The 2023 iteration of fDi Intelligence’s flagship Global Free Zones of the Year awards recognise the best free zones across geographies and specialisations among the 69 that participated in the awards this year. The 'Rising stars' category' crowns the world's best newly-established zones. 

GLOBAL WINNER

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Winner: Liverpool City Region Freeport, UK

Back in March 2021, the British government announced the eight locations that would spearhead the UK’s new freeport programme. One of those was the biggest port on the west coast, in the city of Liverpool. Over the next two years, local authorities worked tirelessly to lay the foundations for the free zone, which officially opened its doors in January 2023. Their efforts are already paying off. Over its first six months, the Liverpool City Region (LCR) Freeport welcomed home-builder Starship, which brought in 35 employees; wood products manufacturer Finsa UK (15 employees); and logistics firm SSO International Forwarding, which has 50 employees on site. In addition, more than 125 businesses from the UK, China, Australia, Germany and elsewhere have expressed an interest in developing a presence there.

While this is a strong start, the LCR Freeport’s groundwork towards reaching its huge economic potential is what prompted judges to name it the inaugural winner of the new rising star award. The site covers 300 hectares, includes existing rail terminals and water-accessible locations, and is within an area known for its logistics and manufacturing capabilities. There are plans to turn the site of a former coal mine known as Parkside into a new road to connect two key trucking routes. It is also developing a 1m-square-foot marine, energy and automotive park to lure private investment in low-carbon shipping, offshore wind and advanced automotive sectors. LCR Freeport is also priming itself to leverage the region’s advanced manufacturing capabilities by tapping into the pool of 15,000 students studying manufacturing-related courses at its universities.

Compared to their longer-established peers, free zones being set up today have a greater opportunity to incorporate modern business principles into their DNA. LCR Freeport has seized this opportunity by focusing on the creation of highly skilled jobs, research and development (R&D) initiatives, and the highest sustainability standards. The SEZ has committed to supporting the Liverpool City Region Combined Authority’s goal of achieving net-zero by 2040 — a decade before the UK’s target. It is using £3m of seed funding to crowd in private investment to transform its Queen Elizabeth II dock into a hub for clean haulage operations across the region.

All in all, LCR Freeport is expected to have a significant impact on the local economy by adding £379.2m gross value added per annum, and creating over 10,000 net direct and indirect jobs.

Highly commended: Evolution Free Zone, Costa Rica

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Sitting just outside of Costa Rica’s capital San José, the Evolution Free Zone officially started operations in November 2021. Over its first two years, the SEZ has defined a promising strategy, made significant progress constructing facilities, and attracted some  noteworthy business in its four anchor tenants. One of them is OKAY Industries, a US-headquartered manufacturer of high-precision metal and plastic components used by surgeons. 

The free zone is focused on growing Costa Rica’s flagship life science industry, as well as becoming a hub for smart manufacturing, knowledge intensive services, and R&D. Besides these growth sectors and activities, Evolution Free Zone’s sustainability and digitisation programmes also support its claim to be a new generation industrial park. It is managed by a novel operating technology system which, for example, adapts the operation and intensity of lights as needed. A large percentage of the 124 hectares site is dedicated to green space that incorporates around 10 native plant species to promote, inter alia, soil protection, insulation against heat, foliage, and animal housing. In addition to this biodiversity, Evolution Free Zone is harnessing strategies to reuse rainwater and is planning a solar farm to power its common areas.  

Tenants also benefit from extensive fiscal benefits, including exemptions from export tax and remittance tax, plus access to training and educational programmes. As the free zone is located outside the greater metropolitan area of the capital, it can offer added incentives such as a 100% exemption from income tax for 12 years. 

Honourable mention: Campania Special Economic Zone, Italy

In this new category, another SEZ whose early achievements are particularly striking is Campania Special Economic Zone in Italy. Over the past 12 months it has attracted projects collectively valued at around €1.5bn from the likes of logistics firm Temi and coffee specialist Caffè Borbone. In the pharma sector, Swiss giant Novartis has set up local operations and hired a team of 50, while Italy’s Genetic has arrived with a team of 405 people onsite. 

Free Zones Awards 2023

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