The Cardiff Parkway project is poised to significantly boost the economy of the Cardiff Capital Region. This transformative initiative, featuring a mainline train station and an expansive business park, promises substantial economic and employment benefits.
The proposed development, still awaiting planning approval, has the potential to reposition Wales as a key player in attracting inward investment. This article delves into the various facets and anticipated impacts of the Cardiff Parkway project.
Economic Impact Assessment
The business park component of the Cardiff Parkway project is projected to contribute an annual economic uplift of up to £265 million to the Cardiff Capital Region, totalling £5 billion over a 20-year period. Independent research underscores the significant potential of this development in attracting inward investment to Wales.
Situated in the St Mellons area of Cardiff, the mainline train station integrated into a 900,000 sq ft business park is currently awaiting planning approval from the Welsh Government. This ambitious project promises to provide much-needed Grade A office, R&D, and tech space, which is scarce within Cardiff’s centre.
Job Creation and Industry Support
The phased development of the business park is expected to offer approximately 900,000 sq ft of employment space. This includes advanced manufacturing provisions and specialised spaces which Cardiff currently lacks.
Engineering giant Rolls-Royce has appraised the site and identified it as a potential hub for high-tech roles linked to a multi-billion contract for new nuclear submarines for the Australian government. Such endorsements highlight the site’s strategic importance.
Rolls-Royce has already initiated operations in the nearby Paramount Business Park, creating nearly 200 high-tech jobs. The Cardiff Parkway site could further enhance this presence, potentially generating thousands of additional jobs.
Savills Report Insights
A leaked Savills report, commissioned by the Cardiff Capital Region, suggests that the business park alone could provide around 5,000 on-site jobs
The report estimated that the net gross value added for the region would range from £175 million to £265 million annually. This assessment considers the displacement factor of the business park, drawing investment from other parts of the region.
Moreover, Savills forecasted a considerable rise in business rates for the region, estimating an increase of around £3.3 million per annum. Over a span of 25 years, this could potentially total £65 million (NPV), with optimistic scenarios projecting figures upwards of £103 million.
Transport and Connectivity Benefits
The assessment does not directly account for the economic benefits stemming from the Cardiff Parkway station and park and ride facilities. However, the presence of such amenities is expected to attract high-value occupiers, thereby indirectly boosting the site’s value.
The transport facilities are a cornerstone of the site’s appeal, enhancing connectivity and accessibility. This positioning underscores the projected additional benefits, complementing those estimated in the broader economic assessment.
Competitiveness and Strategic Position
The Savills report also reviewed the impact on 39 allocated employment sites across the city region, identifying only one site near Junction 30 of the M4 as a potential competitor. However, this site is largely designated for residential use.
The level of displacement caused by the Cardiff Parkway project on existing and pipeline office schemes is expected to be limited. This suggests that the project would introduce new opportunities rather than disrupt existing ones.
Furthermore, the Cardiff Parkway site is seen as a significant catalyst for economic growth, particularly in attracting inward investments in strategic sectors, thereby reinforcing Wales’s economic standing on a national and international scale.
Project Development and Government Support
Cardiff Parkway Developments Ltd, the driving force behind the project, has the Welsh Government as a minority equity holder with a 10% stake, following an investment of around £6 million. The remaining shares are held by Investec and entrepreneur Nigel Roberts and his family.
The project’s inclusion in Cardiff Council’s development plan highlights its strategic importance. However, planning approval delays by the Welsh Government have caused some setbacks.
Despite these delays, Planning Inspector Tony Thickett’s report, backed by cross-party support, favours the project’s approval. The new Welsh Government, under First Minister Eluned Morgan, has the opportunity to reset its relationship with the business sector and prioritise this significant development.
Future Prospects and Financial Considerations
Once approved, Cardiff Parkway Developments Ltd will need to revisit its business and financial plans in light of the planning delays. The project, initially estimated at £120 million pre-Covid, is expected to face increased costs due to inflationary pressures.
While the station is positioned as a privately funded initiative, the operational model includes management by Transport for Wales (TfW) and revenue generation from train companies. This collaborative approach is pivotal for the project’s financial viability.
The Cardiff Parkway project stands as a beacon for economic growth and strategic development within the Cardiff Capital Region. Its potential to generate substantial economic benefits and thousands of jobs underlines its importance.
With planning approval pending, the project’s realisation could mark a pivotal step in enhancing the region’s economic landscape, fostering both local and national prosperity.