Include SVG does not detect file

Question

I am trying to render an .svg image using the svg.sty package in latex. When I run the following code I get three errors. Posted below the code

\documentclass[a4paper,10pt,twoside,openright]{report}
\usepackage{svg}
\begin{document}
TEST
\begin{figure}[htbp]
    \centering
    \includesvg{bloch_entangling_gate}
    \caption{caption}
    \label{fig:label}
\end{figure}
\end{document}

Errors below :

E: /Users/Adriaan/Documents/Test/test.tex:6 File `./bloch_entangling_gate' not found. \includesvg{bloch_entangling_gate}
E: /Users/Adriaan/Documents/Test/test.tex:6 File `./bloch_entangling_gate' not found. \includesvg{bloch_entangling_gate}
E: /Users/Adriaan/Documents/Test/test.tex:6 File `bloch_entangling_gate.pdf_tex' not found. \includesvg{bloch_entangling_gate}

I am running latex trough the "latexing" package in sublime on Mac OSX 10.9.4. The svg image is placed in the same directory as the .tex file. Rendering works fine if I do not try to import the image.

When I build from there it executes the build command which is set to do the following.

[
    {
        "cmds":
        [
            "pdflatex",
            "bibtex",
            "pdflatex",
            "pdflatex"
        ],
        "name": "Default Build: latexmk",
        "primary": true

Whit added argument to the preferences

"build_arguments": [" --shell-escape"], 

This should ensure that pdflatex is working with shell escape enabled as required for the svg package. I do not know how to check if these are the actual commands that are being executed or how to run latex from the terminal.

I have also seen a similar question with the same error on a windows system. I assume I am not using luatex but I am not sure.

Hope someone can help me.