P4.1-B mega-logistics hub to rise in Subic Freeport

May 31, 2025 | 5:39pm

SUBIC BAY FREEPORT, Philippines — Bulk and break-bulk cargo specialist Subic Bay Freeport Grain Terminal Services Inc. (Subic Grain) has committed some P4.135 billion for the development here of a multi-modal logistics hub that will seamlessly integrate facilities for seaport and airport cargo handling, as well as cruise tourism. 

Subic Grain Executive Vice President Lester Valdes and Subic Bay Metropolitan Authority (SBMA) Senior Deputy Administrator for Business and Investment Renato Lee III signed on Wednesday, May 28, the lease contracts for the project, the SBMA announced on Friday.

The multi-billion project will include development of a petroleum tank farm, grain storage, airport logistics hub, dry storage and warehouse facilities, cold storage areas, a commercial and hospitality hub for cruise ships, and a new wharf for ultra-large cruise ships. 

“This is a huge step for the Subic Bay Freeport (in) its goal to have a more modern air and sea ports, which are expected to boost capacity, increase competitiveness, and generate more revenue,” Lee said after signing the deal.

Lee said the project will also integrate sections of the San Bernardino Road within the Subic Port District and parts of the Subic Bay International Airport (SBIA). Subic Grain’s terminal is strategically located between the airport and the container terminal, with the San Bernardino Road used by container trucks running directly into the firm’s facility.

The multi-modal logistics hub project is also expected to generate employment for 798 workers.

According to Subic Grain’s project proposal, the firm will develop the areas in lots: P660 million for Lot 4, P1.8 billion for Lot 5, P801 million for Lot 6, P20 million for Lot 7 and P854 million for Lot 8.

Subic Grain, which is the flagship firm of the S.T.A.R. Services Group, also operates the Naval Supply Depot (NSD) Port here, along with sister company Mega Subic Terminal Services Inc.

The proposed multi-modal logistics hub is expected to further boost the SBMA’s vision for a green port city.

SBMA Chairman and Administrator Eduardo Jose Aliño earlier said that port expansion projects totaling US$878.7 million, as well as a shore power connection project (SPCP) worth P250 million, are among the development priorities set by the agency for the next three years.

Subic’s port development program includes the construction of a third container terminal with a capacity of 300,000 TEUs, estimated at US$359 million; a multipurpose terminal at the Redondo Peninsula, at US$162 million; a multipurpose terminal in Lower Mau, for bulk and break-bulk cargoes, at US$182 million; and a dedicated cruise terminal to boost tourism, with an investment of P10.2 billion.

The shore power project, which is expected to boost Subic’s carbon-neutral bid, is set to start in 2026 at the New Container Terminal with a budget of P100 million. Phase 2, covering the Naval Supply Depot and Ship Repair Facility, is set for 2027 to 2028, with a budget of P150 million.