SOUTHAMPTON'S place at the forefront of Europe's cruise business has been cemented for the next 20 years, with the signing of an historic agreement with the world's biggest cruise company.

Port bosses are celebrating the 20-year deal which ties Carnival, which owns the P&O, Cunard and Princess Cruises brands, to Southamp-ton until 2028.

It's good news not just for the port but for scores of Hampshire firms which rely on the cruise trade for their income. Each call is estimated to generate more than £1m for the regional economy.

The long-awaited agreement underpins plans for a new £19m state of the art cruise terminal on the Ocean Dock, opposite the former Ocean Terminal.

It also lands Southampton the title of busiest turnaround cruise port in Europe.

Work is expected to start in spring next year and the terminal to be in use by 2009. It will be designed to cope with up to 4,000 passengers at a time and will be used by P&O's vast new Ventura ship, which is due to arrive in April next year.

The deal between Carnival and port owners ABP brings to an end more than 12 months of negotiations to get Carnival to commit to Southampton as its premier UK facility.

It follows an agreement with world number two cruise company Royal Caribbean, which underpinned a £9m revamp of the City Cruise Terminal.

Almost one million cruise passengers are expected to pass through Southampton in 2008 and the landmark seven figures is expected to be breached in 2009 as the city rides the cruising boom.

Port director Doug Morrison said: "The fourth cruise terminal is nice but the important point for me is that Carnival is committed to Southampton for 20 years. This means Southampton will be its premier cruise terminal in the UK for the next 20 years.

"I think that's fabulous news not only for the port, but for the city and the region."

"We are delighted to be building the new terminal, on the back of this long-term agreement, as it not only strengthens our close relationship with Carnival but also demonstrates our faith in the future of this trade.

"It is worth remembering just how much of a boost it will also give the city and the wider regional economy. The region's businesses thrive on a healthy cruise market and I am overjoyed that the signing of our agreement will have such a positive knock-on effect for Southampton and the surrounding area."

Carnival UK chief executive officer David Dingle said: "The new terminal agreement comes as we prepare to base further new ships in South-ampton.

"Our new ships are testament to the growth of the cruise industry, the strength of its links with Southampton and its massive economic contribution to the region."