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The Subic Special Economic and Freeport Zone, often shorterned as Subic Bay or Subic, is a special economic zone and
freeport Freeport, a variant of free port, may refer to: Places United States *Freeport, California *Freeport, Florida *Freeport, Illinois *Freeport, Indiana *Freeport, Iowa *Freeport, Kansas *Freeport, Maine, a New England town **Freeport (CDP), Maine, the ...
area covering portions of the city of
Olongapo Olongapo, officially the City of Olongapo ( fil, Lungsod ng Olongapo; ilo, Siudad ti Olongapo; xsb, Siyodad nin Olongapo), is a 1st class highly urbanized city in the Central Luzon region of the Philippines. Located in the province of Zambales ...
and the town of Subic in
Zambales Zambales, officially the Province of Zambales ( fil, Lalawigan ng Zambales; ilo, Probinsia ti Zambales; Pangasinan: ''Luyag/Probinsia na Zambales''; xsb, Probinsya nin Zambales), is a province in the Philippines located in the Central Luzon ...
, and the towns of Morong and Hermosa in
Bataan Bataan (), officially the Province of Bataan ( fil, Lalawigan ng Bataan ), is a province in the Central Luzon region of the Philippines. Its capital is the city of Balanga while Mariveles is the largest town in the province. Occupying the ...
. The relatively developed and fenced area is called the Subic Bay Freeport Zone (SBFZ). The economic zone was the location of U.S. Naval Base Subic Bay, until the latter's decommissioning in 1992. The SBFZ is operated and managed by the
Subic Bay Metropolitan Authority The Subic Bay Metropolitan Authority (abbreviated as "SBMA", fil, Pangasiwaang Panlungsod ng Subic Bay) is a governmental agency of the Philippines. Sometimes abbreviated as SBMA, the agency has played a significant part in the development of t ...
(SBMA), a sub-agency under the Bases Conversion and Development Authority (BCDA). The harbor faces the Zambales Mountains to the west and the
Subic Bay Subic Bay is a bay on the west coast of the island of Luzon in the Philippines, about northwest of Manila Bay. An extension of the South China Sea, its shores were formerly the site of a major United States Navy facility, U.S. Naval Base Sub ...
opens to the
South China Sea The South China Sea is a marginal sea of the Western Pacific Ocean. It is bounded in the north by the shores of South China (hence the name), in the west by the Indochinese Peninsula, in the east by the islands of Taiwan and northwestern Phil ...
.


History

Subic Bay is surrounded by the town of Subic and the city of
Olongapo Olongapo, officially the City of Olongapo ( fil, Lungsod ng Olongapo; ilo, Siudad ti Olongapo; xsb, Siyodad nin Olongapo), is a 1st class highly urbanized city in the Central Luzon region of the Philippines. Located in the province of Zambales ...
, both in the province of
Zambales Zambales, officially the Province of Zambales ( fil, Lalawigan ng Zambales; ilo, Probinsia ti Zambales; Pangasinan: ''Luyag/Probinsia na Zambales''; xsb, Probinsya nin Zambales), is a province in the Philippines located in the Central Luzon ...
, and Morong in the province of
Bataan Bataan (), officially the Province of Bataan ( fil, Lalawigan ng Bataan ), is a province in the Central Luzon region of the Philippines. Its capital is the city of Balanga while Mariveles is the largest town in the province. Occupying the ...
. Development of Olongapo was largely tied to the presence of the United States Navy base, once the largest U.S. military naval base in
Asia Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an ...
. An
arsenal An arsenal is a place where arms and ammunition are made, maintained and repaired, stored, or issued, in any combination, whether privately or publicly owned. Arsenal and armoury (British English) or armory (American English) are mostly ...
and ship-repair facility was established at Subic Bay in 1885 by the then colonial power,
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = '' Plus ultra'' ( Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , ...
. Following the
Spanish–American War , partof = the Philippine Revolution, the decolonization of the Americas, and the Cuban War of Independence , image = Collage infobox for Spanish-American War.jpg , image_size = 300px , caption = (cl ...
, Subic Bay became a U.S. Navy and Marine base, and grew to be a major facility. Until 1991, it was the base of the United States
7th Fleet The Seventh Fleet is a numbered fleet of the United States Navy. It is headquartered at U.S. Fleet Activities Yokosuka, in Yokosuka, Kanagawa Prefecture, Japan. It is part of the United States Pacific Fleet. At present, it is the largest o ...
. In early 1991, after the collapse of protracted negotiations, the
Philippine Senate The Senate of the Philippines (Filipino: ''Senado ng Pilipinas'', also ''Mataas na Kapulungan ng Pilipinas'' or "upper chamber") is the upper house of Congress of the bicameral legislature of the Philippines with the House of Representatives as ...
rejected terms for renewal of the lease of the base. The U.S. Navy was already in the process of downsizing its Subic operations in June 1991, when
Mount Pinatubo Mount Pinatubo is an active stratovolcano in the Zambales Mountains, located on the tripoint boundary of the Philippine provinces of Zambales, Tarlac and Pampanga, all in Central Luzon on the northern island of Luzon. Its eruptive histo ...
erupted. One of the largest volcanic eruptions in the last 100 years, it covered the Navy Base in volcanic ash and collapsed a significant number of structures. The last ship, USS ''Belleau Wood'', left on November 24, 1992. The presence of the American forces precipitated the start of a
red-light district A red-light district or pleasure district is a part of an urban area where a concentration of prostitution and sex-oriented businesses, such as sex shops, strip clubs, and adult theaters, are found. In most cases, red-light districts are parti ...
.


