AN alliance between two large borough ports on the Thames could create thousands of new jobs in a post Covid-19 economic boom say the two operators.

The Port of Tilbury and London Gateway plan to submit a joint bid to create a Freeport in Thurrock. A free port or "free zone" is an area inside a country's geographic boundary but which is legally considered outside the country for customs purposes.

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Report by Local Democracy Reporting Service's Steve Shaw and Nub News editor Neil Speight

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As a result, goods brought into the free port don't face import tariffs and are very attractive to businesses which predominantly rely on imported goods.

However, there are currently none in the UK after a law which permitted them expired in 2012.

Plans to bring them back, with Thurrock to the fore were mentioned in Thurrock Nub News' recent exclusively local report on potential developments in the Thames estuary.

Bosses of the two ports say up to 36,000 direct and indirect jobs could be created at London Gateway alone, once the site is fully built out.

Charles Hammond, Chief Executive of Forth Ports, the owner of Port of Tilbury, said: "Thurrock is at the heart of the port industry in the South East and the development hub of the Thames estuary.

"This joint bid brings together our complementary strengths which will create a strong, export-focused case for a freeport designation."

The Port of Tilbury is the largest multi-purpose port serving the South East and is the UK's fastest-growing port and in May it opened the UK's largest unaccompanied freight ferry terminal at Tilbury2 – a new port terminal built on the site of the disused Tilbury Power Station.

Ernst Schulze, DP World UK CEO, added: "We believe a freeport on the Thames will ensure that the UK continues to be an attractive destination for inward investment, and that bringing London Gateway within a freeport will help lower the total cost of trade to the benefit of UK industry and retailers and ensure resilience in the overall supply chain.

"Working with Forth Ports will enable us to create the most sustainable, strategically located, trade enabling centre of excellence in the UK, whilst allowing us to support the development of local industry and create high skilled employment for the local area."

Prime Minister Boris Johnson been enthusiastic to create free ports as a way to boost trade after Brexit.The Government announced in August last year the creation of a new Freeports Advisory Panel which will advise Whitehall on the formation of 10 new free ports across the country.

However, not everyone is enthusiastic about the new Freeport idea. Councillors in neighbouring Southend are divided over the potential benefits.

"If it works why not. There is a business opportunity."

Southend Labour councillor Matt Dent said he fears it will not create new businesses but simply move them from other areas such as Southend.

He said: "In the past free ports haven't really been an unfettered success when they have been implemented but if the Port of Tilbury and London Gateway believe they have something that is workable then it needs to be heard out.

"I do think this is not the slam dunk some want to portray it as.

"Free ports tend to move existing businesses into a certain areas to legally avoid tax. You are not creating new business, just moving existing businesses into this zone.

"This means often you are causing businesses in the immediate area to relocate and that is a potential risk to Southend. The town doesn't have an abundance of those sorts of businesses but those that we do have may look at this and think its economically advantageous to move out of Southend, which is not something I want to see."

However, Southend Council's Labour leader, Ian Gilbert was more positive about the plan.

He said: "Certainly more jobs into the area is a good thing, I already know a fair number of people in Southend who work at the port facilities in Tilbury and so any further jobs created can be a benefit to the whole area."

The council's Independent deputy leader Ron Woodley said he was unsure what was possible with free ports but if this can happen in Thurrock, he would be open to Southend Airport exploring whether that could also be made a free port.

He said: "If it works why not. There is a business opportunity."

Nationally the Conservatives have been keen supporters of free ports, with Chancellor Rishi Sunak claiming they "will unleash the potential in our proud historic ports" and will attract new businesses "spreading jobs, investment and opportunity to towns and cities up and down the country."

But the Labour Party has been less enthusiastic. Former shadow chancellor John McDonnell has said there is "little solid evidence" that they create jobs or boost economic growth. He branded the idea as only supporting "the super-rich, who will use free ports to hoard assets and avoid taxes."

The European Union has also criticised the ports in a 2019 report which warned the trading zones can allow for the movement of fake goods and said they are an emerging threat for "VAT fraud, corruption and money laundering".