WITH a desolate landscape blanketed by thick grey volcanic sediments as far as the eyes can see, the provinces of Pampanga and Zambales and other parts of Central Luzon laid waste back in 1991.
Even the US government saw no further use for the once mighty Clark Air Base in Pampanga and Subic Naval Base in Zambales – both carry strategic importance in Southeast Asia that defined the Cold War.
Their value to the Americans diminished with the cataclysmic eruption of Mt. Pinatubo which was followed by the equally deadly volcanic mud flow that swamped several villages in the region.
The wide swath of land in Capas, Tarlac -- where the high value manufacturing industries and processing of critical minerals under the Pax Silica Initiative are being planned -- used to be a wasteland.
Back then, no one dared to invest in the area as the Pinatubo eruption and the departure of Uncle Sam affected the lives, livelihood and businesses of residents in Pampanga, Zambales and Tarlac.
“The mountain and its explosive force change history,” said former US Ambassador Frank Wisner, who turned over the devastated US Clark Air Base to the Philippine government in November 1991.
With no new basing agreement in sight during the same year, the US government pulled out from Subic and Clark after nearly a century of presence in the two military sites.
As the US flag was lowered for the last time in Clark, the sound of taps had been slowly replaced by the drumbeat of self-reliance, an arduous task of recovery that changed tack with each new leadership in Malacanang.
Clark-Subic Economic Corridor
Long before the top economists of the current administration harped about the integration of growth centers under the Luzon Economic Corridor (LEC) initiative, the entrepreneurial spirit of local leaders and residents in Subic and Clark fueled the fire that slowly developed both former US military facilities into productive civilian use.
Both facilities, particularly Clark, had been ransacked of billions of pesos worth of properties from imported cars to toilet bowls.
With a land area of 4,400 hectares, Clark metamorphosed into an economic powerhouse while the old US MacTerminal, that has two 3.2-kilometer runways capable of handling the biggest US airplanes such as the C-17 Globemaster III and the C141 Starlifter, transformed into a major gateway north of Manila.
While Capas has its Clark International Airport, Subic has its deep-sea port that are connected via the Subic-Clark-Tarlac Expressway (SCTEX) and a planned railway system between the two growth centers.
With 1,295 foreign and local investors employing some 151,593 workers, the state-run Clark Development Corporation (CDC) has remitted ₱8.092 billion dividends to the national government between 2022 and 2025, ranking 6 th among the top performing GOCCs in 2024.
Annual figures show CDC remitted ₱1.207 billion in 2022, ₱1.800 billion in 2023, ₱2.488 billion in 2024, and ₱2.597 billion in 2025. The growth reflects higher revenues, net income, jobs, locator activity, and investments during the period.
CDC president and CEO Agnes VST Devanadera said fiscal discipline and sound governance practices supported sustained operations. She added these measures enabled CDC to remit consistent dividends to the national coffer.
“Clark is unique,” said Devanadera, noting the freeport zone’s competitive edge which lies not only in attracting investors but in retaining them, enabling semiconductor and technology companies to expand within the established industrial ecosystem.
Devanadera had been consistently pushing for the entry of high value manufacturing industries that will support the Luzon Economic Corridor Initiative.
Devanadera said investor-focused measures evolve into “ultra red carpet services,” reflecting Clark’s commitment to supporting investors from entry to expansion and long-term growth.
Devanadera highlights Clark’s signature services, including automatic permit renewals, real-time import and export clearances, a one-stop shop for business requirements, and access to a talent pipeline from 29 educational institutions.
In Subic, the Subic Bay Metropolitan Authority (SBMA) continues to expand.
“We are committed to continuous modernization and innovation, supporting the Philippines’ broader goals of trade expansion and investment attraction,” said SBMA chairman and administrator Eduardo Jose Aliño.
“By this, we mean expanding port capacity, upgrading facilities, and adopting cutting-edge technologies to improve cargo handling processes. These initiatives are expected to bolster Subic Bay’s competitiveness and contribute significantly to regional development.”
