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ATLANTICGATEWAY

AC C E L E R AT I N G G R OW T H

Business PlanJuly 2012

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ATLANTICGATEWAY

AC C E L E R AT I N G G R OW T H AC C E L E R AT I N G G R OW T H2 3

Atlantic Gateway is the most significant opportunity in the UK to attract investment, accelerate growth and rebalance the economy. It is a proposition to create a critical mass to achieve a new level of growth not previously achieved in the UK outside of London. By 2030, there is the potential for some 250,000 new jobs to be created in the Atlantic Gateway area and around 140,000 of these jobs will be associated with Atlantic Gateway priority projects, involving £14 billion of new investment.

With a current focus on the Liverpool and Manchester City Regions and the surrounding areas of Cheshire and Warrington, Atlantic Gateway is driven by the private sector with support from the public sector including the area’s local enterprise partnerships (LEPs) who, in conjunction with their partner agencies, will play a key role in delivery. The interface between Atlantic Gateway and the LEPs is critical and in working together they have the potential to achieve unprecedented growth. An independent report1 written by Lord Heseltine and Sir Terry Leahy stated that ‘if anywhere in the UK can develop the critical mass and momentum to become an alternative growth pole to London, it is the Atlantic Gateway... there has never been a credible proposition of that nature in Britain to achieve something decades of regional policy failed to achieve’.

The Atlantic Gateway seeks to draw upon the area’s key assets – several high growth economic sectors, excellent infrastructure, emerging enterprise zones and a talented skilled workforce. It seeks to unlock this potential in a way that supports sustainability and promotes the use of low carbon technologies; this is not growth at any cost. Atlantic Gateway also provides the scale required to attract investment and deliver major infrastructure projects, many of which will not proceed at a local level without the coordination, collaboration and scale of funding opportunities that Atlantic Gateway can provide. With a focus on five key themes: growth, connectivity, infrastructure, sustainability and talent; Atlantic Gateway is clear about its role and priorities for investment. It will focus on securing investment for projects, supporting cross LEP collaboration on critical issues, strategic leadership on key Atlantic Gateway issues and informing policy. These are areas where Atlantic Gateway can add the most value and support LEPs. The recent Heseltine report supports the importance of attracting investment into Atlantic Gateway concluding that ‘the attraction of significant overseas investment to the Atlantic Gateway should be a national priority for UKTI and Government given the potential contribution impact on national growth and economic rebalancing’.

Several priorities are identified in this plan, and are included in the table overleaf, which represent high growth opportunities. Three of these have been singled out as representing key opportunities to stimulate growth: the development of the port and Canal network; Sci Tech Daresbury; and the Northern Hub. Each will deliver jobs and drive international trade and represent significant opportunities for rebalancing the economy. New opportunities will continue to emerge and the private sector led Atlantic Gateway Partnership Board will play a critical role in identifying new priorities and ensuring that Atlantic Gateway is responsive and focused on the highest growth opportunities. It is important that Atlantic Gateway continues to prioritise critical infrastructure investment that will enable it to compete internationally.

Much can be achieved by the private and public sectors working together to achieve Atlantic Gateway’s vision and with Government support, growth can be accelerated and this part of the country transformed. The Atlantic Gateway team looks forward to working with Government over the months and years ahead to explore the opportunities for engagement, co-investment and transforming the growth prospects of the Atlantic Gateway.

1 Rebalancing Britain: Policy or Slogan? Liverpool City Region – Building on its Strengths: An independent report by The Rt Hon. The Lord Heseltine CH and Sir Terry Leahy (October 2011)

ExecutiveSummary

Contents

• Executive Summary

• Introduction

• Atlantic Gateway context

• Atlantic Gateway vision and objectives

• How will Atlantic Gateway make a difference

• Atlantic Gateway priorities

• Atlantic Gateway economic benefits

• Atlantic Gateway making it happen

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AC C E L E R AT I N G G R OW T H AC C E L E R AT I N G G R OW T H

Atlantic Gateway is the most significant investment opportunity in the UK to accelerate the development of major projects and drive economic growth. With a private sector Board, its vision is to maximise investment into the Atlantic Gateway area and support the delivery of major projects by local enterprise partnerships (LEPs) and other partners. Drawing upon the area’s assets and scale of the development opportunities, Atlantic Gateway has the potential to become a major brand to leverage private sector investment and other funding opportunities.

It represents an opportunity to invest in high growth innovation driven sectors and major large scale infrastructure projects that will stimulate demand in the economy much quicker than supply side measures. It identifies the strategic assets and opportunities across the area and provides the forum for a greater degree of collaboration across LEPs to accelerate investment and growth. It also provides a medium for working across Government to inform policy and establish national priorities for investment to rebalance the economy. Atlantic Gateway also provides a platform to promote low carbon sustainable growth and support the development of green infrastructure.

A number of priorities have already been agreed with the Regional Leaders’ Board focusing on innovation and infrastructure - two major drivers of economic growth which are essential for global competitiveness and job creation. Investment in both is critical and will achieve a radical shift in supply chains and reduce the cost of importing and exporting making the area’s businesses more competitive. Atlantic Gateway will not just have an impact on its immediate area, including the Liverpool and Manchester City Regions and the surrounding areas of Cheshire and Warrington, but it will also benefit the wider economy, especially the north of England, as a result of improvements to supply chains, business competitiveness and innovation. It is an opportunity to make a substantial and long term positive impact on the country’s economic wealth. For this reason an Atlantic Gateway boundary has not been drawn on any map; its sphere of influence is significant.

Figure 1: Atlantic Gateway

This Atlantic Gateway commencement business plan builds upon the NWDA’s Atlantic Gateway Framework document2 which was agreed by private and public sector partners. It is an essential building block in the development of Atlantic Gateway and is an important step in setting out its vision, the scale of the opportunity, its investment priorities and how Government and other partners can support Atlantic Gateway.

2 Atlantic Gateway - Accelerating Growth across the Liverpool and Manchester City Regions Framework for a Global Growth Opportunity, NWDA (2010)

IntroductionAtlantic Gateway Themes and Priorities

Estimated Costs Estimated Economic Benefits

Theme 1 - GrowthDaresbury £150 million 10,000 jobs

£350 million GVA p.a.

MediaCityUK £1 billion 10,000 jobs£820 million GVA p.a.

Theme 2 - ConnectivityPort Seaforth – post-Panamax

£300 million 5,900 jobs£280 million GVA p.a.

Port Salford £140 million 4,000 jobs£190 million GVA p.a.

Port and other logistics related development


3MG /Mersey Gateway Port £140 million 5,400 jobs£250 million GVA p.a.

Mersey Gateway Bridge £600m 4600 jobs £61.9m GVA p.a.

The Northern Hub £560 million 23,000 jobs£800 million GVA p.a.

High Speed Rail 2 Dependent upon scope Dependent upon scope

Next Generation Access – Broadband

Dependent upon scope Dependent upon scope

Liverpool Airport Expansion £600 million 5,600 jobs£270 million GVA p.a.

Manchester Airport – Airport City


Theme 3 - InfrastructureInce Park £500 million 1,000 jobs


Others infrastructure priorities


Theme 4 - SustainabilityAdapting the Landscape programme


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Following the worst economic recession for more than 50 years, the UK and the global economy remain fragile. This presents the Government with difficult decisions with regards to investment especially in light of its focus on rebalancing the economy. It also provides an opportunity for investors to review their investment strategies with a number of investment funds and sovereign wealth funds actively looking to develop long term interests in the UK and Atlantic Gateway represents a significant investment opportunity to both national and international investors.

Although investment in infrastructure is recognised nationally as one the major drivers underpinning economic growth, the performance of the UK has slowed down in recent years compared to overseas competitors, despite significant spending on projects such as Cross Rail and the Olympics (see figure 2). In 2010 the UK Government launched the first phase of its National Infrastructure Plan which recognised that infrastructure is the linchpin to economic revival and that a further £200bn of investment was required for the next five years. The next phase of the Plan is due to be produced in early 2012 and Atlantic Gateway can play a major role in informing this by engaging with local stakeholders and Government to agree on essential infrastructure investment.

Figure 2: Government infrastructure investment as a share of GDP (%)3

The UK will be the first country to establish a bank dedicated to greening the economy. The Green Investment Bank is likely to be operational in 2012 and will play a major role in funding low carbon investment in major energy and transport projects. This new source of funding to address market failures in financing green projects may form part of the investment package for Atlantic Gateway priorities and is a positive step which is likely to benefit Atlantic Gateway. The Investment Bank, the location of which will be confirmed by Government, will have a strong strategic fit with Atlantic Gateway given its focus on sustainable infrastructure projects such as renewable energy.