Post–Cold War

Subic Bay was converted into a commercial zone largely through the efforts of some 8,000 residents of nearby Olongapo, under the leadership of their mayor, Richard Gordon, who volunteered to protect and preserve 8 billion dollars worth of facilities and property from looting and destruction. Subic has since been transformed and became
model for bases conversion
into commercial use after the Cold War with
blue chip Blue chip may refer to: * Blue casino token * Blue chip (stock market), a corporation with a national reputation for quality, reliability, and the ability to operate profitably * Blue chip (sports), collegiate athletes who are targeted by professio ...
companies like Coastal Petroleum, and Fed Ex pumping in over $3 billion of investments creating 70,000 jobs in the
free port Free economic zones (FEZ), free economic territories (FETs) or free zones (FZ) are a class of special economic zone (SEZ) designated by the trade and commerce administrations of various countries. The term is used to designate areas in which com ...
's first four years. It was host to the 4th
APEC The Asia-Pacific Economic Cooperation (APEC ) is an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific Asia-Pacific (APAC) is the part of the world near the western Pac ...
Leaders' Summit on November 24, 1996 and FedEx's Asia-Pacific hub, Asia-One, was also located in Subic Bay for almost ten years. In 2013, Defense Secretary Voltaire Gazmin said that the Philippines intended to move military forces to the base in response to the
territorial disputes in the South China Sea Territorial disputes in the South China Sea involve conflicting island and maritime claims in the region by several sovereign states, namely Brunei, the People's Republic of China (PRC), Taiwan (Republic of China/ROC), Indonesia, Malaysia, Ph ...
. The United States Navy is also seeking access on a rotational basis for ships and Marines, and is already conducting maritime patrol aircraft patrols from bases in the Philippines.


