Philippine President Gloria Macapagal-Arroyo has inaugurated the US$215 million first phase of the New Container Terminal 1 at Subic Bay Freeport, a key part of the Subic Port Modernisation project.

Under the president's 10-point agenda, Subic Bay is to be developed as a logistics hub for the Asia Pacific region, the Philippine Information Agency reports.

The project is being implemented by the Japan Bank for International Co-operation, to turn the Freeport into a major container port in the country.

This project includes installation of four gantry cranes from Japan: two were installed last May and the other two in March. This covers the construction of the terminals of two berths 280 metres long and a depth of 13 metres.

Development of this new container terminal is intended to reduce congestion at the Port of Manila. The facility is also designed to complement Diosdado Macapagal International Airport (DMIA), the Subic-Clark Toll Road, and Hanjin Shipbuilding.