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Friday, March 29, 2024

Mactan export zone seeks expansion

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The Mactan Export Processing Zone is seeking to expand its current site for manufacturing, amid the increased demand for space among existing and new locators.

“The challenge now is that we don’t have available space [for manufacturing]. We need additional area. There’s a vacant lot beside MEPZ 3, an airport property. We are now negotiating with them,” said MEPZ administrator Sansaluna Pinagayao.

The zone is currently renting a 30-hectare property from the Mactan International Airport Authority and plans to rent another 30 hectares.

“Our proposal is we will manage for them. We will manage and operate the airport property for at least 25 years. We’ll just collect management fee. We are also planning to develop the site by ourselves,” Pinagayao said.

He said the MEPZ had no more space for expanding manufacturing companies and could not accommodate new locators.

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Pinagayao said many companies preferred to locate within MEPZ because the cost of doing business in Cebu was lower compared to Manila.

 It takes only 10 to 15 minutes to transport goods from the zone to the ports at a cost that is 15-percent cheaper, he said.

MEPZ currently has three zones that are all fully-occupied.

The Board of Investments earlier said the manufacturing sector was going through a period renaissance as many companies turned to the Philippines, after China raised the cost of doing business there.

 Under the manufacturing resurgence program of the Trade Department, the manufacturing sector will take center stage in 2015 following a the successful implementation of the manufacturing resurgence plan in 2014.

 

 

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