Freeports are at centre of ‘levelling up’ agenda
FREEPORTS will play a key part in the levelling up agenda, ABP’S Humber director Simon Bird has said. With London International Shipping Week coinciding with a cabinet reshuffle that put the government’s economic balancing task back to the top of the to do list this past month, the senior figure within the industry brought the two themes together on his return from the capital.
Reflecting on the event that unites business and the public sector, and what went on up river in Westminster, Mr Bird, who steered the independently assessed “best bid” through to Treasury sign-off, and is now gearing up to launch, said: “There were some interesting themes that ran throughout the week of particular relevance to regions in the North of England thinking about future growth.
“Around 95 per cent of the nation’s trade enters or leaves the UK via the sea. Considering that almost a quarter of Britain’s maritime trade moves through the four ports on the
Humber, it is easy to see the pivotal role the Humber plays in keeping Britain trading.
“Increasingly, though, the ports are being seen not just as part of trade routes, but as enablers of growth. Port operators represent some of the biggest investors in UK infrastructure in recent years, constantly increasing and upgrading to allow for growth and changes in trading trends.
“Added to that, many ports, especially on the Humber,
Around 95 per cent of the nation’s trade enters or leaves the UK via the sea. Considering that almost a quarter of Britain’s maritime trade moves through the four ports on the Humber it is easy to see the pivotal role the Humber plays in keeping Britain trading Simon Bird
have available land space to accommodate new manufacturers, distributors and research and development centres, which all could benefit from the close access to international supplies and markets that ports can provide.
“For this reason, the freeport policy has become enormously important to the Government. Creating tax incentives for would-be investors in future industries to locate on vacant land inside a freeport area could create exactly the business-friendly environment that will make the UK competitive on the world stage. It is also no coincidence that most of the freeport areas that have been allocated, are in the places the Government is keen to see at the heart of their levelling up project. I confidently expect the Humber Freeport to be one of the first established in the autumn bringing with it significant opportunities for the region.”
It comes as one early Humber Freeport investor, Pensana, gears up to engage with the government.
Chairman Paul Atherley is meeting with senior officials this week to discuss support for the £100m Saltend plant.
Early stage work to develop the complex chemical engineering facility, where 100 jobs will be created, is under way.
The discussions come as Australia, the US and the EU push to establish vital rare earth supply chains, with the realisation of the importance when it comes to net zero transitions.
Elements are crucial to electric cars, wind turbines and mobile phones, with industry reliant on China.
A plan released late last week by the European Raw Materials Alliance, of which Pensana is a founding member, calls for governments and manufacturers to support Europe’s rare earth industry. ERMA identified 14 projects in the EU that will require about £1.46bn of total investment.
Australian Prime Minister Scott Morrison last week announced a £1bn billion loan facility for Australian critical minerals projects, explaining that global demand is expected to grow exponentially over the coming decades.
And the Biden administration has acknowledged that ten times more rare earths are needed to meet its electric vehicle goals and has tasked the Department of Defense to investigate US rare earth supply chains.