Atlantic Gateway’s infrastructure priorities focus on large scale investment in ports, canals, rail, road and energy which typically require long term investment which is often difficult to secure due to the scale of funding and absence of short term returns. Projects of this nature typically compete against other international projects for scarce investment opportunities. The scale that Atlantic Gateway provides is a significant advantage and will help in attracting investment. Collaboration has been successful elsewhere in attracting investment for similar projects with a recent announcement by nine Asian countries to

collaborate on funding major infrastructure projects to improve road, rail and energy links in Asia4. Internationally recognised areas are already established which have invested in large scale infrastructure and work collaboratively across boundaries to address issues, attract investment and promote low carbon development including areas such as Emscher Park, Germany; Randstad, Holland and Thames Gateway, UK.

At a European Level, Atlantic Gateway can play a major role in informing policy and funding decisions. For example, the recent EU White Paper on Transport also highlighted the importance of investment in infrastructure, in particular the extent to which ‘integrated global transport networks’ were critical to the success of European and International countries. Given the focus and potential opportunities that could arise through transport improvements across Atlantic Gateway, it will be particularly important that it is engaged in forthcoming reviews of Transport within the UK and across Europe, especially if substantial European funding is allocated to support the development of a more integrated transport infrastructure network. Key European funding sources including TEN-T and the European Investment Bank (EIB) are familiar with Atlantic Gateway and have already recognised its significance as a major driver of large scale investment.

The EIB who are now one of the largest non-sovereign borrowers on the EU bond market and a major player in funding significant infrastructure projects is focused on large scale investment opportunities and may be able to play a critical role in Atlantic Gateway. Relationships and engagement need to be maintained in the Atlantic Gateway proposition. The EIB have recently announced £500m funding for the expansion of Greater Manchester’s Metrolink network. This provides an example of the scale and type of opportunity that the EIB will invest in and highlights the EIB’s interest in this part of the country.The 2014-20 European Union budget proposals are due to be agreed by the end of 2012 and will potentially be an important source of funding for Atlantic Gateway. Cohesion policy is one of the major funding items and transition areas such as Merseyside may potentially be eligible for funding, in addition to the recently announced £40bn infrastructure fund. Atlantic Gateway provides a platform to work with local stakeholders and Government to inform these proposals.

Alongside the investment plans for infrastructure, the Government is prioritising support for Science, Technology and Innovation in recognition that technology based innovation is a major driver of economic growth. The science budget was protected in the recent Government spending review and since then the Government has developed the Blueprint for Technology to: provide a framework for enterprise and business investment; support those industries where Britain already has the potential to maintain competitive advantage; and make it easier for new businesses and innovation to flourish by bridging the gap between innovation and commercial success. It will be particularly important that plans for the Atlantic Gateway area, in particular those associated with Daresbury, are aligned with this framework to take advantage of the strategic targeting of resources being pursued at a national level. The expansion of Daresbury also provides an opportunity to locate new national science projects in the north west to support innovation and long term growth.

At a local level, economic development policy has undergone significant change in recent months with a move away from regional policy to local delivery and greater engagement of the private sector. While the framework is still evolving, LEPs have now been established across the country with the active involvement and leadership of the private sector. While the LEPs vary in terms of size, involvement and engagement of the business community, and their focus and approach, essentially they have been established with a view to:• working with Government to draw up key investment priorities; • co-ordinating proposals and bids for Regional Growth Fund;• supporting high growth businesses;• ensuring business is involved in the development and consideration of strategic planning

applications; • leading change on local business regulation;

3 Source: OECD, Going for Growth 2010: Country Notes: UK (2010)

Atlantic GatewayContext

International and national context

Local context

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2000/07 2008 2009 2010 2011

France

Germany

Italy

Spain

Sweden

UK

Korea

Canada

New Zealand

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• strategic housing delivery, including pooling and aligning supporting funding streams;• working with local employers, Job Centre Plus and learning providers to help people into jobs;• co-ordinating approaches to leveraging private funding;• exploring opportunities to develop incentives to encourage renewable energy projects; and • helping to deliver national priorities such as digital infrastructure.

Three LEPs are in the Atlantic Gateway area, which have a remit for the Liverpool and Greater Manchester City Regions and Cheshire and Warrington. It is essential that Atlantic Gateway works with each LEP so that their activities complement each other as both have a valuable role to play in accelerating long term growth. Whilst LEPs will have a specific focus on a geographic area, they will encounter issues and opportunities that cross boundaries and are of a scale that can best be considered across LEPs. Atlantic Gateway will play a valuable role in supporting collaboration on critical issues across all three, and attracting large scale investment which could not be achieved on an individual LEP basis.

LEPs do not have significant capital or revenue funding to allocate to investment priorities which means that their role will primarily focus on facilitating economic growth by identifying priorities and key barriers and working with existing agencies to address these problems through a more joined up approach, alignment of funding, and the provision of intelligence to assist more effective targeting and piloting of new innovative ways of working. Atlantic Gateway will work with LEPs to provide the focus and collaboration required to progress those economic priorities that are relevant to Atlantic Gateway and identified by LEPs as issues that require cross boundary working. The cross LEP issues include:• capitalising on world class research, science and innovation capability;• securing access to next generation broadband; • improving rail connectivity across the north west, especially the Northern Hub and securing High

Speed Rail access; • improving international connectivity via Manchester Airport, Liverpool Airport and Liverpool

SuperPort, together with the Mersey Gateway multi modal link; and • enhancing the natural environment and resolve emerging pinch points.• These shared issues form the basis of the Atlantic Gateway’s priorities and have shaped the

proposals for the Atlantic Gateway team.

Atlantic Gateway’s vision is clear; to maximise investment into the Atlantic Gateway area and support the delivery of major projects by LEPs and other partners. The Atlantic Gateway Partnership Board is clear that it should only play a role where it can add significant value and deliver results that are additional to those that can be achieved at an individual LEP level. Atlantic Gateway will not have a focus on delivery; this is best done by other partners across the region that have the resources, funding and expertise to do this.

The relationship between LEPs and Atlantic Gateway is a critical one and it is important for both parties to be clear about their roles and priorities and how they can work together to improve the opportunities for growth. The LEPs understand the issues, challenges and opportunities in their area better than anyone else and they can also identify those areas where a greater degree of collaboration will make a difference. Cross LEP issues and projects of national or international significance are two examples were better and more collaboration across LEPs can benefit the whole area. All of Atlantic Gateway’s priorities fit into these two categories.

Atlantic Gateway as a concept already exists and has a momentum of support from major private sector businesses, LEPs and support from the public sector. With a Partnership Board already in place and a commencement business plan, Atlantic Gateway is in a position to start work to develop its core team and an action plan.

With a focus on investment and growth, Atlantic Gateway has a number of objectives which will drive its activities and relationships:• to establish Atlantic Gateway as an internationally significant investment opportunity;• to drive transformational economic change and opportunity; and• to establish a collaborative planning and policy framework.

These objectives have been agreed by the Regional Leaders’ Board and have shaped the themes and priorities of the Atlantic Gateway area and the role that Atlantic Gateway will play in maximising the growth potential of the area.

Atlantic Gatewayvision and objectives

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Atlantic Gateway is focused on unlocking investment potential across the area which is a significant and challenging role and is best achieved as part of a long term growth strategy rather than a short term fix. It needs to build upon, not duplicate, what is already being done at a City Region level to improve the collaboration on key issues and projects and maximise the opportunities to leverage investment for the greater benefit of the three LEP areas. Investment on the scale of Atlantic Gateway will not happen overnight; it takes time to turn innovations into tomorrow’s products and infrastructure projects take years to plan, fund and deliver. It will play a valuable role and enable the area to maximise its opportunities.

Atlantic Gateway is focused on a small number of priorities where it can have the biggest impact. It is not a mechanism for addressing all cross LEP issues and other ways will be identified for doing this as LEPs become more established. It should also be flexible and responsive to deal with emerging issues and opportunities. A number of Atlantic Gateway themes have already been agreed by the Regional Leaders’ Board and represent the most significant opportunities for investment and growth in the area:• Growth - driving growth through innovation in key sectors;• Connectivity - creating a globally connected gateway;• Infrastructure - developing low carbon infrastructure and technologies;• Sustainability - improving the quality of the environment; and• Talent - attracting and retaining talent to drive economic growth.

