State-owned Bases Conversion and Development Authority (BCDA) is spending PHP7 billion on airport infrastructure in preparation for major expansion projects by global logistics firms, particularly, FedEx and Lufthansa Technik in New Clark City.
At Thursday’s Year-Starter Briefing, BCDA President and CEO Joshua M. Bingcang said that, in anticipation of the entry of the world’s leading logistics companies, BCDA is constructing the Clark Airport’s apron, taxiway, and runway, with total costs estimated at PHP7 billion. The apron will be constructed first at a cost of PHP2 billion.
The BCDA Bids and Awards Committee has already shortlisted three consultants for the three milestone contracts and is expected to award these contracts by March this year.
Bingcang said FedEx does not want any disruption and is expected to complete its design project within six months, after which BCDA can already bid out the construction of the apron. Construction is projected to start next year, with completion expected in one and a half years.
Construction of the apron will be prioritized because the existing runway can still accommodate current volumes, but BCDA needs to build all three components for redundancy and safety. “We just want to assure them because FedEx really wants to make Clark their Asian hub,” he added.
FedEx
FedEx, one of the world’s leading logistics companies, is investing an estimated USD80 million in the Philippines as it transforms its existing Clark operations into an Asian hub.
According to Bingcang, the FedEx building alone will cost USD80 million, while the equipment inside the facility will likely cost twice as much.
“They (FedEx) don’t want any disruption,” he said referring to the implementation of the project. As such, BCDA is ramping up its preparations. FedEx is expected to complete its design in as early as three months to ensure the start of construction in the third quarter of 2027.
FedEx principals are scheduled to BCDA officials and check on the progress of the agency’s complementary airport infrastructure that will support the company’s operational requirements.
The new FedEx facility will have a total floor area of 80,000 square meters, more than double its existing 33,000-square-meter facility in Clark.
As an Asian hub, Bingcang said the Clark facility will be able to handle up to 20 flights a day, from the current three to four morning flights.
Lufthansa Technik
Meanwhile, Lufthansa Technik Philippines (LTP), a joint venture between Lucio Tan Group’s MacroAsia Corp. and Germany’s Lufthansa Technik, is investing USD400 million to expand its maintenance, repair, and overhaul (MRO) operations in Clark.
Bingcang said LTP submitted its project proposal only in January this year. The expansion will involve the development of a 15-hectare facility.
Negotiations, including commercial leasing terms, are expected to be concluded within the first quarter, paving the way for construction and operations to begin within three years.
Bingcang said the expansion is significant given the scale and quality of MRO work planned. Once completed, the Clark facility will be capable of servicing up to 20 aircraft, including the Airbus A380, currently the world’s largest passenger aircraft.
By comparison, LTP’s existing facility at the NAIA complex in Parañaque can accommodate only four aircraft.
Bingcang also highlighted the substantial foreign direct investment the project will bring into the country.
It remains unclear whether LTP will eventually vacate its Parañaque facility, whose contract expires in 2027. However, Bingcang said the Clark expansion will proceed regardless of developments at the current site. He added that the company has already begun pre-development activities at the Clark location.
Clark is already home to MRO operations of Metrojet Engineering Clark Ltd. and Singapore Airlines.
