The proposals will dramatically increase the capacity of the docks and create jobs.

It is a result of P&O's withdrawal from Felixstowe, freeing up space for the port to grow.

The port said it would have an extra 1,000 metres of quayside, allowing it to handle 1.5 million additional containers a year.

This development will enable the Port of Felixstowe to berth more of the latest generation of large container vessels

Richard Pearson, Port of Felixstowe

That will take the total number of containers coming through Felixtowe each year to five million.

The port, part of Hutchison Port Holdings, will be able to handle 11 container ships at once.

'Good news'

Richard Pearson, managing director of the Port of Felixstowe, said: "There is a well recognised need for more container terminal capacity in the UK, and it is extremely fortunate that a new opportunity to develop these facilities has arisen now.

"This development will enable the Port of Felixstowe to berth more of the latest generation of large container vessels simultaneously.

"The further development of Felixstowe is also good news for the local economy and the many thousands of people that rely upon the port for their livelihoods."

Felixstowe is the largest container port in the UK and the fourth largest in Europe.