THE new chairman of Teesside Airport last night predicted the multi-million pound South Side cargo centre development will play a key role in boosting the Tees Valley claim to be one of the country's leading transport hubs.

Councillor Ken Hall was appointed chairman at Tuesday's meeting of the airport board, which agreed in principle to the development of 250 acres of the site.

The project will turn Teesside into a world class air cargo handling centre and is expected to eventually lead to the creation of several thousand jobs.

Coun Hall said: "I am particularly pleased to be taking the role of chairman at such an important time for the airport.

"The decision at this week's board meeting to move forward on the agreement with developers, Moorfield, is good news for the airport and good news for the whole of the Tees Valley.

"There is a real opportunity to capitalise on the superb transport facilities, and establish our area as a major logistics service centre, which will in turn help attract even more jobs and investment."

The agreement by the board was also welcomed by Stockton North MP Frank Cook as "extremely good news". But Mr Cook still remained cautious.

"We're not out of the woods yet," he said. "I am relieved more than pleased that the board have made a decision on the Heads of Terms.

"I still do not understand why only last week it appeared some of the local authority shareholders seemed determined to hold up the agreement with Moorfield.

"I am grateful to Marc Gilbard of Moorfield who has been sufficiently patient to wait and allow us to make this level of progress. Moorfield has already committed £4m to the project," he commented.