Plans to create a multi-site green energy focused freeport in south-west Wales have been revealed.
The aim would be to combine the ports of Port Talbot and Milford Haven into a new freeport area. Both ports have identified opportunities for nationally significant energy infrastructure to support the development of floating offshore wind in the Celtic Sea, hydrogen and sustainable fuels.
A consortium, consisting of Associated British Ports - through its port at Port Talbot - Neath Port Talbot Council, Pembrokeshire County Council and the Port of Milford Haven, has been set up to explore the case for a green freeport in the Swansea Bay City Region area.
A spokesman for the consortium said; “A south-west Wales freeport would bring together the ports of Port Talbot and Milford Haven to unlock the widest possible opportunity for Wales and for the UK by accelerating investment and fast-tracking modern skills development for new green industries. It would strengthen export opportunities while supporting Welsh and UK Governments’ ambitions to drive economic growth. “
The consortium said it will work with established and emerging industry representatives, unions, academics and other key stakeholders to map out the full opportunity for a bid grounded in green economic growth.
The spokesman added: “This accelerated investment pathway and modern skills programmes will enable local communities to share in the substantial benefits of green freeport growth."
The bidding process for the first freeport in Wales was launched earlier this year after the Westminster administration agreed to increase financial support to £26m - in line with support offered to freeports in England and Scotland. The Welsh Government said it has also secured guarantees around environmental and employment rights within any freeport (s) in Wales.
The bidding process closes in November. Depending on the bids both governments have not ruled the creation of more than one freeport in Wales - with approval already in place for multi-site location bids.
Businesses will get tax incentives to set up in a freeport from the UK and Welsh Governments including on devolved taxes like land transaction tax and rates. Goods entering freeports would 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.
However, there are commentators who believe they would have little net economic benefit, claiming they mainly displace business activity from elsewhere.
The UK Trade Policy Observatory said its analysis had found that the policy would have little effect in the UK because tariffs were already low. The UK had seven free ports between 1984 and 2012, but were wound down due to their limited economic impact.
The UK Government is committed to also setting up new investment zones in England and said it will look to work with the Welsh Government to establish zones in Wales.
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