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Thursday, November 27, 2003
Malig: Subic's $215M port project turning into Tong-Dick battleground?
By Jun A. Malig
ANYBODY can make an opposition. What I'm questioning is his intention. We can give all the explanation in the world. But for someone who does not want to believe, no explanation is possible."
*****
Subic Bay Metropolitan Authority (SBMA) chairman Felicito Payumo has been requesting Malacaņang to compel Tourism Sec. Richard Gordon to refrain from criticizing and opposing the $215-million Subic Port project. Gordon, on the other hand, has been alleging that a "disinformation campaign" about the project is being undertaken by Payumo's camp.
For Payumo, Gordon has no business opposing the port project. "Gordon struck out during his turn of the bat. Now, it is this administration's turn at the bat.
We should be allowed to proceed. Otherwise we will be a laughing stock of the international financial community. After four years of getting the port development to this stage, from the feasibility study, and securing the financing, we now tell our partners that we want to reconsider because we made a mistake as to the location? We will be very, very embarrassed, we will be a laughing stock. This could happen only in the Philippines," the SBMA chairman said in a recent interview with this writer.
Gordon, in his capacity as Central Luzon Cabinet Officer for Regional Development of Central Luzon, has been opposing the port project. He is questioning not only the plan to reclaim some 39 hectares area in Cubi point for the new port but also the SBMA's plan to borrow $157 million from the Japan Bank for International Cooperation (JBIC) for the port development. He also cites pro-environmental group's concern over the possibility of severe damage to the marine ecosystems in Cubi Point area once the proposed port is constructed.
Gordon primarily contends that the former US Navy Supply Depot (NSD) in Subic Bay is "good enough," saying that the World Bank had even identified the area as "an ideal site" for handling containerized cargo. But Payumo said the development of a new port at Cubi Point is needed in order to compete with the ports in Singapore, Hong Kong, and South Korea. He said the NSD area is not capable of handling bigger modern cargo ships.
"The NSD is in a cramped location. The Yacht Club is there, even the depot of Coastal Petroleum is there. The area is too constricted and risky to be used by larger modern cargo ships. The Japanese consultants have recommended the location of the new port after thorough studies and after considering all factors that will ensure the port's success in the long term," Payumo stressed.
Earlier this month, National Economic Planning Secretary Romulo Neri arranged a meeting between Payumo and Gordon in an effort to patch-up their differences with regard to the port project. Bases Conversion Development Authority president Rufo Colayco, also a main proponent of the $215-million port project, was also invited to the meeting. But what should be a reconcilement meet turned into a violent encounter. Colayco alleged that Gordon's close aide had attacked him, punching him in the stomach.
Last Nov. 6, the Zambales Provincial Board (PB) unanimously passed a resolution expressing their full support to the new port project, saying that the benefits outweigh the supposed "disasters" being cited by those opposed to the project. The mayors of the four towns around this freeport zone - Subic, Castillejos, San Marcelino,and San Antonio - have also expressed their support to the project. Only Olongapo City, whose mayor is the wife of Secretary Gordon, is opposed to the port project.
The Subic Bay Freeport Chamber of Commerce has expressed its support of the new port project, which it said would spark this freeport zone's development as an international seaport. But the business group has requested the SBMA to take into consideration some mitigating measures as to the project's impact to the air, forest, and sea environment. Some Subic locators have unilaterally manifested their full support to the port project.
Michael London, managing director of the Advanced Power Components Philippines, Inc., said without a major expansion of port facilities, "Subic will never be able to reach its potential." Ichiro Tsuji, president of the Subic Technopark Corp., said Japanese locators here believe that the port project must start and be completed at the soonest possible time because their strategic competitive advantage lies on how fast the port facilities here are modernized.
Sean Cheng, corporate vice president of the SBDMC, the developer and administrator of the Subic Bay Industrial park, said wide range of benefits would follow the development and operation of the new port. He said the project would attract more investment here in the fields of manufacturing, warehousing, and transshipment, and would result in the expansion of industrial and commercial areas here. He said investors in the Subic Bay Industrial park only want to see the materialization of the port project and that it "should not be delayed in any way."
Payumo said although 50 percent of the some 2,755 cargo ships worldwide with some 5.4 million TEUs carrying capacity pass through the front door of Subic, the freeport only handles 600,000 to 900,000 TEUs per year. The ports of Hong Kong and Singapore handle 17 million TEUs per year; Kaoshiung in Taiwan and Pusan in South Korea both handle seven million TEUs; Qingdao in China 3.4 million; and Bangkok and Manila two million TEUs each.
He said the timely development of the new Subic Port is crucial for the country's economy. "There is a capacity shortage of 14 million TEUs in Asia Pacific Region. Singapore has reached its capacity limit and Hong Kong is severely silted. Laem Chabang Port of Thailand and other Malaysian ports are racing to fill the gap. Even the Guan Yang port in Korea and Qing Dao in China are expanding despite their proximity to Pusan and Shanghai. We need to move fast."
Payumo said the only five percent container fleet of the total world fleet eight years ago has radically increased to today's containerization of about 70 percent. He said the figure is expected to grow to 90 percent by 2010. He said the new Subic Port would have a total handling capacity of 300, 000 TEUs at any given time from 2003 to 2005. Its capacity would increase to 600, 000 TEUs from 2005 to 2007.
As to Gordon's opposition, Payumo commented: "Anybody can make an opposition. What I'm questioning is his intention. We can give all the explanation in the world. But for someone who does not want to believe, no explanation is possible."
Last week, Japanese Ambassador Kojiro Takano said the $215-million Subic Port project should proceed as planned because the economic loan agreement between the Philippine Government and Japan has already been signed.
(November 27, 2003 issue)
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