An analysis of economic activity dependent on the Milford Haven Waterway The Haven Economy The Haven

• The area’s largest investors need support and purposeful regulationtohelpthem and purposeful Thearea’s needsupport investors largest • intheHaven toinvest operators Confidence isbeingaffected by amongthelargest • The Waterway potentialfor development isalsojudgedtoholdconsiderable oflow • Gas, for the oilandpower activitiesattheHaven generation important arestrategically • oil sectorcomprising tojobsinthelocaleconomy Thebiggestcontributor istheenergy • TheMilford Haven overWaterway 5,000jobsin supports Wales asawhole, ofwhich • Key Findings compete internationally, andbetterengagewitheconomicglobal supply issues regulation andplanningissues carbon energy UK’s security futureenergy and gasprocessingpower generation theHavenaround 4,000areinthelocalareasurrounding

Key Findings 3 £203.9m £316.3m £323.7m £412.2m £m GVA Haven the Haven energy sector at the Haven energy sector at the Haven Direct GVA supported the by Direct GVA supportedDirect GVA the by Total Welsh GVA supported GVA by Welsh Total Total Welsh GVA supported the by Welsh Total 3,808 5,073 3,237 1,173 FTE jobs Haven Haven Haven Of which energy sector at the Haven energy sector at the Haven Direct jobs supported the by “The nationally important oil and gas sector is hugely significant to the economic prosperity of the Area as a whole and “The nationally important oil and gas sector is hugely significant to the economic prosperity of the Direct jobs supportedDirect jobs the by Total Welsh jobs supportedWelsh by Total Total Welsh jobs supported the by Welsh Total FTE = Full Time Equivalent GVA= Gross Value Added Value GVA= Gross Time Equivalent FTE = Full All Welsh economy impacts associated with activity supported with activity associated impacts economy the Haven by Welsh All The employment offered around the Waterway is significant, with the main firms with the main demanding a diverse range of skills and is significant, Waterway around the offered The employment supportedThe total employment the Haven by directly opportunities. high quality employment paid well offering relatively on local while this study has focused Indeed, includes a large the main energy of jobs in firms supplying number complex. highlights that everyAssociation (2011) a recent report Industries job in refining the UK Petroleum by and regional effects, supports jobs in the wider economy. as seven as many Pembrokeshire on the effects major negative have would of the energy removal sector at the Haven The hypothetical The energy sector in particular the UK average. around 40% below per capita levels GVA The county features economy. contributes to the Pembrokeshire strongly such high quality employment supports skilled work; high paid and highly relatively Spatial Plan Wales in the identified energy complex in this regard is specifically Haven The role of the Milford economy. (2008): Dock.” particularly Haven and Pembroke of Milford the towns The Port also hosts Employment and Value Added Value and Employment is estimated to supportWaterway over Haven The Milford 3,800 full time equivalent jobs in the area surrounding the in the local This is about 40% of total employment port. and around 7% of all around the port, economy 5,000 jobs in A total of over employment. Pembrokeshire supported and indirectly as a whole are directly Wales by Waterway. activity dependent on the gas By far the largest sector is energy (oil refining, employing directly generation), processing and power It is nearly 1,200 people in high-skill long-term jobs. and institutions dependent estimated that the businesses associated with nearlyare directly Waterway on the of - around one fifth £324m of gross value added (GVA) economy generated in the Pembrokeshire the total GVA 60% is estimated to be generated in the - of which over This can be connected to a further £88.5m energy sector. total of giving an overall economy, Welsh in the of GVA supported£412.2m of GVA activities dependent on by 8,000 jobs in that over It is possible Waterway. the Haven Haven’s depend on the presence of Milford the UK may energy sector. This summary of a report findings the key contains Economy Welsh undertaken Port the by Haven Milford for The Business School. (WERU) of Cardiff Research Unit Welsh report of local and the level to establish aims Haven the Milford activity dependent on economic facing the the main challenges and examines Waterway, industrial firms operating in the Haven. third largest port is the UK’s Haven Milford in terms of Wales’ cargo and is home to some of handled volumes handled 8.4% of Milford In 2010, largest inward investors. The great UK port cargoes tonnes). (around 43m majority to the energy of this activity is connected largest importation is Europe’s Haven Milford industry. port natural liquefied through gas (LNG) handled for DragonSouth Hook LNG and LNG. and Murco) and Europe’s largetwo refineries (Valero largest independent tank storage depot (SemLogistics). currently being constructed within the economic Finally, largest gas and most efficient is what will be Europe’s area, nPower). station (RWE power fired Background Background and Employment 4 a potentialexemplar ofintegrated for thepursuit andsustainable development.” WERU concludedthat: Already, Milford Haven projects toreachproposal/planningstagein hostsone ofthethreetidalenergy Wales. In2005, the greatestcompetitiveadvantage sectors”. fromlow inexploiting carbonenergy theopportunities playing akey roleinlow carbon energy. that DTZ(2011)concluded thatMilford Haven wasamongports prospectofMilford Haven activityhascentredonhydrocarbon processingandstorage, also thereisevery While port 2.4 1.6 Wales atotalof£13.6bn ofcapitalinvestment between attracted firms fromoverseas 1984and2007(23years). the Haven representaninwardinvestment closeto£3bnover thepastfive years. 0.3 To provide contextfor thisinvestment, 2.4 10.2 LNG, theRWE nPower Pembroke Power Stationandtheinvestment toimprove madeby NationalGrid thepipelinefrom of these, RWE nPower, isdeveloping a2GWgasfired power stationnearPembroke. Together, 3.2 SouthHookLNGandDragon The availability ofareliable, generators. interestfromanumber One ofelectricity high-pressuresupply ofgashasattracted aboutsupply security.supply atatimeofincreasingconcerns estimated 80%ofdomesticgasdemandby 2020. 90 of diversification 60 representsanimportant The newLNGinfrastructure ramifications.strategic The government Energy couldneedtomeetan White Paper (2007)suggestedthatimports 12 389 security.role insafeguarding UKenergy thissafely has throughtotheUKgasgrid LNGandtransport The abilitytoimport 90 5.9 the UK, 2.7 two ofwhichareintheHaven. The refining, play animportant sectors andLNGprocessingstorage oilstorage significance oftheMilfordThe strategic Haven hubisincreasing. energy in refineries There arejusteightmajoroperating 123 1.4 Prospects for theMilford Haven hub energy 2.3 10.1 Note: employmentcolumnwillnotsumduetoroundingupofFTEestimatesfor individualsectors. 3.7 23.1 223 104 Tourist activities andnaturereserve attractions andhealth Public administration 52 incsewerage Other services 386 88 andtestingservices Engineering 30.8 140 Tourism-facing etc accommodationandrestaurants 880 services Sea transport Warehousing (inc. andstorage tankstorage) Road transport Wholesale (inc. metals, fuelsandequipment) andequipmentinstallation Construction, machinery 1173 Repair, maintenanceandbuilding ofshipsetc Metal products, tanks, andmachining (oilrefining,Energy gasprocessingandpower generation) Fishing, aquaculture, processing by theMilfordLocal jobssupported Haven Waterway (2010) To Indus t l3 al t ry

