ECCP@Work

Joint Foreign Chambers (JFC) Meeting with Clark International Airport Corporation (CIAC)

June 08, 2017ECCP@Work

Standing (L-R): ECCP Manager for Project and Partnerships Archie H. Diaz, CIAC Vice President for Commercial & Business Development Group Darwin Lacson Cunanan, ECE, Dow Chemical Business Development Leader Errol R. Ignacio, KCCP Director Julia Lee, ANZCham Member Brett McPhee, AmCham 2nd Vice President, Manufacturing Committee Chairman, and Dow Chemical Country Director Roberto Batungbacal, CIAC Vice President for Finance & Administration Group Lauro A. Ortile, KCCP Director Joo Won Kim, CIAC Vice President for Airport Operations Management Group Dan Bautista, AmCham-TAPP Advocacy and Research Specialist Jannica Anne Gaisano. Seated (L-R): AmCham-TAPP Senior Adviser John D. Forbes, CanCham Executive Director Cora dela Cruz, CIAC President and CEO Alexander S. Cauguiran, Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Dr. Danilo C. Lachica, and KCCP President Ho Ik Lee. (Not Pictured) SEIPI Business Lead and ManCom Mabelle de la Cruz, SEIPI Senior Analyst Lezlie Batarao, and SEIPI Analyst Jan Abejero.

The JFC met with CIAC President and CEO Alexander S. Cauguiran, along CIAC Vice President for Airport Operations Management Group Dan Bautista, CIAC Vice President for Finance & Administration Group Lauro A. Ortile, CIAC Vice President for Commercial & Business Development Group Darwin Lacson Cunanan, ECE. The meeting focused on the following topics:

Summary of Discussion:

  1. Arangkada – President Cauguiran was presented with Arangkada publications, including a copy of the Fifth Anniversary Assessment, the seven policy notes, and the policy briefs on Agribusiness, Broadband, and Airport.
  2. Priorities of CIAC – With a catchment population of 22 Million in Northern Luzon, Central Luzon, and the cities of Caloocan, Malabon, Navotas, and Valenzuela, President Cauguiran emphasized that Clark International Airport (CIA) does not intend to compete with NAIA and future international airport development projects–like Sangley and Bulacan–but rather complement the transportation network of the metropolitan area.
  3. Clark Master Plan – President Cauguiran presented the four-phased CIA Master Plan created by Aeroports de Paris Ingenierie (ADPI) and commissioned by the government of France for the Philippines. This is a 15 year plan with five to seven years in-between phases.
    1. Phase One: 8 M passenger capacity per annum
      • Existing passenger terminal 1 with 4.2 M capacity
      • New passenger terminal 2 with 8 M capacity, which is one kilometer from the existing terminal
      • New secondary access road to Mabalacat area
      • New ramp and taxiway leading from the new terminal to the primary runway
      • Transport terminal hub
    2. Phase Two: 22 M passenger capacity per annum
      • New second runway
      • New passenger terminal 3 with 6 M capacity
      • Double the 8 M passenger terminal capacity
      • Create express freight terminal
      • Create cargo terminal building
      • Create Maintenance Repair & Operations/Overhaul (MRO) area
      • Create FBO and general aviation (GA) terminal
    3. Phase Three: 46 M passenger capacity per annum
      • New passenger terminal 4 with 20 M capacity–proposed Philippine Airlines terminal
      • Create an Airport City–mixed used facility
      • Expand express freight terminal
      • Expand cargo terminal building
      • Expand MRO area
      • Expand FBO and GA terminal
      • Expand passenger terminal 3 from 6 M to 10 M capacity
    4. Phase Four (ultimate phase): 80 M passenger capacity per annum
      • New tertiary runway dedicated for freight, cargo, MRO, FBO and GA
      • New passenger terminal 5 with 28 M capacity
      • Expand express freight terminal
      • Expand cargo terminal building
      • Expand MRO area
      • Expand FBO and GA terminal
  4. The implementation of the master plan began with the disbursement of appropriated funds from the GPH to CIAC amounting P2.8 Billion, which will be released in three tranches: (Note: It will take 18 months (2nd week of August 2018) to complete the horizontal projects from the disbursement of the first tranche.)
    • First tranche – used to hire technical experts to draft the detailed engineering design (DED) based on the master plan (released March 15).
    • Second tranche – used to create the DED (estimated release May 9).
    • Third tranche – used to construct the new ramp and taxiway and another horizontal project, leaving the new terminal remaining to build (estimated release after August 9).
  5. Airport Buses – With the ongoing developments, President Cauguiran is in the process of securing board approval to purchase more buses.
  6. Manila to Clark Passenger Train – The GPH is committed to connect Manila to Clark by fast train. The Department of Transportation is in negotiation with a Japanese firm for the project. The proposal is for a 140 km/h train from Manila to Clark with a maximum of two stops.
  7. Updates on Clark Airport – Due to the congestion in NAIA, DOTr encouraged local carriers to move some of their domestic flights to Clark, causing a substantial growth for CIA. President Cauguiran reported the increased number of airlines flying to Clark, 453% domestic and 21% international, comparing the first quarters of 2016 and 2017. He also reported the increased number of passengers using Clark, 25% international and 267% domestic, for the same period. China Eastern is the newest airline to begin service to Clark, flying four times a week from both Beijing and Shanghai. Seair will fly charter service will fly charter service such as Ningbo, Wenzhou, Wuhan, and Heihe. Philippine Airlines is considering Clark-Los Angeles flight.

    Currently CIA has 45 domestic flights per week and 69 international flights. But total passengers in 2016 is still below 1 million.

Action Point:

  1. TAPP will organize a meeting at AmCham in Makati between CIAC and JFC member airline, air freight, and air cargo and logistic companies. (Note: The meeting was held on May 9, 2017)