By Benjamin Cuaresma
SUBIC BAY FREEPORT, Philippines — The Subic Bay Metropolitan Authority (SBMA) expects the United States-backed Pax Silica initiative to spur economic growth by generating new revenues, attracting investments, and creating thousands of jobs through expanded port operations, even as officials acknowledge that specific projects remain in the planning stage.
SBMA Chairman and Administrator Eduardo Jose Aliño said the designation of the Port of Subic as the Philippines’ preferred maritime gateway for Pax Silica marks a significant milestone in positioning the country as a strategic hub for artificial intelligence (AI), semiconductor manufacturing, and critical mineral supply chains.
While concrete investment commitments have yet to be finalized, Aliño said the freeport is preparing for increased economic activity driven by the initiative.
“Our mandate is to generate income and create jobs,” Aliño said, noting that the project is expected to increase the use of Subic’s port facilities, warehouses, cargo terminals, and staging areas for the transport and storage of construction materials, equipment, and industrial supplies.
He added that the initiative could also boost lease revenues from existing and future locators operating within and around the port complex.
Pax Silica, launched by the United States in December 2025, is a multinational initiative aimed at building resilient supply chains for AI technologies, semiconductors, and critical minerals among allied nations.
The initiative was among the key topics discussed during the recent meeting between President Ferdinand Marcos Jr. and U.S. Secretary of State Marco Rubio.
The Port of Subic, a former U.S. naval base with a natural deep-water harbor, has been designated as the principal maritime gateway supporting the proposed AI-native Economic Security Zone in New Clark City, Capas, Tarlac.
Aliño emphasized that the port’s capability to accommodate large cargo vessels makes it indispensable to the country’s technology ambitions.
“The port is what Clark does not have,” he said, stressing the importance of linking New Clark City’s future industrial zone with an international seaport capable of handling high-volume cargo.
As planning advances, SBMA expects the development of manufacturing facilities, processing plants, logistics centers, warehouses, and other supporting infrastructure inside the Subic Freeport to complement the New Clark City technology hub.
To facilitate implementation, SBMA plans to organize a technical working group that will coordinate logistics, infrastructure requirements, utilities, transport connectivity, and operational planning for future Pax Silica projects.
On July 20, SBMA and the Bases Conversion and Development Authority (BCDA) signed a memorandum of understanding formally designating the Port of Subic as the preferred maritime gateway for Pax Silica operations within the Luzon Economic Corridor.
The agreement authorizes both agencies to identify suitable land and port areas, assess infrastructure requirements, and exchange nonconfidential information to support project development.
SBMA’s optimism is backed by the freeport’s continued growth.
In 2025, the agency recorded ₱1.77 billion in port revenues, reflecting a 4.2-percent increase from the previous year.
The freeport also hosted 4,744 registered business locators employing 171,653 workers, with women accounting for nearly one-third of the workforce.
The services sector remained the largest contributor, followed by construction, shipbuilding and marine services, and manufacturing.
Aliño also reported that eight local government units surrounding the freeport received ₱218.1 million in revenue shares during the first half of 2026—an increase of 10.24 percent compared to the same period last year.
The beneficiaries include Olongapo City and the municipalities of Subic, Castillejos, San Antonio, San Marcelino, Dinalupihan, Hermosa, and Morong.
Despite the anticipated economic benefits, the country’s participation in Pax Silica has also drawn scrutiny.
The Kilusang Magbubukid ng Pilipinas (KMP) expressed support for a House resolution filed by members of the Makabayan bloc seeking a congressional inquiry into the initiative.
The resolution calls for a review of the legal framework, government commitments, land-use implications, and potential effects on national sovereignty arising from the Philippines’ participation in Pax Silica.
Government officials, however, maintain that the planned 1,619-hectare Economic Security Zone in New Clark City is envisioned as a globally competitive industrial ecosystem capable of hosting semiconductor manufacturing, AI infrastructure, advanced logistics, research facilities, and other high-value industries that could strengthen the country’s position in international technology supply chains.
ia/xf