Ronnie Yambao, SBMA senior deputy administrator for operations, echoed the views of Aliño, saying the strategic initiatives undertaken by the SBMA include port modernization.
“Our port infrastructure projects are designed to enhance operational efficiency, drive economic growth, and position Subic Bay as a premier logistics and trade hub in Southeast Asia,” he said.
Both Aliño and Yambao had attended the Luzon Economic Corridor Investment Forum (LEC) held on Sept. 10, at the Grand Hyatt Hotel in Manila.
Plans are also underway for the development of the Clark-Subic Railway System in a bid to link the Clark airport to the port of Subic, ensuring smooth movement of exports and imports in both freeport zones.
The Clark-Subic railway system will be built parallel to the Japan-made Subic-Clark-Tarlac Expressway.
Cruise ships are also now calling port in the former US Naval facility, where tourists can easily access the pristine beaches of Zambales, dine in numerous restaurants dotting the freeport zone and buy Filipino products.
For 2026, four cruise ships called port in Subic bringing a total of 8,366 passengers, an improvement from the three cruise ships in 2025 which brought 2,343 passengers.
As of July 2026, the Subic Freeport Zone has listed 1,783 foreign and local investors with a committed investments of P610.18 billion, employing 174,913 workers.
The freeport posted a revenue of P3.93 billion in 2025. For 2026, SBMA is on track to break the P3.5 billion barrier anew.
There is a lot buzz in Central Luzon, including the Pax Silica project.
Pampanga Chamber of Commerce and Industry Inc. president Paul Yusi said: “I believe the LEC, via the focal point on the Pax Silica Initiative at the New Clark City can succeed – and bring real economic and strategic value to Luzon – but only if planners deliberately replicate the positive governance, investment, and community lessons from Clark and Subic while avoiding predictable pitfalls.”
“Without those safeguards it risks underperformance, social conflict, and environmental harm,” Yusi added.
Clark airport and the NSCR
With nearly three million passengers annually, the Clark International Airport (CRK) is the jewel in the Clark Freeport Zone.
In 2025, CRK posted some 2.7 million passengers and is expected to breach the 3 million mark this year after the government completed transfer of all turboprop flights from Manila to Clark last March. The CRK has a capacity of 8 million passengers per year.
Local carriers such as Cebu Pacific and Philippine Airlines already started serving inter island flights mostly to popular tourist destinations such as Boracay, Palawan, Batanes, and Siargao, utilizing aircrafts such as the ATR 72 turboprop and the 86-seater De Havilland Dash 8-400 Next Generation turboprop.
The transfer of PAL’s and CEB’s turboprop flights from Manila to Clark airport has strengthened the Clark hub as both local airline operators entice more tourists and locals to fly via Clark airport.
Clark airport currently has 15 airline partners, and connects to 13 domestic and 11 international destinations. The airline operators are Cebu Pacific, CEBGO, Sunlight, Philippine Airlines, Air Asia, Aero K, Jeju Air, Asiana Airlines, Qatar Airways, Emirates, Eva Air, eHKExpress, Scoot, and Starlux Airlines.
CRK now operates a total of 166 weekly flights to 13 domestic destinations and 115 weekly flights to 11 international destinations.
Railway ‘Game Changer’
When finished, the 147-kilometer North-South Commuter Railway (NSCR) from Clark to the Makati CBD to the NAIA all the way to Laguna will be the “game changer,” according to Luzon International Premier Airport Development Corp (LIPAD) President and CEO Noel Manankil.
The NSCR with a total of 36 stations is expected to further propel the development of Clark airport as the premier gateway in the Luzon Island.
Parts of the railway system are expected to be finished by 2028 and is estimated to be operational by 2033.
When asked by Manila Times what will be the role of the NSCR in the Luzon Economic Corridor, Executive Secretary Ralph Recto said, “It’s a major infrastructure, major logistics infra for the Luzon Economic Corridor. It’s very important, we need to build more manufacturing here.”
