Business
Welsh and UK Governments launch bidding process for Wales’ first freeport
THE WELSH and UK Governments are today inviting applications for Wales’ first freeport, which should be up and running by summer 2023.
Milford Haven is one of the post in Wales to have 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. Holyhead and Associated South Wales Ports are also interested.
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.
In May 2022, the Welsh Government reached an agreement with the UK Government to establish a Freeports Programme in Wales.
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.
In addition, UK Ministers also agreed to provide up to £26 million of non-repayable starter funding for any freeport established in Wales, which represents a parity with the deals offered to each of the English and Scottish freeports.
A Welsh freeport will be a special zone with the benefits of simplified customs procedures, relief on customs duties, tax benefits, and development flexibility.
The Welsh and UK Governments have worked together to design a freeport model which will deliver on three main objectives which must be met by applicants:
- 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 has a clear Economic Mission to transform the Welsh economy to be more prosperous, equal and green than ever before.
Welsh Ministers have successfully argued that a Welsh freeport will need to operate in a manner that aligns with the Welsh Government’s policies on fair work and social partnership. 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.
As part of a fair and open competitive process to determine where the policy should be implemented in Wales, the Welsh Government and UK Government are today jointly publishing a prospectus which sets out the policy objectives both governments seek to achieve through the establishment of the Freeports Programme, and the parameters for how bids will be assessed.
The bidding process opens today (Thursday 1st September 2022). Applicants will have 12 weeks to complete and submit their bids. Bids must be submitted by 6pm on Thursday 24th November 2022.
The successful bid will be announced in early spring 2023, with the freeport being established by summer 2023.
Both governments will work together to co-design the process for site selection and will have an equal say in all implementation decisions, including the final decision on site selection.
Both governments remain open to the possibility of a multi-site freeport in Wales, and to the possibility of allowing more than one freeport in Wales, should they be presented with a sufficiently compelling business case.
Wales’ Economy Minister, Vaughan Gething, told this newspaper: “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.”
Speaking in 2020, the then Welsh Secretary Simon Hart MP said: “The development of freeports will create innovation hubs across the UK, generating new ideas in a whole host of UK sectors from customs to transport to decarbonisation.
“A freeport in Wales could create hundreds of jobs and facilitate significant regional economic growth. That is why I urge businesses to engage with our consultation and help us to unleash our potential in innovation, investment and growth. Working closely with the Welsh Government and businesses, we will ensure that the whole of the UK can feel the benefits as this government delivers its manifesto commitments.”
Chief Secretary to the Treasury as he was then, Rishi Sunak, said at the time: “Freeports will unleash the potential in our proud historic ports, boosting and regenerating communities across the UK as we level up. They will attract new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country.
“This is all part of our mission as an open, outward-looking country, championing global free trade with vibrant freeports that work for all of the UK.”
Business
Holyhead closure: Storm damage could delay reopening until March
HOLYHEAD port faces an extended closure following significant storm damage, with fears it may not reopen until March. The disruption has caused widespread consequences for trade, travel, and postal services across the Irish Sea.
The Terminal 3 berth, used by Irish Ferries, sustained extensive damage during Storm Darragh earlier this month. Drone footage revealed a ‘dolphin’ platform had fallen into the sea, exacerbating the situation and impacting the adjoining terminal used by Stena Line.
Currently, all sailings are suspended until January 15, though experts warn this date may be overly optimistic. Garrett Bridgeman, managing director of An Post, Ireland’s national postal service, said: “I don’t think January 15 looks like the date. If you look at the level of work that needs to be done and the safety checks required afterwards, February or March seems more realistic.”
Stena Line stated their priority remains resuming operations safely, while the Marine Accident Investigation Branch (MAIB) is conducting an inquiry into the incident. A spokesperson for MAIB confirmed inspectors are reviewing evidence to understand the circumstances that led to the damage.
