Manila, Philippines – The U.S. Trade and Development Agency is supporting secure, robust, and resilient supply chains by advancing the expansion of a key ship repair facility at Subic Bay in the Philippines. USTDA’s assistance to Subic Drydock Corporation (SDC) will fund a feasibility study to support the Philippines’ capacity to serve as a regional hub for ship repair and maintenance, growing this strategically vital location along the Luzon Economic Corridor using trusted, U.S.-aligned infrastructure solutions. Subic Bay’s location along main maritime routes and deep-water harbor have long made it one of the country’s most important hubs for both trade and logistics. The agreement was signed at the USTDA-sponsored Luzon Economic Corridor Investment Forum.
“Today’s agreement reflects USTDA’s commitment to developing high-impact infrastructure along the Luzon Economic Corridor using American technologies,” said Thomas R. Hardy, USTDA’s Deputy Director. “Our ongoing partnerships in the Philippines will support the country’s economic growth as part of a more resilient, secure and prosperous Indo-Pacific.”
SDC has selected California-based DM Consulting, Inc. to conduct the study, which will help develop a construction-ready design package and financial analyses to expand the facility’s approach pier, allowing SDC to accommodate larger vessels. The study will be essential for mobilizing necessary financing for procurement and construction. By ensuring early engagement of qualified U.S. firms, the activity will generate opportunities to deploy high-quality American engineering, port infrastructure, and equipment solutions, positioning U.S. companies competitively against regional alternatives.
Growing demand for ship repair services requires enhancement of existing infrastructure to overcome capacity constraints. The project is expected to bolster logistics infrastructure and maritime services across the Luzon Economic Corridor, helping position Subic Bay as a vital regional supply chain hub and supporting long-term economic opportunity for the Philippines.
SDC Owner Terry Watkins, said: “We are deeply grateful to USTDA for its support and partnership. The feasibility study will help validate the requirements for extending the Approach Pier by an additional 169 meters. This extension will allow us to accommodate larger vessels and undertake repairs that are currently not possible due to draft and berth limitations. This important project will strengthen our ability to serve select U.S. and Philippine maritime customers while enhancing Subic’s capacity as a regional ship repair hub.”
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The U.S. Trade and Development Agency is the U.S. government’s first mover on critical infrastructure development in emerging markets, advancing the shared strategic priorities of the United States and our overseas partners while creating opportunities to deploy trusted U.S. solutions. USTDA funds the upfront technical work that accelerates the development of infrastructure projects, helping them attract the financing they need for implementation and procurement of U.S. goods and services.
MEDIA INQUIRIES: press@ustda.gov