Business
Record-breaking year for shipping for Port of Milford Haven
AN UPTURN in shipping, coupled with a commitment to deliver excellent customer services resulted in strong financial results for the Port of Milford Haven during 2022 and a positive trading environment for the businesses and organisations around the Milford Haven Waterway, the Port has said.
Turnover increased by 59% from £24.8m in 2021 to £39.4m, with profitability rising to £3.3m compared to £1.5m the previous year. It was a record-breaking period for shipping with cargo entering the Port increasing by 28% to 38.9m tonnes . The exceptionally busy year was largely down to a surge in dues paying ships to the terminals on the Haven. The entire Port team played their individual parts in delivering this collective response to our customers’ demands, all the time maintaining safe and efficient services while supporting clients to meet their business demands.
Investment activity across the Port’s estate continued throughout 2022, with work on the £60 million Pembroke Dock Marine project progressing well to better support current customers, but also to create the capabilities for the next generation of our customers operating in the floating offshore wind, hydrogen and sustainable fuels sectors. Pembroke Port experienced a busy summer period thanks to major projects at the South Hook LNG terminal and the Valero Pembroke Refinery. The Port’s real estate investment portfolio performed well with retail and hospitality tenants at Havens Head Retail Park and Milford Waterfront reporting good recovery from the disruption caused by the Covid-19 pandemic over the past couple of years.
Hospitality and tourism operations were particularly pleasing, especially with the opening of the 100 bedroom Tŷ Hotel Milford Waterfront in April 2022, adding to the existing waterside accommodation offering. The Port’s partners, The Celtic Collection, have experienced a successful first year of trading and have built excellent relationships with their commercial neighbours and with the local community.
One of the most significant collaborations over the past twelve months has been the Celtic Freeport bid, a result of partnership working between the Port of Milford Haven, Pembrokeshire County Council, Neath Port Talbot Council, and Associated British Ports at Port Talbot. The announcement that the Celtic Freeport bid was successful in March this year is testament to the collective hard work and commitment of the partners. Work is now underway to submit a final business case to both Governments later this year.
The Port’s commitment to excellence runs further than delivering for its customers however, and much work is undertaken throughout each year to generate opportunities and benefits for the local community. As the cost-of-living crisis took hold throughout 2022, donations were made to charities working to help alleviate the financial pressures for families and individuals, and within the business a cost of living payment was made to our 200-strong team.
Chief Executive, Tom Sawyer, told The Pembrokeshire Herald on Wednesday: “2022 was a great year for the Port which meant we were able to continue with our investment strategy across our estate but also enable our customers and tenants to benefit from the additional commercial activity. I’m pleased to report that we had no Lost Time Incidents and carried out several exercises throughout the year to ensure our response to pollution, safety and security incidents are tested and refined.”
He added “There were many examples of how collaboration resulted in success for us and our stakeholders, the standout being the success of the Celtic Freeport bid. The opportunity this presents for the region is very exciting and I am particularly proud of how the team at the Port has made the case for a freeport in an area blessed with the natural resources needed to reach Net-Zero.”
The Pembroke Dock Marine development is part of the Swansea Bay City Deal which is funded by the UK Government, Welsh Government and through the public and private sectors. It is also part funded by the European Regional Development Fund through the Welsh Government.
The 2022 Annual Report and Accounts can be viewed online: www.mhpa.co.uk/download
Business
Milford Haven: Wales’ energy hub embraces green transformation
ONCE synonymous with oil and gas, Milford Haven is now poised to lead Wales into a cleaner, greener future—powered by hydrogen.
Green energy pioneer Haush Ltd has chosen Milford Haven as the location for its new UK headquarters, marking a significant step towards establishing the area as a hub for hydrogen innovation. The company’s ambitious plans aim to decarbonise land, sea, and air transport, while also exporting green hydrogen to Europe.
Backed by the Welsh Government through the HYBRID SBRI Hydrogen Port Re-Fuelling Project (HyPR), Haush’s initiative will kick off immediately. The HyPR project supports trials to accelerate hydrogen production and create refuelling solutions for both onshore and offshore vessels. A key part of this effort is designing a permanent hydrogen refuelling infrastructure at the Port of Milford Haven, unlocking its potential as a green energy leader.
For over 65 years, Milford Haven has been a cornerstone of the UK’s oil and gas sector, processing 20% of the nation’s oil and gas. Now, this latest investment signals the beginning of a transformative shift toward renewable energy.
