By IRMA ISIP

The Subic Bay Metropolitan Authority (SBMA) will give the Boton site of vehicle auctioneers to logististics giant, Jafza International.

Jafza or Jebel Ali Free Trade Zone is Dubai Ports World’s operator of economic zones.

Jafza agreed to invest $250 million in Subic for the next three years to help SBMA market the Freeport to locators.

Jafza also brings with it Dubai Autozone, the largest second-hand automotive trader in Africa and Middle East .

"We have invited them to come here also for re-exports," said Armand Arreza SBMA administrator.

The company ships 30,000 vehicles per month s to the Middle East, Africa, Southeast Asia and Pakistan.

Arreza said SBMA will allocate 100 hectares along Clark-Subic expressway as the relocation site of the auctioneers. SBMA will continue to grant incentives to locators within the expanded areas of the Freeport .

Arreza said the property would be expropriated to compensate the locators for the improvements.

Arreza said Boton is the ideal area at 55 hectares more than the 42 hectares required by Jafza.

The auctioneers, he said, had been renting the place for P30 per square meter when the going rate now is $1.25 per square meter.

The leases are covered by long-term contracts of 25 years.

Arreza said officials of Jafza will be here this month or in March to personally look at the site.

Jafza and SBMA had earlier signed a memorandum of understanding (MOU) calling for a comprehensive planning and development of the 42-hectare property inside the SBMA free zone.

The project is expected to pave the way for Jafza injecting new ideas and provide impetus to fuel expansion in the Subic free trade zone. Jafza will also help out in the marketing and promoting of Subic to locators.

Jafza operates a free trade zone in Dubai and has 6,000 companies that handle logistics.

With its presence in Subic, the company would be able to offer logistics in Asia .

International news reports quoted the Jafza officials as saying the company was to invest $250 million over the next three to five years for the Subic project.

The conglomerate was also reportedly keen on projects in the shipping hub of Cebu .

DP World is a partner of Asian Terminals Inc.