THE region's ports could cash in after the Government rejected plans for a new terminal in the South.

Transport Minister Tony McNulty turned down an application by Associated Brit-ish Ports to build a £750m container terminal at South-ampton Water.

ABP said the site was vital in order to protect Southampton's long-term future as a premier port, but environmentalists raised concerns about the effect of such a development.

The decision will mean more shipping traffic using the North, with ports on the Tees and the Tyne likely to benefit.

Martyn Pellew, group development director of PD Ports, Logistics and Shipping which owns Tees Port, said: "The logical solution for UK industry is to feed directly into ports closer to the demand, from UK or mainland European deep-sea hub ports.