THERE are no plans to resurrect Hampshire's most contentious planning application, it emerged today.

Groundless rumours had been circulating that ABP, which owns Southampton port, might challenge the government's rejection of its plans for a £600m container port at Dibden Bay.

Privately, ABP bosses are baffled by the talk as the deadline for a legal appeal expired in July - three months after the application was given the thumbs down.

However, the company has taken the opportunity to set the record straight so that there is no room for doubt.

ABP, which owns Southampton docks and the reclaimed grazing land across the water that was earmarked for a six-berth container port, released a short statement.

It said: "ABP decided not to appeal against the Secretary of State's decision on the Dibden application, and the period for appeal has now passed."

The government rejected the plans in April following a mammoth 13-month public inquiry into proposals for the 450-acre site, which would have taken up to 2.3 million containers annually.

It cited that the environmental impact on internationally protected sites, which are used by wildfowl, would be too great.

The landmark decision was regarded as the biggest environmental victory since Greenpeace forced oil giant Shell to break up its Brent Spar storage tank nearly nine years ago. More than 6,000 objections had been lodged.

Paul Vickers, who headed victorious pressure group Residents Against Dibden Bay, which represented 50,000 people on the Waterside, said he was "very pleased" with the latest announcement.

He added: "The inspector found against ABP on a wide range of issues and I don't think their shareholders would have entertained the risk of another major spend when there were so many areas of contention that were unanswered. The case for Dibden Bay was ill-conceived and badly presented."

The container port plan was seen by ABP as the way to expand the city's docks and secure the future of Southampton's container trade.

After April's decision, Southampton port director Andrew Kent, who is to retire next March after 15 years at the helm, said: "It is my judgement this is a bad decision by the government in that it takes almost no account at all of the strategic needs of the region or the national economy.

"The decision on this application has now been taken, what we now have to do is to look forward and emphasise all of the positive aspects of the port and its contribution to the economy."

ABP wrote off £45m in associated costs following the rejection, and 12 per cent of the company's market value was wiped out at one point as disappointed shareholders bailed out.

However, residents around Hythe, Marchwood and Dibden celebrated, as many had feared noise, dust, a visual eyesore, increased traffic and an impact on house prices.

The reclaimed land at Dibden Bay will continue to be used for rough grazing, ABP says.