A Proposed Economic Free Trade

(Economic Government Own Institution)

Investments & Opportunities

● Administrative Offices / Departments
● Storage and Facilities
● Utilities and Heavy Load Equipment
● Agriculture
● Fishery and Forestry
● Community and Social Services
● Wholesale and Retail Trade
● Manufacturing
● Processing plants, meat importers, fruits/vegetables importers for local and exports, ice
makers/manufacturers
● Cargo handling, warehousing and storage
● Warehouse and storage leases

Statement of the Problem

High demand and the excessive shipment of produce have given rise to a pressing issue, wherein
goods suffer deterioration due to the inadequate handling of overloading capacity at select ports.
This mismanagement not only leads to substantial financial losses but also carries far-reaching
implications for both the environment and the reputations of the institutions overseeing these
operations.
1. Spoilage of Goods - EPA: Ports Primer: 2.2 Current Port Industry Challenges: This
article discusses the challenges faced by ports, including the congestion of transportation
infrastructure surrounding a port, which can limit the flow of goods to and from a port,
even if the port's internal capacity to handle cargo has expanded. Congestion can lead to
delays in handling subsequent vessels, which can increase the risk of spoilage of goods
which will then lead to financial loss.
2. Environmental Impact- The Philippine Atmospheric, Geophysical and Astronomical
Services Administration (PAGASA) recorded an increase in food waste-related
greenhouse gas emissions by 15% in 2021, primarily due to spoilage during
transportation and storage. Improper disposal of spoiled produce often contributes to
landfills, exacerbating solid waste management issues and soil contamination.
3. Reputation Damage- Public surveys conducted by reputable organizations such as Pulse
Asia in 2023 indicate that public trust in government agencies responsible for managing
ports and agriculture has significantly eroded, with 75% of respondents expressing
dissatisfaction with their handling of these issues.
Target Market
● Business Owners
● Local Residents
● Community
● Government Officials / Agencies
● Tourist
● Farmers & Fishermen
● Local Wood Manufacturer
● Traders
● SOC (shipper-owned container)
● COC (carrier-owned container)
● Registered Enterprises

Site Location
Poblacion Batangas Bataan, (Chevron Batangas Terminal Golf Course)
Lot Area – 59,155 Sqm (Almost 6 Hectares)

- Vacant Lot
- Front Access road
- Metal Fence Property
- It is a Government owned Lot
- Nearby landmarks: Chevron Batangas Terminal Golf Course, Iglesia Ni Cristo - Lokal
ng Danglayan.
EXISTING FACILITIES

Alava Wharf

Description: Location:

● Latitude: 14˚45.00'N
Original ● Longitude: 120˚13.00'E

● Length: 520 meters

● Width: 18 meters
● Depth: 12 meters Berthing Vessels/Usage:

● Foreign naval vessels

● Passenger ships
Extension ● Ferry boats
● General cargo vessels
● Length: 181 meters
● Width: 18 meters
● Depth: 12 meters

Boton Wharf
Description:
East Side / C2 and C3
● Length: 411 meters
● Width: 18.9 meters
● Depth: 10.2 meters
West Side / C1
● Length: 237 meters
● Width: 18.9 meters
● Depth: 4.6 meters
Location:
● Latitude: 14˚47.65'N
● Longitude: 120˚17.34'E
Bravo Wharf
Description:
● Length: 411 meters
● Width: 15 meters
● Depth: 6 meters
Location:
● Latitude: 14˚49.00'N
● Longitude: 120˚17.19'E
Berthing Vessels/Usage:
● Transshipment vessels
● Fishing boats
● Bulk cargoes
● Fertilizer terminal by SSTI
Facilities:
● 9 Diesel Storage Tanks with capacity
of 10M liters per tank
● 4 Warehouses
● Administration Building
●
Berthing Vessels/Usage:
● Cargo Ships
● Mooring facilities for port service
boat/tug boats
Facilities:
● B-50 Crane operated by Translift (50
toner)
Leyte Pier

Description: Berthing Vessels/Usage:

● Length: 300 meters ● Grain terminals operated by Subic

● Width: 32.5 meters Bay Freeport Grain Terminal, Inc.
● Depth: 14 meters
Facilities:

● 5 Grain Storage Tanks (57 mt/silo)

Location: ● 3 Portal Crane with Clam Shells
● Warehouse (10,000 sqm.)
● Latitude: 14˚47.96'N ● Weigh Bridge
● Longitude: 120˚16.14'E ●

Marine Terminal
Description: Location:

● Latitude: 14˚49.00'N
East Bulkhead ● Longitude: 120˚17.74'E

● Length: 237 meters

● Width: 35 meters
● Depth: 12.9 meters Berthing Vessels/Usage:

