SBMA sees revenue, jobs boost with Pax Silica

STRATEGIC GATEWAY The Port of Subic, with its deep-water harbor and cargo facilities, is expected to play a key role in the proposed Pax Silica initiative as the preferred maritime gateway for the planned artificial intelligence-native Economic Security Zone in New Clark City. —Photos courtesy of Subic Bay Metropolitan Authority SUBIC BAY FREEPORT, Philippines — The Subic Bay Metropolitan Authority (SBMA) expects the United States-led Pax Silica initiative to generate new revenues and jobs for this free port through expanded port operations and investments, although officials acknowledged that specific projects have yet to be finalized. Pax Silica was among the subjects taken up during the meeting between President Marcos and US Secretary of State Marco Rubio on Wednesday. It was launched by the United States in December 2025 as a multinational initiative designed to establish resilient supply chains for artificial intelligence (AI), semiconductors and critical minerals among allied countries. Article continues after this advertisement The SBMA-operated Port of Subic, which sits on a former US naval base, has been designated as the maritime gateway for the Pax Silica initiative in the Philippines. “There is nothing concrete and definite yet,” SBMA chair and Administrator Eduardo Jose Aliño told the Inquirer in a telephone interview on Thursday. READ: Pax Silica hub to bring P180B in gov’t income, 190,000 jobs – BCDA But he acknowledged that the emerging role of the Port of Subic in the shaping alliance marks an important step toward attracting investments that could strengthen the free port’s economy. “Our mandate is really to generate income and create jobs,” Aliño said. Article continues after this advertisement He said the designation is expected to open new revenue streams for the free port through increased use of port facilities, warehouses and staging areas for the handling, storage and movement of project supplies, equipment and construction materials. READ: Marcos, Rubio discuss Luzon development, Pax Silica Article continues after this advertisement He said additional revenues are also expected from the lease of facilities operated by locators within or near the port complex that will support project operations. ECONOMIC HUB The Subic Bay Freeport, a former United States naval base, is one of the major economic and investment hubs in Central Luzon. Its designation as a maritime gateway for the Pax Silica alliance is expected to generate income and create jobs. Port revenues In 2025, SBMA earned P1.77 billion in port revenues, or a 4.2-percent increase from 2024, signaling continued growth for the Subic Bay Freeport as a key logistics and trade hub in Southeast Asia. Also in 2025, its 4,744 business locators employed 171,653 workers, 30 percent of whom are women. In terms of activity, services had the largest number of locators, with 4,129 firms, followed by construction (356), shipbuilding and marine-related services (148) and manufacturing (111). On Thursday, Aliño said that eight local governments around the free port received a total of P218.1 million in revenue shares from SBMA for the first half of this year, some 10.24 percent higher than the revenue shares distributed during the same period last year. These include Olongapo City and the towns of Subic, San Marcelino, Castillejos and San Antonio in Zambales province and the towns of Dinalupihan, Hermosa and Morong in Bataan province. Aliño said a technical working group would be formed to ensure smooth implementation of Pax Silica-related projects. This would identify, coordinate and address logistics and other operational requirements as planning progresses. Aliño said possible developments within the free port could include manufacturing plants, processing facilities, warehouses, logistics hubs and other support infrastructure that would complement the planned AI and semiconductor hub in New Clark City. The SBMA and the Bases Conversion and Development Authority (BCDA) signed a memorandum of understanding on July 20 designating the Port of Subic as the preferred maritime gateway for Pax Silica operations within the Luzon Economic Corridor. The agreement authorizes the two agencies to identify and assess land and port areas that may support the project while evaluating infrastructure, utilities, logistics requirements, transport connectivity and possible development phases. The agencies will also exchange nonconfidential information to support planning and operational coordination as the project advances. Aliño earlier said that the Port of Subic’s natural deep-water harbor and shipyard facilities place it in a strategic position to support one of the country’s largest planned technology investments. He said the port would facilitate the movement of critical raw materials, such as nickel and copper, into the country while enabling processed technology products to reach international markets through the planned AI-native Economic Security Zone at New Clark City in Capas, Tarlac. “The port is what Clark does not have,” Aliño said, referring to the importance of linking the country’s future technology hub to an international seaport capable of handling large volumes of cargo. BCDA president and CEO Joshua Bingcang earlier said the partnership would strengthen the Luzon Economic Corridor by integrating ports, industrial zones and emerging technology ecosystems while improving the country’s competitiveness in global supply chains. Inquiry sought The Philippines formally joined the Pax Silica initiative in April after the BCDA identified a 1,619-hectare site at New Clark City. Government officials have said the zone is envisioned as an integrated industrial ecosystem that could host semiconductor manufacturing, AI infrastructure, research facilities, advanced logistics and other high-value industries. On Thursday, Kilusang Magbubukid ng Pilipinas threw its support behind a House resolution seeking an inquiry into the country’s participation in Pax Silica, saying the proposed AI and advanced technology hub in Central Luzon raises questions on transparency, land use and national sovereignty. Your subscription could not be saved. Please try again. Your subscription has been successful. House Resolution No. 1128, filed by legislators from the Makabayan bloc, seeks to examine the legal framework and government commitments related to Pax Silica. /cb