Atlantic Gateway’s priorities for investment, which are set out in the next section, are based upon the first four themes only. Atlantic Gateway recognises that retaining and attracting talent is critical to its success and its ability to secure investment and achieve economic growth. However it also recognises that a number of other organisations across the three LEPs already play a major role in developing, attracting and retaining talent and that Atlantic Gateway will not be leading on any specific projects at this stage. It will work with partners across the area to ensure that a joined up approach is developed which considers the long term growth opportunities and requirements to sustain that growth. At this stage therefore specific investment priorities have not been developed for the ‘Talent’ theme.

Atlantic Gateway will play a number of roles to achieve its vision and delivers against its objectives which are likely to change across and within projects as the Atlantic Gateway concept develops. With only a small number of priorities compared to LEPs, Atlantic Gateway will be able to agree roles and relationships with key partners including delivery partners, LEPs funders and investors, Government and other national organisations such as UKTI which will be critical in attracting investment.

Atlantic Gateway’s main role is to maximise investment opportunities which is challenging in today’s globally competitive market place with major projects, areas and countries competing to attract investment from investment funds, sovereign wealth funds, financial institutions, research and science institutions and businesses. With Atlantic Gateway’s natural assets, the scale of its major projects, successful track record and development opportunities, a brand is already being established and is being used to engage with new potential investors and existing funders. Relationships with funders and investment organisations are critical at a national and international level and it makes sense to build upon what is already working well in the City Regions who already have well established relationships with organisations such as UKTI and EIB for example. The Atlantic Gateway brand will also be strengthened by having strong well developed investable propositions, a central point of contact for Atlantic Gateway and robust financial and economic intelligence underpinning propositions. The UK should also have the right conditions for investment which are largely driven by Government including the regulatory, financial or taxation environment. Atlantic Gateway can play a role in informing Government on this area and opportunities to maximise investment opportunities.

Atlantic Gateway will establish its vision in conjunction with the Regional Leaders’ Board, provide leadership on key cross LEP issues and agree its key priorities. It is important that the agreement of strategic priorities is a three way process between LEPs, the Regional Leaders’ Board and Atlantic Gateway all of which are in a strong position to highlight issues, barriers and opportunities across many levels. Atlantic Gateway will play a lead role in clearly communicating its priorities to Government which inform policy and critical investment decisions.

Atlantic Gateway will provide an important voice on major issues and play a key role in championing priorities. This may include for example coordinating a collective Atlantic Gateway response on the ongoing High Speed Rail 2 developments or responding on national infrastructure plans. It may also include demonstrating the business case/proposal specification for major investment. Atlantic Gateway will play a valuable role in informing major policy initiatives in the UK and Europe such as the current Growth Reviews, EU Transport White Paper, EU 2014-20 funding policy and the National Infrastructure Plan.

Whilst Atlantic Gateway will not be involved in the direct delivery of projects, it will play a role in managing Atlantic Gateway intelligence and coordinating issues and actions to address critical cross LEP issues. There are excellent examples where collaboration is taking place and making a difference however this can be strengthened across the key priorities to ensure that there is greater joint working. For example, an integrated joined up transport network is critical and better collaboration will improve the quality of the network and the programme of works to maximise the opportunities for growth and minimise disruption.

Atlantic Gateway recognises that investment and growth cannot happen in a vacuum and relationships and collaboration outside the area are just as critical with other LEPs, other similar areas across Europe and other similar ‘gateways’ across the world. Relationships need to be maintained and pursued to maximise opportunities. Atlantic Gateway should not be parochial and inward facing at the expense of wider growth opportunities. Its success will be dependent upon the strength of the relationships that it develops to join up opportunities, collaboration to resolve issues, its joint working across Government and confidence it provides to funders and investors.

Atlantic Gateway can play an important role in supporting the rebalancing of the UK economy and the Government can play a role in supporting Atlantic Gateway by:• recognising Atlantic Gateway as a major mechanism for attracting investment and delivering

growth across the area;• recognising Atlantic Gateway’s infrastructure priorities as national strategic priorities for funding

which will provide an important signal and confidence to investor markets; • identifying a cross Government working team from key departments and agencies, including for

example BIS (including UKTI), Treasury, CLG, Transport, DECC and the Environment Agency, to support Atlantic Gateway to address cross Government issues, remove barriers, to inform policy development and major funding decisions; and

• nominating one civil service representative to attend/be a member of the Atlantic Gateway Partnership Board to provide regular senior advice on cross Government issues, policy matters, planning, funding, relationships and contacts.

Atlantic Gateway looks forward to continuing its discussions with Government to agree how it can work together to maximise the opportunities arising. This is an opportunity for new and bold ways of working.

How will Atlantic Gateway make a difference

Role of Atlantic Gateway

Relationships outside of Atlantic Gateway

Leveraginginvestment

Leadership

Influencing

Collaboration

Role of Government

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This section sets out the themes and priorities for Atlantic Gateway including key action areas. Whilst there are several priorities, three are highlighted as being critical to the success of Atlantic Gateway and will have a transformative impact on long term growth. They include the development of Sci-Tech Daresbury, the development of the Port network and the Northern Hub.

Sci-Tech Daresbury is already a world leading science and research base however further expansion and national science projects will create the critical mass and momentum to attract more high profile businesses to develop the technology for tomorrow’s products. Sci-Tech Daresbury can be the catalyst for an Atlantic Gateway innovation revolution widening opportunities for the north and the UK economy.

Expansion of the port facilities at the Port of Liverpool, Port Salford, and Port Warrington along with the Manchester Ship canal will transform the supply chain across Atlantic Gateway and will reduce the premium on transport costs for northern based businesses. This will assist in rebalancing the economy by turning the Atlantic Gateway into one of the most competitive business locations with reduced transport costs, decreased congestion on UK routes and reduced carbon emissions.

The Northern Hub aims to improve rail connectivity across the North of England and will make a significant impact on rebalancing the economy by increasing capacity, decreasing journey times and introducing the latest technology. It will deliver change to passengers and businesses by enabling greater mobility of labour markets and improving business competitiveness. Subject to the network which is essential to stimulate investment and growth.

The challenge for Atlantic Gateway is to ensure that opportunities associated with each of these priorities are maximised across the area and are not localised or restrained. Whilst Liverpool and Manchester are the two dominant centres within Atlantic Gateway, there are opportunities to drive growth across the wider area including Warrington and Cheshire and beyond.

The Atlantic Gateway themes and priorities included in the table below have been endorsed by the Regional Leaders’ Board and are based upon the original NWDA Atlantic Gateway priorities unless stated. They are discussed in turn within this plan with an outline of the key actions. The role of Atlantic Gateway has been already been discussed with its activities focusing on identifying investment opportunities, leadership, influencing and collaboration.

Opportunities will continue to be identified and whilst a number of Atlantic Gateway priorities have been agreed, new priorities may emerge where Atlantic Gateway can play a valuable role. Emerging priorities may be recommended by LEPs or the Atlantic Gateway Partnership Board but ultimately they should be endorsed and supported by regional leaders from across the private and public sectors as representing large scale opportunities for growth and investment. Several opportunities have been identified which may be candidates for future Atlantic Gateway priorities including, for example, new technology for electric cars and charging, the further development of the nuclear sector and other major investment schemes such as Wirral Waters, Liverpool Waters and Warrington Waters. These are for consideration by the Atlantic Gateway Partnership Board and regional leaders.

Innovation creates successful and competitive businesses and is an important driver of economic growth and productivity. The Atlantic Gateway area already includes some of the UK’s leading world-class research companies, universities, research facilities and partnerships and its reputation as an international centre for innovation is growing. Clusters of activity at Sci-Tech Daresbury, Liverpool Science Park and The Corridor in Manchester have developed successful innovation and research areas which make a significant economic contribution to the economy. The challenge is to convert ideas into commercial propositions and to create an environment which supports innovations and helps to move them as quickly as possible from concept stage to the market to generate sales and deliver economic growth. A further challenge is to provide the right infrastructure to support innovation and Atlantic Gateway can play a hugely important role in achieving this.

Building upon an existing strong science and innovation cluster, the Atlantic Gateway area has the potential to become one of the world’s leading innovation centres. It includes one of two national Science and Innovation campuses at Sci-Tech Daresbury which raises the profile of Atlantic Gateway as a major science and innovation area. The Atlantic Gateway can play a valuable role in accelerating the growth of innovation by making the case for Government investment in major innovation projects, especially science projects; attracting infrastructure funding; attracting overseas investors; attracting investment into funds to support innovation and raising the profile of Atlantic Gateway as a world leading centre of excellence for science and innovation.

