A MAJOR breakthrough has taken place over controversial traffic issues surrounding the planned £750m port at Dibden Bay.

Hampshire County Council has thrashed out a compromise with Associated British Ports (ABP) following two days of talks. Under the deal, the Waterside's busiest road is set to become a four-lane highway under ABP's plans to build the huge container terminal.

Proposals unveiled yesterday aim to increase the capacity of the A326 to enable it to cope with extra traffic generated by the proposed port.

The county council had expressed concern about increased congestion on the road, which links the Dibden Bay area with Totton and the M27.

Now Southampton port bosses have published plans to upgrade the route. Under the scheme the A326 will be widened north of Hythe, giving the county council the option of dividing the road into four lanes.

Protesters say it will become a dual carriageway in all but name.

ABP unveiled the proposal at a public inquiry into its application to build the new dock development at Dibden Bay.

The announcement followed 48 hours of talks earlier this week between ABP and the county council. At the meeting highway chiefs expressed concern about the amount of additional traffic likely to use the A326 if the container terminal is approved.

The talks resulted in proposals to increase the width of the A326 from 12 metres to 13,

ABP witness David Tucker said: "The county council agrees that the scheme will provide the necessary capacity to accommodate traffic generated by the proposed terminal.

"The county council is satisfied that its objections relating to highway design and the capacity of the A326 have been overcome."

Mr Tucker said road widening would be carried out between Marchwood and Hounsdown, and between the Foxhills area and Fletchwood Lane.

He was cross-examined by Marchwood district councillor Nick Smith, who complained that the scheme would turn the A326 into a dual carriageway.

Mr Tucker replied: "It will be a wider single carriageway - not a dual carriageway.

"However, Hampshire County Council will have the ability to mark the road out as four lanes in the future if it so wishes."

After the hearing Cllr Smith said Marchwood would be cut off from the New Forest by four lanes of fast-moving traffic.

A county council spokesman said: "ABP came forward with the proposal, which gives us the scope to create four lanes should we wish to do so.

"All our other objections to the Dibden Bay scheme remain in force."