Portsmouth's 'exciting' bid to become one of 10 freeports in the country
HOPES that the city's economy will 'kick-start' post-Brexit and pandemic have been raised if its bid to become one of 10 new 'freeports' in the country is successful.
Portsmouth International Port will apply to become a freeport, allowing some goods to be processed without customs duties and providing tax incentives for businesses - ultimately attracting more freight traffic and creating jobs in the area.
It comes as part of government proposals that will allow sea, air and rail ports in England to bid for freeport status before the end of the year, with the aim that the first of the new sites will be open for business in 2021.
The Portsmouth council-owned port is in talks with the Solent Local Enterprise Partnership (LEP) to develop its bid.
Mike Sellers, Portsmouth International Port’s director said: 'Freeport status would provide a much needed kick-start to this region’s economy post Brexit and Covid-19 providing a gateway for both non-EU and EU trade.
'As a transhipment hub, certain goods could be processed through our port without attracting customs duties and could provide tax incentives for businesses.
'Freeports aren’t just about the ports themselves, there are benefits for the industries that operate within a zone. If a company imports parts that are then used to manufacture a product at a site within a freeport boundary, the exported finished item would see reduced tariffs.'
Global free zone expert and former Portsmouth resident, Tony Restall, who has set up various free zones in the Middle East said the move would be 'especially important' at this time.
'It would be brilliant if Portsmouth was to become a free zone,' he said.
'We could go after a lot of industries if we can find a level where we can enter the market.
'This will be especially important after the Covid-19 pandemic.
'It was something we couldn't have done while we were still in the EU.'
City MPs also welcomed the news.
Portsmouth North MP Penny Mordaunt said: 'I have and will continue to support Portsmouth's bid to become one of the UK's post-Brexit freeports.
'It's an exciting opportunity that can drive jobs, innovation, and regeneration of our coastal community. It would enhance our city as an economic and important trade hub on the south coast.'
Stephen Morgan, MP for Portsmouth South, added: 'Our port’s success is our city’s success.
'As we navigate our way through the Brexit transition period, I’m keen to listen to all our ideas to secure the future prosperity of our great city, in which our port will play a significant part in.'
It is planned freeport areas will also benefit from streamlined planning processes to aid brownfield re-development and a package of tax reliefs to help drive jobs.