Multi-Layered
Multi-Layered Economic Zones (Subic Bay and Clark Zones)
1. Subic Bay Special Economic & Free Port Zone
The Subic Bay Freeport and the Clark Special Economic Zone were created by virtue of the Bases Conversion and Development Act of 1992 (Republic Act 7227 passed on March 13, 1992) which converted former American military base installations in the country into special economic zones. The other bases to be converted are Camp John Hay in Baguio City, the Wallace Air Station in San Fernando City, La Union, the O’Donnell Transmitter Station in Capas, Tarlac, the San Miguel Naval Communications Station in San Antonio, Zambales and the Mount Santa Rita Station in Hermosa, Bataan which is located somewhere among the mountains of Zambales. The idea is to re-develop these areas after military turnovers since they occupy large tracts of land with few people living inside them. This makes their conversion much easier since there is no forcible eviction of people. Legally, the areas mentioned are now government properties after sovereignty has reverted to the Philippine government. Below is Subic’s official web portal:
http://www.subicbay.com.ph/about.php
Subic Naval Base used to be one of the largest naval military installations outside of the continental U.S. It occupies a very strategic location since it is near major sea lanes of the South China Sea. It is 80 kilometers out of Manila and offers a natural safe harbor protected on 3 sides by mountains. Seaport at Subic Bay is very deep and can accommodate the largest ships, the aircraft carriers. The entire zone is under the Subic Metropolitan Development Authority (SBMA) and covers various types of economic zones within. It is an example of a multi-layered economic zone as it has 700 investment projects in its free international airport, free port (the Philippines’ first ever free seaport), industrial parks, and its ship repair facility. Subic Bay Freeport Zone (SBFZ) offers investors sub-zones in these main areas of economic activity: The Central Business District, Subic Gateway, Subic TechnoPark, and the Subic Bay Industrial Park.
Its repair facilities can accommodate up to 12 ships simultaneously, has 3 floating dry docks, 4 portal cranes, 5 floating cranes, and service 20 different types of ships. The 4th largest shipbuilding facility in the world is at Subic Bay operated by the Hanjin Heavy Industries of South Korea. The masterplan for Subic Bay is to convert it into a freeport similar to Hong Kong and Singapore that handles big volumes of trans-shipments of containerized cargo. It has plans of constructing a convention center, a leisure estate, and sports center (primarily water sports activities) besides attracting investors into its industrial estate. Both Subic and Clark are practically competing for the same clients.
International crime syndicates have turned their attention to smuggling some contraband and illegal drugs through special economic zones. These syndicates attempt to use these routes due to the expedited processing and sometimes lax customs security within these zones. Only recently, authorities of the SBMA Law Enforcement Department were able to intercept a big shipment of the illegal drug methamphetamine hydrochloride or more locally known as “shabu”. The 770-kilo drug shipment has an estimated street value close to P5.00 billion (approximately worth US$ 125 million). An alert perimeter security guard was able to notify the authorities at once leading to the seizure of the shipment but the ship unloading the cargo got away from authorities.
2. Clark Special Economic Zone
It is bigger than Subic Bay Freeport (28,041 hectares expanded to 33,000 now vs. Subic’s 16,200 hectares). Like Subic, it is also touted and promoted by the Philippine government as both an investment and tourist destination. CSEZ is operated by the Clark Development Corporation, a semi-corporate body with the authority to develop Clark into a premier showcase of economic development. The Clark Special Economic Zone is also some 80 kilometers north of the City of Manila and about 60 kilometers east of Subic Bay Freeport. Like Subic, it was also declared as free port (in Clark’s case, as a free airport zone). Its location is very strategic as it can reach most major Asian points within a few hours’ flying time, the reason why it was maintained by the U.S. military as its largest air base outside of the U.S. mainland.
There are five 5-star hotels inside Clark and 3 casinos (2 private and 1 operated by the Pagcor – a government-owned and controlled corporation). Another private casino to be operated by Chinese investors will open soon. Long term plans by the CDC is to transform Clark into Asia’s premier entertainment and gaming (gambling) center to rival the casinos of Macau. There are also many sports and leisure activities inside Clark together with fine dining establishment, fast food restaurants, coffee outlets and several duty-free shops. Below is Clark’s official website for visitors:
The centerpiece of Clark’s present and future development plans are the twin international-standard runways (3.2 kilometers each) which can handle heavy air traffic. It can also easily accommodate the newest aircraft, such as the wide-bodied Airbus A-380. This is the reason why both Fedex and UPS have located inside Clark the hub of their Asian logistics operations. At present, there are about 700 local and foreign business firms operating inside Clark. The vision of Clark Special Economic Zone is to be the most competitive international services and logistics center in the southeast Asian region anchored on its 4,400-hectare main zone.
Clark Development Corporation intends to transform the zone into a new airport-driven urban productivity center ideal for aviation, logistics support, tourism-related enterprises (hotels, resorts, casinos, golf course, etc.) and high-end ITES or IT- enabled service industries (business process outsourcing, accounting, legal, animation, medical transcription, finance, insurance, call centers, contact centers, etc.).