Subic Special Economic and Freeport Zone

{{Distinguish|text=the municipality of Subic, Zambales, part of which forms the Subic Bay Freeport Zone}} {{Use Philippine English|date=January 2023}} {{use mdy dates|date=December 2022}} {{Infobox settlement <!-- See Template:Infobox settlement for additional fields and descriptions -->| name = Subic | official_name = Subic Special Economic and Freeport Zone | settlement_type = Freeport and special economic zone | image_skyline = {{PH wikidata|image_skyline}} | image_caption = {{PH wikidata|image_caption}} Subic Bay Yacht Club | image_flag = | image_seal = | seal_size = | nickname = | motto = | image_map = Subic Special Economic and Freeport Zone.svg | map_caption = Location of Subic in Bataan and Zambales | pushpin_map = Philippines#Luzon mainland | pushpin_label_position = left | pushpin_map_caption = Location within the Philippines | coordinates = {{coord|14.807|120.287|type:landmark_region:PH_dim:3000|display=inline,title}} | coordinates_footnotes = | subdivision_type = Country | subdivision_name = Philippines | subdivision_type1 = Region | subdivision_type2 = Provinces | subdivision_type3 = City and municipalities | subdivision_name1 = Central Luzon | subdivision_name2 = Bataan and Zambales | subdivision_name3 = '''Bataan'''<br />{{hlist|Hermosa|Morong}} '''Zambales'''<br />{{hlist|Olongapo|Subic}} | established_title = Established | established_date = March 13, 1992 | founder = | parts_type = | parts_style = | p1 = | government_footnotes = | leader_party = | leader_title1 = Chairperson and administrator | leader_name1 = Eduardo Aliño | area_footnotes = {{PH area}} | area_total_km2 = {{PH wikidata|area}} | elevation_footnotes = | elevation_m = | population_total = {{PH wikidata|population_total}} | population_as_of = {{PH wikidata|population_as_of}} | population_footnotes = {{PH wikidata|population_reference}} | population_density_km2 = auto | population_demonym = | population_note = | postal_code_type = ZIP code | postal_code = {{PH wikidata|postal_code}} 2222 | area_code = {{PH wikidata|area_code}} +63 47 | area_code_type = {{areacodestyle}} | blank_name_sec1 = Catholic diocese | blank_info_sec1 = Diocese of Balanga (Hermosa and Morong, Bataan)<br>Diocese of Iba (Olongapo and Subic, Zambales)<br> | website = {{URL|mysubicbay.com.ph}} | footnotes = | mapframe = yes }} The '''Subic Special Economic and Freeport Zone''', often shortened as '''Subic Bay''' or '''Subic''', is a special economic zone and freeport area covering portions of the city of Olongapo and the town of Subic in Zambales, and the towns of Hermosa and Morong in Bataan in the Philippines.<ref>{{cite web | url=https://www.officialgazette.gov.ph/1995/02/01/proclamation-no-532-s-1995/ | title=Proclamation No. 532, s. 1995 - DELINEATING THE METES AND BOUNDS OF THE SUBIC SPECIAL ECONOMIC AND FREEPORT ZONE | website=Official Gazette |date=31 August 2022 }}</ref><ref name=extend>{{cite news |last1=Empeño |first1=Henry |title=SBMA plans extending Subic Freeport to contiguous towns |url=https://businessmirror.com.ph/2017/01/31/sbma-plans-extending-subic-freeport-contiguous-towns/ |access-date=6 January 2020 |work=BusinessMirror |date=31 January 2017}}</ref> 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 (SBMA). The harbor faces the Zambales Mountains to the west and Subic Bay opens to the South China Sea.

==History== {{Main|U.S. Naval Base Subic Bay}} Subic Bay is surrounded by the towns of Hermosa, Morong, and Subic, and the city of Olongapo in the provinces of Bataan and Zambales, respectively. The Spanish built a shipyard and naval base in Subic bay in the 1800s. During the Philippine Revolution, the Cuban-Filipino Vicente Catalan and his fleet in the nascent Philippine Navy, seized Subic from the Spanish and delivered it to the First Philippine Republic. Afterwards when the Americans invaded, it became an American naval base. 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. An arsenal and ship-repair facility was established at Subic Bay in 1885 by the then colonial power, Spain. Following the Spanish–American War, 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. A red-light district developed around the base, drawn by the presence of American personnel.<ref>{{cite web |last1=Marquardt |first1=Alexander |last2=Waterfield |first2=Alex |title=Alleged Underage Prostitution in Philippines; Americans Targeted |url=https://abcnews.go.com/International/americans-targeted-allegedly-running-underage-prostitution-philippines/story?id=18582802 |website=ABC News |access-date=31 January 2019 |language=en |date=25 February 2013}}</ref>thumb|The Official Logo of the Subic Bay Metropolitan Authority|165x165px In early 1991, after the collapse of protracted negotiations, the Philippine Senate rejected terms for renewal of the base's lease. The U.S. Navy was already in the process of downsizing its Subic Bay operations in June 1991, when Mount Pinatubo 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.