Several high growth sectors have already been identified by regional leaders as being central to the growth of the City Regions including life sciences and health; transport and logistics; digital and creative; green technology and energy. Significant work is already taking place across all of the sectors including for example research into new models of sustainable transport such as the development of new technology vehicles and car charging technology. Developments are underway across Greater Manchester to introduce car charging technology points as part of the Plugged in Places programme and there is an opportunity for cross-LEP collaboration on infrastructure investment to support electric vehicles usage and support a move towards a low carbon economy. If electric vehicles are to be viable for making longer journeys a wide spread network of charging points with consistent technology will be required along with significant and coordinated investment across a large area. Atlantic Gateway provides the scale and an opportunity to achieve this.

Energy is another example of a highly innovative and growing sector with nuclear energy recognised as a considerable global opportunity. Warrington is at the core of the nuclear sector with a range of world class businesses including Sellafield Ltd, AMEC Nuclear, Rolls Royce Civil Nuclear operations, Nuvia and National Nuclear Laboratory based across at Birchwood. Recent research suggests that the Omega site in Warrington could play a role in the growth of energy cluster in ‘Warrington North’ (including the Birchwood and Omega sites). Atlantic Gateway can play an important role by supporting collaboration with other leading nuclear areas outside of the Atlantic Gateway area such as Cumbria, Sheffield and Leeds and other relevant LEPs. Atlantic Gateway can play a role in leveraging new investment, championing new infrastructure and government investment and developing supply chains to maximise the impact across the area. Recent collaborations such as the partnership between Nuvia and Cammell Laird to capitalise on the UK’s multi billion pound nuclear build programme raise the

Atlantic Gatewaypriorities

Three top priorities

Atlantic Gateway investment priorities

Theme 1 Growth:Driving growth and international trade

Atlantic Gateway Themes and Priorities

Growth Connectivity Infrastructure Sustainability

• Daresbury+*

• MediaCityUK*

• Port and Ship Canal

- Port Seaforth (post-Panamax+*)

- Port Salford+*

- Port Warrington+*

- Port Wirral+*

• 3MG +*

• Mersey Gateway Bridge +

• Northern Hub +*

• High Speed Rail 2+*

• Next generation access – broadband+*

• Manchester and Liverpool Airports*

• Low carbon energy

technologies incl

Mersey Tidal and Port

Power+*

• National Technology

Innovation Centre^

• Ince Park+*

• Flood and Water

Management*

• Adapting the Landscape

programme++:

- Community

Environment Fund

- Nature

Improvement Area

- Atlantic Gateway

Landscape Park

- Landmarks

* Agreed priorities within NWDA’s Atlantic Gateway Framework December 2010+ Agreed priorities by Regional Leaders’ 2011^ New priorities due to current opportunities++ Theme agreed within Atlantic Gateway Framework - programme of work has now been developed

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profile of the area as a centre for nuclear industries, create a critical mass for skill development and investment, and strengthen the supply chain. The growth of the nuclear sector will be underpinned by excellence in science and innovation and the area already has significant nuclear expertise and is a leader in this field. For example, the University of Manchester has the UK’s largest concentration of nuclear research, training and educational activities and the Dalton Nuclear Institute is at the forefront of nuclear technology, skills development and commercialisation. Links with Sci-Tech Daresbury, the area’s universities and other science centres are critical to the growth of the energy sector.

The Atlantic Gateway Partnership is supportive of innovation across all of the high growth priority sectors and recognises the role that LEPs play in developing a range of measures to support their growth. Daresbury and MediaCityUK are recognised as two priority projects were Atlantic Gateway can add value to maximise investment opportunities, accelerate growth and achieve a shift in perceptions of the Atlantic Gateway area as a location for businesses.

Action: Atlantic Gateway Partnership Board to consider new growth theme priorities.

Action: To maximise investment opportunities across identified high growth sectors.

Action: To support collaboration across LEPs on high growth sectors.

As one of only two national Science and Innovation campuses, Sci-Tech Daresbury is a well established location for high tech businesses and leading edge science and research. It has an international reputation and is recognised nationally as one of the major investment opportunities for innovation and science in the UK. Whilst Sci-Tech Daresbury has a strong relationship with the other national campus at Harwell, the national default location for major science projects, the expansion of supporting infrastructure will enable it to compete more effectively and attract more projects and investment.

The recent award of enterprise zone status will provide an opportunity to deliver a range of infrastructure improvements and build upon its international reputation. Sci-Tech Daresbury anticipates that with private sector investment of £150m to expand its facilities there is the potential to deliver more than 10,000 jobs over the next 20 years. This is dependent upon infrastructure, Government investment in major science projects at Daresbury and new investment from major research and science businesses and institutions. The recent Heseltine report5 recommended that ‘Government should support Daresbury for major scientific projects and chose it as the ideal location for the next generation light source project’. Atlantic Gateway will champion this as a major initiative.

All LEPs have identified Sci-Tech Daresbury as a major priority due to the long term impact that science and innovation has on economic growth and exports. Local authorities, LEPs and universities all have a role to play to support Daresbury and various plans have been produced which set out how the various parties will work together. Atlantic Gateway provides the platform to consider cross LEP issues and opportunities to maximise the success. The award of enterprise status also provides a new opportunity to review Daresbury’s masterplan; long term strategy; relationships locally, nationally and internationally; funding opportunities and its global positioning.

Action: To maximise investment opportunities.

Action: To formalise relationships at Board level between Atlantic Gateway and Daresbury.

Action: Formal agreement of Daresbury as an Atlantic Gateway priority.

Action: Contribute to the development of a revised masterplan.

There is specialist expertise in the digital and creative sectors across each of the LEPs. LEP plans, and the previously City Region plans already recognise and support innovation and growth of this sector. MediaCityUK UK is a specific example of a high growth opportunity which has a vision to become a global hub for innovation and content creation. It is recognised as an Atlantic Gateway priority project as it represents one of the UK’s largest investments in the digital sector and a major step in rebalancing the economy with the relocation of parts of the BBC to the north west.

It has the potential to attract significant additional investment, create more jobs and change the perceptions of the north of England as a digital and media centre. More than £650m has already been invested in phase one in developing a state of the art environment for the creative and digital sector and overall it is expected to attract more than £1bn of private sector investment. This is expected to create more than 15,000 additional jobs for the region, 5,000 of which will already be in place by the end of 2012. There are a wide range of employment opportunities available, with companies including the BBC, ITV, SIS, University of Salford and a number of other ancillary and creative businesses.

Potential MediaCityUK employees of the future are also being trained in situ at the new University of Salford building. Every year 1500 students will study one of 39 courses there, including journalism, digital technology and media. The University has already set up strong partnerships with the BBC, BT and a number of international Universities, with their top class teaching facilities including HD TV studios and radio broadcasting studios, creating a unique opportunity and pull for students to study at the heart of a bustling creative hub. The benefits of the expansion of MediaCityUK can be widened across Atlantic Gateway with the attraction of new investment into other media clusters and supply chain development across the Atlantic Gateway area and the north of England.


Action: Collaboration with Daresbury and other media/digital centres and sectors to widen the supply chain opportunities.

Infrastructure is essential to support the daily activity of businesses to move goods, people and information. However it is investment in infrastructure that will generate growth and create jobs. In today’s competitive global economy it is not enough to have strong local, regional and national connections - high speed, reliable, sustainable global connectivity is critical. The Atlantic Gateway area already has a strong transport network due to its unique assets; an international port at Liverpool, two major airports in Manchester and Liverpool, and a well connected road and rail network. Infrastructure investment will make a considerable difference to enhance Atlantic Gateway’s connectivity and provide a much more integrated network to improve supply chains. Investment in a small number of transport priorities will provide a world class multi-modal transport and digital infrastructure to support a step change in economic growth for the area. Enhancement of the existing network will represent a much lower cost intervention compared to new infrastructure. A combination of the two is essential.

The key priorities for investment include investment in the area’s port network and supporting logistics, investment in major rail facilities including High Speed Rail 2 and the Northern Hub, airport development at Manchester and Liverpool and Next Generation Access broadband infrastructure. Infrastructure improvements of this scale cannot be tackled at a local level and will require a significant degree of collaboration across LEP boundaries and beyond. Atlantic Gateway can play a lead role in supporting this collaboration to reach an agreement on strategic infrastructure priorities, maximising the benefits, making the case for Government and private sector investment and ensuring a greater degree of coordination across boundaries and organisations.

