State-run Bases Conversion and Development Authority (BCDA) said Tuesday three global logistics companies plan to invest a combined $1 billion that will support the expansion of Clark Freeport Zone in Pampanga province into an Asian hub.
BCDA president and chief executive Joshua Bingcang said the three logistics companies are investing in lease, landing and take-off services.
“Their being here is a seal of approval—that we are an attractive destination for foreign investments. They chose Clark, the Philippines as their hub in Asia,” Bingcang said in a briefing.
BCDA will initially free up 70 hectares to accommodate logistics locators providing eight specific services. The first three investors will occupy 20 hectares of land.
BCDA expects to generate P1 billion in annual revenues from the operations of the three firms. About 3,000 to 4,000 jobs are also expected to open in the area.
“What is more important than revenues is that these three global companies will create a branding image that the Philippines is an ideal place for investments. For the longest time, we have been by-passed by these type of foreign investments. They either go to Vietnam or Thailand,” Bingcang said.
He said the BCDA is also strengthening its cooperation with the Bureau of Customs (BOC) for faster turn-around of cargoes and transshipment procedures.
“What we want is for the movement of goods to be at par with the global supply chain movement. We’ll make sure that the local regulatory regime is supportive and conducive to this kind of businesses,” he said.
He said while locators are encouraged to create structures on the land side, the BCDA is also improving the air side of the business. It is spending P7 billion for the construction of a runway and another P2.5 billion for the construction of air side facilities that will include the apron.
The BCDA’s masterplan for Clark is looking at creating an airport ramp or apron that can accommodate 18 logistics planes and a logistics terminal.
Bingcang said the agency would come up with a full disclosure on the projects and investments in the first quarter of 2024.
“Right now, I cannot disclose more, since we have a non-disclosure agreement,” he said.