On March 13, 1992, the Philippine Congress passed Republic Act 7227, known as the Bases Conversion and Development Act of 1992, in anticipation of the pullout of the US military bases in the country. Section 13 of Republic Act No. 7227 converted Subic Bay Naval Base into Subic Special Economic and Freeport Zone and created the Subic Bay Metropolitan Authority (SBMA) to develop and manage the Freeport which provides tax and duty-free privileges and incentives to business locators in the special economic zone.<ref>{{Cite web |title=G. R. No. 119775 - JOHN HAY PEOPLES ALTERNATIVE COALITION, MATEO CARIÑO FOUNDATION INC., CENTER FOR ALTERNATIVE SYSTEMS FOUNDATION INC., REGINA VICTORIA A. BENAFIN REPRESENTED AND JOINED BY HER MOTHER MRS. ELISA BENAFIN, IZABEL M. LUYK REPRESENTED AND JOINED BY HER MOTHER MRS. REBECCA MOLINA LUYK, KATHERINE PE REPRESENTED AND JOINED BY HER MOTHER ROSEMARIE G. PE, SOLEDAD S. CAMILO, ALICIA C. PACALSO ALIAS "KEVAB," BETTY I. STRASSER, RUBY C. GIRON, URSULA C. PEREZ ALIAS "BA-YAY," EDILBERTO T. CLARAVALL, CARMEN CAROMINA, LILIA G. YARANON, DIANE MONDOC, PETITIONERS, VS. VICTOR LIM, PRESIDENT, BASES CONVERSION DEVELOPMENT AUTHORITY; JOHN HAY PORO POINT DEVELOPMENT CORPORATION, CITY OF BAGUIO, TUNTEX (B.V.I.) CO. LTD., ASIAWORLD INTERNATIONALE GROUP, INC., DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES, RESPONDENTS.D E C I S I O N - Supreme Court E-Library |url=https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/47416 |archive-url=https://web.archive.org/web/20220828202504/https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/47416 |archive-date=2022-08-28 |access-date=2025-08-08 |website=elibrary.judiciary.gov.ph |language=en-US}}</ref>

Richard Gordon, then the mayor of the City of Olongapo, became the first SBMA chairman.

The last ship, USS ''Belleau Wood'', left on November 24, 1992.

===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 mayor Richard Gordon, who wanted to protect and preserve the $8 billion worth of facilities and property from looting and destruction. Subic was transformed and became a model for bases conversion into commercial use after the Cold War with blue chip companies like Coastal Petroleum and Fed Ex pumping in over $3 billion of investments, creating 70,000 jobs in the free port's first four years.<ref>{{Cite news |last=Mydans |first=Seth |date=November 23, 1996 |title=Subic Bay, Minus U.S., Becomes Surprise Success |url=https://www.nytimes.com/1996/11/23/world/subic-bay-minus-us-becomes-surprise-success.html |access-date=January 16, 2024 |work=The New York Times}}</ref> It was host to the 4th APEC Leaders' Summit on November 24, 1996<ref>{{Cite web|url=http://www.apec.org/Meeting-Papers/Leaders-Declarations/1996/1996_aelm|title=Asia-Pacific Economic Cooperation|website=www.apec.org|language=en|access-date=2017-05-05}}</ref> and FedEx's Asia-Pacific hub, Asia-One, was located in Subic Bay for almost ten years.<ref>{{Cite web|url=http://www.fedex.com/cgi-bin/content.cgi?template=tw_english_pr&content=about/pressreleases/apac/pr090396&cc=tw_english|title=FedEx - About FedEx - Press Releases|website=www.fedex.com|access-date=2017-05-05}}</ref><ref>{{Cite news|url=http://www.sbma.com/about-us/brief-history|title=Brief History|last=Cruz|first=Ed Michael Lee|work=Official Website of the Subic Bay Metropolitan Authority|access-date=2017-05-05|language=en-PH}}</ref>

