THE race to bring thousands of jobs and millions of pounds worth of investment to the region intensified last night after the Government dealt a major blow to the expansion of a port.

Despite overwhelming opposition from residents in Harwich, Essex, and numerous environmental and transport concerns, the Department for Transport said it was minded to approve port owner Hutchison Ports' plans to expand the complex at Bathside Bay, Harwich.

The decision means the owner of Teesport, PD Ports, suffered a further setback in its plans for a £300m container terminal on the Tees, which would increase the area's output by millions of pounds and create thousands of jobs in an area of economic deprivation.

Redcar MP Vera Baird and PD Ports hope that if the Government can fast-track its planning application for expansion, Tees-port's container terminal could be ready before Harwich's -stealing a march on its rivals.

Ms Baird said: "I think Teesport's terminal could still be operating before Harwich.

"Teesport should have a quick run through planning because it has strong local support and no environmental objections, so if PD Ports gets a move on and gets the planning application in by March, there is every prospect of getting built before the others.

"It is about changing the habits of the shipping lines and they will not move North if there is a resource available in the South. But if we get there first to cope with an increased demand, then Teesport will capture the business."

Martyn Pellew, of PD Ports, said the company was "not yet ready to throw in the towel" and would attempt to get more, and stronger, backing from customers and shipping lines for its bid to expand. He said: "The South-East is congested and overheated while the North-East is crying out for jobs and investment. By allowing ports expansion in the South, the Government has started to close the door upon similar opportunities for the North.

"We are calling on the Government to reassure the North-East that our region's needs remain a priority and that this decision does not signal the death of the Government-backed Northern Way strategy, designed to help close the £30bn output gap between the North and the rest of England."

Because of infrastructure problems, expansion at the Essex port is subject to the condition that road and rail networks need to be improved, which could take several years.

Transport Minister Derek Twigg said: "We believe this expansion in ports capacity is justified by the economic benefits it will bring regionally and nationally, for the UK industry and the economy. We understand at the same time that the new terminal will have a significant impact on the environment."

The Department for Transport is expected to approve expansion at the nearby port of Felixstowe, in Suffolk, in the new year.

Ms Baird said it would then be a race between Teesport, Felix-stowe, Harwich and a proposed port on the Thames to see which could operate first.

The Northern Echo has been supporting Teesport's plans through its Support Our Port campaign.