By Henry Empeño | September 11, 2026

SUBIC BAY FREEPORT — The U.S. Trade and Development Agency (USTDA), the designated first mover for critical infrastructure development under the Luzon Economic Corridor (LEC) initiative, has committed funding assistance to expand a key ship repair facility in the Subic Bay Freeport.

The USTDA announced on Thursday, September 10, that it has signed an agreement with the Subic Drydock Corp. (SDC) to fund a feasibility study for the pier expansion of the Subic firm, which operates two of the biggest floating drydocks in the country.

The project is expected to bolster logistics infrastructure and maritime services across the LEC, helping position Subic Bay as a vital regional supply chain hub and supporting long-term economic opportunity for the Philippines, the USTDA said.

USTDA Deputy Director and CEO Thomas R. Hardy signed the agreement on Thursday with SDC owner Terry Watkins during the USTDA-sponsored inaugural Luzon Economic Corridor Investment Forum held at Taguig City. The forum brought together some 600 investors and industry leaders in transportation, energy, digital infrastructure and advanced manufacturing supply chains.

The signing was witnessed by Subic Bay Metropolitan Authority (SBMA) Chairman Eduardo Jose Aliño, USTDA Regional Director for the Indo-Pacific Verinda Fike, and Luke Stiglich, vice president for business development at DM Consulting, Inc., a California-based firm tapped by SDC to conduct the study.

Hardy said the agreement “reflects USTDA’s commitment to developing high-impact infrastructure along the Luzon Economic Corridor using American technologies.”

“Our ongoing partnerships in the Philippines will support the country’s economic growth as part of a more resilient, secure and prosperous Indo-Pacific,” he added.

The feasibility study is expected to help develop a construction-ready design package and financial analyses to expand the facility’s approach pier, allowing SDC to accommodate larger vessels.

SDC’s Watkins said they want to extend the facility’s Approach Pier by an additional 169 meters to accommodate larger vessels and enable repairs that are currently limited by draft and berth requirements.

SDC, a wholly owned subsidiary of the Guam-based Cabras Marine Corp., undertakes repair works for both the Philippine and American navies.

Subic, which was previously the largest American military facility outside of continental United States, was designated last July as the preferred maritime gateway for the Pax Silica initiative under the LEC.

The USTDA is also currently reviewing a proposal to expand the Boton Wharf in Subic, SBMA Senior Deputy Administrator for Port Operations Ronnie Yambao told BusinessMirror on Friday.

The 237-meters long wharf is primarily used as a fertilizer terminal and a handling facility for bulk cargoes and transshipment vessels. However, the SBMA eyes to redevelop it into 12.8-hectare terminal as part of the LEC infrastructure roadmap to handle higher cargo volumes and warehouse needs.

Yambao said the SBMA submitted its proposal for the Boton Wharf redevelopment to USTDA two months ago. ▲

COVER PHOTO: USTDA Deputy Director and CEO Thomas R. Hardy and Subic Drydock Corp. owner Terry Watkins sign an agreement to fund a feasibility study for the expansion of the SDC pier during the USTDA-sponsored inaugural Luzon Economic Corridor Investment Forum held at Taguig City. (USTDA)