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.<ref>[http://www.stripes.com/news/pacific/manila-to-move-air-force-navy-near-disputed-sea-1.232649 "Manila to move air force, navy near disputed sea ."]</ref> The United States Navy sought access on a rotational basis for ships and Marines,<ref>{{Cite web |url=http://www.militarytimes.com/article/20130727/NEWS/307270004/Navy-wants-to-expand-Philippine-presence-create-temporary-base |title="Navy wants to expand Philippine presence, create temporary base." |access-date=July 29, 2013 |archive-date=October 23, 2013 |archive-url=https://web.archive.org/web/20131023114327/http://www.militarytimes.com/article/20130727/NEWS/307270004/Navy-wants-to-expand-Philippine-presence-create-temporary-base |url-status=dead }}</ref> and conducts maritime patrol aircraft patrols from bases in the Philippines.<ref>[https://medium.com/war-is-boring/2e889c33cdd9 "It’s Boom Time for Naval Spy Planes"]</ref>

Due to its strategic location at the Luzon Economic Corridor, the US has vowed to support the development of a freight railway connecting Subic, Clark, Manila and Batangas.<ref>{{Cite web |last=Manila |first=U. S. Embassy |date=2025-06-27 |title=U.S., Philippines Sign Subic-Clark-Manila-Batangas Railway Agreement |url=https://ph.usembassy.gov/u-s-philippines-sign-subic-clark-manila-batangas-railway-agreement/ |access-date=2025-06-28 |website=U.S. Embassy in the Philippines |language=en-US}}</ref> The project aims to improve logistics between the major economic zones of Luzon, as well as to decongest the Manila port.<ref>{{Cite web |date=2025-06-28 |title=US, Philippine ink deal for Subic-Clark-Manila-Batangas railway |url=https://www.philstar.com/business/2025/06/28/2453794/us-philippine-ink-deal-subic-clark-manila-batangas-railway |access-date=2025-06-28 |website=www.philstar.com |language=en-US}}</ref>

==Geography== thumb|SBMA Beach While the Subic Special Economic and Freeport Zone (as well as the agency responsible for the freeport zone's operations and management Subic Bay Metropolitan Authority (SBMA)) shares a name with a nearby town, it covers portions of Olongapo and the town of Subic in Zambales, and Hermosa and Morong in Bataan, with Subic portion of the zone being an exclave. It covers a total area of {{convert|67452|ha|acre}}, but the {{convert|14000|ha|acre}} area that is secured and fenced hosts much of the development. This area is referred to as the Subic Bay Freeport Zone and out of this area {{convert|2800|ha|acre}} 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 expanded the fenced area.<ref name=extend/>

The special economic zone is adjacent to Subic Bay. At least six mangrove areas are found in the Freeport Zone.<ref>{{cite journal |last1=Mallari |first1=Rhea Jane |last2=Alcazar |first2=Lilia |title=State of the Mangroves in Subic Bay Freeport Zone |journal=2014: State of the Mangrove Summit: Northern Luzon Proceedings |pages=23–28 |url=https://journals.ateneo.edu/ojs/index.php/smnl/article/download/SM2014.00108/2206 |access-date=6 January 2020 |archive-date=September 25, 2022 |archive-url=https://web.archive.org/web/20220925072302/https://journals.ateneo.edu/ojs/index.php/smnl/article/download/SM2014.00108/2206 |url-status=dead }}</ref>

===Districts=== The Subic Freeport Zone is divided into districts. The freeport zone has a Certificate of Ancestral Domain Title (CADT) Land, which is the ancestral domain of the Aeta people.<ref>{{cite web |title=Major Districts |url=http://invest.mysubicbay.com.ph/major-districts |publisher=Subic Bay Metropolitan Authority |access-date=26 May 2021 |archive-date=August 11, 2023 |archive-url=https://web.archive.org/web/20230811120701/https://invest.mysubicbay.com.ph/major-districts |url-status=dead }}</ref><ref>{{Cite web |title=Ancestral Domain Delineation and Recognition: CADT of Aytas of Bataan {{!}} DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES FOREIGN-ASSISTED AND SPECIAL PROJECTS SERVICE eLibrary |url=https://faspselib.denr.gov.ph/node/1879 |access-date=2023-10-23 |website=faspselib.denr.gov.ph}}</ref>

*Binictican Heights *Central Business District (CBD) *Cubi-Triboa *Ilanin Forest East *Ilanin Forest West *Kalayaan Heights *Port District *Redondo Peninsula *Subic Bay Forest District (consisting of the non-adjacent areas of Tipo and Minanga areas) *Subic Gateway