Priority:Daresbury Science and Innovation Campus

Priority:MediaCityUK

5 Rebalancing Britain: Policy or Slogan? Liverpool City Region – Building on its Strengths: An independent report by the RT Hon the Lord Heseltine CH and Sir Terry Leahy (October 2011)

Theme 2 Connectivity:Creating a globally connected gateway

1 4 1 5

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The widening of the Panama Canal is opening up new trade routes - suppliers are looking for increasingly lower cost and lower carbon transport options; and manufacturers and retailers want to be nearer to ports to reduce goods handling, freight costs and transport time. With an already well established port system and supporting infrastructure with capacity for expansion, the Atlantic Gateway area is in a strong position to capitalise on this shift in global markets to expand its port operations and develop a more integrated transport network with the Port of Liverpool, Port of Salford, Port Warrington and Port Wirral at its core6. The development of the port network is a major priority for Atlantic Gateway and provides an opportunity to:• leverage significant investment into the area;• increase trade volumes in and out of the Port of Liverpool;• substantially reduce freight transport costs;• reduce road freight and carbon emissions;• create a substantial number of port centric jobs; and• increase the ability of Atlantic Gateway businesses to compete internationally.

Proposals have been developed to create a new terminal at Seaforth, Liverpool which will accommodate new generation post-Panamax size vessels and will see a dramatic increase in the volumes moving in and out of the terminal. The new terminal will almost double the capacity of the existing operations and will enable faster turnaround of vessels in and out of the facility. The wider supply chain implications are significant and will increase the demand for port centric logistics and other related services. It is anticipated that the new terminal will create some 6,000 jobs, cost £300m and will establish the Atlantic Gateway as a major destination for manufacturers and retailers. The development of the port is dependent upon essential dredging of The Mersey to enable access for deep sea vessels and deliver benefits to other users of the estuary.

Figure 3: Atlantic Gateway – port and Manchester Ship Canal network

Other port proposals include Port Salford which will play a critical part in the movement of freight to and from the Seaforth terminal by short sea shipping, removing freight from local road and rail networks. The Port will also be a major logistics hub in its own right without the growth of the Port of Liverpool

Priority:Port and Ship Canal facilities

M602

M56

M6

M56

M53

M57

M58

M6

M6 M61

M60

M62

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ManchesterShip Canal

SalfordQuays

Port Salford

PortWarrington

Daresbury SIC

SeaforthRiver

TerminalPort of

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BirkenheadDocks

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Irlam ContainerTerminal

PartingtonBasin

RuncornDocks

PortInce

StanlowTerminal

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EasthamLocks

EllesmerePort Docks

Port ofBridgewater

Warrington

Salford

Stockport

Manchester

GREATERMANCHESTER

Bolton

Formby

St. Helens

Knutsford

Northwich

Wigan

Chester

Merseyside

River MerseyWidnesWirral

ManchesterAirport

Liverpool JohnLennon Airport

Crewe

LiverpoolLime Street

ManchesterPiccadilly

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6 The wider port network across Atlantic Gateway is shown in Figure 3. Source: Rebalancing Britain: Policy or Slogan? (October 2011)

MediaCityUK

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due to its tri-modal networks (road, rail and inland port), specialist warehousing facilities and loading cranes. It is estimated that the project will cost £140m, including an extensive road development scheme, and will create more than 4,000 jobs.

Warrington is located near to the Manchester Ship Canal with considerable opportunities to not only develop the port facilities with important supply chain implications for existing and new businesses but also to develop the wider area linking it through to the town centre. The creation of ‘Warrington Waters’ is an opportunity to connect the port with a city centre waterfront development. With a masterplan already completed, infrastructure investment will support business growth around the Town Centre and Port Warrington and represents an opportunity to attract new investment, improve the quality of the waterside environment and provide high quality housing. Whilst Atlantic Gateway is not directly involved in housing or town centre redevelopment, it will need to engage with the Warrington MBC to ensure that investment is secured, especially with regards to infrastructure funding to improve transport adjacent to the Canal. Other port developments are in various stages of development such as Port Wirral, Port Ince and Port Bridgewater. These represent potential longer term opportunities as Atlantic Gateway evolves.

A SuperPort action plan has already been developed, led by The Mersey Partnership, which focuses on the Liverpool LEP area and includes £1.8bn of investment in a number of key areas including the ports, airports, road, warehousing and other supporting infrastructure. It estimates that by 2020, 21,000 jobs will be created by the growth of the SuperPort. Wider evidence suggests that port development combined with investment in infrastructure, sustainable integrated transport and low carbon technology can make a significant contribution to GVA growth. Barcelona, Hamburg, Singapore, Rotterdam and Shanghai are all strong examples of this. This has led to Lord Heseltine and Sir Terry Leahy stating in their recent independent report to Government on the Liverpool City Region that ‘of particular importance is work to dredge the Mersey and build berthing facilities for the new generation post-Panamax ship’ and that ‘Government should work closely to ensure that the strategic infrastructure and necessary environmental protection is in place to support Liverpool’s renaissance as a major post-Panamax European port, for example improving rail freight and strategic road access at Seaforth and dredging for post Panamax ships7’.


Action: Cross Government support.

Action: Widening of the SuperPort concept and cross LEP collaboration.

The Mersey Gateway Port and 3MG (Mersey Multimodal Gateway) are owned by the Stobart Group and are a key component of the SuperPort strategy for the Liverpool City Region and the wider development of the Atlantic Gateway. It is part of the portfolio of developments which will form the backbone of the port network across Atlantic Gateway. 3MG is a freight distribution park in Widnes with road and rail facilities and 75,000 sq meters of warehousing facilities. The demand for multimodal facilities is growing due to the development of port services in Liverpool and the increasing move towards rail and sea freight to alleviate road network issues and reduce carbon emission levels. Further expansion of the 3MG will include enhanced rail infrastructure, increased warehousing and brownfield development and will enable more goods to be transported by rail. The masterplan includes investment of £92m and the creation of more than 4,000 jobs. The Mersey Gateway Port is located a few miles away from 3MG and capable of handling ocean-going ships. Together with 3MG it forms a freight hub around the Widnes area and adjacent to the proposed new River Mersey crossing.


Action: To coordinate a review of infrastructure logistics facilities across Atlantic Gateway.

Priority:3MG & MerseyGateway Port

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7 Rebalancing Britain: Policy or Slogan? Liverpool City Region – Building on its Strengths: An independent report by The Rt Hon. The Lord Heseltine CH and Sir Terry Leahy (October 2011)

The Mersey Gateway Bridge is a major transport scheme to build a new six lane toll bridge over the River Mersey between the towns of Runcorn and Widnes. It is expected to create over 4,600 jobs, improve journey times and reliability for millions of people in the region (by relieving the congestion on the aging Silver Jubilee Bridge) and bring massive inward investment and regeneration to the north west area. Following the recent announcement on the detailed funding for the bridge, which will involve central government providing up to £470m to the project over its lifetime (made up of capital funding of £86m for land acquisition plus revenue finance of £14.55m per annum over 26 years) the bridge will become increasingly important to the long term success of the Atlantic Gateway. The procurement process is now underway to select the private sector partner to work with Halton Borough Council to design, build, finance and operate the scheme, and it is envisaged that construction work, which will last for up to three years, will start within two years – resulting in the opening of the bridge in early 2016.

As well as a new high-quality river crossing, the project will also result in improvements being made to roads along the entire route of the project, creating a major strategic transport route linking the Liverpool city-region and the north west to the rest of the country. The challenge will be maximise the impact of the bridge on the surrounding area, to promote the impact of the bridge to investors and showcase it as part of the wider programme of transport improvements to facilitate growth.

Action: To support the project strategically and ensure that work with partners to ensure that the potential impacts of the bridge are maximised across the Atlantic Gateway geography and beyond.

Rail connectivity and capacity is critical to the success of any City Region and is an important driver in increasing economic growth, employment and innovation. The 2011 Core Cities report8 which examined the relationship between transport infrastructure and city growth stated that a location with 10% higher rail connectivity tends to have an employment density that is 14% higher. In addition, improving connectivity makes labour markets more effective, facilitates competition and fosters innovation. The Atlantic Gateway faces a number of rail issues however two specific projects have been highlighted as priorities for Atlantic Gateway, Northern Hub and High Speed Rail 2.

