Two freeports are being set up in Wales in an effort to boost its economy with investments worth £5 billion.
Freeports are special areas inside the UK's borders where different economic regulations apply to promote investment and create global trading centres.
The two freeports — the first in Wales — are each backed by £26 million ($30.8m) in UK government funding and expected to create up to 20,000 jobs, while helping meet Britain's net-zero ambitions.
The Celtic Freeport is in South Wales while Anglesey Freeport is in the north.
Prime Minister Rishi Sunak, accompanied by Welsh First Minister Mark Drakeford, visited the freeport at Holyhead in Anglesey on Thursday.
“Now that we've left the EU, we can create these turbo-charged freeports across the United Kingdom. They are special economic zones that are designed in a way to attract companies to invest there, to create jobs and opportunities for people,” Mr Sunak said.
“They're successful all around the world and I'm really delighted we are able to announce not one but two new freeports in Wales today, one in the north, one in the south ― a good example of us working co-operatively with the Welsh government to deliver for the people of Wales and drive growth, create jobs, spread opportunities.”
“Good, well-paid jobs for local people as a result of this freeport, that's what's going to happen,” he added.
The unemployment rate in Wales stood at 3.5 per cent in the last quarter of 2022.
Mr Drakeford said the freeports were expected to open by the end of the year and would “transform the Welsh economy, creating a stronger, fairer and greener future”.
“The Welsh government has a clear economic mission to transform the Welsh economy, creating a stronger, fairer and greener future,” he said.
“The designation of these sites as Wales' first freeports will reinforce that mission, building on the significant investments and partnerships we have made in these regions over many years.
“The joint working between governments on the freeport programme should serve as a blueprint for future intergovernmental work on a whole range of issues.”
Eight freeports have already been established in England and two green freeports in Scotland.
Both Welsh sites are said to have been chosen to exploit opportunities from renewable energies, and are expected to make a significant contribution to achieving the UK's net-zero ambitions.
While some economic analysts suggest that freeports displace, rather than create, new economic growth, Mr Sunak said he was confident of their success in the UK.
“We've seen hundreds and hundreds of thousands of jobs created across the world in freeports, billions of pounds of investments, they are proven to work,” he said.
The Celtic Freeport plans to focus on low carbon technologies, such as floating offshore wind (Flow), hydrogen, carbon-capture utilisation and storage (CCUS) and biofuels to support the accelerated reduction of carbon emissions.
Anglesey Freeport will focus on marine energy technology testing on the seabed, including tidal and wind.
The Welsh freeports were given the go-ahead by both governments during a joint bidding process, which ended in November last year.
The UK government said its plans to create a low tax, investment zone in Wales, as announced by Chancellor Jeremy Hunt in his spring budget, will work “hand in hand with the freeport programme to generate sustainable economic growth and level up communities in Wales and across the UK”.
Levelling Up Secretary Michael Gove said Wales had “huge untapped potential” and the freeports would help “grow the economy, level up and spread opportunity”.
Welsh Economy Minister Vaughan Gething said ports considered to be “an intrinsic part of our rich industrial history” would now be “an engine room of our future economy”.
“This will help harness our abundant, economic potential domestically and internationally, while promoting fair work and sustainability here in Wales,” he added.
