The U.S. Trade and Development Agency has awarded a $1.4 million grant to support the planned expansion of an American-owned ship repair facility at Subic Bay in the Philippines.
The funding will pay for a feasibility study examining an expansion of Subic Drydock Corp.’s existing facilities at the former U.S. naval base. The agreement was signed during the Luzon Economic Corridor Investment Forum in Manila.
Subic Drydock plans to extend its approach pier by 554', creating more than 886' of usable berthing space for maintenance, repair and overhaul work. The project is intended to allow the yard to accommodate larger vessels and perform repairs that are currently limited by the facility’s draft and berth capacity.
The shipyard has performed repair work for U.S. and Philippine government vessels since 2008. It holds a U.S. Navy Master Ship Repair Agreement and has serviced Spearhead-class expeditionary fast transports, littoral combat ships and Military Sealift Command vessels.
“This extension will allow us to accommodate larger vessels and undertake repairs that are currently not possible due to draft and berth limitations,” Subic Drydock owner Terry Watkins said. “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.”
California-based DM Consulting Inc. will conduct the study, which will include a construction-ready design package and financial analyses. USTDA said the work will help Subic Drydock secure financing for the project’s procurement and construction phases.
The agency also said the study will create potential opportunities for U.S. engineering, port infrastructure and equipment suppliers.
“Today’s agreement reflects USTDA’s commitment to developing high-impact infrastructure along the Luzon Economic Corridor using American technologies,” USTDA deputy director Thomas R. Hardy said. “Our ongoing partnerships in the Philippines will support the country’s economic growth as part of a more resilient, secure and prosperous Indo-Pacific.”
Subic Bay’s deep-water harbor and location along major maritime routes have made it an important trade, logistics and naval support center, the USTDA release said. In addition to supporting U.S. vessels, Subic Drydock provides maintenance services for the Philippine Navy’s fleet of American-built ships.
The investment comes as the U.S. expands its logistics and military presence in the Philippines amid heightened tensions in the South China Sea and concerns about a potential conflict in the Luzon Strait. U.S. forces and contractors maintain prepositioned equipment and supplies around the former naval base.
USTDA said expanding Subic Drydock would help address growing regional demand for ship repair services while strengthening maritime infrastructure and supply chains along the Luzon Economic Corridor.
