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Welsh and UK Governments launch bidding process for Wales’ first freeport

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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.”

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Port of Milford Haven now official ‘a great place to work’

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THE PORT of Milford Haven has been officially accredited as a Great Place to Work-Certified™ organisation. As the first Port Authority in Britain to secure this Certification™, it is a significant achievement.

“We are very proud to be Great Place to Work-Certified™,” said Vidette Swales, HR Director at the Port of Milford Haven. “It means so much that our employees have reported a consistently positive experience with their colleagues, their leaders and their jobs. Offering a positive employee experience is not only beneficial for the people who work with us but is also key for our continued business success.”

Tom Sawyer, CEO at the Port of Milford Haven added: “Our team is operating the UK’s leading energy port, and it is of the utmost importance that we do that safely, responsibly and effectively. We’re striving for excellence and aim to provide a world class service to our customers as well as supporting sustainable coastal communities for the prosperity of future generations. Our employees are clearly at the centre of this which is why I’m delighted that they feel supported in their role. I’m especially proud that this Certification™ demonstrates our core values of Safety, Excellence, Collaboration and Sustainability so perfectly.”

“We congratulate the Port of Milford Haven on achieving their Certification™,” said Benedict Gautrey, Managing Director of Great Place to Work® UK. “Organisations which put the employee experience at the heart of their business gain their employees’ trust and, in turn, are truly able to build a great workplace culture that delivers outstanding business results.”

Find out more about careers at the Port of Milford Haven here: www.mhpa.co.uk/about/careers-at-the-port/.

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One in five now accessing Ogi’s Wales-based full fibre network

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Welsh full fibre telco – Ogi – has reached two thirds of its planned first phase rollout with one in every five premises now signed up to one of its home or business services. 

Kick starting its ambitious FTTP [Fibre to the Premises] rollout in 2021, Ogi propelled onto the UK telcomms scene with a £200million plan to bring full fibre to south Wales much sooner than planned by the incumbent operators.

The business shifted its approach at the beginning of 2024 to focus on customer take-up – attracting thousands to the full fibre switch thanks to a new competitive pricing and shorter-term contracts strategy.

Gaining first mover advantage in places like Pembrokeshire and the post-industrial towns and villages of the south Wales valleys, the fresh approach has served the provider well, with a sector-leading high customer satisfaction score to match. This comes following a targeted period of investment in back office operations and customer service, with new 7-day opening hours and refreshed online resources among the changes introduced earlier this year. 

Amid rising competition from the UK’s largest telcos, increasing build costs and other market pressures, the Gigabit-capable provider continues to see customer adoption increase, with one in five joining the network in 2023, with places like Pembrokeshire seeing double that rate of growth.

Chief Executive Officer, Ben Allwright, said: “With one in five of the premises we can serve already signed up to Ogi, it’s clear to see we’re investing in the right places. Passing the 100,000 premises milestone – two thirds of our initial plan, completed – and seeing the massive benefits from this technology as adoption increases is encouraging. 

“Putting our ISP operations first since the start of the year, and harnessing the build machine as a tool for growth has allowed us to take a breath, and make sure we’re doing the right things for our customers and long-term sustainability. While we might not be as visible installing new network as we had been – we’ve been busy in the background, supporting our existing customer base and welcoming thousands more every month. 

“We’re building something really exciting here at Ogi; and the people of Wales are invested in our journey to create a real challenger brand – one that Wales can be proud of, and others are already envious of.”

The network is currently being rolled out in around 60 towns and villages across south Wales, with thousands of customers joining the full fibre ISP every month. The Wales-based telco offers broadband and phone services for home and a suite of IT, connectivity and security options for business, with a new wholesale opportunity recently added to the portfolio for high capacity users.

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Carmarthenshire cheese factory owner speaks out in bad odour row

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THE DIRECTOR of a mozzarella factory which supports 140 dairy farmers has insisted he wants to be a good neighbour following complaints from a small number of people about noise and odour.

Steve Welch, of Dairy Partners Ltd, said acoustic barriers were installed in February to dampen the noise of liquid natural gas (LNG) deliveries at the site in Aberarad, near Newcastle Emlyn, Carmarthenshire. He said the company employed 75 people and served a growing market. “We’re expanding – that’s an indicator of our success,” he said.