● General cargo
● Roro
West Bulkhead ● Cargo ship and tug boat
● Tanker
● Length: 237 meters ● Fishing boats
● Width: 35 meters
● Depth: 12.9 meters Facilities:

● 19 Warehouses
● 3 Weigh Bridges
MT-9

● Length: 97 meters
● Width: 35 meters
● Depth: 12.9 meters

Nabasan Wharf

Description: Location:

● Latitude: 14˚46.35'N
● Length: 180 meters ● Longitude: 120˚15.51'E
● Width: 18.9 meters
● Depth: 14 meters
Berthing Vessels/Usage:

● Maritime training facility (IDESS)

●
Pol Pier

Description: Berthing Vessels/Usage:

● Tanker (privately operated by Costal

● Length: 253 meters Subic Bay Petroleum, Inc.)
● Width: 23.1 meters
● Depth: 12.8 meters
Facilities:

Location: ● 65 Storage Tanks with 10,000 to

200,000 barrel capacity
● Latitude: 14˚48.53'N ● Tanker (DWT:50,000 tons max)
● Longitude: 120˚17.68'E ● 4 Fuel Loading Arms

Rivera Wharf
Description: Berthing Vessels/Usage:

● Length: 906 meters
● Width: 18 meters
● Depth: 9 meters
Location:
● Lay-up ships
● Cable ships and any
non-container cargo ships
● General cargo vessels
● Philippine Naval Ships
● Small watercrafts

● Latitude: 14˚48.79'N
● Longitude: 120˚17.32'E

Sattler Wharf

Description: Berthing Vessels/Usage:

● General cargo vessels

● Length: 180meters
● Width: 24.4 meters
● Depth: 12 meters
Facilities:

● Warehouse (18,338 sqm.)

Location: ● Weigh Bridge

● Latitude: 14˚49.04'N
● Longitude: 120˚17.63'E
SWOT ANALYSIS

STRENGTHS
- It is close to an existing fish market and coastal sea side that can help on
distributing goods and can give opportunities to the local market vendors.
- This site location in Barangay Sayasain is a hotspot for tourist attraction
especially its lust and beautiful coastal beach and white beach sand, that
gives this site value, it has the advantage to be develop and prosper.
WEAKNESSES
- It has a lot tree that are needed to be rehabilitated and ask for permission
to be move.
- It is a bit far from the main access road by 100 meters and the only access
is through the beach.

OPPORTUNITIES
- To create different types of business depending on the given target market
in the Barangay of Saysain.
- Possible for future Expansions throughout the area.
- Can provide and developed for beach resorts to be built in future.
THREATS
- It is prone to unpredictable tides, specifically low tides and high tides.
Considering the factors of certain tides, red tides can affect the natural
habitats of fishes, clams and other sea creatures that may affect the
quality of local products.
- Due to this certain tides water transportations and delivery shipments can
be affected too.
RELATED LITERATURE:
PEZA (Philippine Economic Zone Authority)

Legal Basis
Republic Act No. 7916 (as amended by Republic Act No. 8748) otherwise known as “The
Special Economic Zone Act of 1995”

Purposes, Intents and Objectives

● to create the governing structure and procedures for the coordination, planning, and
management of special economic zones, industrial estates and parks, export processing
zones, and other economic zones;
● to develop some regions of the nation into highly developed agro-industrial, industrial,
commercial, tourism, banking, investment, and financial hubs, where businesses will
have access to highly skilled personnel and effective services;
● to encourage the influx of local and international investors into special economic zones,
which would provide job opportunities and create backward and forward links between
the industries within and around the economic zones;
● to encourage the capital repatriation of Filipinos by creating a welcoming environment
and offering incentives for investment;
● to encourage financial and industrial cooperation between the Philippines and developed
nations through technology-intensive industries that will modernize the nation's industrial
sector and boost productivity levels by leveraging new technological and managerial
know-how; and
● to grant some sections of the special economic zones the status of a distinct customs
territory while adhering to the Constitution, the national sovereignty, and the territorial
integrity of the Philippines.

Functions and Powers of PEZA Board

● provide broad guidelines for the creation and management of industrial parks, free trade
zones, export processing zones, and similar structures;
● examine proposals for the creation of Eco zones in light of the standards outlined in
Section 6 (Criteria for the Creation of Other Eco zones), and recommend to the President
the creation of Eco zones, industrial estates, export processing zones, free trade zones,
and similar areas. After that, it will facilitate and aid in the formation of the
aforementioned entities;
● to establish fair, reasonable, and competitive rates, charges, and fees in order to regulate
and carry out the establishment, operation, and maintenance of utilities, other services,
and infrastructure in the Eco zone, such as heat, light, and power, water supply,
telecommunication, and transportation; approve the annual budget of the PEZA and the
Eco zone development plans;
 ● publish rules and regulations to carry out the requirements of this Act in relation to its
authority and capabilities;
● perform its duties in accordance with this Act's provisions; and
● provide the President and the Congress with yearly reports.

