Income, volume surge as congestion drives traffic to Subic Freeport

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busy subic portRevenues from port operations at the Subic Bay Freeport in 2014 increased 45% to P909 million as volumes handled at the port reached a record high.

Subic Bay Metropolitan Authority (SBMA), in a press release, said that with port congestion in Manila, “many importers shifted to Subic,” causing container volume to jump 105% to 77,000 twenty-foot equivalent units (TEUs). Locators’ export volumes likewise increased to U$2.3 billion or a 59% increase from the previous year.

Aside from port operations, SBMA also attributed its revenue growth to tourism, and industrial and commercial leases.

For the third consecutive year, SBMA hit new record highs in its 2014 financial performance, as it scored a net income of P1.556 billion, 40% higher than the P1.11 billion in 2013.

Earnings before interest, taxes, depreciation, and amortization, or operating profit, hit P1.391 billion, 51% higher than the previous year.

Revenue from tourism rose 61%, driven by a 12% hike in tourist traffic. MICE events (meetings, incentives, conventions, and exhibitions) chalked up an increase of 150%, while sports events rose 75% to make Subic Bay the number one tourist destination in Central Luzon, according to Department of Tourism records.

Industrial and commercial leases likewise jumped 13% to P1.05 billion as more businesses flocked to the Freeport. These and other expansion projects of existing locators caused jobs to increase from 89,584 in 2013 to 96,958 in 2014, providing 7,374 new jobs, or an increase of 8%, SBMA noted.

The Freeport authority also reported that cash collections by the Bureau of Internal Revenue and Bureau of Customs improved 27% to P1.8 billion and 36% to P15.29 billion, respectively.

Lastly, the 5% tax collected from locators in the Freeport rose to P497 million, or a 35% increase over 2013. Of the total SBMA remittance, P199 million went to the eight local government units surrounding the Freeport, while P298 million was remitted to the National Government Treasury. The total contribution of SBMA to the national economy therefore amounted to P17.638 billion.

According to SBMA chairman Roberto Garcia, the agency’s sterling three-year record performance could be attributed to good governance, strategic initiatives, and the hard work of the agency’s management and employees.