Recto cited the Lima Estate in Batangas, where high tech manufacturing firms such as Taiwan’s CQS Precision Die Casting will set up a robotics manufacturing plant and expected to be operational in 2028.
“It’s similar to what will happen here (Clark) in Pax Silica. We did the one in Batangas 30 years ago and I’m hoping that Pax Silica will not take 30 years,” Recto said.
“In the LEC, I’m sure that Tarlac province will benefit from it. The minerals will not only come from Luzon, many of the critical minerals I suspect will also be coming from Mindanao. We are the 5 th most mineralized country, we have the minerals that can be used for our semiconductors. We just export it without value added, its important that we turn it into a product,” he added.
Upon the NSCR’s full operation, it is expected to serve 800,000 passengers per day from Clark to Calamba in Laguna.
The Clark Station will also be the terminal stop of the Airport Express Service that will connect Clark to the Makati Central Business District in under an hour, according to DOTr Assistant Secretary Irish Calaguas.
LEC Initiative and Pax Silica
The Luzon Economic Corridor (LEC) Initiative is an opportunity to change economic trajectory providing an unprecedented platform for industrial transformation.
It aims to integrate growth centers as the country bid to enhance industrial, commercial, and agricultural zones to boost investment, job creation, and regional competitiveness.
By integrating Metro Manila, Clark, Subic, Batangas, and other strategic growth centers through modern infrastructure, logistics networks, airports, seaports, industrial estates, digital connectivity, and innovation ecosystems, the LEC has the potential to become the backbone of Philippine industrialization.
Pampanga businessman Rene Romero, a fellow of the Pampanga Business Circle, said if properly implemented and sustained, the LEC can become one of the major platforms through which the Philippines can unlock its full potential for industrialization.
“The corridor connecting Subic Bay, Clark, Metro Manila and Batangas brings together some of the country’s most important economic assets—international airports and seaports, industrial and economic zones, logistics networks, major population and consumer centers, and access to global markets,” Romero said.
“But we should look at the Luzon Economic Corridor as more than an infrastructure program. It should become an industrial and investment corridor where infrastructure, logistics, energy, technology, manufacturing and export-oriented industries are developed under one long-term strategy,” Romero said.
Romero urged the government to institutionalize the LEC so that it can transcend administrations.
“We have seen many good government programs lose momentum when administrations change,” Romero said.
“Industrialization, however, cannot be planned around a six-year political cycle. Investors, infrastructure developers and industries make decisions based on horizons of 20, 30 or even 50 years.”
Romero said the LEC therefore needs a long-term institutional framework, a clear industrial roadmap, continuity of policies, and strong coordination among national government agencies, LGUs, economic zones and the private sector.
“If we can provide that continuity and predictability, I believe the Luzon Economic Corridor can become a powerful instrument for attracting foreign direct investment, developing Filipino industries, expanding exports, creating higher-value jobs and strengthening the Philippines’ position in regional and global supply chains,” he said.
Romero further said the Philippines has the foundations to move toward advanced manufacturing, but being ready also means recognizing what we still need to build.
“We already have important advantages: a capable and trainable workforce, a strong electronics and semiconductor base, strategic economic zones, access to major international shipping routes, and an established services and technology sector,” he said.
“Our objective should not simply be to attract factories. We should encourage industries that bring technology transfer, higher Filipino value-added, stronger domestic supply chains and export revenues.”
Romero cited Vietnam, Malaysia and Indonesia, all of which had aggressively strengthened their manufacturing bases and participate more deeply in global value chains.
“The Philippines should do the same, while building on our own competitive advantages. For decades, much of our economic growth has been driven by services. Services will remain extremely important, but they should be complemented by a stronger industrial and manufacturing base,” he added.
In August, Romero urged Senator Bam Aquino for the immediate enactment of the Philippine Industrialization Act of 2026 and the Creation of the National Luzon Economic Corridor Council (NLECC).
“The proposal is a long-term national industrialization policy that we believe can help transform the Philippines into one of Asia’s leading manufacturing, innovation, logistics, and technology-driven economies,” Romero said.