Welsh Government Economy, Energy, and Planning Cabinet Secretary, Rebecca Evans, welcomed the move, saying:
“Jobs and green growth are a priority for this Welsh Government, so I am delighted that Haush has chosen Milford Haven as the base for its new UK headquarters. The company’s ambitious growth plans align perfectly with our aspirations to see Wales become a global leader in renewable energy generation.”
Milford Haven’s journey from oil and gas to hydrogen innovation could set a blueprint for green energy transformation in the UK and beyond.
Business
Wales Tourism Alliance challenges Visitor Levy Bill
THE WALES TOURISM ALLIANCE has submitted its formal response to the Welsh Government’s Visitor Levy Bill. The response, delivered to the Finance and the Legislation, Justice, and Constitution Committees, outlines several key concerns about the proposed legislation.
Key issues raised by the WTA
- The Welsh Government’s own Explanatory Memorandum and Economic Impact Assessment suggest the policy’s administrative costs will outweigh the revenue generated.
- The Bill extends beyond tourism visits, encompassing stays of less than 31 days for purposes such as work or education.
- Local authorities will retain sole control over any net revenue, with no obligation to allocate funds to tourism-related initiatives.
- The data underpinning the policy and its assumptions are unreliable and raise significant concerns.
- Industry input, including that from Wales’s own tourism forum chairs, has been inadequately considered.
- The policy fails to account for the pressures already impacting Welsh tourism over the past five years.
Industry reaction
WTA Chair Rowland Rees-Evans voiced disappointment over the proposal, which the Welsh Government’s own Economic Impact Assessment predicts could lead to net job losses.
“The WTA has engaged with the Welsh Government since the Visitor Levy was proposed, and we are disappointed they are pursuing a policy their own analysis suggests will have a negative impact on employment,” Rees-Evans stated.
“The tourism industry in Wales is still recovering from the devastating effects of Covid-19, grappling with the 182-day rule on holiday lets, and facing ongoing challenges from the cost-of-living crisis. Additionally, businesses are contending with a 40% rise in the living wage since 2020 and increased national insurance contributions starting this April.
“To impose another burden on a fragile sector, which employs over 20% of the workforce in some parts of Wales, is not in the best interest of the country.”
Rees-Evans emphasized the broader implications of the levy, stating:
“We must also dispel the notion that this is solely a Tourist Tax. It is a Visitor Levy that will affect everyone in Wales – from children on overnight school trips to patients requiring overnight stays before early NHS admissions.”
Pictured: Rowland Rees-Evans, Chair of the Wales Tourism Alliance
Business
Impact of budget announcements felt by Welsh business in Q4
EMPLOYMENT measures announced in the Autumn Budget may have affected attitudes to recruitment by businesses in Wales in Q4 of 2024, according to Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.
17% of businesses in Wales increased the size of their workforce over the last three months and 17% also expected their workforce to increase in the next quarter. While over half of the businesses surveyed (59%) expect the size of their workforce to remain constant in the next three months, there was a rise in the number of respondents who foresee that their workforce will decrease, from 15% in Q3 to 24% in Q4.
Fewer businesses in Wales attempted to recruit during the final quarter of the year than in Q3. Of those who did recruit in Q4, 65% experienced difficulties especially when recruiting for professional, managerial, skilled manual and technical roles.
The latest edition of the Quarterly Economic Survey also included questions specific to measures announced in the Budget such as the proposed increase to the National Minimum Wage and National Living Wage from April and whether the changes would impact businesses’ staffing plans, particularly in relation to hiring young people such as graduates, school and college leavers.
Around half of the respondents revealed that the increases to £10 and £12.21 an hour for the minimum wage and living wage respectively would not affect their business. Other businesses in Wales suggested that they would have to either halt recruitment plans, approach recruitment with caution or increase the prices of their services.
Businesses also expressed their hesitation to hire young people, with many reducing the numbers they plan to recruit in 2025.
Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, said: “Taxation has become the external factor causing the most concern for businesses in Wales and the measures announced in the Budget such as the increase to employers’ national insurance contributions, combined with rising labour costs and changes to employee rights, have not surprisingly driven those concerns.
“Our Quarterly Economic Surveys show that recruitment remains a persistent challenge for businesses in Wales, and this continued in Q4 with a rise in the number of firms expecting their workforce to decrease and fewer investing in training. One of the impacts of the tax and National Minimum Wage increases looks to be a reduction in expected entry level recruitment this year.
“As businesses review their budget planning in preparation for upcoming changes, more support is needed to tackle barriers to growth such as access to skills development and learning pathways to help companies attract and retain talent with the right skills for their sectors.”
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