Why Subic?

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WHY SUBIC? The Port of Subic today…  An emerging full-fledged logistics and investment hub in the South East Asian Region  A modern and strategic gateway for the following port activities:  Gathering cargoes from the southern islands of the Philippine archipelago, as well as Northern and Central Luzon; and  Transshipping cargoes to and from the trans-Pacific, Japan, Korea, Singapore, Europe, Middle East & other major Asian ports.

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Key Advantages of the Port of Subic at a Glance

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• Strategic location & accessibility as a regional logistics hub • Natural deep harbor

• Lower drayage & port-related charges • Lower tariff than Manila

• Complete world-class port facilities • High quality major road networks

• No truck ban / No flooding

• Two (2) New Container Terminals with total capacity of 600,000 TEUs annually

• 9001-2000 Certified on Quality Management

• Shorter distance & delivery time

• International Ship and Port Facility Security (ISPS) code compliant

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JAPAN Shanghai

CHINA

INDIA

Taipei TAIWAN Hong Kong BURMA

Hanoi LAOS

THAILAND

SUBIC BAY●

Bangkok

•Manila

VIETNAM CAMBODIA

PHILIPPINES

Phnom Penh

MALAYSIA

Centrally located in the Asia Pacific region and within the first and premier free port of the Philippines

MALAYSIA

Kuala Lumpur

Borneo

SINGAPORE

PAPUA NEW GUINEA S

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KOREA

Seoul 4.5 days

Tokyo 5.0 days JAPAN

3.0 days Shanghai

CHINA

INDIA

2.0 days Taipei

2.0 days Hong Kong BURMA

TAIWAN >2.0 days Kaohshiung Los Angeles 22 days

Hanoi LAOS

THAILAND 4.0 days Bangkok

SUBIC BAY●

Subic Bay is accessible to and from the fastest growing markets of the ASEAN region.

•Manila

VIETNAM CAMBODIA

3.0 days Ho Chi Minh

PHILIPPINES

Phnom Penh

MALAYSIA

MALAYSIA

Kuala Lumpur

Borneo

4.5 days SINGAPORE

PAPUA NEW GUINEA S

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INDONESIA P O L

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Natural Deep Harbor

A natural deep harbor of up to 15 meters in depth, Subic is a complete port. It covers a total of 41 hectares and has 15 operational piers and wharves capable of handling all kinds of sea vessels including the Panamax class container vessels.

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Major Road Networks to and from the Port of Subic

SUBIC-CLARK-TARLAC EXPRESSWAY (SCTEX) S

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Major Road Networks to and from the Port of Subic Section

Distance (Kms)

Segment

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1. 2. 3. 4. 5.

Tarlac – Victoria Victoria – Gerona Gerona – Paniqui Paniqui – Moncada Moncada – Carmen

9.20 7.75 5.70 6.15 19.90

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6. Carmen - Urdaneta

9.47

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7. Urdaneta – Pozzorubio 8. Pozzorubio - Rosario

14.83 15.58

Total

88.58

TARLAC-PANGASINAN-LA UNION EXPRESSWAY (TPLEX) S

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Major Road Networks to and from the Port of Subic

TO SCTEX

NCT 1 & 2 ACCESS ROAD  A 3.6-km. access road,

connecting New Container Terminals 1 and 2 to the Freeport’s Argonaut Highway all the way to the Tipo Expressway, Subic’s nearest entry-exit point to and from Manila

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Shorter distance…

ROUTE Subic – Bataan

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DISTANCE 20 kms

Subic – Clark

60 kms

Subic – Pampanga Subic – Tarlac

50 kms

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ROUTE Manila – Bataan Manila – Clark Manila – Pampanga Manila Tarlac

60 kms

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DISTANCE 123 kms 85 kms 65 kms 125 kms

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Shorter delivery time…

MANILA TO/FROM

SUBIC

Est. Travel Time (hr)

Distance (km)

Distance (km)

Est. Travel Time (hr)

138

4

MANILA TARLAC

125

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60

2.5

BATAAN

123

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1.75

PAMPANGA

57

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50

2.5

ZAMBALES (IBA)

210

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80

3

CLARK

85

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60

2.5

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…and lower drayage & port-related charges

ESTIMATED TRUCKING COST

Manila–Clark–Subic Subic–Clark–Subic

PhP 14,000 PhP 12,000

ARRASTRE PORT

Per 20 TEU

Per 40 TEU

SUBIC

PhP 1,481.76

PhP 3,402.00

MICT / ATI

PhP 2,577.12

PhP 5,918.08

SAVINGS

PhP 1,095.36

PhP 2,516.08

The Port of Subic Bay has lower tariff compared to other ports in the Philippines.

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International Security and Quality Standards • The Port of Subic Bay is fully compliant with the International Ship and Port Facility Security (ISPS) Code of the International Maritime Organization. • It is also fully ISO 9001-2000 certified on Quality Management, an assurance of quality services in accordance with national and international standards.

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More Advantages

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Subic Bay International Airport The Port of Subic is uniquely complemented by the Subic Bay International Airport (SBIA) for cargo and passenger traffic.

A 200-hectare facility that meets International Civil Aviation Organization (ICAO) standards for Category I Precision Approach Runway with aerodrome reference Code 4E. S

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Key Freeport-wide Infrastructure

 Well-maintained SBF road network

 State-of-the-art telecom infrastructure

 Efficient waste management system

 Sufficient, reliable and clean water supply

 Sufficient and stable power supply

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Only in Subic Bay

 No truck ban

 No flooding

 No traffic due to road discipline

 No number coding scheme

 Assured safety and security

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Attractive Business Incentives for Investors

 Exemption from all local and national taxes with only a 5% corporate tax on gross income  Duty-free importation

 Unrestricted entry of foreign investments  No foreign exchange control  Visas available to foreign nationals  Expanded allowable deduction and higher percentage of income allowable from sources within the customs territory for regional enterprises

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