Clark airport set for P2.5-B upgrade to accommodate more logistics companies

Clark airport set for P2.5-B upgrade to accommodate more logistics companies

THE Bases Conversion and Development Authority (BCDA) said it will be expanding the facilities of Clark International Airport to accommodate more logistics companies.

“Clark … is the only economic zone that has its own international airport, and we continue to look into programs (to leverage that asset),” BCDA President and Chief Executive Officer Joshua M. Bingcang said at a briefing on Tuesday.

“We need to build an apron and taxiway for the logistics companies to access the runway. This needs to be done immediately. This year we have to start the construction because we were only given two years by the logistics companies,” he said.

The expansion of the air side facilities is expected to cost P2.5 billion, which he said the BCDA has yet to source, adding that the project will be proposed to the Maharlika Investment Corp.

Mr. Bingcang said that the master plan for the overall expansion at the airport will cover 70 hectares, housing at least eight logistics companies.

“On our part, we want to make sure that we provide a conducive environment for them when they come in. That’s why we will continue to expand the assets of Clark, especially on the air side,” he said.

BCDA is expecting over $1 billion in investment from three global logistics companies, which will occupy at least 20 hectares. The three companies are hoping to start operations in two years.

“Right now, we are at the tail end of finalizing agreements with at least three big global logistics companies that will make Clark their Asian hub, so that’s how important Clark will be,” Mr. Bingcang said.

He said that the BCDA has signed non-disclosure agreements as well as term sheets with the three logistics firms.

“The three companies are expected to bring in at least an additional P1 billion in revenue annually only from the lease and landing and take-off fees,” he added.

“For the longest time, we have been (beaten) by Vietnam and Thailand for these kinds of investments. So these three being here serves as a seal of approval of foreign investment choosing Clark and basically, the Philippines,” he said.

“It is just so they chose Clark to be their Asian hub going to Japan, Singapore, South Korea and even China and Hong Kong,” he added.

Mr. Bingcang said that the BCDA is ironing out the necessary Customs arrangements for their operations here.

“What we are doing now is I have a team who is working with Customs to make sure that they support this also because this involves the movement of goods,” he said.

“We have to make sure that the regulatory environment is supportive and conducive to this kind of business … Once we get that, we will announce everything. Our target is to announce it by March,” he added.

The three logistics companies are expected to bring in 3,000-4,000 jobs. Currently, Clark houses FedEx Express Philippines, a subsidiary of one of the world’s largest express transportation companies, FedEx Corp. — Justine Irish D. Tabile