The Celtic Freeport in Milford Haven and Port Talbot and Anglesey Freeport on Ynys Mon have been chosen as Wales’ first freeports, helping to create tens of thousands of new jobs in the green industries of the future, the Welsh and UK governments announced.
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In May 2022, the Welsh Government reached an agreement with the UK Government to establish a freeport programme in Wales.
Following a bidding process, the Welsh and UK Governments have jointly agreed to create two freeports in Wales, which are expected to be operational later this year.
The winning bids are:
• The Celtic Freeport in Milford Haven and Port Talbot.
The freeport will be based around the port of Port Talbot in Neath Port Talbot, and the port of Milford Haven in Pembrokeshire.
The plans focus on low carbon technologies, such as floating offshore wind (FLOW), hydrogen, carbon capture, utilisation, and storage (CCUS) and biofuels to support the accelerated reduction of carbon emissions.
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 (GVA) by 2030, and £13 billion by 2050.
• The Anglesey Freeport, Ynys Mon.
The freeport will be based around the port of Holyhead, Anglesey Prosperity Zone, Rhosgoch and M-Sparc. The freeport will develop the Energy Island Programme (EIP) by focusing on marine energy technology testing on the seabed (tidal and wind).
The freeport aims to create between 3,500 and 13,000 jobs by 2030, with an increased GVA of approximately £500 million. It also anticipates significant inward investment, including the possibility of £1.4 billion in the green energy sector.
The freeports will form special zones with the benefits of simplified customs procedures, relief on customs duties, tax benefits, and development flexibility. Welsh freeports will promote fair work opportunities and prioritise environmental sustainability and the climate emergency.
They are designed to promote regeneration and high-quality job creation, become a national hub for global trade and investment across the economy, and foster an innovative environment.
The successful bids are focused on boosting the distinct strengths the sites boast, exploiting opportunities from offshore wind and marine energy to advanced manufacturing and innovation.
The two freeports aim to collectively create around 20,000 jobs by 2030 and attract up to £4.9 billion in public and private investments.
Announcing the winning bids, First Minister of Wales, Mark Drakeford said: "I am pleased to confirm the Celtic Freeport in Milford Haven and Port Talbot and Anglesey Freeport have been selected as Wales’ new freeports.
"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.
"The joint working between governments on the freeport programme should serve as a blueprint for future intergovernmental work on a whole range of issues."
The UK Government will provide up to £26 million of non-repayable starter funding for each of the freeports being established in Wales – this represents parity with the deals offered to each of the English and Scottish freeports.
Welsh Ministers agreed to support freeport policies in Wales following the UK Government’s agreement it would meet the Welsh Government’s demands that both governments would act as a ‘partnership of equals’ to establish freeports in Wales.
The bidding process opened on 1 September 2022 and closed on 24 November 2022. Three bids were received by the deadline. ■