“The proposed freight service between Clark airport and Subic port alone is a boon to these economic zones.”
There’s a lot of talk about a proposed economic growth center in Luzon. And we cannot fault economic scholars about their optimism on the Luzon Economic Corridor (LEC). When such plan has the support of two major economic powers, the new growth corridor can be off to an auspicious start.
The United States and Japan are the primary funders of the LEC. A trilateral summit of the US, Japan and the Philippines in April led to the LEC concept aimed at spurring economic partnerships among the three allies. It is the first project under the Group of Seven’s (G7) Partnership for Global Infrastructure and Investment (PGII) in the Indo-Pacific region.
The LEC essentially will link the ports and major economic hubs found in Subic, Manila and Batangas.
The initial components of the newly-launched corridor are the Subic-Clark Railway Project (SCRP), the expansion of Clark International Airport and the development of the Clark National Food Hub.
The SCRP, as planned, will provide initial freight service between key economic zones and connect Subic Port with Clark International Airport. The expansion of Clark International Airport includes the construction of a second runway, taxiways, aprons and improved landside access to cater to major logistics firms in Clark.
The proposed freight service between Clark airport and Subic port alone is a boon to these economic zones. Linking these hubs to the big ports of Batangas and Manila is another game changer. Subic, Clark. Manila and Batangas comprise 80 percent of all port traffic nationwide.
The Clark National Food Hub, meanwhile, aims to establish the Philippines as a leading agricultural resource hub in the region. The food security project will be located on a 64-hectare plot within the Clark Airport compound.
The Bases Conversion Development Authority (BCDA), the state agency in charge of developing former military bases into economic hubs, is naturally thrilled over the LEC. For BCDA president and chief executive Joshua Bingcang, the endorsement of the US and Japan will accelerate the development of a new growth corridor that spans the majority of Central Luzon and cuts through Southern Luzon to Batangas.
“We are confident that the inclusion of SCRP, expansion of Clark International Airport and the Clark National Food Hub in the proposed Luzon Economic Corridor will help us accelerate the implementation of these game-changing infrastructure projects, not just for the country but for the whole Indo-Pacific region,” says Bingcang.
The all-out support of the US, meanwhile, is comprehensible—it seeks to counter China’s growing economic presence in Asia.
“We in the United States side represent the different agencies that will all be significant piece of making this a reality from our side,” says senior advisor to the US President for energy and investment Amos Hochstein during the plenary session of the Indo-Pacific Business Forum.
Another beneficiary of the LEC is the Philippine Economic Zone Authority (PEZA), which is now courting American companies to invest more in the Philippines.
“We also see our investors taking advantage of the upcoming Luzon economic corridor which will support connectivity among Subic Bay, Clark, Manila and Batangas as well as facilitate strategic, anchor investments within each hub in high-impact infrastructure projects among others,” says PEZA director-general Tereso Panga.
PEZA is optimistic it could register $100 billion worth of investment deals from the US and Japan in several sectors, including electronics manufacturing, clean energy, agriculture and infrastructure.
The 147-kilometer North South Commuter Rail (NSCR) project, too, will perfectly fit into the LEC. The NSCR will serve as the major link to the LRT/MRT-lines in Metro Manila and to the planned Metro Manila Subway. It is designed to improve connectivity by providing direct train services for passengers traveling from Calamba and Pampanga to Bonifacio Global City, Ortigas and Quezon City along the Metro Manila Subway route.
The LEC is certain to enhance the value of major infrastructure projects in the country.
With the US and Japan as development partners and financiers, the new growth corridor will significantly improve the investment image of the Philippines and serve as the new manufacturing base and home of offshore companies.
E-mail: rayenano@yahoo.com or extrastory2000@gmail.com