

Containerized Cargo Volumes (TEU)

Target Actual % Accomplished

January 6,347 14,893 235%

February 7,288 8,572 118%

March 7,376 10,683 145%

April 7,915

May 7,513

June 6,669

July 10,147

August 12,589

September 10,234

October 12,198

November 18,124

December 14,378

Total 120,777 34,148 28%

FY2014 FY2015 % Growth Rate

January 2,791 14,893 434%

February 3,675 8,572 133%

March 3,809 10,683 180%

April 3,624

May 4,597

June 3,108

July 6,537

August 8,974

September 6,649

October 8,156

November 14,489

December 10,769

Total 77,177 34,148

Average 6,431 11,383 77%

Actual vs Target FY2015

FY2014 vs FY2015

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Target

Actual

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

FY2014

FY2015

Maritime Strategic Business Unit

Overall Performance

2014 vs. 2013

27 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

Classification 2013 2014 Variance

Actual Revenues PHP626 M PHP908 M

Containerized Cargo

(in TEUs) 37,469 77,177

Non-containerized

Cargo (in MTs) 2,404,649 6,112,644

No. of Ship Calls 2,177 2,591

Gross Registered

Tonnage 33,591,875 40,147,025

45%

105%

154%

19%

20%

38% Yard Utilization as of March 2015

28 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

Five Year Volume Projection

29 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

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2015 2016 2017 2018 2019 2020

Historical Data 78,437 79,685 81,438 84,158 88,158 94,030

Key Initiatives 42,340 138,240 207,360 290,304 319,334 351,268

42,340

138,240

207,360

290,304 319,334

351,268

78,437

79,685

81,438

84,158

88,158

94,030

Tw

en

ty E

qu

ivale

nt

Un

it

Total 120,777 217,925 288,798 374,462 407,492 445,298

Subic is Now Connected to the World

There are now five (5) regular shipping lines, as of 2015, delivering 13%

capacity utilization rate, compared to only (2) regular shipping lines, as of

2012, delivering only 6% capacity utilization rate.

30 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

Long Term Plans

31

Expansion of the New Container Terminal

32 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

• NCT 3 and 4

• for an additional 600,000 TUE Capacity

• Draft = 13.7 meters

• Berth = 560 meters

• Terminal Area = 30 ha

• Approx. Cost = PhP7B (including facilities)

Road widening of the existing Tipo Road

Tipo to be expanded to 4 lane

highway

New Tunnel and bridge will be

constructed to accommodate the

2 additional lanes

Cost 2 Billion PhP

33 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

Had-Had Bridge

Tipo Road

New Bypass Road Connecting Seaport Terminals

Directly to SCTEX

34 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

Road Proposed Alignment

Quantum Analysis

Length = 17.273 km

Ball-park Project Cost = PhP11.5 Billion

35