More than 3m sq ft of logistics / industrial space is under construction or in the pipeline due to the Liverpool City Region Freeport, a new report reveals. Tony McDonough reports

CGI of the £65m XDock logistics scheme in Widnes

More than 3m sq ft of new commercial space is being created across the Liverpool City Region Freeport (LCR Freeport), a new report reveals.

LCR Freeport went live in January 2023 with £25m of Government seed funding. A report being presented to the Liverpool City Region Combined Authority (CA) on Wednesday offers an update on progress since then.

It reveals 3.17m sq ft of logistics / industrial space is under construction or in the pipeline. Within the giant 3MG, a multi-modal freight and logistics terminal at Widnes, a 220,000 sq ft unit called Viking Park, has reached practical completion.

Also at xDock site within 3MG, construction is under way on 550,000 sq ft of industrial space, expected to be ready for occupancy by May 2025. The CA report states these two sites combined will generate £2.2m annually in business rates for Halton Council.

At the former Parkside Colliery site close to St Helens, developer Parkside Regeneration has secured full planning consent for 800,000 sq ft of space across three units in a project costing around £80m.

In August Parkside submitted a hybrid planning application for the second phase of its scheme that would see the construction of a further 1.6m sq ft of space. One building alone may comprise 950,000 sq ft.

Phase one will focus on purely logistics / warehouse space but for phase two, Parkside is keen to include manufacturing space. Both phases are predicted to generate almost £6m a year in business rates for St Helens Council.

At Wirral Waters, full planning permission was granted in March 2024 to the MEA Park (Marine, Energy, Automotive) development. This will deliver industrial space in Birkenhead. Work is expected to start in early 2025.

Announced as a flagship policy by former Chancellor and Prime Minister, Rishi Sunak, in March 2021, Freeports are designated zones where normal tax and customs rules do not apply.

These can be airports or other hubs as well as maritime ports. At a Freeport, imports can enter with simplified customs documentation and without paying tariffs.

LCR Freeport’s primary customs sites are the Port of Liverpool in Seaforth and at Liverpool John Lennon Airport. It stretches to Port Salford at the other end of the Manchester ship canal.

There are also three tax zones – Wirral Waters, the Parkside scheme in St Helens and the 3MG multi-modal terminal at Widnes. It also encompasses other industrial and logistics sites.

Phase one of the Parkside scheme will include three speculative logistics units

According to the report, which is being presented to the CA’s Overview and Scrutiny Committee, the Freeport sites were chosen as “strategically significant sites with the potential to facilitate high levels of inward investment, regeneration and job creation”.

It added: “LCR Freeport has utilised £9m of seed capital to support the construction of a link road connecting Parkside to the M6, this is due to be complete imminently and marks a significant milestone for the development of the wider tax site.

“Projects are also being finalised with partners to utilise a further £7.5m of Freeport seed funding to support infrastructure works that will accelerate delivery of the Wirral Waters tax site and £6.5m to support the acquisition and redevelopment of Port Weston.

“In addition to this, LCR Freeport has ringfenced £750,000 for investment in innovation and a further £750,000 in skills with dedicated funds established for eligible entities to apply for investment in capital that addresses Freeport innovation and skills challenges.”