PLANS for a £240m new deep-sea container terminal at the port of Felixstowe have been approved by the government.

The decision means that of the four proposed container terminals in the south-east, only Dibden Bay in Hampshire has been turned down.

Officials have already made it known they are "minded to approve" proposals for container terminals at London Gateway by P&O and at Suffolk's Bathside Bay by Hutchison Ports

Always the least contentious of the four proposals, Felixstowe South because it is to be sited on land already used for port operations.

Dibden Bay was rejected by the government in 2004 after a 13-month public enquiry.

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

However, the scheme, which would have created 1,800 jobs, sparked massive opposition from local authorities and leading conservation groups and was eventually sunk on environmental grounds.

In contrast, Hutchison Ports' plans for Felixstowe and Bathside Bay have been praised by environmental groups for their positive attitude towards conservation.

Hutchison Ports UK chief executive Chris Lewis said: "There is a substantial and very obvious demand for further UK port capacity to cope with ever-increasing volumes of international trade.

"This decision is good news for shipping lines and UK importers and exporters, who can now be confident that extra capacity will be brought onstream as soon as possible."

Work at Felixstowe is expected to start within six months and the facility is forecast to be operational some time in 2008.

A spokesman for ABP said the company no longer wished to comment on Dibden Bay and said: "Although we regret the government's decision on Dibden Bay we are moving on ahead with investments around the group."