SUBIC BAY — The Philippine maritime industry is set to gain additional repair capacity as the United States Trade and Development Agency (USTDA) moves to support the expansion of a key ship repair facility at Subic Bay.
USTDA’s assistance to Subic Drydock Corp. (SDC) will fund a feasibility study to advance the Philippines’ capability to serve as a regional hub for ship repair and maintenance, strengthening a strategic location along the Luzon Economic Corridor with trusted, US-aligned infrastructure solutions.
The agreement was signed at the USTDA-sponsored Luzon Economic Corridor Investment Forum in Manila on Sept. 10, 2026, which gathered more than 600 investors, government officials and industry leaders.
Strategic harbor for trade and repair
Subic Bay’s position along major shipping routes and its deep-water harbor have made it one of the country’s most important centers for trade and logistics.
Growing demand for ship repair services, however, has exposed capacity constraints that limit the size of vessels that can be accommodated.
Under the new assistance, SDC has tapped California-based DM Consulting Inc. to conduct the study. The work will produce a construction-ready design package and financial analyses to support the extension of the facility’s approach pier, enabling it to handle larger vessels.
The study is expected to be critical in mobilizing financing for procurement and construction, a key step in moving the project from planning to implementation.
American technology, Filipino capacity
USTDA said the initiative will open opportunities for American engineering, port infrastructure and equipment solutions by engaging qualified US firms early in the project cycle, placing them in a competitive position against regional alternatives.
“Today’s agreement reflects USTDA’s commitment to developing high-impact infrastructure along the Luzon Economic Corridor using American technologies,” said Thomas 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.”
The project is projected to enhance logistics infrastructure and maritime services across the corridor, positioning Subic Bay as a regional supply chain hub and generating long-term economic opportunities for the Philippines.
Operator eyes larger vessels
SDC owner Terry Watkins said the study will validate requirements for extending the approach pier by 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,” Watkins said. “We are deeply grateful to USTDA for its support and partnership.”
He said the expansion will improve the company’s ability to serve US and Philippine maritime clients while strengthening Subic’s standing as a regional repair center.
For the Philippine maritime sector, the project signals renewed investment in domestic repair capability, reducing dependence on overseas yards, shortening vessel downtime, and creating skilled jobs in Zambales and surrounding provinces.
