Southampton's rapidly-expanding role as a major force in UK global trade was boosted even further with the opening of a new dockside terminal yesterday.

One of the most significant developments within the city's port, the £4m Southampton International Vehicle Terminal strengthens the docks' position as the country's number one car import and export centre.

Vehicles worth billions of pounds pass through Southampton every year, making the sector one of the biggest earners for the port and safeguarding hundreds of local jobs.

Scandinavian diplomats joined Associated British Ports' executives for the official opening of the five-deck high terminal, which is part of an important ten-year contract Wallenius Wilhelmsen has signed with Southampton.

The terminal will increase capacity at the Eastern Docks' berth by 70 per cent from 205,000 vehicles up to 357,000 every year.

Lauritz Andersen, European president of Wallenius Wilhelmsen, said: "The port of Southampton is critical to our long-term success as the world's largest logistics provider to the car industry.

"This landmark terminal is our vision of the future. A vision that will help our automotive customers gain access to the latest port-handling facilities in the UK, and the best that land and sea can offer. Southampton is at the epicentre of all that we do here in Great Britain.''

Bo Lerenius, ABP's group chief executive, said: "This is an important occasion in the history of vehicle handling at the port, where more than half a million cars are handled every year.

"The latest facility, a first in the UK, underlines the company's strategic objective to grow this business and ensuring that our facilities and services lead the way in our industry.''

Sweden's Ambassador, Dr Mats Bergquist and the Ambassador of Norway, Mr Tarald Brautaset, officially opened the terminal, which can accommodate up to 3,120 cars.

Mr Brautaset added: "The UK's leading ports group and the world's largest vehicle carrier have together signalled their intentions to ensure that Southampton remains a key global automotive hub."

Southampton handles up to 20 per cent of all new car movements.