20 BULKDISTRIBUTOR Ports & Storage
March / April 2021
Green light for English freeports
Teesside will be among the first eight UK freeports
Eight freeports are to be established in England . The
Chancellor of the Exchequer Rishi Sunak gave the green light for the development in his March Budget speech , acknowledging the port sector ’ s role in anchoring jobs and prosperity in regional economies . The first tranche includes successful bids from East Midlands Airport , Felixstowe / Harwich , Liverpool , Humber , Plymouth , Solent , Thames and Teesside . However , more designations could be needed elsewhere to prevent regions losing out . Richard Ballantyne , chief executive of the British Ports Association ( BPA ), which has promoted a policy of port zoning akin to the freeport concept , said of the move : “ We welcome this as a first tranche of freeports in England but there will be regions that are disappointed not to have been recognised . This is an interesting selection of bids and we look forward to a continuing partnership with ministers who rightly recognise the critical role that ports can play in anchoring prosperity and supporting important industries in our coastal communities . Ballantyne continued : “ It is important that the government now considers how it can extend many of these benefits elsewhere if it is serious about implementing its levelling up agenda . We hope that Government will keep an open mind on further bids in England and perhaps reconsider proposals for those ports not successful today . Some elements of the freeports programme could easily be spread much further , helping to create more productive and high quality jobs without incurring significant costs to the exchequer or requiring complex oversight or administration .” Following the inclusion of Teesside among the eight freeports , Gary Dawson , chair of the Tees and Hartlepool Port Users ’ Association said : “ This is a defining moment for Teesside , the government has unlocked a major opportunity and we now need to all work together to realise the potential that this can deliver for our industry and our region .” However , freeports are controversial . The successful candidates in England will be given breaks on business rates , property taxes and national insurance contributions . That might persuade some firms to move there from other parts of Britain , but it remains to be seen whether they can create new businesses , rather than just cannibalising other regions . Imports to freeports are tariff-free , meaning components and other inputs can be brought in and assembled into added-value products . Tariffs are then paid when the finished goods are brought into the country . In high-tariff countries that is a big advantage , but tariffs in Britain are generally low . A study by two economists at the University of Sussex looked for tariff structures that might draw a company to a British freeport but found only one big opportunity : dog food .
The merged Antwerp / Zeebrugge port will handle some 278 million tonnes a year
A giant in Belgium
Belgium ’ s ports of Antwerp and Zeebrugge are to merge .
The City of Antwerp and City of Bruges reached an agreement to unify their respective ports in a process expected to take a year to finalise . Once completed , the ports will operate under the name ‘ Port of Antwerp-Bruges ’. The merged port will handle some 278 million tonnes a year and edge closer to Rotterdam as Europe ’ s largest container port . Furthermore , the port will account for more than 15 percent of Europe ’ s LNG transited and will remain Europe ’ s most important chemical hub . The ambition is to become the world ’ s first port that reconciles economy , people and climate . The unification project is all about creating added value for the surrounding areas of Antwerp and Zeebrugge , for customers and stakeholders , as well as for the rest of Flanders . As part of a joint plan , the two ports have defined three strategic priorities – sustainable growth , resilience and leadership in the energy and digital transition . The two ports are largely complementary . For example , Antwerp specialises in the handling and storage of containers , break bulk and chemical products , while Zeebrugge is a major port for roro traffic , container handling and the transhipment of LNG .