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Anglesey and Celtic to be Wales’ first freeports

[ March 23, 2023   //   ]

The Welsh government has revealed the Celtic Freeport in the south-west and Anglesey Freeport on as the country’s first freezones, following a competitive bidding process.
The Celtic Freeport will be based around Port Talbot and Milford Haven in Pembrokeshire. The Celtic Freeport’s consortium 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 Anglesey (Ynys Mon) Freeport will extend 45km from Holyhead port, covering the whole Isle of Anglesey, with four zones designated as tax or customs sites at Holyhead Port (including 213-acre former Anglesey Aluminium site and deep water jetty), Parc Cybi, a long-disused former oil storage site at Rhosgoch near Amlwch in the north and M-Sparc Science Park in the centre of the island. It will develop the Energy Island Programme, 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 offer simplified customs procedures, relief from customs duties, tax benefits, and development flexibility. Welsh freeports will promote fair work opportunities and prioritise environmental sustainability and the climate emergency.
Both freeports say they aim to attract £4.9 billion in public and private investments, with the potential to create around 20,000 jobs by 2030.
The Welsh freeport programme has been designed to help deliver the Welsh Government’s policies on fair work. 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.
In May 2022, the Welsh Government reached an agreement with the UK Government to create at least one freeport in Wales, or two if there were compelling reasons to do so. Both freeports are expected to be operational later this year.
The bidding process opened in September 2022 and closed on 24 November. Three bids were received by the deadline.
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.
“The joint working between governments on the freeport programme should serve as a blueprint for future intergovernmental work on a whole range of issues.
Economy Minister, Vaughan Gething, added: “Due to the compelling set of proposals presented to us, I have agreed with the UK Government that a second freeport in Wales can be supported.
“Our ports are an intrinsic part of our rich industrial history. They will be an engine room of our future economy and these bids are designed to accelerate that journey. From off-shore energy to advanced manufacturing, they will help create tens of thousands of new jobs – which will support our highly ambitious plans to reach net zero by 2050.”
Stena Line – a major user of the port of Holyhead – and Isle of Anglesey County Council welcomed the news, saying that thre Anglesey Freeport would unleash “the full potential of North Wales”.
They also said that the announcement signals the beginning of the process to revitalise the GB land bridge, which has suffered a 20% reduction in trade since Brexit in favour of direct shipping routes from Continental Europe to Ireland.
Stena Line executive director, Ian Hampton, said: “This is a significant achievement for the region, and it is an excellent opportunity to drive forward sustainable economic growth, green energy, jobs, and skills. We are delighted for the people of Anglesey and North Wales, and excited about the positive commercial prospects that can be turned into a reality.
“Work now begins to ensure that we are capitalising on the unique tax and customs arrangements gained through freeport status, to transform Anglesey into a centre for global trading excellence. To realise its potential as a world-leading economic powerhouse by facilitating trade across Wales, the rest of the UK, and internationally – bolstered by the easing of trade between the island of Ireland and the rest of the EU, via a revitalised GB land-bridge.”
Chief executive at the Isle of Anglesey, Dylan Williams, said: the freeport would “stimulate significant long-term job creation for local people as well as wider socio-economic benefits and supply chain developments. This will help keep our young people in their local communities, preserving our Island’s unique character, culture and the Welsh language.
“Freeport status will also provide significant impetus for the County Council’s Energy Island Programme – which aims to see the Island become a hub for low carbon energy research and development, innovation production and servicing – and support the Council’s ambitious target of achieving net zero by 2030. Today’s decision means we are better placed than ever to realise this vision.”
Meanwhile, the Celtic Freeport Consortium said that it would deliver an accelerated pathway for Wales’ net zero economy generating over 16,000 new, green jobs and up to £5.5 billion of new investment. 

Preseli Pembrokeshire MP Stephen Crabb said: “No question, this is a milestone moment for Milford Haven and the whole Pembrokeshire economy. The announcement today shows the world that Wales is serious about floating offshore wind and puts us on a firm footing to capture as much local economic benefit as possible. Securing Freeport status will send a powerful signal to developers, unlocking new investment in high quality jobs and training opportunities. It’s a green light for billions of pounds of game changing investment, the creation of thousands of jobs and a lasting skills legacy for generations to come.”

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