Plans for a £400m container port in Southampton were this week rejected by the government after a planning inquiry
The decision, announced by transport minister Tony McNulty on Tuesday, is a setback for client Associated British Ports, which invested £45m in the proposals for the Dibden terminal. It will also be a blow for the construction team, which was led by Sir Robert McAlpine.

The decision comes after a public inquiry into the proposals held between November 2001 and December 2002. The Department for Transport's decision was based on the planning inspector's conclusion to that inquiry.

McNulty said he had rejected the plans for environmental reasons. Campaigners against it, such as Friends of the Earth, said it would blight a large area of the New Forest. ABP had wanted to create a deep-water quay with six berths, covering 240 ha.

We are disappointed but we have plans to invest £400m over the next 10 years in other projects

ABP chief executive Bo Lerenius

McNulty said: "The government fully recognises the nation's and industry's need for additional container port capacity in order to meet future economic demand, but every proposed port development must be justified on its own merits."

A source on the project team expressed his frustration at the decision and said it had come as a shock.