A ferry operator is on its last warning for bringing refugees into the North-East after a spate of arrivals over recent weeks.

During October, a total of 63 illegal immigrants sneaked into Teesport, Teesside, on P&O North Sea Freight ferries.

The refugees, including Afghans fleeing the Taliban, Turkish Kurds, Iranians and Tamils were concealed in containers and arrived mainly on the service from Zeebrugge, in Belgium.

Among the stowaways were children and young babies, and some needed hospital treatment for dehydration following their journeys of several hours cooped up together.

Any carrier found in breach of strict Home Office rules governing immigration faces fines of £2,000 per refugee, which if applied to P&O, could have meant a bill of more than £126,000.

Last night a Home Office spokesman said that while it won't levy fines yet, the firm is on shaky ground. "There have been ongoing discussions with P&O in regard to the illegal immigrants being found on its vessels," he said.

"In light of these, a decision has been taken not to impose financial sanctions at this point. "However, it has been made clear to P&O that unless there is a cessation in the refugees utilising their services, financial sanctions will be imposed."

Mark Evans, a freight manager for P&O admitted that last month was "quite worrying" and said that following the latest arrivals, he ordered that all 100 containers at Teesport be opened to check for remaining stowaways.

He said the increase in refugees arriving in containers has prompted new measures. "Every container has a seal and in the last cases, this has been broken and glued back together," he said.

"We are increasing the checks on containers by examining the seal very closely. I hope this will put a stop to it."