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11 July 2013, 13:15 | Updated: 11 July 2013, 13:20
The Port of Southampton will undergo a £140 million redevelopment, which it's claimed will create thousands of new jobs and be worth millions to the city's economy.
Associated British Ports (ABP), which runs the port, has signed a £70m loan deal with the European Investment Bank (EiB) to help develop the UK's second biggest container terminal.
Catherine Bearder, Liberal Democrat MEP for South East England, said:
"This deal is a win-win as it will boost growth by supporting international trade and help the local economy in Southampton.
"The reassurance this offers to local jobs is hugely welcome in the current climate."
The money will be used to help widen the channel to the container terminal, upgrade berths and install bigger cranes at the dockside.
Jonathan Taylor, European Investment Bank Vice President, has said the deal would improve container handling and also 'sustain thousands of jobs across southern England'.
"In the Parliament, we are starting work on the EU-US free trade deal and this news puts the port in prime position to benefit from an agreement."
It is estimated the Port of Southampton directly and indirectly supports around 15,000 jobs regionally and more than 21,000 jobs nationally.