“The growth inrenewable coupledwiththearea’senvironmental qualities make energies Pembrokeshire FTE

, osShare jobs 0 100 808

of

t o t . al 0 “appear tohave diversification opportunities. diversification investment sitesfor renewablessignificant potentially offers location, industry althoughdevelopingan energy challenges tothefuturecompetitiveness oftheHaven as location-specific environmental regulationsareother productprices,International domesticdemandand placetoinvest.attractive respondents questioningtowhatextent Wales isstillan around theHaven. This isareal areaofconcern, withsome planningprocedures for newdevelopments surrounding environmental regulation, pressureandissues regulatory employers intheHaven over theincreasingburden of amongsomelarger The consultationreveals concerns demands.energy of and evolving patterns conditions onresourceprices in theHaven economic tointernational arevulnerable prospects. complex Itfound thatelementsoftheenergy Haven affecting theirfutureeconomic onthemainfactors The researchsoughttheviewsofmajorcompaniesin concerns Industry

Prospects and Concerns 5 increase rapidly in coming years to embrace renewables. “...considerable planning needs to take place now to ensure that the Pembrokeshire to ensure place now needs to take planning “...considerable Conclusion Waterway. to the success and prosperity related is directly on the businesses of the health of Pembrokeshire The economic WERU report stated that: The 2005 employment.” and investment less precariouslyeconomy is around more sustainable and develops balanced in the future underused were suggested these facilities in 2010 Affairs and potentially Wales inquiry Committee into PortsWelsh in The ‘MaritimePolicy in the internationalA paper journal processes. in economic development stronger role a much could play argued in 2006 of portthat the quality and commercial significance and Management’ has tended to be neglected facilities require strategic ports, as part and that marketing government-sponsored by materials, chain, of the wider freight supply should consider the requirements land use planning In particular, and UK Governments. Welsh consideration within both the portfor the present and future. activity both in in coming on the Haven most criticaland the concerns the businesses findings these to investment expressed by Given has an opportunity Government better attention Welsh to give from this report conclusions key be that the years, would and the market for making it easier new investment, to deliver supportingtowards economic area, Haven the Milford easier to operateaddressing the ongoing regulatory by on some of the largest being placed burden inward investors. targeted far assistance can be at how it could look support to in to compete these firmswho are also having Additionally, international markets resources. demand pressures for and and are subject to global supply partly because of process; has complicated the investment the process of devolution For international firms in the Haven, and partly the planning and with and third sector bodies involved, the increase in the numbers of departments, regulators, regulatory frameworks that contribute to the Country risk undertaken assessment firms in deciding on the location for by largeany capital investment. with the cluster of energy-related Also, Wales. the report as the main energy hub in Haven Milford has identified Finally, could with the right it support, activity in the Haven,

Conclusion 6 www.mhpa.co.uk

Gorsewood Drive, Milford Haven, Pembrokeshire SA73 3ER Tel: +44 (0)1646 696100 Fax: +44 (0)1646 696125 Email: [email protected] rockpooldesign.co.uk

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