PROPERTY developers are already queuing to buy land at Vosper Thornycroft's shipyard in Southampton, it emerged today.

They are eyeing up the prime waterfront site after the company - a household name in the city- confirmed its future operations are to centre on Portsmouth.

VT chief executive Martin Jay said discussions over the Woolston site would take place with Southampton City Council. He said VT had been inundated with letters from developers since the announcement in July of a possible move to Portsmouth.

Mr Jay said it was a hard decision to relocate but pledged the existing workforce would be retained for Portsmouth.

He added: "There will be some special circumstances where it's difficult for people to move, maybe for family reasons, but we should achieve very nearly 100 per cent."

Union bosses branded the decision to move as "terrible" and Southampton MP John Denham expressed "deep regret".

The company said space constraints at its Woolston base meant that Portsmouth had clear advantages. It has already secured planning permission to build the necessary facilities in the naval base and will be moving its operations there from 2002.

Mr Jay said that a "significant" number of jobs would remain in Southampton at a new manufacturing centre and the company's headquarters would stay in the city.

Youngsters will also be trained in shipbuilding apprenticeships and links with local colleges would be maintained.

"We will try to leave as many jobs behind in Southampton as we can, and it will be a three-figure number," said Mr Jay.

Mike Budd, chairman of the Confeder-ation of Shipbuilding and Engineering Unions, said yesterday's announcement, as reported in later editions of the Daily Echo, had realised his worst fears.

"The morale of the yard is now at an all-time low and it's a desperate situation we are going to have to cope with," he said.

"It's a devastating blow to Woolston and the local community, and I think it's a terrible decision for the company to make."

Southampton Itchen MP John Denham said he would work with the company to secure short-term contracts to keep the Woolston workers employed until the move.

But he added: "This is a real blow at a time when the local workforce is already facing hundreds of redundancies."

Southampton City Council leader June Bridle said it was a sad day for the city.

"The decision by VT to move production out of the city was opposed by the city council and will be met with regret by Southampton people," she said.