Operated By U.S. Military For 94 Years, ‘Highly Strategic’ Subic Bay Comes To Life Amid China-Philippines Tensions

With the People’s Republic of China posing a threat to its security, the Philippines is considering building a second military base at Subic Bay to strengthen its military posture and project power across the disputed South China Sea.

Philippines Defense Secretary Gilbert Teodoro Jr. indicated that if everything proceeded according to plan, Subic could again host a military post that would be larger and more suitable than the area that the Philippine Navy now occupied, according to a report by the Inquirer. He was addressing the Senate hearing on the Department of National Defense’s projected P254.1 billion budget for 2025.

Teodoro said that the process of acquiring land for a future naval facility inside the Subic Bay Metropolitan Authority (SBMA) boundary had begun. He also informed the senators that President Marcos had directed him to speak to SBMA representatives regarding the acquisition of space for the Philippine Navy.

“We have identified an area which is suitable for a main operating base. We have got presidential approval to pursue the process of acquiring the area and we hope to have it completed by the end of 2028. And I think the area to be vacated by the Philippine Navy can be leased out to other locators without any loss of income,” Teodoro said.

Teodoro added that the military would require additional facilities and space to accommodate the Navy’s planned acquisition of ten corvettes and frigates by the end of 2028.

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“In the future, another one (is proposed) in the eastern portion of the Philippines as a major operating base,” he emphasized. The Navy intended to develop three other Forward Operating Bases (FOBs) along with Subic: in Luzon, the Visayas, and Mindanao.

The announcement follows reports from June this year that indicated the Philippines was considering building a new base at Subic Bay to enhance its aerial reconnaissance and power projection capabilities in the South China Sea.

At that time, reports noted that the Philippine Air Force’s bidding paperwork and development plans indicated Manila was considering creating a new forward operating facility at Subic Bay airport that could handle attack and surveillance aircraft.

In his latest communication, the Defense Secretary did not name a third party. However, it is widely understood that the Philippines is building new facilities, restoring old military facilities, and expanding its military activity across the country amid heightened tensions with China in the South China Sea.

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China asserts sovereignty over nearly the entire South China Sea and shares conflicting claims with the Philippines regarding several features in the area. In recent times, the two sides have sparred over the Second Thomas Shoal, Sabina Shoal, and Scarborough Shoal.

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Philippines’ navy base in Subic Bay (via X)

China has been accused of ramming their Coast Guard vessels into Filipino ships, training water cannons at them, and attacking Filipino crew members. More recently, Chinese aircraft have started shadowing and conducting dangerous interceptions of Philippines’ aircraft patrolling over the South China Sea. These incidents have triggered alarms that an escalation could lead to an all-out conflict in the region.

While being constantly cornered by superior Chinese forces, the Philippines has undertaken a massive military modernization drive. In addition to acquiring military hardware from friendly foreign powers, this drive involves expanding military presence in regions vital to project power in the South China Sea.

Subic Bay, for one, sits on the west coast of the island of Luzon in the Philippines. It is located close to the disputed Scarborough Shoal, approximately 100 kilometers northwest of Manila Bay. Hence, it is strategically important.

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Subic Bay — The ‘Hot Spot’

The US operated its naval base in Subic Bay for about 94 years before finally handing it over to the Philippines’ authorities in the 1990s.

Plans to establish Philippine air and naval bases at Subic have been under consideration since 2013, as the region has been transformed into a center for commerce, industry, and tourism.

Manila opened a facility at Subic Harbor in 2022, which is across the harbor from the old American installation at the former Hanjin Heavy Industries Shipyard. Before the establishment of the Naval Operating Base Subic, the Philippine Navy relied on civilian ports for docking its vessels.

A 300-ha shipyard and old Hanjin Heavy Industries site in Subic Bay have been leased by the Navy for P1.1 billion a year since May 2022, as per its admission.

Additionally, the Subic Bay Metropolitan Authority (SMBA) Chief, Rolen Paulino, told Nikkei Asia in February last year that Subic was a great place for military operations because of its deep harbor and proximity to the South China Sea. “It’s very strategic,” he said. “It’s only an hour away from Taiwan. It is about 30 minutes away by F-16.”

File Image: Subic Bay

The Philippine Navy has started using a portion of the facility as a new naval base, as announced by the country in late 2022. The former naval base was converted into a sprawling port known as Subic Bay Freeport.

Earlier, a Philippines-based military analyst, Miguel Miranda, told EurAsian Times, “Subic Bay and its historical naval refit facility are one of the best military infrastructures in Asia. It can dock aircraft carriers and nuclear-powered submarines and, if permitted, service these vessels for maintenance and repair. From Subic, which forms a perfect natural harbor, a Navy has direct access to the South China Sea or the West Philippine Sea and all the bodies of water that connect to it.”

Earlier this month, the United States indicated that it would back Manila’s proposal to develop a new naval pier at the Subic Bay military facility. Naval Operating Base Subic, the homeport of the Philippine Navy’s patrol boats and frigates, is scheduled to build a 15-by-155-meter finger pier.

Furthermore, there have been rumors over the last two years that the US troops are poised to make a comeback to their World War-era military facility in the Subic Bay. These speculations were strengthened by the visit of US Defense Secretary Lloyd Austin to the Philippines’ naval base in Subic Bay on July 31.