An agreement was signed by Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza and PMPMI managing director Chris Nelson that will increase the total land area of its project here from a 9,600-square-meter to a 49,279-square-meter depot.

Once completed, the state-of-the-art warehouse will have a capacity to hold some 24,000 metric tons of tobacco. At present, the P30-million peso refurbished warehouse can only accommodate 6,100 metric tons.

In a statement released, Nelson said the new warehouse will boast of features like humidity control, fire-suppression equipment and air conditioning to handle the imported tobacco leaves from foreign suppliers, which will then be shipped and processed in cigarette-manufacturing facilities in the Philippines, Malaysia and Indonesia.

According to Arreza, the agreement, which extended PMPMI’s lease agreement to 50 years, “strengthens Subic Bay Free Port’s competitive posture as Southeast Asia’s logistics hub, as envisioned by President Arroyo.”

He added that this free port’s multimodal transport (air-land-sea) capabilities, world-class infrastructures, modern road networks, and tax incentives have prompted PMPMI to extend its contract that spans to half a century.

“A global brand such as Phillip Morris would not make hasty decisions, which means the firm has really found Subic an enviable logistics hub,” said Arreza.

Nelson, for his part, said PMPMI continued to expand since its establishment here in 2007 at the Subic Technopark, and even posted growth during the global economic slowdown which hit the country in the last quarter of 2008.

Nelson added that the warehouse expansion is “a reflection of our faith in the Philippine government, particularly the SBMA.”

The PMPMI managing director also expressed confidence that the company will sustain profitability and competence against its competitors, despite the increasing competition in the tobacco industry.

‘‘If you plan well ahead, and stay committed, this country will reward you in many ways,” Nelson said. ‘‘It may be difficult to get us, but once you have us, it would be difficult for us to leave you,” said Nelson. Rey Garcia