CLARK FREEPORT ZONE, Pampanga (PIA) — The flagship Luzon Economic Corridor is now gaining traction in Clark and Subic Bay Freeport Zones.
This was confirmed by Special Assistant to the President for Investment and Economic Affairs Undersecretary Ma. Angela Ignacio during the Philippine Economic Briefing-Clark hosted by the Bangko Sentral ng Pilipinas.
She has emphasized that the United States Trade and Development Agency gives a boost to this Luzon Economic Corridor initiative by infusing US$3.8 million grant for the construction of a 212-kilometer freight train that will traverse Subic, Clark, Manila, and Batangas.
This amount is higher than the previous US$2.5 million pledged by the United States government.
The Luzon Economic Corridor initiative was formulated through a trilateral agreement between the Philippines, Japan and the United States sealed in April 2024 under the Group of 7 or G7 Partnership for Global Infrastructure and Investment.
Meanwhile, Bases Conversion and Development Authority President and CEO Joshua Bingcang said the right-of-way acquisition for the alignment of the Subic-Clark-Manila-Batangas Freight Railways Project is being finalized.
He cited the enactment of the Accelerated and Reformed Right-of-Way Act or ARROW signed by President Ferdinand R. Marcos Jr. as Republic Act 12289 that will help expedite the completion of the railways’ project route.
SwedFund, a financial institution in Sweden, is also committing a separate US$1.2 million for the project.
As the implementation of this big-ticket project is now moving, Bingcang has emphasized that the early fruits of investments within the routes of the Subic-Clark-Manila-Batangas Freight Railways Project are breaking ground.
For instance, two of the biggest air freight services are pouring their new investments in Clark.
United Parcels Service or UPS is constructing expanded facilities at the Clark Aviation Complex while Federal Express or FedEx, which returned to the Philippines in 2021, wants to make Clark its newest hub in Asia.
To accommodate the expected additional number of aircrafts, the BCDA is fast-tracking the construction of the second runway for Clark International Airport as well as an apron that can handle 18 aircrafts at a time and the completion of a 54-meter-tall air traffic control tower.
In the area of seaport modernization, American firm Cerberus Capital Management has invested US$300 million to acquire the shipyard facility in Subic Bay in 2022.
An additional US$250 million was also provided to upgrade the shipyard, develop energy and help various transport projects.
It is complemented by fresh investments made by the Korean shipbuilding firm HD Hyundai Heavy Industries that will revive the shipbuilding industry, formerly used by fellow Korean firm Hanjin Heavy Industries and Construction from 2007 to 2019.
For her part, Department of Trade and Industry Regional Director Edna Dizon has attributed this Korean investment flow to the newly ratified Philippines-Korea Free Trade Agreement, particularly on its provision for smart, sustainable and strategic investments.
Effective implementation of Republic Act 12066, otherwise known as Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy or CREATE MORE, is also a vital contribution in attracting those investments. (CLJD/SFV, PIA Region 3-Pampanga)
