Wales celebrates Freeports success
Milford Haven, Port Talbot and Anglesey will promote green energy
Last updated 23rd Mar 2023
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.
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 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 £3.5bn in the hydrogen industry as well as the creation of 16,000 jobs, generating £900m in Gross Value Added (GVA) by 2030, and £13bn 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 £500m. It also anticipates significant inward investment, including the possibility of £1.4bn in the green energy sector.
What is a Freeport?
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 £4.9bn 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.”
“Wales is a thriving part of the UK..."
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."
The two leaders are expected to meet in Wales on Thursday morning to officially announce the opening of the new freeports.
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 workers being fairly rewarded, heard and represented, and can progress in a secure, healthy, and inclusive working environment, where their rights are respected.