NEGOTIATIONS to acquire 300 hectares within the Phividec Industrial Estate economic zone in Misamis Oriental for a new naval base are making "steady progress," an official said.

Phividec Administrator Joseph Donato Bernedo said the Department of National Defense (DND) has offered to exchange the 300 hectares of land in Misamis Oriental for another prime government property better suited for economic zone expansion.

Bernedo did not disclose the location of the property offered by the DND but confirmed that a site inspection found it economically feasible.

"The property has potential for our expansion," Bernedo said.

He added that a Philippine Navy team recently completed surveying the 300-hectare area designated for the base's construction.

The DND is interested in acquiring the parcel from the 3,000-hectare industrial zone to establish a naval base that will serve as the hub for the Philippine Navy’s Visayas and Northern Mindanao operations.

Defense Secretary Gilbert Teodoro previously stated the new naval base will serve as a port for the Navy’s newly acquired frigates, which were built in South Korea.

The 300-hectare site at Phividec was part of a larger 500-hectare area previously offered to the South Korean shipbuilder Hanjin, a deal that was canceled in 2008.

The planned construction of a naval base in Misamis Oriental has caused apprehension among local traders.

Engineer Almario Brito, president of the Cagayan de Oro Chamber of Commerce and Industry (Oro Chamber), said most traders in Misamis Oriental and Cagayan de Oro are worried about their safety should hostilities erupt between the Philippines and the People’s Republic of China over the West Philippine Sea.

"We are asking, what is the nature of the naval base? Is it for repairs and drydocking?" Brito asked.

Brito suggested that the Philippine Navy should conduct a public consultation with local traders and residents before proceeding with the naval base’s construction.