A £20M cargo terminal on Teesside which will double the capacity of Britain's second largest port was opened by the Duke of York yesterday.

Teesport container terminal No 2 was opened following two years of research, which highlighted a demand for extra facilities at PD Teesport, part of PD Ports, Logistics and Shipping.

Shipping activity is about to double at the port, and 120 jobs have been created as part of the development. That figure is expected to rise to 200 in the next three years.

The new terminal is also expected to help steel exporter Corus, which has a three-times-a-week service to Felixstowe.

The extra terminal was built following a massive increase in business, which meant the first terminal was operating at capacity.

The Duke of York yesterday opened phase one of the project, which has seen the 360-metre number two quay at Tees Dock refurbished and fitted with two 825-tonne container cranes capable of lifting 44-tonne containers.

Phase two will be completed early next year.

It is hoped the port will attract more shipping merchants to the region as it can now handle larger ships more quickly.

A PD Teesport spokesman said the increasing costs of road haulage and a shortage of drivers was forcing businesses to turn to shipping.

Managing director David Robinson said: "The shipping lines we have been talking to are delighted to have a new northern option to help them serve their customers via Teesport."