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London Gateway Port

I am today setting out my position on the proposals submitted by P & O to develop a new container port at the old Shellhaven oil refinery site in Thurrock, Essex. I am minded to approve the proposals, subject to satisfaction on a number of outstanding issues including the provision of additional highway capacity in the area. This position, and the reasons for it, are set out in the minded letter my Department has issued today. It follows a public inquiry in 2003 into the application for approval for the port development, and also into an application from P & O and Shell UK Ltd in respect of an adjacent commercial and logistics centre. The inquiry inspector recommended last year in favour of both proposals, subject to conditions including the provision of extra highway capacity in the area to accommodate traffic likely to be generated by the two developments in combination. The Office of the Deputy Prime Minister is today issuing a parallel minded to approval for the commercial and logistics centre. The Government fully recognise the nation's and industry's needs for additional container port capacity in order to meet future economic demand. However, it is important that any new development, particularly on this large scale, be sustainable in a manner consistent with Government policy. We need to be sure, in particular, that the impacts of the full development on the area's highway network can be accommodated, and that any measures proposed to mitigate those impacts are not only adequate but also likely to be carried out. The Government are therefore inviting the promoters over the next three months to discuss with the relevant highway authorities the means of addressing future highway capacity. We are hopeful that the relevant parties will then be able to agree on a way forward. A copy of the Department's letter to the applicants for the port has been placed in the House Library.