General Powers and Functions of PEZA

● to maintain, administer, and develop the Eco zone in accordance with the guidelines and
rules outlined in this Act;
● to effectively and decentralized register, regulate, and oversee the businesses in the Eco
zone;
● to work in conjunction with local government entities and exercise general control over
the creation, management, and operation of Eco zones, industrial estates, export
processing zones, free trade zones, and similar areas;
● to build, acquire, own, lease, operate, and maintain adequate facilities and infrastructure,
such as light and power systems, water supply and distribution systems,
telecommunication and transportation, buildings, structures, warehouses, roads, etc., on
its own or through contract, franchise, license, bulk purchase from the private sector, and
build-operate-transfer scheme or joint venture, bridges, ports, and other infrastructure
necessary for the Eco zone’s development and functioning;
● to establish, run, or hire someone to run any offices, functional units, or agencies that the
authority deems essential;
● to create contracts, lease real estate or other property, possess or otherwise dispose of it,
sue and be sued, and do other actions permitted by this Act; to adopt, modify, and use a
corporate seal;
● to coordinate the development and implementation of policies and programs with the
local government entities, the Department of Trade and Industry (DTI), the National
Economic Development Authority (NEDA), and relevant government agencies;
● to keep tabs on the growth and needs of Eco zones and assess their development, as well
as to suggest to local government units or other relevant authorities the location of
incentives, essential services, utilities, and infrastructure that these entities should have
access to.

“PEZA over-achieves 2022 targets”

Proving that the agency can reach its target of total investments in 2022, the Philippine
Economic Zone Authority (PEZA) has over-achieved beyond the 6-7% target for 2022.
“We are proud to report that PEZA has approved a total of 194 projects from January to
December 2022 which are expected to bring in PhP 140.7 Billion worth of investments. This is a
103.03% increase compared to the same period last year,” said PEZA OIC Chief Tereso O.
Panga on Monday.
In terms of actual employment and exports, PEZA was able to create 1,850,842 direct jobs and
generate USD 54.239 Billion in exports as of October 2022.

“Despite the 29.85% decline in the first semester of the year 2022 compared to the first semester
of 2021, we never lost hope that we will recover. With the big-ticket investments that were
prequalified by the Board for endorsement to the FIRB, we were able to record a positive
increase in investments in 2022,” stated Panga.
He explained, “At the rate we are going now, PEZA has achieved this year the level of annual
investments approved in 2018. That means that the country’s ecozones and high-performance
investments are back to the pre-pandemic, even surpassing the 2018 level. Indeed, the economic
and political climate are improving under the PBBM administration and we hope to sustain very
good performance as we prepare for the upturn in the economy and our transition to
upper-middle income status.”
The PhP 140.7 Billion investment approval of PEZA in 2022 exceeds its four-year annual
performance with PhP 140.2 Billion last recorded in 2018 followed by a constant yearly decline
in investments until 2021 due to the pandemic, Russia-Ukraine war, and the ensuing global
supply chain disruptions.
The PEZA interim chief noted that “With the increasing GDP growth rate of the Philippines, we
can expect more FDIs to register with PEZA. What is important is we keep building and
sustaining the confidence of investors and the country’s competitiveness in investment
promotions and facilitations.”

PEZA Board Approval

The total comes as the PEZA Board, which was presided by DTI Secretary and Chairman
Alfredo Pascual, approved last December 15 about 13 new and expansion projects expected to
bring in PhP 83.651 Billion of investments.
Three (3) of the said projects are by ecozone developers while ten (10) projects are by ecozone
locators: four (4) export manufacturing enterprises and six (6) IT service enterprises.
These projects will be located in the Taguig City, Pangasinan, Cavite, Batangas, Laguna, Cebu,
and Negros Occidental.
Main sources of investments came from Japan, Singapore, Netherlands, United Kingdom, USA,
India, South Korea, the Republic of China, the British Virgin Islands, and Taiwan.
Strategic Importance of Ecozones
In the first State of the Nation Address of President Bongbong Marcos Jr., he highlighted the
strategic importance of ecozones and the need to promote productivity-enhancing investments,
which are best hosted by ecozones under PEZA and other IPAs.
Panga explained, “We cannot register productivity-enhancing investments if we do not have the
ecosystems to provide our investors so that they can be viable with their operations in the
Philippines.”
“Ecozones can be shields. At this time of crisis, ecozones can be shields to soften the landing of
the headwinds and all these global disruptions happening. The other side to this is that ecozones
can be economic drivers. We are in that unique opportunity to contribute to job creation and
countryside development as well as accelerate our economic growth,” he added.
Several experts also voiced out their support for strengthening the country’s ecozone program
due to its multiplier effects on the regions and the economy.
“Let the zones flourish and grow. The present administration of PBBM must take a closer focus
on enhancing the strength of our special economic zones. There’s so much untapped potential in
this sector,” said Philippine Star columnist Ariel Nepomuceno.
Meanwhile, Cong. Emigdio Tanjuatco III, the chairman of the House Committee on Trade and
Industry stated that “Evidently, economic zones in the Philippines have risen to become an
important export promotion tool and economic policy instrument to attract foreign direct
investments, leading to job creation, export earnings, elimination of trade barriers, and revenues
for both the national and local government.”

