USTDA backs Subic shipyard expansion for larger vessels

MANILA — The U.S. Trade and Development Agency is funding a feasibility study to expand Subic Drydock Corporation’s ship repair facility at Subic Bay, a project intended to accommodate larger vessels and strengthen the Philippines’ role in regional maritime repair and logistics.

The study could help address capacity, draft, and berth constraints that currently prevent some vessels from being repaired at the facility, while preparing the proposed expansion for financing and construction.

For the Philippines, the project could strengthen maritime services and logistics infrastructure at one of the country’s key deep-water ports, supporting trade, supply-chain resilience, and longer-term economic activity along the Luzon Economic Corridor.

USTDA said its assistance to Subic Drydock Corporation, or SDC, will support the Philippines’ capacity to develop Subic Bay as a regional ship repair and maintenance hub using U.S.-aligned infrastructure solutions.

Subic Bay sits along major maritime routes and has long served as an important Philippine center for trade and logistics because of its strategic location and deep-water harbor.

The agreement was signed during the USTDA-sponsored Luzon Economic Corridor Investment Forum in Manila.

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

SDC selected California-based DM Consulting Inc. to conduct the feasibility study.

The study will help develop a construction-ready design package and financial analyses for the expansion of the facility’s approach pier.

The proposed project would extend the approach pier by an additional 169 meters, allowing SDC to handle larger vessels.

USTDA said the feasibility work would also be important in mobilizing financing needed for procurement and construction, meaning the study is an early project-development step rather than a commitment that construction financing has already been secured.

The agency said early participation by qualified U.S. companies could create opportunities for American engineering, port infrastructure, and equipment providers to compete for work associated with the project.

The expansion comes as growing demand for ship repair services puts pressure on existing infrastructure and exposes capacity limitations at maritime facilities.

USTDA expects the project to strengthen logistics infrastructure and maritime services across the Luzon Economic Corridor and help reinforce Subic Bay’s role in regional supply chains.

SDC owner Terry Watkins said the pier expansion would allow the company to take on repair work that its existing berth and draft limitations prevent it from handling.

“We are deeply grateful to USTDA for its support and partnership. The feasibility study will help validate the requirements for extending the Approach Pier by an additional 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. 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.”

The Luzon Economic Corridor was launched by the Philippines, the United States, and Japan in April 2024 as the first economic corridor in the Indo-Pacific under the G7 Partnership for Global Infrastructure and Investment.

The corridor is designed to improve connectivity among Subic Bay, Clark, Manila, and Batangas through investments in transportation and logistics, energy, digital connectivity, advanced manufacturing, ports, and related infrastructure.

The partnership expanded in May 2026 to include Australia, Canada, Denmark, France, Italy, South Korea, Sweden, and the United Kingdom.

USTDA has said the corridor covers an economic area accounting for approximately 50% of Philippine gross domestic product and serving as a major hub for manufacturing, logistics, and trade.

The Sept. 10–11 Luzon Economic Corridor Investment Forum was organized to bring together 600 international investors, industry leaders, project developers, and government officials to connect infrastructure projects with financing and commercial partners.