Freeports are special areas within the UK’s borders where different economic regulations apply. Alongside a comprehensive package of benefits, the sites will enjoy tax and customs incentives to boost investment.
Each location will now be backed by up to £26 million in Government funding with the new sites expected to bring forward an estimated £5 billion of private and public investment and create around 20,000 new, high-skilled jobs.
Prime Minister Rishi Sunak said: “Wales is a thriving part of the UK, and today’s new freeports will see businesses and opportunities for people in and around Anglesey, Port Talbot and Milford Haven go from strength to strength.
“Everyone deserves equality of opportunity and working closely with the Welsh Government has helped to deliver these fantastic new sites.”
First Minister of Wales, Mark Drakeford said: “The Welsh Government has a clear economic mission to transform the Welsh economy, creating a stronger, fairer and greener future. The designation of these sites as Wales’ first freeports will reinforce that mission, building on the significant investments and partnerships we have made in these regions over many years.
Levelling Up Secretary Michael Gove added: “Wales has huge untapped potential, and that’s why we have worked in partnership with the Welsh Government to agree not one but two Freeports for Wales.
“This is the result of both governments working together to deliver for Wales, providing yet another example of Wales benefiting from its place in a strong United Kingdom.
“I am absolutely confident these new freeports will be transformational for Wales, helping to grow the economy, level up and spread opportunity.”
The Anglesey Freeport would extend 45km from Holyhead port (pictured above), covering the whole Isle of Anglesey, with four zones designated as tax or customs sites. The proposed sites are Holyhead Port (including 213-acre former Anglesey Aluminium site and deep water jetty), Parc Cybi, Rhosgoch and M-Sparc Science Parc.
The site is expected to attract £1.4 billion worth of investment in the green energy sector and create at least 3,500 jobs, generating half a billion in additional Gross Value Added by 2030. The freeport will have a focus on marine energy technology and low carbon energy and will embark on a variety of infrastructure programmes including the Holyhead port redevelopment and the restoration of the railhead and track.
The Celtic Freeport consortium comprises Associated British Ports (ABP), Neath Port Talbot Council, Pembrokeshire County Council and the Port of Milford Haven. The bid’s strategically located tax and customs sites span almost 250 hectares in Pembrokeshire and Neath Port Talbot. The freeport aims to attract significant inward investment including £3.5 billion in the hydrogen industry as well as the creation of 16,000 jobs, generating £900 million in Gross Value Added by 2030. The Freeport will focus on low carbon technologies like floating offshore wind, hydrogen, carbon capture, utilisation and storage and biofuels to support the accelerated reduction of carbon emissions. This will be supported by the development of land and quayside space and bringing a disused railhead back into operation, to enable infrastructure to support development.
The two Welsh freeports build on the Government’s freeport programme in England, where all eight freeports are open for business, and collaboration with the Scottish Government to deliver two new ‘green’ freeports in Inverness and Cromarty Firth and Firth of Forth.
As announced in the Budget, the UK Government also aims to establish at least one Investment Zone in Wales, which will work hand in hand with the freeport programme.
The Government said it will also work with the unsuccessful bidders to consider how they can build on the plans set out in their bids to deliver jobs and growth in their region outside the freeports programme.
The Road Haulage Association welcomed the announcement but said that Wales needed improvements to key routes to take full advantage of the benefits the freeports can bring.
RHA Welsh Forum chair Geraint Davies said: “Supply chain businesses need a modern, functioning road network to keep people and goods moving efficiently.”
Mr Davies, who is also COO at John Raymond Transport/Nolan Transport GB, added: “Bottlenecks on key routes makes transport costlier than it needs to be. We need an M4 relief, improvements to the A55, and a third Menai crossing to connect Anglesey with the mainland of North West Wales.”