Supermarket giant Asda has signed a deal with PD Teesport for a deep sea container facility for non-food products, which will create 300 jobs.

It will give the supermarket chain an international logistics presence in the North East for the first time and help cut congestion in southern ports.

Construction is due to start this week and be completed in February 2006.

'Landmark deal'

Asda estimates it will save two million road miles a year by shipping 70% of its distribution direct to Teesport rather than delivering to southern ports and then transporting it by road to northern distribution centres.

Asda non-food director, Tony Page, said: "This is great news for the economy in the North East.

"Not only are we creating 300 new jobs, but we are also paving the way for other retailers to follow our lead."

PD Teesport managing director David Robinson said: "This is a landmark deal for the ports industry."