PLANS for a multi-million pound freight terminal at Teesside Airport, which could bring up to 6,000 new jobs to the region, finally look set for take off.

Deputy PM John Prescott gave the go-ahead for the £340m scheme a year ago, overturning a public inquiry decision.

But hopes turned to fears for the project after an agreement between the airport authority and developers Moorfield was opened for re-negotiation.

Airport chiefs have now sought to allay any fears by stressing the agreement, setting out a blueprint for the scheme, will be in place this year. Once signed it is understood that London-based Moorfield will buy the land concerned from the airport authority.

An airport spokesman said: "Obviously with a development of this size there are substantial negotiations to complete.

"But it is hoped that an agreement between ourselves and the Moorfield Group will be finalised by the end of the year. We then anticipate a start on actively marketing the development to begin early in the New Year."

Stockton North MP Frank Cook, who has been a staunch supporter of the development, told The Northern Echo that it was now "back on track".

Plans were unveiled last year for the so-called South Side development on 250 acres to the south of the airport runway.

The air freight terminal, which will comprise 1.8m sq ft of commercial development, is expected to be the second largest in the UK once built.

l Newcastle Airport's local authority shareholders are seeking formal tenders from potential partners to form a public private partnership (PPP). The company's shareholders are looking for a partner to bring support, additional skills, and resources aimed at enhancing its competitive position.