IT was one of the biggest environmental battles ever fought in the UK. Wildlife groups and big business crossed swords over plans to build a container terminal at Dibden Bay, a heavily protected part of Southampton Water.

The bitter battle ended a year ago, when the government rejected the controversial scheme after a 13-month public inquiry.

The multi-million-pound plan had been put forward by Associated British Ports (ABP), which wanted to build a six-berth terminal on reclaimed coastline between Hythe and Marchwood.

ABP chiefs said Southampton Docks were running out of space and claimed that the Dibden Bay scheme was vital to the port's future.

One of their biggest worries was the threat posed by plans to expand the rival Bathside Bay port at Harwich and proposals to construct a container terminal at the Shell Haven site on the Essex coast.

They warned that Southampton would be left behind if its competitors were allowed to steal a march on the port.

The Dibden Bay plan, which would have created 1,800 jobs, sparked massive opposition from local authorities and leading conservation groups.

Critics claimed the scheme would destroy one of Britain's best wildlife sites.

People living in the area also objected to the application and formed an action group called Residents Against Dibden Bay Port (RADBP), which played a key role in the campaign.

RADBP chairman Paul Vickers, of Hythe, was one of the leading figures at the inquiry.

"The more I understood the detail the more I thought it was drifting away from ABP and would not happen," said Mr Vickers.

"As the inquiry went on and we turned the rhetoric into fact, our case seemed to get stronger and stronger."

The decision to reject the proposal was taken by transport minister Tony McNulty, who said the environmental impact of the terminal would be too great.

Attention has now switched to the Shell Haven and Bathside Bay projects which, if approved, could have massive implications for Southampton.

Both schemes have been the subject of public inquiries, but the results have yet to be announced.

At Bathside Bay, Hutchison Ports (UK) Ltd wants to build the second biggest container terminal after Felixstowe.

In a re-run of the Dibden Bay debate, environmentalists have claimed the scheme would destroy a huge area of inter-tidal habitat used by several species of birds and thousands of waterfowl.

The Shell Haven scheme has been put forward by shipping company P&O, which wants to create a 168-hectare terminal.

Objectors say the massive scale of the development would have a devastating impact on the daily lives of people living in the area.

Meanwhile, those who fought the Battle of Dibden Bay are still savouring their success.

New Forest East MP Julian Lewis commented: "It seems only yesterday that this amazing victory against what once appeared to be overwhelming odds was won by our entire community."

Asked about the site's future Dr Lewis said: "One has to recognise that ABP owns Dibden Bay.

"The company has the right to decide what should be done with it, as long as it doesn't infringe the environmental requirements of a site so close to population centres and the New Forest.

"Any new proposal for the land will have to be something that does not affect the protected foreshore.

"I suspect it will be something they will undertake very carefully and with a great deal more sensitivity that the ill-fated container port project."

County councillor Brian Dash was also an outspoken critic of the ABP scheme.

He said: "Everyone was delighted with the government's decision, which retained the Waterside's character and preserved the living environment of people in the area."

Dibden Bay is among the topics covered in the latest newsletter published by the Campaign to Protect Rural England (CPRE).

Mike Chilcott, chairman of the New Forest and Southampton branch, says: "In the 1970s and 1980s CPRE argued against the allocation of the site for port-related use.

"In those days CPRE was almost a lone voice.

"However, when ABP's proposals became firm in the 1990s CPRE was among tens of other organisations and thousands of individuals who saw that huge damage was threatened."

House prices in Hythe and Marchwood were expected to rise sharply in the wake of the government's decision to reject the £750m port plan.

But estate agents say property values in the area have been held back by a national downturn in the market. Meanwhile, ABP remains unmoved by the first anniversary of its defeat. Port Director Doug Morrison said: "We have moved on and are busy concentrating on expanding the business. Dibden Bay is not on my radar screen at this time."