Growth within the Atlantic Gateway area will be constrained unless significant barriers are removed to support the movement of people and freight across the area. Transportation across Manchester City Centre is severely affected by the section of rail track between Manchester Piccadilly and Deansgate Stations. The line is used for both passenger and freight services but is constrained by having two tracks, a number of restricted stops and the need for certain journeys to cross the ‘throat’ of Manchester Piccadilly station when coming to and from the east. This section also provides links across the north of England to Yorkshire, the north east and the rest of the north west. The Northern Hub is an opportunity to enhance rail infrastructure across the whole of the Gateway area to ensure that areas with growth potential are connected especially in parts of Cheshire and Warrington. Whilst investment is restricted and investment decisions are difficult, Atlantic Gateway supports the investment of all of the necessary funding to develop the full proposals with enhancements across Cheshire and Warrington and not just part of it. This will ensure that the rebalancing of the economy has the greatest chance of success and that the imbalances across the region are not widened.

As a result of the current growth restrictions, a Manchester rail hub study9 estimated that if funded in full, the Northern Hub project could create up to 23,000 private sector jobs, and add over £4.2bn of wider economic benefits to the North of England, which including the costs of the new services reflects a return of over four pounds for every pound invested. In terms of the wider benefits, businesses on both sides of the Pennines will be able to recruit from a wider pool of talent and their employees will be able to get to work quickly and easily. Business will also enjoy greater flexibility and access to bigger markets as capacity increases and journeys are more direct and quicker. In March 2011, the Chancellor announced plans to bring forward £85m investment for the first phase of the scheme as a step towards unlocking the barriers in the centre of Manchester. This investment alone will not facilitate the projected

Priority: MerseyGateway Bridge

Priority: Northern Hub

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8 Understanding the transport infrastructure requirements to deliver growth in England’s core cities. Volterra and Arup (July 2011)

9 Northern Hub Study. Network Rail (2010)

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growth outlined above. In October 2011 Network Rail will submit their statutory industry plan for 2014-2019 which includes the proposals for the full Northern Hub project at a cost of £560m. The GMCA and other partners across the region have backed Network Rail’s proposals, however it will be crucial that the argument for the remaining investment is reinforced by other key stakeholders, as the decisions taken by the Government between now and June 2012 will have a major impact on the ability to deliver this objective. The Heseltine report stated that ‘in the short term the Government and Network Rail should accelerate and expand the scope of the Northern Rail Hub project to better connect the eight million people of Liverpool, Manchester and Leeds. The Mersey Crossing project is also essential ...these schemes are of national significance and are long overdue’.

Action: To provide an advocacy role and inform proposals.

Action: Support greater collaboration on transport investment.

Action: To provide an input into the design of the service specifications in collaboration with LEPs.

The Government recently ended its consultation period on HSR2 proposals for a wider rail network linking London, West Midlands, Manchester and Leeds. The £32bn Y-shaped network includes proposals which will reduce travelling times between Manchester and London and create significant additional capacity. According to research carried out by Arup and Volterra10 it will help to underpin the delivery of tens of thousands of jobs in the north west. Infrastructure investment on this scale will have a considerable impact on the Atlantic Gateway area however the level of benefit will be dependent upon the final route and integration with other investment. Heseltine’s report supports the extension of HSR2 so that it links directly to both Liverpool and Manchester. This is an important consideration for Atlantic Gateway, especially with the proposed expansion of the port, port-centric logistics and increased freight volumes.

Action: To provide an advocacy role and inform proposals.

The way that individuals and businesses access the internet has changed dramatically in recent years, and technology continues to evolve providing faster and more reliable access to the internet – through both fast and super-fast broadband, also referred to as next generation access. The provision of this high speed digital infrastructure has the potential to impact on productivity, enterprise and innovation across the Atlantic Gateway area and is therefore viewed by many as a key priority. Evidence suggests however that without intervention, the market would not deliver at the speed necessary to enable businesses in the area to remain competitive within Europe. Several schemes have been proposed to develop world leading access to ensure that the north west can compete with leading IT cities.

For example, Greater Manchester is currently leading on a market-led investment approach to the delivery of fibre to premises in Greater Manchester, in recognition that substantial market investment can be achieved by creating the optimum conditions for key players within the industry to invest money and assets. As a high speed digital network will have a direct beneficial impact on transport connectivity by increasing consumer decisions regarding travel patterns, the project will also have a beneficial impact in terms of supporting other forms of connectivity within Greater Manchester and across the Atlantic Gateway area. Liverpool is also exploring free WiFi and superfast broadband connections across the city business district. Atlantic Gateway will support and champion investment in broadband to ensure that it does not lose investment to major world cities on the basis of its broadband provision and its ability to embrace new technology.

Action: To promote collaboration to ensure that Atlantic Gateway is at the forefront of digital technology.

Priority: High Speed Rail 2 (HSR2)

Priority: Next Generation Broadband access

2 0

10 Understanding the transport infrastructure requirements to deliver growth in England’s core cities. Volterra and Arup (July 2011)

Manchester Airport

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carbon energy. For example, the Ineos Chlor energy from waste Plant at Runcorn is currently under construction. This £400m joint venture with Viridor Laing will be opened by 2013. Tri-generation facilities using biomass are also being explored at a community level in Eldonian Village, Liverpool, to supply houses and businesses with secure low carbon high technology energy. MediaCityUK has developed an advanced tri-generation power plant that helps to minimise CO2 emissions by centralising heating and cooling equipment using water from the Ship Canal, returning it cleaner than before. These examples demonstrate that although innovative projects and delivery models are taking place in this sector, it is a piecemeal rather than a coordinated approach and greater collaboration across LEPs will support the development of new technologies and a more consistent approach to addressing the long term energy supply issues facing the area.

The area benefits from extensive off-shore wind opportunities due to its location. Opportunities are being explored for a number of schemes and emerging technologies as they will enable Atlantic Gateway to support economic growth opportunities, address energy security issues and reduce carbon emissions. Opportunities for large scale or innovative schemes will continue to be reviewed to assess if Atlantic Gateway can play a role in bringing these schemes to the market or influencing Government policy and wider development issues.

The Mersey Tidal/Port Power project is a low carbon renewable energy priority. The configuration and tidal reach of the Mersey Estuary are a massive untapped energy resource. Since 2005, Peel Energy with NWDA and the support of The Mersey Basin Campaign have been investigating the feasibility of tidal energy. Extensive studies and surveys have considered every aspect including technical, engineering, environmental, economic, cost as well as energy potential of a tidal project. The conclusion is that a number of tidal power options have the potential to make a significant contribution to the UK’s renewable energy targets. The preferred option would generate around 1 Terawatt hour (Twh) per annum, delivering enough electricity to meet the needs of over 200,000 homes, supplying low carbon energy for 120 years. The high construction cost (estimated at £3.5bn) is such that the project is unlikely to proceed without changes in the way that renewable energy and security of supply are valued. The development work will not be progressed until there is more confidence in the financial and regulatory framework for tidal power. The Heseltine report has recommended that the Government establish a Task Force to establish how a multi-purpose Mersey Barrage can be funded. Both of these matters will be important considerations for Atlantic Gateway in conjunction with partners to ensure that opportunities are explored to pursue both.

Action: To provide an advocacy role and support collaboration on low carbon energy technologies.

Offshore renewable energy including tidal, wave and wind power is a rapidly growing multi-billion pound global industry. Economic studies of the UK’s offshore renewable resources indicate that harnessing just 29% of the UK’s wind, wave and tidal resources would match the electricity generated by North Sea oil and gas production; provide a huge boost in cutting carbon by saving an estimated 1.1 billion tonnes of CO2 over the next forty years; and create an additional 145,000 UK jobs. Liverpool City Region’s combination of maritime infrastructure, engineering and research capacity and marine environment expertise are exceptionally well placed to maximise the potential economic benefits of these innovative, low carbon industries which is a new priority. This has led to the proposal to develop a National Technology Innovation Centre for offshore renewable energy led by industry group Mersey Maritime. Key partners include - Cammell Laird, Peel Energy, the University of Liverpool, Mersey Partnership and Wirral MBC. The Centre will provide a national hub for companies with a track record in offshore development, technology transfer, research and development and wider supply chains.

Action: To provide an advocacy role and support greater collaboration.

Priority: National Technology Innovation Centre (Renewable)

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Both airports are critical to the continued development of a globally connected Atlantic Gateway and represent important investment opportunities and high growth areas. Developments are planned at both sites which are contained within masterplans and Manchester Airport’s recent enterprise zone application. Manchester Airport is a true global airport within Atlantic Gateway with well established ‘Airport City’ and will see the area benefiting from reduced business rates, super-fast broadband, simplified planning and specialist business support services. The expansion includes plans to develop the world freight terminal and new business space for health related uses. It is anticipated that £400m of investment will create 7,000 jobs. The Manchester LEP will oversee this development with significant input from delivery partners.