Environment regulator Natural Resources Wales (NRW) had visited three months earlier, in December 2023, and found that the noise of pressurised LNG deliveries did not comply with Dairy Partners’ site permit. The NRW officer’s report said there was “an offensive and continual tonal noise originating from the direction of LNG tanker and LNG tank”, but no odour problem was detected.

NRW issued what’s known as a compliance assessment report in February this year requiring the company to take action. The regulator said this wasn’t the same as a formal enforcement notice, and that it was continuing to monitor noise and undertaking “detailed dialogue” with Dairy Partners.

Mr Welch said the LNG supplier it had been using exited the market last autumn. This supplier, he said, had a “silent” gravity-fed tanker which took six to eight hours to complete its delivery. He said all the available alternative LNG suppliers used a pressurised delivery system which was quicker, reduced the risk of spillage and was more economically viable. The company switched to the pressurised delivery system, which led to complaints about the accompanying noise.

Mr Welch said Dairy Partners tried using different tankers and built a wooden pallet stack to try to mitigate noise before investing in the sound-dampening panels, which he said made a big difference. He added that Dairy Partners was working with NRW to modify its site permit to reflect the use of the pressurised LNG deliveries.

Site manager Daryl White said liquid natural gas powered the factory and that there was one delivery per week during daytime hours between Monday and Friday, lasting one hour.

Dairy Partners measures the decibel level of LNG deliveries and Mr Welsh said the noise rated as “moderate to soft” when heard at the nearby roadside. A resident living just across the road, Megan Ceiriog-Jones, said she had recorded a higher decibel level, and that the sound of other operations such as night-time “venting” which she had recorded on video were disruptive. “The noise videos are just a sample of noise complaints that are sent to NRW on a regular basis,” she said.

Dairy Partners said further noise-dampening measures would be added as a condition of planning approvals for wastewater and cleaning tanks which were decided by Carmarthenshire Council’s planning committee last month. A handful of objectors opposed the retrospective applications, including Ms Ceiriog-Jones and Stephen Rees, who both addressed the committee. Ms Ceiriog-Jones said the effects of “noise and sleeplessness are hard to quantify”, while Mr Rees said the reality for residents living by the cheese factory was “considerable disruption”. Ward councillor Hazel Evans addressed the committee to say that Dairy Partners was a large contributor to the local economy and that she was reassured by the many planning conditions proposed by the planning department. She said she understood that some nearby residents weren’t happy, although they didn’t wish to see the factory close.

Speaking to the Local Democracy Reporting Service, Mr Welch said the company logged all complaints, had attempted to talk to Ms Ceiriog-Jones, and wanted to have a positive relationship. He said: “We want to be good neighbours.”

Mr Welch said cheese had been made at the site since 1938, with previous owners including Canadian firms Saputo and McCain Foods, and an Egyptian family business.

Site manager Mr White said the factory was “on its knees” when Dairy Partners took over in 2013 and began investing in it and increasing production.

Every year around 200 million litres of milk arrives at the site from 140 nearby dairy farms. Nine hours after arriving the milk is turned into 2.5kg blocks of mozzarrella cheese, with the separated whey sent to another company where it is dried and sold in powdered sports nutrition products. Cream is also produced at the Aberarad site.

“Making cheese is really technical,” said Mr Welch, who is one of three Dairy Partners directors. “You’te taking milk and turning it into a stretchable cooking product which has a lot of different characteristics. You’re manipulating proteins, sugars and minerals in a reproducible product.”

Varying levels of salt can be added to the cheese blocks, which move slowly along a tray system in a brine solution before being packaged ready for onward delivery. Around a third of it ends up overseas in countries including Lebanon and China.

Mr Welch said the site produced around 22,000 tonnes of mozzarella and pizza cheese per year, and that it hoped to expand this to as much as 35,000 tonnes. He said the 75 jobs were highly skilled and that many more indirect jobs relied on the site. Mr White said haulage business Mansel Davies & Son had around 40 drivers who delivered to and collected from the Aberarad site.

Dairy Partners, which also has a base in Gloucestershire where its cheese is shredded, has an annual turnover of around £140 million. “The market is expanding – we can’t keep up,” said Mr Welch. “We’ve got to keep producing, and we are never going to be silent.”

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