Subic Bay Freeport may become one of the top premier global ports with the establishment of a P60-billion project by an Australian company, the Subic Bay Metropolitan Authority said Friday.
SBMA chairman Robert Garcia said the Asian Institute of Aviation would occupy seven hectares of land near the Subic Bay International Airport and build hangars and food processing stations for its intermodal logistics business.
“The business model of the company is to export from Australia to China, Japan, and other Asian countries, via airplanes,” Garcia said.
The company will import meat, seafood and other agricultural products from Australia by plane or by ship for processing and customized packaging based on customer specifications in the Subic free port.
Garcia said AIA would be joined by another Australian firm, which will buy into the company for the new operations.
The Australian partner has been doing the processing in Australia, but with the high cost of operations in that country, it has turned to the Philippines to save on costs.
“They will ship out by air since they have seven jets. They will also ship out via seaport, and their volume for the seaport is 60 containers per month,” said Garcia citing intermodal operations would maximize company logistics.
In addition, as much as 800 jobs will be generated as soon as the company is operating at full speed.
The new investor also plans to build hangars for maintenance and repair operations that will cater to jets in Hong Kong.
The SBMA board approved the new investment in principle after the proponents showed proof of funds, Garcia said. He said the construction of the proposed facilities would be subject to detailed engineering design.
Garcia declined to name the Australian partner.