Authorities have given the green light for a £200m port project on the outskirts of London, in a bid to deal with rising demand from the construction, manufacturing and retail sectors.

The Department for Transport (DfT) gave the project its blessing yesterday, meaning work on the second terminal at the Port of Tilbury in Thurrock will begin in the coming weeks.

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The so-called Tilbury 2 will be the UK’s largest unaccompanied ferry port and the country’s biggest construction processing hub. It will be built on a site covering in excess of 150 acres, which was part of the location of the former Tilbury Power Station.

Charles Hammond, chief executive of Forth Ports Group which owns the port, said: “This is great news for the UK at a time when the country needs its ports more than ever before. Tilbury 2 will deliver much needed port capacity to support businesses importing and exporting to and from Europe and the rest of the world.

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“The terminal will be fit-for-purpose for the UK’s departure from the European Union, utilising the latest technology and streamlined border processes, in support of continued market demand created by business growth.

“By 2020, £1bn will have been invested in Tilbury’s expansion plans, including Tilbury 2 and the 55-acre London Development Park, with the full backing of our shareholders.”