Days before Christmas 2005, the Secretary of State indicated that he was 'minded to approve' the development subject to some clarifications. These included making sure that the right conditions were imposed on the development to secure the necessary highways improvements in time to provide congestion relief. As a result, road upgrades must be underway before Phase One construction is allowed to begin at Bathside Bay. As permission is still required to upgrade the A120, this process is expected to delay the start of works to at least 2009.

Announcing his decision late last month, Transport Minister Derek Twigg said, 'We are committed to sustainable distribution and this new project would play a large part in securing that aim. We understand at the same time that the new terminal will have a significant impact on the environment. This is why we have imposed controls on the development, to provide new road and rail infrastructure so that congestion does not increase, to provide compensatory habitats for wildlife displaced by the scheme, and to reduce other environmental impacts such as noise, pollution, and the visual impact.'

The only port planning application still to be decided is P&O's London Gateway project at the former Shell Haven site on the River Thames. This project will require infrastructure investment by Dubai Ports World, which recently acquired P&O.

When London Gateway has been decided, the government will launch a review of UK ports policy in the face of widespread industry criticism of the lengthy delays which are the norm before consent is given for ports projects and the lack of clarity over who should pay for related road and rail infrastructure upgrades.

MJ Information No: 21732