==Demographics== Subic Freeport's population of at least 6,000 people is concentrated in the Kalayaan and Binictican areas.<ref>{{cite web |title=Residents' Profile |url=http://live.mysubicbay.com.ph/residents/residents-profile |website=live.mysubicbay.com.ph |access-date=6 June 2021 |archive-date=June 6, 2021 |archive-url=https://web.archive.org/web/20210606032911/http://live.mysubicbay.com.ph/residents/residents-profile |url-status=dead }}</ref> Portions of the Subic Freeport area form part of a formally recognized ancestral domain 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.<ref>{{cite news |last1=Empeño |first1=Henry |title=Subic Aytas preserve roots while embracing the new|url=https://businessmirror.com.ph/2017/11/04/subic-aytas-preserve-roots-while-embracing-the-new/ |access-date=6 June 2021 |work=BusinessMirror |date=4 November 2017}}</ref>

==Economy== [[File:Subic - Olongapo XY Creative.png|thumb|Subic Freeport business district in Olongapo.]] thumb|Gas depot in Boton area. {{As of|2025}}, approximately 171,653 workers were employed in Subic Bay Freeport, 67% in the service industry and 22% in the manufacturing industry.<ref name="sbma2025">{{cite web |title=Subic 2025 workforce pegged at 170K strong |url=https://www.mysubicbay.com.ph/news/2026/03/04/subic-2025-workforce-pegged-at-170k-strong-up-by-44 |website=Subic Bay Metropolitan Authority |access-date=30 March 2026}}</ref> Subic was a shipbuilding hub. The now-defunct Hanjin Philippines was the single biggest employer in the area prior to its bankruptcy in January 2019.{{cn|date=March 2026}} {{As of|2024}}, around 6,187 workers were employed in the shipbuilding and maritime industry by 153 companies.<ref name="iorbit2024">{{cite web |title=Subic Freeport workforce pegged 4.8% increase at 164,400 in 2024 |url=https://iorbitnews.com/subic-freeport-workforce-pegged-4-8-increase-at-164400-in-2024/ |website=IOrbit News |access-date=30 March 2026}}</ref> Subic is served by the Port of Subic.

===Tourism=== thumb|Camayan Beach Resort in Morong, Bataan. Subic Bay is a popular destination for weekend visitors from Metro Manila. Attractions include beaches, an underwater aquarium, jungle survival tours, and duty-free shopping.

Destinations include eco-tourism theme parks, the Ocean Adventure,<ref>{{Cite web|url=http://www.oceanadventure.ph/about-us/|title=About Us – Ocean Adventure|website=www.oceanadventure.ph|language=en-US|access-date=2017-05-05|archive-date=May 22, 2017|archive-url=https://web.archive.org/web/20170522031618/http://www.oceanadventure.ph/about-us/|url-status=dead}}</ref> Zoobic Safari,<ref>{{Cite web|url=http://zoobic.com.ph/about|title=Fast Facts About Zoobic Safari {{!}} Zoobic|website=zoobic.com.ph|access-date=2017-05-05}}</ref> and the Pamulaklakin Nature Park,<ref>{{Cite web|url=https://www.tripadvisor.com.ph/Attraction_Review-g4751237-d3694404-Reviews-Pamulaklakin_Forest_Trail-Subic_Bay_Freeport_Zone_Central_Luzon_Region_Luzon.html|title=Pamulaklakin Forest Trail (Subic Bay Freeport Zone, Philippines): Top Tips Before You Go - TripAdvisor|website=www.tripadvisor.com.ph|access-date=2017-05-05}}</ref> which is home to the indigenous Aetas who once trained the U.S. Navy in jungle survival tactics.<ref>{{Cite web|url=http://www.peoplesoftheworld.org/text?people=Aeta|title=Indigenous Peoples of the World — The Aeta|last=Waddington|first=Ray|website=www.peoplesoftheworld.org|language=en-US|access-date=2017-05-05}}</ref>

Subic International Raceway (SIR), the Philippines' first purpose-built motorsports venue, opened in 1994 near Subic Bay International Airport. It was established by racing champion Pocholo Ramirez and his family. SIR hosted international racing events, such as the Asian Festival of Speed, Asian Formula 2000 and the Asian Formula Three Championship.<ref>[http://www.autoindustriya.com/motorsport/improved-subic-international-raceway-bows-this-april.html "Improved Subic International Raceway bows this April"]</ref> Local races, such as the Philippine Touring Car Championship, Run What You Brung (RWYB) and Circuit Showdown were held there. The racetrack closed in 2010 after its lease ended.<ref>[http://www.autoindustriya.com/motorsport/the-last-lap.html "The Last Lap of Subic Raceway"]</ref>

