Anglesey named as one of two new freeports in Wales in bid to boost jobs and investment

Anglesey has been named as the location of one of Wales’ first freeports in a bid to create thousands of new jobs.

In May 2022, the Welsh Government reached an agreement with the UK Government to establish a freeport programme in Wales.

Following a bidding process, both governments have jointly agreed to create two freeports in Wales, which are expected to be operational later this year.

Anglesey’s winning bid will result in a freeport being created at the port of Holyhead, also taking in the Anglesey Prosperity Zone, Rhosgoch and M-Sparc (Menai Science Park) in Gaerwen.

The freeport will focus on marine energy technology testing on the seabed for both tidal and wind power.

The aim is to create between 3,500 and 13,000 jobs by 2030, along with delivering an increased gross added value (GVA) of approximately £500m.

Significant inward investment is also expected, including the possibility of £1.4bn in the green energy sector.

Freeports are special zones which benefit from simplified customs procedures, relief on customs duties, tax benefits, and development flexibility.

Welsh freeports will also aim to promote fair work opportunities and prioritise environmental sustainability and the climate emergency.

The other winning bid is the “Celtic Freeport” in Milford Haven and Port Talbot.

The two freeports aim to collectively create around 20,000 jobs by 2030 and attract up to £4.9bn 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.”

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.

“Today’s freeports show the hard work being done day in, day out to bring new, high-skilled jobs to communities across Wales and deliver on my promise to grow the economy.”

Economy Minister, Vaughan Gething, said: “I would like to congratulate the Celtic and Anglesey teams for their exceptional bids to be awarded freeport status.

“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.

“This will help harness our abundant economic potential domestically and internationally, whilst promoting fair work and sustainability here in Wales.

“I look forward to seeing our freeports delivering meaningful economic and social benefits for Wales.”

Minister for North Wales, Lesley Griffiths said: “This is great news for Anglesey and I know it will be welcomed in the region.

“The port of Holyhead is a real asset for the whole of north Wales and the freeport will be a significant boost for the people and economy of Anglesey and the wider north west Wales region.”

Levelling Up Secretary Michael Gove said: “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 Welsh freeport programme has been designed to help deliver the Welsh Government’s policies on fair work.

This includes the aims of workers being fairly rewarded, heard and represented, and that they can progress in a secure, healthy, and inclusive working environment, where their rights are respected.

The UK Government will provide up to £26m 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 their demands that both governments would act as a ‘partnership of equals’ to establish freeports in Wales.

As part of the process to determine where the policy should be implemented, both governments jointly published a prospectus, which set out their policy objectives.

The bidding process opened on 1 September 2022 and closed on 24 November 2022. Three bids were received by the deadline.

The successful bids will be taken forward to the next stage of the process, which will involve the development of an outline business case.

Main image: “Holyhead port” by Ian Capper is licensed under CC BY-SA 2.0.