The first phase of a multi-million pound scheme to transform a 19th century west Wales harbour has been completed.

It is hoped the �4.2m project, to enclose Burry Port harbour in Carmarthenshire, will boost tourism and industry in the area.

We don't see it as a place for gin-palaces but a working harbour which we very much hope the local people will use

Rory Dickinson, harbour manager

As part of the Millennium Coastal Park (MCP), it is planned to be a working harbour as well as offering top-class marina facilities.

The work has been funded by the Millennium Commission, the Welsh Assembly and European grants.

The project has involved enclosing and dredging the harbour's waters, providing new walls and sea gate.

The second phase of the project will see �400,000 spent on pontoon facilities for 100 boats.

Eventually there will be up to 500 berths in the harbour.

Plans are also under way to develop the fishing industry in the area with restaurants and a fish market.

The harbour is part of Llanelli's Millennium Coastal Park

MCP manager and harbour master Rory Dickinson said: "There will be facilities for commercial trawlers which have historically used the harbour.

"We don't see it as a place for gin-palaces but a working harbour which we very much hope the local people will use.

"This project is the main thrust of the economic regeneration of Burry Port.

"It will bring huge economic benefits, not only to Burry Port, but to a great part of Carmarthenshire"

Royal visit

The development has already attracted new businesses.

A company is establishing at Burry Port to offer charter fishing from next spring and another company will provide short break yachting holidays.

The harbour was originally built nearly 200 years ago to export coal, iron and copper from the area but had fallen into disrepair over recent years.

The Millennium Coastal Park was officially opened by the Queen in June during her three-day Golden Jubilee tour of Wales.