Energy & Storage

Marine Terminal, Storage Depot and Oil Refinery

Marine Terminal, Storage Depot and Oil Refinery

This is the project of constructing and operating a petroleum complex at the Redondo Peninsula of the Subic Bay Freeport (SBF), which has been classified as an industrial zone, allocated specifically for energy and power development projects.

The Project is a foreign direct investment and would directly benefit not only the SBF but the entire Philippines as well. Through this Project, the Philippines would be assured of fuel supply in case of a national emergency that may be caused by global shortage in petroleum products.

The Project will consist of a Marine Terminal, Storage Depot and an Oil Refinery, The feedstock for the refinery will be sourced from Iran and Sudan, while the target market for the products of the Project is the Asian region, mainly China. This market strategy is justified based on published statistics on petroleum consumption patterns in the Asian region.

This proposed project will be implemented by the Winsway Group, an international business group engaged in trading, distribution, processing, storage and transportation of petroleum, chemicals and coal. It was established in 1989 and is duly registered in the British Virgin Islands BVI archipelago.

It started its operations in Beijing, China in 1989, and in less than two decades, it has built up an extensive distribution network in China and overseas. Its fixed assets, worth RMB 500 million, include complete port facilities, storage tanks and railway tank cars located along the coast, rivers and inland borders of China.

Project Description

 

 

 

 

 

 

The project will be composed of :

  • Marine terminal

  • Storage Depot

  • Oil Refinery

Marine Terminal

The first phase of the project is the construction and operation of an oil depot and terminal. It is expected to be operational within about two (2) years from approval of the Project by Subic Bay Metropolitan Authority (SBMA).

Approximately one thousand one hundred and fifty (1,150) vessels are expected to berth at the terminal at full capacity and will load and unload about 6 Million cu. m. (m3) of raw materials and refined products and by-products for both the strategic storage base and the refinery.

To accommodate the number of vessels at full capacity, a six (6) jetty/ berth terminal will be constructed. The terminal can accommodate very large crude carrier (VLCC) sizes up to 300,000 DWT that could load and unload crude oil, diesel, gasoline, naphtha, fuel oil, liquefied petroleum gas (LPG), and other products. These six berthing facilities can accommodate up to 8 vessels at any one time. The deep waters of Subic Bay can accommodate VLCC’s without reclamation and dredging.

The Terminal will be designed according to Philippine and industry safety standards and Philippine environmental standards. The marine facilities will include an unloading platform, adjacent breasting dolphins, fendering systems, mooring dolphins, trestles connecting the offshore structures to the shore and catwalks connecting the mooring and breasting dolphins, a vessel access gangway tower and other dock structures. Other associated equipment will include the mooring system, fire protection systems, spill prevention and containment equipment, and product piping systems.

The number of vessels coming in and out of the Terminal will create heavy ship traffic along the sea lanes of the Subic Bay with its narrow opening at the mouth of the bay. Winsway will collaborate with SBMA to do a vessel traffic impact study in the future to determine the effect of the increasing number of vessels that will go to Subic Bay as the whole complex will ramp up its capacity.

Table 2-1: Flying Time From Subic to Key Cities

It is along ship lanes of major ports and cities within the country and Asia-Pacific region, as shown on Table 2-2 below. 

It is easily accessible through major expressways and road networks from industrial estates and industrial growth centers and other eco- zones in the Philippines. 

  • It has natural deep water that is ideal for berthing vessels.

  • It has access to English-speaking and highly qualified skilled workers.

  • t is first among economic zones and government agencies in the Philippines to receive ISO certification for Quality Management System.

  • Strong support of Subic Bay Freeport (SBF) to its prospective locators.

  • Subic locators can avail of tax and duty-free incentives, such as:

    • Exemption from local and national taxes. In lieu of this, locators pay 5% corporate tax on gross income.

  • Allowable deductions for manufacturing, trading infrastructure development and services include:

    • Raw materials

    • Intermediate goods and finished goods

    • Production/services supervision salaries

    • Direct salaries, wages and labor expenses

    • Financing charges associated with fixed assets

    • Supplies and fuels used in production/rendering services

    • Rent and utility charges associated with buildings and equipment

    • Depreciation, lease payments, or other expenditures on building and equipment

  • SBF locators, depending on the specific type of enterprise, are likewise allowed to deduct some or all of the following expenses:

    • Commission expenses 

    • Distribution expenses 

    • Corporate management salaries 

    • Marketing and sales salaries 

    • Advertising Research and development 

    • Royalty and service fees 

    • Travel expenses 

    • Outside professional services 

    • Interest and financial charges on working capital 

    • Loss on foreign exchange translation 

    • Loss on disposal of merchandise inventory

  • Duty-free importation of capital goods and finished goods 

  • Up to 100% foreign ownership 

  • No foreign exchange control

It is easily accessible through major expressways and road networks from industrial estates and industrial growth centers and other eco- zones in the Philippines. 

  • It has natural deep water that is ideal for berthing vessels.

  • It has access to English-speaking and highly qualified skilled workers.

  • t is first among economic zones and government agencies in the Philippines to receive ISO certification for Quality Management System.

  • Strong support of Subic Bay Freeport (SBF) to its prospective locators.

  • Subic locators can avail of tax and duty-free incentives, such as:

    • Exemption from local and national taxes. In lieu of this, locators pay 5% corporate tax on gross income.

  • Allowable deductions for manufacturing, trading infrastructure development and services include:

    • Raw materials

    • Intermediate goods and finished goods

    • Production/services supervision salaries

    • Direct salaries, wages and labor expenses

    • Financing charges associated with fixed assets

    • Supplies and fuels used in production/rendering services

    • Rent and utility charges associated with buildings and equipment

    • Depreciation, lease payments, or other expenditures on building and equipment

  • SBF locators, depending on the specific type of enterprise, are likewise allowed to deduct some or all of the following expenses:

    • Commission expenses 

    • Distribution expenses 

    • Corporate management salaries 

    • Marketing and sales salaries 

    • Advertising Research and development 

    • Royalty and service fees 

    • Travel expenses 

    • Outside professional services 

    • Interest and financial charges on working capital 

    • Loss on foreign exchange translation 

    • Loss on disposal of merchandise inventory

  • Duty-free importation of capital goods and finished goods 

  • Up to 100% foreign ownership 

  • No foreign exchange control

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