A DISASTER for Southampton could turn out to be a triumph for the depressed Essex town of Thurrock.

The decision to throw out ABP's plans to build a huge new container port at Dibden Bay has been described as a "hammer blow" for Hampshire's economy.

But as gloom descended on the city this week, shipping giant P&O was anxiously waiting on the result of another public inquiry into its own huge project to build a deepwater container port at a disused oil refinery in Essex.

The massive Thames Gateway terminal would handle around 3.6 million containers a year if it is given the go-ahead.

The smart money is on the government giving the green light to Essex's contender for the title of Britain's primary deepwater port.

The two men charged with the final decision are Deputy Prime Minister, John Prescott and Transport Minister Tony McNulty.

They have the ultimate say over whether the strategic port needs of UK plc would best be served by Essex - or elsewhere.

Mr McNulty stunned Southampton on Tuesday when he agreed with planning inspector Michael Hurley that the planned port would cause unacceptable environmental damage to Dibden Bay.

FOR MORE ON THIS STORY AND DIBDEN BAY CLICK THE SHIPPING LINK AT THE TOP OF THIS PAGE.