THOUSANDS of jobs and hundreds of millions of pounds are underpinned in the North-East each year by the Port of Tyne, it was revealed yesterday.

The port, in North Shields, Tyneside, has been shown to contribute about £450m to the regional economy each year, which is also estimated to help sustain about 8,000 jobs - about three per cent of employment in Tyne and Wear.

And to help build on the figures, Port of Tyne said it is to invest £21m this year, in addition to the £90m it has ploughed into the business since 1997 in the development of its infrastructure, to increase capacity and to update its cargo handling berths and equipment.

In recognition of its growth and contribution to the region, the port was yesterday named European Port of the Year by the Institute of Transport Management at its bi-annual Transport Awards Ceremony this week, in London's Park Lane Hilton

The institute said the port was "the most progressive in their quest for development and strategic enhancement" it had come across during the past 12 months, and had "achieved significant success through plans for expansion and diversification into previously untapped niches of their business". The contribution the Port of Tyne makes to the North-East economy has been quantified for the first time following a study by consultancy Arup, which has revealed the extent of the port's influence throughout the region.

Port chairman Sir Ian Wrigglesworth said he was delighted the business had been rewarded for its contribution to the North-East, and to the UK port industry, which handles about 600m tonnes of freight each year.

"It is a huge honour to receive this award, and shows that the development and diversification within the port has resulted in significant growth of the business," he said. "We are evolving to suit our market and to sustain our future and those of the many businesses that rely on us."

Institute spokesman Patrick Sheedy said the port had been rewarded for its growth in recent times. "In an industry as dynamic as transport, market responsiveness like this deserves to be applauded," he said.

The port is the eighth largest car transhipment operator in Europe.