Geography

While the Subic Special Economic and Freeport Zone shares a name with a town nearby, it actually covers portions of
Olongapo Olongapo, officially the City of Olongapo ( fil, Lungsod ng Olongapo; ilo, Siudad ti Olongapo; xsb, Siyodad nin Olongapo), is a 1st class highly urbanized city in the Central Luzon region of the Philippines. Located in the province of Zambales ...
and the town of Subic in
Zambales Zambales, officially the Province of Zambales ( fil, Lalawigan ng Zambales; ilo, Probinsia ti Zambales; Pangasinan: ''Luyag/Probinsia na Zambales''; xsb, Probinsya nin Zambales), is a province in the Philippines located in the Central Luzon ...
, and Morong and Hermosa in
Bataan Bataan (), officially the Province of Bataan ( fil, Lalawigan ng Bataan ), is a province in the Central Luzon region of the Philippines. Its capital is the city of Balanga while Mariveles is the largest town in the province. Occupying the ...
. It covers a total area of , but only area is secured and fenced where much of the development in the special economic zone has taken place. This area is referred to as the Subic Bay Freeport Zone and out of this area is suitable for development with the remaining portions consisting of high slopes, forests, or protected areas. In 2017, negotiations with local government units next to the Subic Bay Freeport Zone resulted in expansion of the fenced area. The special economic zone is also adjacent to a body of water, the
Subic Bay Subic Bay is a bay on the west coast of the island of Luzon in the Philippines, about northwest of Manila Bay. An extension of the South China Sea, its shores were formerly the site of a major United States Navy facility, U.S. Naval Base Sub ...
. There are also at least six mangrove areas in the Freeport Zone.


Districts

The Subic Freeport Zone itself is divided into districts. The freeport zone also has a Certificate of Ancestral Domain Title (CADT) Land, which is the ancestral domain of the
Aeta people The Aeta (Ayta ), Agta, or Dumagat, are collective terms for several Filipino indigenous peoples who live in various parts of the island of Luzon in the Philippines. They are considered to be part of the Negrito ethnic groups and share common ...
. *Binictican Heights *Central Business District (CBD) *Cubi-Triboa *Ilanin Forest East *Ilanin Forest West *Kalayaan Heights *Port District *
Redondo Peninsula The Redondo Peninsula is a short mountainous peninsula extending about 15 kilometers (9 miles) to the south of Zambales on western Luzon in the Philippines. It separates Subic Bay and the coasts around the Subic Bay Metropolitan Area of Subic and ...
*Subic Bay Forest District (consisting of the non-adjacent areas of Tipo and Minanga areas) *Subic Gateway


Demographics

Most of Subic Freeport's population of at least 6,000 people is concentrated in the Kalayaan and Binictican areas. Portions of the Subic Freeport area also form part of a formally recognized
ancestral domain Ancestral domain or ancestral lands refers to the lands, territories and resources of indigenous peoples, particularly in the Asia-Pacific region. The term differs from indigenous land rights, Aboriginal title or Native Title by directly indica ...
of the Aetas, an indigenous ethnic group living in the area prior to its usage as a US military base. A significant Aeta settlement in Subic is Pastolan.


Economy

In mid-2019, there were about 135,000 workers employed in the Subic Bay Freeport, 68.37 percent of whom are engaged in the service industry and 17.03 percent in the manufacturing industry. Subic was also a hub in shipbuilding, with the now-defunct Hanjin Philippines previously being the single biggest employer in the area prior to its bankruptcy in January 2019. As of mid-2019, there are 5,901 workers employed in the shipbuilding and maritime industry by 96 firms compared to 26,559 workers by 110 companies in 2018. Subic is served by the Port of Subic.


