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Free port plan to turbocharge north-east economy being discussed at ‘highest levels of government’

Boris Johnson
Boris Johnson

Discussions about establishing a free port in the north-east are continuing “at the highest levels of government”.

The Press and Journal revealed earlier this year that Boris Johnson was minded to grant Aberdeen or Peterhead free port status after Brexit, potentially creating thousands of jobs and pulling in international investment.

Trade minister Graham Stuart told MPs yesterday that the UK Government was “working hard” with the Scottish Government on the proposals.

A free port is a zone within a country that is treated, for customs purposes, as an independent jurisdiction.

This means goods can be manufactured, imported and exported in the zone without incurring normal barriers to trade like tariffs and customs duties.

Supporters of the idea say introducing free ports have already been successful in countries such as the United Arab Emirates, where the Jebel Ali free zone in Dubai now hosts 7,000 global companies, employs 145,000 people and accounts for around 40% of the UAE’s total direct foreign investment.

Mr Stuart, answering a question in the Commons from Aberdeen South MP Ross Thomson, said: “Free ports have the potential to drive growth in towns and cities across the UK enabling them to make the most of Brexit opportunities.

“We’re working hard to design a model that delivers optimal benefit for the UK and specific locations, and we’ll work with the devolved administrations on this particular matter.

“But it would be helpful if the SNP showed more enthusiasm for something which could make a big difference.”

Mr Thomson said he believes a north-east free port would have a transformative effect similar to the London Docklands investment in the 1980s.

He added: “I have been meeting with senior figures in the harbour and local authority to make this a reality, while making the case for Aberdeen at the highest levels of government.”

Earlier this month, Aberdeen harbour bosses said “further investigation” would be needed before it could become a free port.

A spokeswoman for the harbour said “We’re always open to new opportunities”, but senior sources connected to the harbour said the authority would struggle to buy more land to build factories on to process goods if it was given the status.