Liverpool Airport has started to develop its international connections and is an expanding airport. Its expansion plans include the creation of 5,600 jobs over the next twenty years with a focus on a new transport corridor and World Cargo Centre. Atlantic Gateway can add value to these developments by considering the wider investment opportunities, integration with other major developments and wider transport implications

Action: Establish an Atlantic Gateway Transport Group.

Action: To coordinate a logistics review.


There is often a challenge in trying to be both internationally competitive and reduce the environmental impact of growth. Given the scale of infrastructure investment in Atlantic Gateway it provides an opportunity to be ambitious and move towards being a low carbon growth area. By having a ‘low carbon’ theme, Atlantic Gateway is signalling that it takes its environmental responsibilities very seriously and that growth will not be at any cost. Indeed growth often provides an opportunity to replace old infrastructure with latest technologies that are often more cost effective and more sustainable. Atlantic Gateway provides a scale and a platform to consider a range of sustainable infrastructure issues that may impact upon the success of its existing business base and the potential to attract new investment. Key issues include:• security and capacity of energy provision;• use of renewable energy sources;• waste management for a growing economy; and• flood risk and water management.

All of these issues are critical for businesses although security of energy supply is one of the most significant issues facing the UK and was ranked alongside transport networks as the biggest concern for UK businesses in the recent CBI/KPMG survey11. A failure to address this issue will deter international investment. Atlantic Gateway can play a valuable role in terms of:• developing a clear case for using low carbon technologies across Atlantic Gateway and

championing this with Government, investors and other partners;• coordinating action across LEPs on critical issues which may constrain development such as

energy supply and flood management; and• providing leadership across LEPs to support the development of infrastructure solutions.

Rapid transition to low carbon technology is an agreed policy priority both nationally and across LEPs. The development of new models of sustainable economic growth are recognised in strategies such as the recent Greater Manchester Climate Change Strategy. Innovative projects that exploit new and advanced low carbon technologies to provide energy close to where it is needed are at various stages of implementation across Atlantic Gateway. Atlantic Gateway is supportive of new technologies and innovative models for delivery that help to provide solutions to the long term secure provision of low

Priority: Manchester andLiverpool Airports

Priority: Low carbon renewable energy technologies

Theme 3 Infrastructure:Developing low carbon infrastructure and low carbon technologies

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11 The KPMG/CBI Infrastructure Survey(September 2011)

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Ince Park is a resource recovery park which has been developed to provide land to businesses in the waste recycling and reprocessing sectors and to environmental technologies businesses. It is anticipated that the Park will create more than 1,000 jobs with more than £500m of investment. The Park will also deliver a new port facility on the Manchester Ship Canal and a new rail terminal. The most significant challenge facing this sector is the availability of funding for facilities, product development and growth. Buildings often require unique designs and specifications which have a limited range of uses and the buildings are often on a large scale due to the bulky nature of waste being processed. Ince Park will support Atlantic Gateway in developing low carbon technologies and promoting new businesses in this sector. It will also form part of a portfolio of projects to develop the area as a sustainable place for businesses addressing long term waste issues.

Action: To provide an advocacy role and support greater collaboration.

Flood risk and water management, including water supply and quality, are critical issues that will affect opportunities for new development and existing businesses across all three LEP areas. A more collaborative approach to these issues is critical to the long term growth prospects of the Atlantic Gateway area may also bring new land sites into use and open up new investment opportunities. For example, one in six properties in England is at flood risk and Salford, Manchester and Lancashire are the three local authorities within the north west which have the highest flood risk rank. It is also estimated that by 2014, areas of the north west will face difficulties with water supply and may have insufficient amounts of water to function at normal levels.

These issues will constrain development and investment unless there is better collaboration across LEPs to identify issues, prioritise actions and develop a coordinated approach. The Environment Agency is a key partner and is both a regulator and an advisor on critical issues such as water management, flood risk and climate change. Several pieces of work are taking place across the area which include the Environment Agency and are relevant to Atlantic Gateway considering issues and strategies such as water cycle strategy, waste generation, energy infrastructure and flood risk assessment. It is critical that the 3 LEPs continue to contribute towards these and Atlantic Gateway is a good forum for this due to the interdependencies betweens between physical development and flood risk, climate change, waste and energy requirements, water supply and water quality. An Atlantic Gateway environmental sub-group already exists which will have a role in developing the Adapting the Landscape programme (see Sustainability theme). Other issues will be considered by that group such as general environmental infrastructure, waste, water and flooding.

Action: To support greater collaboration and joint working across LEPs and other organisations.

Atlantic Gateway is at the heart of the first region in the world to industrialise on a massive scale. It paid a very heavy price in pollution and environmental degradation. Accelerating the pace of transformation from ‘grey to green’ will benefit business competitiveness and communities as well as the environment. The focus on Adapting the Landscape within Atlantic Gateway follows on from the clean-up of The River Mersey, its tributaries and the entire river basin which has been taking place over more than twenty five years. Water quality improvements have enabled and helped to stimulate huge private sector investment in waterfronts across the area. Adapting the Landscape and ‘greening’ should:• underpin sustainable economic growth;• enable smart adaptation and mitigation in response to climate change;• support the multiple benefits of enhanced ecological systems and wildlife; • help to improve perceptions of place by businesses, residents and visitors;• provide space for leisure, recreation, play, culture, sport and events;• connect people to employment, education, leisure and each other;• engage people and deliver health benefits; and

Priority: National Technology Innovation Centre (Renewable)

Priority: Flood water and management

Theme 4 Sustainability:Adapting the landscape

24

• support infrastructure upgrades and requirements relating to power, water and waste to add capacity for the growth of key sectors.

Priorities must be shaped by value, quality, connectivity, productivity and resilience. They recognise existing agreed priorities including city greening, waterfront regeneration and access initiatives, landscape diversity interventions, landscapes for energy and environments for business that support the development of the low carbon economy. The Atlantic Gateway difference is that of adding value through a whole systems approach across the entire area.

Figure 4: Adapting the Landscape overview

Physical development affects local communities as well as local environments and environmental improvement and development need to be progressed positively together to maximise investment opportunities, create jobs and improve local environments. The proposed Atlantic Gateway Community Environment Fund involves a voluntary levy of 1% on the total value of capital investment by partners in the Atlantic Gateway area. This funding will be used to invest in environmental improvements for the benefit of local communities to ensure that they are not adversely affected by development. Working closely with third sector organisations, this funding can be leveraged and used to secure additional resources such as sponsorship and volunteer input. This will be managed by the Land Trust and discussions have already taken place about the operation of the Fund with potential delivery partners.

Action: To provide an advocacy and coordinate the finalization of the business plan and delivery model.

UK’s National Ecosystem Assessment provides a useful analysis of the natural environment in terms of the benefits it provides to society and to economic prosperity. For example, the benefits of living near to coasts, rivers and wetlands are estimated at £1.3bn. Many international studies underline the importance of the natural environment to successful economies. In support of this, DEFRA have recently launched a Nature Improvement Area programme for areas which can demonstrate a shared vision for significant environmental enhancements across a large area to improve wildlife and ecological habitats. The scale of Atlantic Gateway provides an ideal opportunity to develop its own Nature Improvement Area working with delivery partners.

Action: To provide an advocacy role in support of sustainable natural environment proposals.

Priority: Community Environment Fund

Priority: The Natural Environment

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The Natural Environment

Within the Atlantic Gateway there is an impressive record of achievement in exploiting the potential of waterfronts to support and stimulate investment. In Greater Manchester, Irwell River Park is the City Region’s new international waterfront destination, connecting more than £3bn of investment along its route, linking MediaCityUK to the centre of Manchester, creating a single destination for businesses and visitors. On Merseyside, the multi-agency Mersey Waterfront Regional Park programme has successfully brought together the local authorities and developers. It has opened up new areas of The Estuary for development, investment and the growing visitor economy. Internationally, exemplars such as Emscher Park in the Ruhr demonstrate the value of a bold, ambitious, long term programme as a stimulus to investment and business growth. The Atlantic Gateway Landscape Park, with the primary objective of supporting economic growth, will enable leadership, coordination and focus for an integrated environmental improvement programme. A systems approach, building on the analysis and scenarios of Adapting the Landscape, integrating the requirements of European Directives as well as national, city regional and local authority green infrastructure ambitions, will benefit investors, businesses, residents, visitors as well as the environment. There will be a commitment to improving the image of the area by seeking efficiency and design measures to reduce emissions, water consumption and deliver adaptation measures.