Tourism

In addition to commercial use, Subic Bay is also a popular destination for weekend visitors from
Metro Manila Metropolitan Manila (often shortened as Metro Manila; fil, Kalakhang Maynila), officially the National Capital Region (NCR; fil, link=no, Pambansang Punong Rehiyon), is the capital region, seat of government and one of three List of metrop ...
. Attractions include several
beach A beach is a landform alongside a body of water which consists of loose particles. The particles composing a beach are typically made from rock, such as sand, gravel, shingle, pebbles, etc., or biological sources, such as mollusc shell ...
es, an underwater aquarium,
jungle A jungle is land covered with dense forest and tangled vegetation, usually in tropical climates. Application of the term has varied greatly during the past recent century. Etymology The word ''jungle'' originates from the Sanskrit word ''jaá ...
survival tours, and
duty-free shop A duty-free shop (or store) is a retail outlet whose goods are exempt from the payment of certain local or national taxes and duties, on the requirement that the goods sold will be sold to travelers who will take them out of the country, w ...
ping centers. Destinations frequented by tourists in Subic include eco-tourism theme parks, the
Ocean Adventure Ocean Adventure is an open-space marine zoological park in the Morong, Bataan portion of the Subic Special Economic and Freeport Zone in the Philippines. History Ocean Adventure opened to the public in October 2001 with its initial facilities bui ...
, Zoobic Safari, and the
Pamulaklakin Nature Park Subic Bay is a bay on the west coast of the island of Luzon in the Philippines, about northwest of Manila Bay. An extension of the South China Sea, its shores were formerly the site of a major United States Navy facility, U.S. Naval Base Subi ...
which is home to the indigenous Aetas who once trained the U.S. Navy in jungle survival tactics. Subic International Raceway (SIR), the Philippines' first purpose-built motorsports venue, was opened in 1994 and situated near
Subic Bay International Airport Subic Bay International Airport ( fil, Paliparang Pandaigdig ng Look ng Subic; ) serves as a secondary and diversion airport for Ninoy Aquino International Airport in Metro Manila and Clark International Airport in Pampanga. It also serves the i ...
. It was established by local racing champion, Pocholo Ramirez, and his family. SIR was host to international racing events, such as the Asian Festival of Speed, Asian Formula 2000 and the Asian Formula Three Championship. It also hosted local races, such as the
Philippine Touring Car Championship The Philippine Touring Car Championships (PTCC), formerly the Philippine National Touring Car Championships, is the only touring car series running under the banner of the Automobile Association of the Philippines (AAP). Race Fans Incorporated, a ...
, Run What You Brung (RWYB) and
Circuit Showdown Circuit Showdown was a Philippine auto racing series that began in 2010 and was organized by Enzo Pastor and Dalia Pastor. It was the only circuit racing series in the country that is open to both amateur and professional drivers. Tracks Th ...
. The racetrack ceased operations in 2010 after the end of its lease. The economic zone is also the host of the Subic Bay Yacht Club, and the bay has been favored as a location for sailing sports especially during the '' Habagat'' season. Subic Bay also hosted the sailing events for the
2019 Southeast Asian Games The 2019 Southeast Asian Games, officially known as the 30th Southeast Asian Games, or the 30th SEA Games, and commonly known as Philippines 2019, was the 30th edition of the Southeast Asian Games, a biennial regional multi-sport event which ...
.


Transportation

The Subic Special Economic and Freeport Zone is served by the
Subic–Clark–Tarlac Expressway The Subic–Clark–Tarlac Expressway (SCTEX), signed as E1 and E4 of the Philippine expressway network and R-8 of the Metro Manila arterial road network, is controlled-access toll expressway in the Central Luzon region of the Philippines. Fro ...
. Subic is also the site of the
Subic Bay International Airport Subic Bay International Airport ( fil, Paliparang Pandaigdig ng Look ng Subic; ) serves as a secondary and diversion airport for Ninoy Aquino International Airport in Metro Manila and Clark International Airport in Pampanga. It also serves the i ...
which can be used for chartered flights. The airport was also a former Asian hub of multinational logistics company FedEx. The Port of Subic also serves direct passenger traffic through ferries going to and from Orion, Bataan.


Industrial parks

Most of the businesses inside the Freeport Zone are composed of manufacturing, construction and warehousing. The operations of the freeport zone are subdivided into industrial parks, namely: * Subic Bay Gateway Park (''formerly Subic Bay Industrial Park'') * Subic Techno Park * Global Industrial Park (SRF Compound) * Boton Lights and Sciences Park


See also

* Clark Freeport and Special Economic Zone * Freeport Area of Bataan


References


External links


Subic Bay (Freeport) Metropolitan Authority (SBMA) official websiteThe Official Tourism Website for the Subic Bay area, containing tourist and accommodation information (Authorized by SBMA)
{{Authority control Redeveloped ports and waterfronts in the Philippines Redevelopment projects in the Philippines Industrial parks in the Philippines Buildings and structures in Olongapo Buildings and structures in Zambales Buildings and structures in Bataan Free ports Olongapo Red-light districts in the Philippines 1992 establishments in the Philippines