Strengthened investment promotions

With the PBBM administration’s economic plan that seeks to position the country as the smart
destination choice for investments, PEZA is strengthening its investment promotion and
facilitation efforts through the ecozone program.
“We are also actively engaging various government agencies and industry partners among others
to aggressively promote the Philippines. We need to get our acts together; we cannot do this
alone. By doing that, we can achieve regulatory coherence and enhance further ease of doing
business in the ecozones,” explained Panga.
Echoing this, National Economic and Development Authority (NEDA) Secretary Arsenio
Balisacan stated that there is a good basis for the development of the zones in the country, but it
is necessary to ensure that resources are available to make it a viable destination for
investors.“This needs a ‘whole-of-government approach’ in ensuring a healthy industry
consisting of ‘effective and cost-efficient zones,’ without leaving their development solely to the
Philippine Economic Zone Authority (PEZA),” explained the NEDA Chief.
In the case of PEZA, the ecozones continue to exist with great success. Except for the four (4)
public ecozones, the rest of the 415 ecozones nationwide are mostly owned, developed and
managed by the private sector. PEZA through DTI Secretary Pascual has endorsed a total of 16
ecozone developer projects for proclamation by the President with a total capital investment of
PhP 18.032 Billion.
Nevertheless, OIC Panga assured that despite the hurdles, “PEZA remains committed to
performing its sworn mandate and attracting the much-needed strategic and big-ticket
investments to the country and contribute to PBBM's goal for the country's transition to the upper
middle-income economy within his term. Let us continue to make it happen in the Philippines!”
CEZA (Cagayan Economic Zone Authority)
● The "Cagayan Special Economic Zone Act of 1995," also known as Republic Act 7922,
established the Cagayan Economic Zone Authority (CEZA), a corporation that is owned
and managed by the government. Senator Juan Ponce Enrile, a native of Cagayan
Province, wrote it, and then-President Fidel V. Ramos gave his approval. The
development of the Cagayan Special Economic Zone and Freeport (CSEZFP) is under its
management and supervision.

● Since 1997 and up to the present, CEZA has started a number of projects to encourage
growth in the CSEZFP. As an economic zone, it seeks to transform the entire region into
a self-sufficient industrial, commercial investment, financial, and recreational hub, along
with appropriate retirement and residential communities. It functions as a separate
customs territory like Hong Kong, Singapore, Lubuan in Malaysia, and Hamburg in
Germany because it is a freeport. It is intended to serve as a significant transshipment hub
for trade along the Asia-Pacific region. With significant incentives and benefits for
prospective investors who would like to register with CEZA, it now presents itself to
exciting business opportunities. These changes are all thought to be aimed at luring
honest and successful domestic and international investments, therefore creating
employment opportunities in and around the Freeport.

● 2021 ANNUATOPERATIONATTHRUST The 2021 Annual Operational Thrust shall be

dedicated with the leader of CEZA who steered the organization through the pandemic
period. A leader who was able to support, approve and implement flexible plans through
the "CEZA Fourmax Recovery Plan 2O20-2O22" as well as lead with compassion
through issuance of policies that primarily carried out the plight of all the workers,
locators and the concerned community. The Annual Operational Thrust for 2021 shall be
dubbed as "SECURE, RESPONSIVE, LEADING AND LOOKING FOURWARD PLAN
2021" or SRtt 4WARD Plan 2021. The 2021 Business Plan shall have the following four
(4) thematic components which shall be anchored and modified with the recently
approved CEZA FourMax Recovery Plan, as follows: ,,SECURE, RESPONSIVE.
LEADING AND LOOI(ING FOURWARD PLAN 2021" (SRLL4Ward Plan 2021.)

● F1: ACCELERATE INFRASTRUCTURE AND INFORMATION AND

coMMUNTCATTON TECHNOLOGY (tCT) ACTIVITIES
● F2: BOOST MARKETING AND ADVOCACY EFFORTS
● F3: CREATE REVENUES AND RESOURCE MOBILIZATION
● F4: DELIVER EFFECTIVE AND EFFICIENT SERVICES