Undated image shows HD Hyundai Heavy Industries’ new shipyard in Subic Bay, Zambales, the Philippines. Courtesy: HD Hyunday Heavy Industries Philippines
Three decades after the US Navy pulled out of Subic Bay, the old base in the Philippines is roaring back to life in ways few saw coming. What was once considered a Cold War relic is now shaping up to be a new flashpoint in the tense power struggle between Washington and Beijing.
Subic Bay was once the largest American naval installation overseas, until the US packed up in 1992. The sprawling site was later converted into a civilian Freeport, attracting businesses but fading from its once mighty military role. Now, with growing friction in the South China Sea, Subic is being pulled back into the geopolitical spotlight. According to Newswek, major foreign investments and new defense projects are transforming the area into a critical hub once again.
The story really picked up after the collapse of Hanjin Heavy Industries in 2019, which left one of the world’s largest shipyards abandoned. Chinese firms were quick to make bids for the property, but in the end it was American investment group Cerberus Capital Management that took control. That move alone signaled how valuable Subic was becoming in the eyes of Washington and its allies.
The site has since been rebranded as the Agila Subic Shipyard, operated by South Korea’s Hyundai Heavy Industries. It is now primed to handle both naval and commercial shipbuilding, giving it serious economic weight. At the same time, new defense infrastructure is on the rise, including a massive munitions plant that some reports suggest could be one of the largest of its kind in the world.
The Philippine Navy is also re-establishing a stronger presence there, and Manila has floated plans to convert nearby islands such as Grande and Chiquita into military reservations. With the Philippines clashing more frequently with Chinese vessels over its territorial rights, Subic’s revival couldn’t come at a more critical moment.
For the US, South Korea, and the Philippines, this is more than just about jobs or infrastructure. It’s a strategic play, reinforcing a regional foothold that directly counters China’s ambitions. What once looked like a fading memory of the past is suddenly a cornerstone of the future. Subic Bay is no longer just a piece of history—it’s becoming a central player in the next great power game.