Subic growth is ‘no fluke’ as revenues keep flowing

SUBIC BAY FREEPORT—Subic’s first quarter performance has been positive, indicating that the free port’s 2012 net profit of P811 million was no fluke, according to a top official of the Subic Bay Metropolitan Authority (SBMA).

SBMA Chair Roberto Garcia said the agency’s revenues from January to March reached P753 million, which was higher compared to last year’s first quarter revenue of P453 million.

Garcia said the first quarter profit was “proof that last year’s performance was not a fluke, as SBMA enjoys steady growth.”

He described SBMA’s 2012 revenues as “the highest ever in the agency’s 20-year history.”

He said the SBMA was expected to top last year’s performance because the impact of austerity measures and improving revenues had started to kick in and would be felt until the end of 2013.

According to Garcia, the operating income of the SBMA, which is an important gauge of its fiscal health, has “increased substantially by 141 percent.”

This means the agency is “pursuing effective strategic initiatives but is implementing them efficiently as well,” he said.

He said the growth could be attributed to “new projects coming in, like [Brazilian iron ore transshipment firm] Vale Ore’s expansion.”

As manufacturers use Subic instead of the Manila port, particularly firms located at the Clark Freeport, “we obtain their taxes and port utilization fees, boosting our income,” Garcia said. “We also earn from admission fees from second-hand vehicles.” Robert Gonzaga, Inquirer Central Luzon