Freeport status a ‘fantastic opportunity’ for growth

JOB CREATION: The Humber can capitalise on freeport status. Picture by Tom Arran Commercial Photography

Business leaders have been told freeport status will create a “fantastic opportunity” to deliver growth and jobs for local people.

Humber Business Week began today with an event by Marketing Humber titled ‘Global Humber: Local Opportunities’, exploring the impact freeport status will have on the region and the role it will play in supporting the economic recovery, including new supply chain opportunities and the creation of skilled jobs.

The Humber Freeport, one of only eight in the UK, is set to boost the region’s economy to the tune of £3.5bn in investment and 7,000 high quality new jobs.

It is hoped the freeport will be operational by the end of the year and will be creating new jobs in 2022.

The Humber's bid was the biggest, alongside Teesside, and will cover an area with a 45km radius, taking in the ports of Hull, Grimsby, Immingham and Goole.

Dafydd Williams, Head of Policy, Communications and Economic Development at Associated British Ports (ABP), said: “Freeports are going to be one of the most important opportunities for economic growth that our region has to talk about over the coming years.

“It is a fantastic opportunity and we have conservatively suggested that around 7,000 jobs for this area will be created.

“These aren’t just any jobs; these are jobs that are going to be based in manufacturing with skills and high-quality employment in this area.

“The knock-on impact on the supply chain around the area should have a fantastic boost to economic growth, not just in the Humber, but for our partners beyond in West Yorkshire, South Yorkshire, across the North of England and indeed into the Midlands.

“ABP have been supportive of freeports as a concept for a very long time. For at least six years we have been involved in trying to influence public opinion and, in particular, the opinion of key decision makers in Government, that freeports are a potential route of opportunity to economic growth.

“ABP took the decision to step up and take the leadership on this in two ways – one, to try and be a driving force to bring people together, and two, to put our hand in our pocket and pay for the work that we knew needed to be done.”

Mr Williams also emphasised the importance of partnership in the Humber’s successful bid.

He said: “An encouraging message that I want to send out to everybody is the strength in the partnership that has been formed. It is a classic model example of how public and private organisations can come together and how, in the Humber, collaboration can work very effectively.”

Lewis Atter, Managing Director of KPMG, one of the world’s largest professional services firms, presented global examples of coordinated strategies which lead to prosperity and revealed how freeports drive economic growth and provide a platform for businesses which are both inside and outside of the tax and custom zones.

He said: “KPMG has continued to support the Humber through the business case and delivery phase and of course we are really delighted that the Government not only selected the Humber bid as one of the eight successful English freeport propositions, but awarded the bid the top marks in all categories – the only bid to be so favoured.

Q&A: The panel at Global Humber: Local Opportunities

“Clear thinking about how to maximise the value of this opportunity locally, regionally and nationally was a critical part of the Humber’s proposition to Government, which reflected a unique characteristic to the Humber economy, the critical importance of the Humber playing a leading role in the transition to net-zero, and the challenges faced by particular Humber communities.

“In practice, this summer’s business case phase is likely to open the way to a rolling programme of site by site and end user approvals once necessary commitments on delivery and additionality have been secured. Clearly, having designed its strategy around this approach from the outset, the Humber is well prepared to be at the head of the pack.”

Pensana is set to invest £100m in a new rare earth separation facility at Saltend, which will create 100 jobs in a world-first sustainable supply chain for critical magnet metals used in electric vehicles and offshore wind turbines.

Paul Atherley, Chairman at Pensana PLC, said: “Freeport status will greatly help Pensana establish the world's first sustainable rare earth processing hub at Saltend, bringing back high value manufacturing jobs to the UK.”

The event also included a Q&A panel, with speakers joined by Humber Freeport Bid Director, David Gwynne. Attendees were given the opportunity to ask questions about how the Humber’s new freeport status could benefit business and the wider community.

Among the businesses represented was Yorkshire Energy Park. Jo Barnes, Managing Director of Sewell Estates, the local delivery partner behind the £200m facility on the former Hedon Airfield, said: “Humber Freeport status is vital for the prosperity of our region. It will further cement our position as the UK’s Energy Estuary and bring international investment, as well as job creation across a variety of sectors.

“With planning permission already secured and tenants ready to invest, Yorkshire Energy Park will deliver some early wins for our area, tackling the levelling up agenda through the creation of over 4,000 jobs.

“With preparatory works to ready the site for its first occupiers scheduled to commence later this year, we’ve already seen a strong appetite from investors and potential tenants who are eager to take advantage of the tax incentives and capital allowances that the freeport brings.

“As well as attracting national and international businesses to the region, we will also be creating business incubator space to support start-up businesses and SMEs, alongside an education campus that will help to train and develop the next generation of business leaders and professionals.

“As a key partner in the Humber Freeport, our vision is to create a next generation, carbon neutral business park that plays a huge role in revitalising the economy and generating valuable community impact.”