Action: To provide an advocacy role and finalise the business plan.

Major public art interventions such as Gormley’s Another Place on Crosby beach and Plensa’s Dream at Sutton Manor have secured enthusiastic local support as well as national and international critical acclaim. They have succeeded in putting previously unknown places on the visitor economy map. International experience shows that linking iconic landmarks together on a landscape scale generates levels of interest that add up to far more than the sum of the parts.

Action: To provide an advocacy role.

Priority: Atlantic GatewayLandscape Park

Priority: Landmarks

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Atlantic Gatewayeconomicbenefits

By 2030, there is the potential for some 250,000 new jobs to be created within the Atlantic Gateway area. Around 140,000 of these jobs will be associated with identified key Atlantic Gateway priorities, involving £14bn of new investment and generating an economic impact of more than £6bn per annum.

An analysis has been undertaken to determine the proportion of this impact that can be deemed additional and as a direct result of Atlantic Gateway. This has been based on the assessment of individual Atlantic Gateway priorities, where feasible, with adjustments made in relation to the following factors:• leakage – the proportion of the benefits that accrue to people living outside the area of focus;• displacement – the proportion of the outputs that are accounted for by reduced outputs elsewhere

within the area of focus;• multiplier effects – further economic activity associated with local supply chain (Indirect) and

consumption (induced) multiplier effects; and• deadweight – the level of benefits that would be realised if the projects were not to proceed.

The adjustments for additionality have been based on a review of the key priorities and other evidence, in particular BIS research to improve the assessment of additionality.

After allowing for what would happen anyway and other possible reductions (or increases) in activity elsewhere in the local economy, it is estimated that almost 130,000 net additional jobs could be created as a direct result of Atlantic Gateway priorities. This would generate an additional £75bn (cumulative) of Gross Value Added (GVA) within the local economy, over the period to 2030. The graph below highlights how the scale of economic benefits forecast within the Atlantic Gateway will make a major contribution towards supporting the growth of the local economy and narrowing a north-south divide in terms of growth opportunities. The area’s average annual economic growth rate for the period 2011-2030 is set to increase from 2.5% p.a. to 2.9% p.a. By 2030, almost £6.8bn additional GVA will be added each year to the Atlantic Gateway area’s economy.

Figure 5: Economic growth within the Atlantic Gateway

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100

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xed

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gro

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Projection without Atlantic Gateway projects

Projection with Atlantic Gateway projects

Net additional impact

The table below sets out the total investment, jobs created and GVA impact of the priority projects for Atlantic Gateway. Over the period to 2030, these projects (excluding High Speed Rail 2 and Next Generation Broadband access12 which are subject to scope) will involve around £14bn of investment and are expected to create some 140,000 new jobs. The impact to the local economy will be a growth in GVA of more than £6bn per annum once the priorities are fully operational.

In addition to the specific priorities outlined in the table, additional benefits will also be created as a direct result of Atlantic Gateway over and above financial investment, jobs and GVA impact. For example, the Atlantic Gateway includes a major commitment to improving the image of the area and environmental improvements. It is also committed to supporting sustainable growth and many of the priority projects will have a significant impact on the level of carbon emissions.

Benefits of Atlantic Gateway projects

Benefits of Atlantic Gateway projects

Atlantic Gateway Themes and Priorities Estimated Costs Estimated Economic Benefits13

Theme 1 – Growth

Daresbury £150 million 10,000 jobs


MediaCityUK £1 billion 10,000 jobs


Theme 2 – Connectivity

Port Seaforth – post-Panamax £300 million 5,900 jobs


Port Salford £140 million 4,000 jobs


Port and other logistics related

development14

£330 million 11,300 jobs


3MG £140 million 5,400 jobs


Mersey Gateway Bridge £600 million 4,600 jobs

£61.9 million GVA p.a.

The Northern Hub £560 million 23,000 jobs


High Speed Rail 2 Atlantic Gateway £ subject

to scope

Dependent upon scope

Next Generation Access – Broadband Dependent upon scope Dependent upon scope

Liverpool Airport Expansion £600 million 5,600 jobs


Manchester Airport – Airport City £400 million 10,000 jobs


Theme 3 – Infrastructure

Ince Park £500 million 1,000 jobs


Others – including flood and water,

Innovation Centre and Mersey Tidal


Theme 4 – Sustainability

Adapting the Landscape programme Dependent upon scope Dependent upon scope

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12 These priorities have been excluded from the estimates in the table as costs and jobs are subject to scope at this stage

13 Source of data is from a wide range of reports by various authors on an individual project basis

14 Note that ‘Port’ priorities are at various stages of development. Port of Liverpool/Salford have been fully costed/impacts assessed - other port proposals are in development

ATLANTICGATEWAY

ATLANTICGATEWAY


The benefits of creating a place where people want to live, visit, work and do business and which will be supported by new sustainable infrastructure are not captured in the analysis of jobs and GVA outlined above. Atlantic Gateway will have a major impact in attracting and retaining investment, new businesses and people. It will also deliver significant wider benefits such as improved health and quality of life. Atlantic Gateway priorities will also have a positive impact on deprivation levels and other knock on effects such as reducing unemployment, increasing exchequer benefits through higher taxation and lower benefit levels and improving skill levels and educational attainment.

Evidence from case studies from across the globe highlight the real value initiatives such as Atlantic Gateway can add, ranging from “branding and international promotion, human capital development and hard infrastructure development to investment attraction and retention as well as partnership facilitation and visioning”16. Atlantic Gateway will seek to play a similar role, maximising the opportunities, investment and benefits that can be delivered through:• bringing together otherwise separate interventions to create a critical mass of activity unmatched

within the UK outside of London;• engaging investors, developers and other external businesses, highlighting the opportunities and

competitive advantages within the Atlantic Gateway;• increasing the scale and pace of change by maintaining momentum and a strategic focus;• leveraging assets and private sector investment to provide the resources required to achieve a truly

sustainable step change in the economic prospects for the area;• creating a brand and marketing the area as a place to do business and invest, establishing Atlantic

Gateway as a global presence; and • providing leadership and coordination across key priorities.

In doing so, the effect of Atlantic Gateway will be to accelerate the delivery of key projects by partners, maximise the scale (and timing) of investment within the area and increase the likelihood that major development opportunities will come to fruition. Without the coordination, collaboration, branding and scale provided by Atlantic Gateway, there is a real danger that the vast potential of an area supporting a population of some 6 million people will be wasted. Atlantic Gateway will provide the mechanism to address development constraints and accelerate growth of the UK’s second largest economic area.

Wider benefits of Atlantic Gateway projects

The Atlantic Gateway effect

Atlantic Gateway Themes and Priorities Estimated Costs Estimated Economic Benefits13

Other Emerging Priorities15

Liverpool and Wirral Waters £5.5 billion & £4.5 billion 20,000 and 27,000 jobs

£1billion & £1.4 billion GVA p.a.

Warrington Waters £374 million 13,000 jobs


Warrington North £314 million 25,000 jobs

£1.25 billion GVA p.a.

Low carbon electric vehicle technology Dependent upon scope Dependent upon scope

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15 Whilst these have not been agreed as priorities, key data relating costs and jobs have been included in this table to indicate the scale of development and estimated impact on the economy

16 OECD (2010), Organising Local Economic Development: The Role of Development Agencies and Companies

The Atlantic Gateway is a private sector led mechanism for maximising investment opportunities. An Atlantic Gateway Partnership Board has already been established to provide strategic leadership and oversee the development of its investment priorities. The Board includes three business representatives from each of the LEPs, three local authority leaders from each of the LEP areas, one voluntary sector member and at least three private sector representatives. To achieve its vision and deliver against its objectives, Atlantic Gateway will require support from across the three LEP areas and from Government. It will also require the resources to deliver its business plan.

Atlantic Gateway is at an exciting stage in its development. Priorities have been agreed, there is support from across the public and private sector and there is significant interest from potential investors and from across Government. The next steps for the Atlantic Gateway Partnership Board are to agree on proposals for what it will do and how (an Action Plan) along with who will do it and how it will be funded (a Resource Plan). It will also continue its dialogue with key stakeholders, including LEPs, the Government and the private sector, to establish Atlantic Gateway as an internationally significant investment opportunity that will drive UK economic growth and help to rebalance the economy.

Atlantic Gatewaymaking it happen

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july 2012 - welcome to atlantic · pdf fileinvestment bank is likely to be operational in 2012...

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