[ Manila Bulletin Online ] February 7, 2009
By BERNIE CAHILES-MAGKILAT
Subic Bay Metropolitan Authority (SBMA) is in talks with several groups that could replace the slot left by FedEx, which has finally closed its Asia Pacific hub in Subic Freeport as it transfers to a more profitable new hub in Guangzhou, China leaving 800 workers jobless.
"We’re in talks with several groups but no immediate replacement," said SBMA administrator Armand C. Arreza the day after FedEx pulled out its last plane in Subic after operating its Asia Pacific hub in the former US military base for the past 14 years.
Arreza, however, refused to elaborate except to say that negotiations for possible replacement of FedEx are ongoing.
Last year, SBMA forged an agreement with UK-based Stratospheric Airship Technologies (SAT), which has committed to invest $ 500 million for aircraft manufacturing by taking over the facilities of FedEx.
But SAT official said that SAT is not going to replace the Asia Pacific hub operations of FedEx but rather transform the facility into an aircraft manufacturing hub.
SAT official said their project is an entirely different operation from that of FedEx as it does not plan to venture into logistics operation. SAT was eyeing a 20-hectare property in the Subic international airport.
‘’Last night (Thursday) was the last night of full operations of FedEx,’’ Arreza said adding that the decision of FedEx to relocate in China was purely business.
‘’The market in China is bigger than the entire market of Southeast Asia. China also gave FedEx rights to handle its domestic cargo, which is huge,’’ Arreza said.
FedEx announced two years ago that it would relocate its Asian hub from the former US naval base at Subic Bay, north of Manila, to Guangzhou in southern China.
The FedEx hub, which began operations in 1996, earned the Subic Bay authority about 150 million pesos (3.2 million dollars) from landing fees and warehousing in 2008.
About 500 workers were expected to lose jobs. At the peak of its operations in 2004, the FedEx unit in Subic employed about 800 people.
At the time FedEx came into Subic, it was hoped it would lure foreign businesses to Subic and breathe new life into the area after the US closed its military bases in the Philippines in 1992.
In November this year, FedEx even announced it would have to extend its operations in Subic for at least six months after encountering some hitches in relocating to its new Asia Pacific Hub in Guangzhou Baiyun International Airport in southern China.
Arreza said that FedEx has already informed of the delays and wants to continue leasing in the Subic Bay International Airport until at least the first half of 2009 that could have earned SBMA about P80 million in landing fees and leases.(BCM)
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