A bidding process that will give Wales freeport status has been launched. The process could see more than one freeport created.
Both the UK and Welsh governments have confirmed they are open to the possibility of a multi-site freeport in Wales. This throws up the potential for ports in South Wales to form a wider freeport zone with Cardiff Airport, or for ports across North and South Wales to strike multi-port agreements.
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Ports in Holyhead, Milford Haven and Associated British Ports’ South Wales ports have all expressed interest to securing freeport status. A Welsh freeport will be a special zone with the benefits of simplified customs procedures, relief on customs duties, tax benefits, and development flexibility.
Goods entering freeports do not have to pay tariffs, import VAT or excise duty until they leave the freeport and enter the domestic UK market, with simplified customs procedures and declarations.
The go-ahead for a freeport in Wales was confirmed in May following an agreement struck between the UK and Welsh governments.
Welsh Ministers agreed to support freeport policies in Wales following the UK Government’s agreement that it would meet the Welsh Government’s demands that both governments would act as a "partnership of equals" to establish freeports in Wales.
Initially the UK Government had offered the Welsh Government around £8m to support setting up a freeport. Freeports in England have been offered around £25m each, with a similar funding deal secured by Nicola Sturgeon’s government with the UK Government.
However, UK Ministers have now agreed to provide up to £26m of non-repayable starter funding for the Welsh freeport. Applications are now open for the freeport which both governments said should be up and running by summer 2023. Applicants will have 12 weeks to complete and submit their bids before the deadline closes at 6pm on November 24. The successful bid will be announced in early spring 2023, with both governments confirming that the freeport will become operational by summer 2023.
A freeport prospectus has also been jointly published today which sets out the policy objectives both governments want to achieve through the freeport. The prospectus will also outline guidelines as to how the bids will be assessed as part of a fair competitive process to determine where the freeport should be implemented in Wales.
Both governments said they will work together to co-design the process for site selection adding that they will have an equal say in all implementation decisions, including the final decision on site selection.
They have also worked together to design a freeport model which will deliver on three main objectives which must be met by applicants, including:
- Promote regeneration and high-quality job creation.
- Establish the freeport as a national hub for global trade and investment across the economy.
- Foster an innovative environment.
The Welsh Government said it also has a clear economic mission to "transform the Welsh economy to be more prosperous, equal and green than ever before".
The Cardiff Bay administration added that "Welsh Ministers successfully argued that the Welsh freeport will need to operate in a manner that aligns with its policies on fair work and social partnership.".
They said this includes "workers being fairly rewarded, heard and represented, and can progress in a secure, healthy, and inclusive working environment, where their rights are respected."
As a result, the freeports programme in Wales includes made-in-Wales policies, such as:
- the inclusion of the Welsh Government’s Economic Contract.
- Trade union involvement in freeport governance structures.
- An emphasis on the real living wage and lifting the wage floor.
- Setting expectations around employers’ treatment of employer national insurance contributions.
A Welsh freeport will need to operate within the Welsh legislative framework on sustainability and well-being – The Well-being of Future Generations (Wales) Act 2015 – and the Welsh Government’s net zero commitments.
Wales’ Economy Minister Vaughan Gething, said: "As an intrinsic part of our rich industrial history and the engine room of our economy, ports have huge potential to accelerate future industries which support net zero - from off-shore energy to advanced manufacturing.
"Thanks to the agreement we have reached with the UK government, we are launching a Freeports Programme in Wales which offers an opportunity to harness Wales’ abundant economic potential domestically and internationally by reimagining the role of ports, whilst promoting fair work and sustainability.
"The Welsh Government believes a better deal for workers is essential to a fairer and more equal Wales. So, I am looking for bids that break the industry ceiling on net zero standards, exemplify the high labour standards that promote fair work, and articulate a shared vision formed by long-lasting partnerships which genuinely involve all social partners.
"I look forward to considering innovative bids which deliver meaningful economic and social benefits for Wales."
The UK Government’s Secretary of State for Levelling Up, Greg Clark, said: "A new Freeport will provide a huge boost to people in Wales, and I am delighted to open bidding as we continue our work with the Welsh Government to bring jobs and prosperity to the country.
"The UK Government’s Freeports programme is already delivering benefits to businesses and communities across England, with operations in Teesside and Liverpool already underway.
"I look forward to seeing similar benefits for Wales as we deliver a ground-breaking new Freeport and level up the whole of the United Kingdom."
Ynys Môn MP Virginia Crosbie, who has campaigned for Anglesey to be a freeport, welcomed the launch of the bidding prospectus.
She said: "I am delighted and thrilled we are now able to put forward a brilliant case for Anglesey to be a freeport and all that means for jobs and investment for our island if we are successful. For too long Ynys Môn has been neglected and now we have a chance to change this."
The Anglesey bid will be headed up by Stena Line Ports.
“This bid will be about levelling up, regeneration, decarbonisation, attracting investment in green technology and other industries and securing us as the Energy Isle for decades to come," she added. "The generous customs and tax incentives to attract businesses and seed funding to develop key infrastructure are huge gamechangers for us here on Anglesey, if we can get them.
"I am very pleased this transparent, fully competitive bidding process will be overseen by officials from the UK and Welsh governments with both having an equal say on the final selection. I am already planning my next moves to ensure Anglesey is chosen as a freeport in Wales. I will be banging on quite a few doors and making quite a few phone calls as I do everything I can to support the bid and make sure we are successful.
"There’s a way to go and there can be no guarantees but I know Stena and others who want this freeport here on our island will do the best they can."
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