The Welsh Government has implemented contingency plans, with additional sailings arranged from Wales and the Mersey area despite challenging weather conditions. Welsh Transport Minister Ken Skates said: “This is a challenge we have never faced before, but we’ll continue working with UK and Irish governments to support businesses and travellers.”
Increased pressure on Fishguard and Pembroke ports
With Holyhead out of action, Pembrokeshire’s ports—Fishguard and Pembroke Dock—are facing increased pressure to handle additional sailings. Stena Line and Irish Ferries have already announced extra services from these ports to help ease the disruption.
Irish Ferries has confirmed it will launch a new service from Fishguard, while Pembroke Dock is also experiencing heightened activity with extra crossings scheduled. Passengers and freight operators are urged to check ferry company websites for the latest updates.
Cabinet Secretary for Transport and North Wales Ken Skates praised the efforts of ferry operators and local authorities in managing the surge in activity at Pembrokeshire’s ports. “Both Fishguard and Pembroke Dock are playing a crucial role in maintaining the flow of goods and passengers across the Irish Sea during this unprecedented disruption,” he said.
Local authorities and Transport for Wales are working to ensure traffic flows smoothly around these ports, with additional measures in place to minimise congestion and delays.
Meanwhile, the Irish Road Haulage Association (IRHA) has expressed growing frustration with the lack of clear communication from Holyhead Port authorities. IRHA President Ger Hyland said: “We need correct and true information with a definite timeline. The piecemeal updates have been unhelpful.”
Hyland highlighted the financial toll on hauliers, with some operators facing losses of up to €3,000 per vehicle weekly. He urged ferry companies to increase their efforts to ease the crisis and called on the Irish government to explore financial compensation for affected businesses.
The situation has been escalated to UK Prime Minister Keir Starmer, with calls for direct intervention to expedite repairs and alternative arrangements. Minister of State James Lawless, who met with haulage industry leaders, acknowledged the urgent need for clarity and support.
With Pembrokeshire ports now under increased strain, stakeholders are closely monitoring the situation, awaiting updates from Stena Line in mid-January.
Business
Derelict Cilgerran house to be transformed into cafe
PLANS by a village shop owner to convert a house “in a state of disrepair” to a café to “improve the variety of community facilities” locally have been given the go-ahead.
Mrs Morris, through agent Harries Planning Design Management, sought permission from Pembrokeshire County Council to convert The Old Post House, High Street, Cilgerran, currently a four-bed dwelling, to a ground floor café, along with a first-floor flat.
The application received five letters of support, saying it would provide local jobs, support the community, promote Welsh and local food, and provide a local community hub, with three letters of objection, raising concerns about parking and traffic, and potential odours from the premises.
A supporting statement, through the agent, said: “The proposed site is currently a dwellinghouse, in current need of modernisations and renovations throughout. The site is under the same ownership as the neighbouring village stores Siop Y Pentre,” saying the proposal “can be read as an extension to the existing Siop Y Pentre”.
“Siop Y Pentre is a thriving local community village shop which acts as a village hub. The shop provides local residents with day-to-day necessities, with a focus on local, sustainable and minimal waste products,” the statement says, adding the dwelling it seeks to convert “is in disrepair and in need of internal works to make suitable for modern living”.
It went on to say: “The proposed café seeks to retain its focus on local and seasonal produce with minimal waste and would provide a welcomed opportunity for socialising, especially during the daytime. The café will also seek to employ local staff retaining a community feel throughout. As such, the principle of the café adjacent to the existing village store is considered acceptable. The site seeks to encourage a sustainable community, with development of an appropriate scale and nature.
“Further to this, the location of the development is within the settlement boundary and seeks to fulfil a need for day-time socialising environments currently lacking within Cilgerran.”
The application was conditionally approved by county planners.
Business
Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure
PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.
The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.
The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.
A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”
Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.
Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.
From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.
Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.
(Photos: Martin Cavaney/Herald)
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