The clock is ticking as time runs out before large cargo ships are turned away from the UK due to lack of deep water container ports, such as the one proposed for Dibden Bay on Southampton Water.

That was the warning to the government from the parliamentary Select Committee on Transport urging ministers to tackle the problem of catering for the next generation of large container ships.

This comes at the time when Southampton and the surrounding area is anxiously waiting to hear the outcome of the long running and controversial planning inquiry into the proposed construction of world-class container berths on reclaimed land at Dibden Bay.

The select committee concluded that Great Britain will run out of space for container ships in three years time unless approval is given to projects such as Dibden Bay.

Backed by industry experts, the committee said ports such as Southampton are under pressure to expand or face the prospect of losing customers to rival European ports such as Antwerp and Rotterdam.

This would result in the UK having to be supplied by smaller feeder ships that are able to use existing facilities but this would result in drastic increases in transport costs that in turn would push up the prices of consumer goods in the shops.

Associated British Ports (ABP), owners and operators of Southampton docks, want to construct a six-berth container port at Dibden Bay as well as a shoreside complex to fully support the operation.

ABP say the Dibden Terminal would generate extra jobs, safeguard the future of Southampton docks and boost the regional economy while those opposed to the scheme claim there is no need for the project which would in turn damage the environment.

Bo Lerenius, ABP's chief executive, said: "We believe that 2004 will be our 'year of decision' on this project which is vital for the UK economy.ABP is determined to see the premier position of the Port of Southampton maintained. Our plans for Dibden Terminal, along with our other investments in the existing Port of Southampton, will secure this leading role well into the future, sustaining existing employment and providing many new jobs for local people.

ABP is ready to commence works in Dibden Terminal as soon as the government gives us the green light.''