Lufthansa, FedEx to expand operations in Clark, Pampanga

The Bases Conversion and Development Authority (BCDA) on Thursday said it is working to close deals with two major logistics firms to expand their operations in the Clark International Airport complex within the year, with the agency seeking to ramp up infrastructure to support the investments.

According to BCDA president and chief executive officer Joshua Bingcang, it is currently negotiating a deal with Lufthansa Technik for the company to expand its operations by an initial 15 hectares, with at least $400-million in investments expected. The deal is expected to be closed within the first quarter.

“Once we conclude the negotiation, they will start construction in two to three years. They will be building hangars to accommodate A380s,” he told reporters in Makati City.

Bingcang said prior to the negotiations, Lufthansa already did the initial survey and ground assessment, and has already poured in investments for pre-development activities.

He did not give an expected timeframe for the proposed agreement, but said contracts of such nature are usually valid for a minimum of 25 years.

Aside from Lufthansa, Bingcan said FedEx Corp. is also putting up an $80-million building that will span some 80,000 square meters in the Clark International Airport complex, as the company wants to make the Philippines its hub in Southeast Asia.

FedEx is said to currently operate some three to four flights a day, which could increase to up to 20 planes a day with the expansion, with the target opening of its business scheduled in the third quarter of 2027.

Bingcang said that to match this, the BCDA is looking to invest some P7 billion to put up additional facilities that the logistics firms will be able to use.

This covers an apron that is targeted to be completed before the planned opening of the FedEx building, along with a taxiway and an additional runway that will both take three years to complete.

“Unahin muna namin ‘yung apron kasi [We will do the apron first because the existing runway can] accommodate the existing runway naman can accommodate the volume, but it’s for redundancy,” Bingcang said.

Bingcang said the BCDA has already shortlisted consultants for the projects, with the contract for the apron development expected to be awarded by March, with six months set to be spent for design and for the bidding of the construction.

In the same interview, Bingcang said the agency is also negotiating with a major data center developer for a 25-hectare development, with a 200-megawatt capacity. Further details were not immediately available. — BM, GMA Integrated News