Philippine Business Magazine: Volume 8 No. 6 - Geographics
Out of Nowhere
Tarlac is no longer in the middle of nowhere
By Delma L. Peyra

Not more than a decade ago, Tarlac province was barely industrializing, partly handicapped by its being landlocked; five provinces surround Tarlac — Pangasinan, Nueva Ecija, Bulacan, Pampanga, and Zambales. For large-scale manufacturing to take-off, transportation by land, sea, and air have to be readily available. This opportunity came in 1991 when the United States pulled out from its two military bases in the country that were complete with the necessary facilities. Today, Tarlac is just 45 minutes away from Clark Air Field and two hours away from the international airport and seaport of the Subic Freeport Zone.

A Hacienda’s Legacy
Luisita offers an “industrial lifestyle package” says Butch Vargas, General Manager of Central Techno Park, the second industrial estate to be developed inside Hacienda Luisita. As envisioned with the Luisita Planned Community, Tarlac will be the first province to have a successful integration of urban community living with industrial development – sort of a 21st century city sans the traffic and pollution.

The Hacienda was acquired by the Cojuangco patriarch, Jose Cojuangco Sr., in 1958 from its Spanish owners and became the first sugar estate to be managed and controlled by Filipinos. After the sugar industry collapsed in the 1970s, the Cojuangcos set sights on industrializing the estate with an eye to preserving a peaceful community.

Today, Luisita is bustling with the picturesque Plaza Luisita Mall and Commercial Center. The Plaza is the central business district that houses offices and various commercial establishments. It is marketed towards entrepreneurs and other businesses ready to cater to the huge market not only of Tarlac, but that of Central Luzon. Also in operation are a deluxe hotel (Central Park Hotel) and a golf course (Luisita Golf and Country Club).

The Luisita Planned Community is now the lynchpin of Tarlac’s progress

Not far away from this commercial complex are the residential facilities. There are high-end housing for business executives and their families. Also within the facility are low- to middle-end housing units for workers and their families, in keeping with the “walk-to-work” concept of the community.

Ready for Locators
But what fired the industrial engine in Tarlac was when Luisita Industrial Park, a 120-hectare industrial estate was established in 1991. Just in time, nearby Subic and Clark were being converted from military bases into a freeport and aviation center, respectively. Already fully-sold and occupied, the Luisita Industrial Park I is home to international companies such as Sumitomo Wiring Systems, Sanyo Semiconductor, Phelps Dodge (wires and cables), and Avantex Mill, as well as local companies like Purefoods, Universal Robina Corporation (instant noodles and snack food), and Jollibee Foods.

With the success of Luisita Industrial Park I, a second industrial park is being developed – Central Techno Park. It is a joint venture of Japanese giant Itochu Corporation, and the Yuchengco and Cojuangco families. It has a net saleable area of 2,400,000 square meters and ready with the necessary infrastructure such as water supply, a sewerage treatment plant, and a logistics and distribution center operated by FedEx. Central Techno Park boasts of a powerful telecommunication system, being the only the industrial estate in the country linked with fiber optic cable.

Adds Butch Vargas, “As we did for Luisita Industrial Park I locators, we provide Central Techno Park locators with our core competency in business development.” Services include helping client-companies get various government certifications and licenses and working closely with the Philippine Economic Zone Authority, the government body in charge of developing economic zones.

In 1994, Luisita Industrial Park developed its own training center, providing manufacturers a ready source of skilled manpower. It has compiled a database of technology and high-skilled workers from which locators can source their labor needs. Central Techno Park locators can also tap into this advantage.

With ready infrastructure, a one-stop business center, and a rich pool of human resources, Central Techno Park’s locators are given a “quick ramp-up time.”

Add-Ons
Tarlac province, in general, and the Luisita Planned Community, in particular, will even become a more attractive business destination with the proposed P17-billion Subic-Clark-Tarlac Tollway Project. This tollway will enable an almost straight road of 93 kilometers to link up the three locations. With financing from Japan, construction is set to commence in the second quarter of 2003.

Tarlac is also at the center of the so-called W Growth corridor, a cluster of 47 municipalities from the six provinces of Central Luzon. The government is promoting the western side (Zambales and Bataan) for eco-tourism, the eastern side (Nueva Ecija and Bulacan) for agricultural resources, and the central part (Tarlac and Pampanga) for industrial centers.

Indeed, with all its growth prospects, Tarlac is no longer in the middle of nowhere.