The economic zone hosts the Subic Bay Yacht Club. The bay is favored for sailing sports, especially during the ''Habagat'' season. Subic Bay hosted the sailing events for the 2019 Southeast Asian Games.<ref name="CNA">{{cite news |last1=Mohan |first1=Matthew |title=Sailing: Ryan Lo wins SEA Games gold, retains title |url=https://www.channelnewsasia.com/news/sport/sea-games-2019-sailing-singapore-ryan-lo-gold-medal-12163604 |access-date=26 May 2021 |agency=Channel News Asia |date=7 December 2019 |archive-date=May 26, 2021 |archive-url=https://web.archive.org/web/20210526034314/https://www.channelnewsasia.com/news/sport/sea-games-2019-sailing-singapore-ryan-lo-gold-medal-12163604 |url-status=dead }}</ref>

The Subic Sun Convention Resort and Casino, will be the first international branded hotel complex in Subic and is set to open in 2025.<ref>{{cite news |last1=Datu |first1= Mahatma Randy |title=World-class resort and casino to rise at Subic Bay Freeport|url= https://www.manilatimes.net/2024/03/15/regions/world-class-resort-and-casino-to-rise-at-subic-bay-freeport/1936901 |accessdate=March 18, 2024 |publisher= The Manila Times |date=March 15, 2024}}</ref>

===Transport=== The Subic Special Economic and Freeport Zone is served by the Subic–Clark–Tarlac Expressway (SCTEX) and Subic–Tipo Expressway. Subic is the site of Subic Bay International Airport which can be used for chartered flights. The airport was a former Asian hub of multinational logistics company FedEx. The Port serves direct passenger traffic through ferries going to and from Orion, Bataan.<ref>{{cite web |title=Getting to Subic Bay |url=http://visit.mysubicbay.com.ph/getting-there |access-date=6 January 2020 |work=My Subic Bay |publisher=Subic Bay Metropolitan Authority |archive-date=January 18, 2020 |archive-url=https://web.archive.org/web/20200118154224/http://visit.mysubicbay.com.ph/getting-there |url-status=dead }}</ref>

The freeport zone is accessible via its gates in Olongapo City from SCTEX and Subic–Tipo Expressway, and Morong from Roman Superhighway and Mariveles–Bagac Road or Old National Road from Pilar, and Gov J.J. Linao Road, UN Avenue and SBMA–Morong Road, serving both as alternative access to Zambales from Bataan through the provincial boundary of both provinces located within the zone's premises aside from Jose Abad Santos Avenue through the Olongapo welcome sign. The latter route also links the older Freeport Area of Bataan (FAB) in Mariveles serving as such between the two freeport zones of Bataan.

=== Industrial parks === Most of the businesses in Subic Freeport's industrial parks are manufacturing, construction, and warehousing. These industrial parks are:

* Subic Bay Gateway Park (''formerly Subic Bay Industrial Park'') * Subic Techno Park **On March 22, 2024, Sanyo Denki Philippines, Inc. Chairman Chihiro Nakayama with President Hirokazu Takeuchi and SBMA Chair, Eduardo L. Aliño led the inauguration ceremony of the P2.3-billion expansion project, phase 4 at the Subic Techno Park. The construction of a fourth factory building will need an additional 1,500 workers to manufacture uninterrupted power supplies, cooling fans, servo amplifiers and stepping motors.<ref>{{cite news |last1=Sapnu |first1=Ric |title=Japan firm starts P2.3 billion Subic expansion|url= https://www.philstar.com/business/2024/04/04/2345052/japan-firm-starts-p23-billion-subic-expansion|accessdate=April 5, 2024 |publisher=The Philippine Star |date=April 4, 2024}}</ref> * Global Industrial Park (SRF Compound) * Tipo HighTech Eco-Park

==See also== *Clark Freeport and Special Economic Zone *Freeport Area of Bataan

==References== {{Reflist}}

==External links== * {{commons category-inline}} {{wikivoyage|Subic}} *[http://www.sbma.com/ Subic Bay (Freeport) Metropolitan Authority (SBMA) official website] {{Webarchive|url=https://web.archive.org/web/20200529000405/http://www.sbma.com/ |date=May 29, 2020 }} *[http://www.subic.com The Official Tourism Website for the Subic Bay area, containing tourist and accommodation information (Authorized by SBMA)]

{{Subic Special Economic and Freeport Zone}}

{{Authority control}}

Category:Redeveloped ports and waterfronts in the Philippines Category:Redevelopment projects in the Philippines Category:Industrial parks in the Philippines Category:Olongapo Category:Buildings and structures in Olongapo Category:Buildings and structures in Zambales Category:Buildings and structures in Bataan Category:Politics of Olongapo Category:Politics of Zambales Category:Politics of Bataan Category:Free ports Category:Red-light districts in the Philippines Category:Subic Special Economic and Freeport Zone Category:1992 establishments in the Philippines