It is now hoped that a new terminal will open up more opportunities for trade with the Far East and elsewhere. It will also be a major catalyst for economic regeneration in the North East.

The proposed development would create a new deep sea container terminal at Teesport, which lies on the south side of the river Tees. Royal Haskoning is preparing a construction and engineering report and carrying out an environmental impact assessment (EIA) for the project.

The location chosen for the terminal is a brown field site that was formerly an oil refinery.

The EIA will be used to identify and assess potential environmental impacts associated with the proposed terminal development and associated dredging. Where appropriate, mitigation measures will be proposed in order to minimise any adverse impacts that are identified.

It is envisaged that the development will also bring beneficial socio-economic impacts and it has the potential for wider environmental and ecological benefits which will be explored in the EIA. At the national level, the addition of this new 'northern gateway' for international trade is expected to reduce the need for inland transportation from the southern UK ports. This would have benefits in terms of a net reduction in emissions from traffic.

A wide-ranging consultation process is underway, with the involvement of interested environmental parties such as English Nature and the Environment Agency. Royal Haskoning's work will enable the submission of a planning application to the local planning authority and a harbour revision order to the Department for Transport in the autumn of this year. The aim is to carry out a thorough EIA so that there will be the minimum of delay in the application approval process, enabling the development of the new terminal as soon as possible.

The plan is for the addition of capacity for handling 1.5 million teu in a phased development over several years.