MAJOR expansion plans at Southampton’s container terminal are under review amidst “some of the worst market conditions the container terminal industry has seen”.

The Arab operator of Southampton’s container terminal has confirmed trade has been hard hit by the slowdown in the global economy and it is now looking again at plans to increase capacity in Southampton and has put a freeze on recruitment.

Bosses had hoped to create a new berth and take over more port land in order to increase capacity to 3.7 million containers from the current capacity of around 1.9 million.

The news follows exclusive revelations in the Daily Echo that volumes at Southampton docks have plummeted ten per cent.

Port insiders have revealed the steep drop off in container operations – equivalent to around 190,000 containers.

Now the firm, 80 per cent of which is owned by the Dubai government, said the firm expected “challenging conditions” to remain for the foreseeable future.

Dubai Ports World has a 51 per cent share of the Southampton facility, which employs 1,000 people. Docks owner ABP has the remaining 49 per cent.

Campbell Mason, managing director of DP World Southampton, said: “Clearly, 2009 promises to be a very challenging year right across the cargo transport supply chain. During the year we will, however, be continuing planned investments in key civil works, cranes, yard equipment and systems to meet our customer demands. “We are still actively working with the port authority, ABP, to progress the necessary applications for dredge and civil works which are central to our longer term expansion plans.

“However, given the current economic environment and the dramatic slowdown in containerised trade, the costs and timing of further expansion work will be very closely reviewed.”

DP World chief financial officer Yuvraj Narayan said: “Under the fast-changing conditions, we have initiated a review of all expansion projects that are currently under implementation.

“There is a general freeze on recruitment and a close review of replacements as far as head counts are concerned.”

The firm reported an overall 15 per cent growth in container volume, partly down to the acquisition of new terminals and very strong growth one year ago.