Warrenpoint Harbour Authority said yesterday it will invest more than £18 million (€26.6 million) upgrading its port facilities to accommodate larger vessels.

The state-owned port, situated at Carlingford Lough on the east coast near the border of Northern Ireland and the Republic, serves cities all across the country, from Dublin to Belfast. The investment will increase the depth of the harbour berths to 7.5 metres at low tide from the current 5.5 metres,allowing it to take a new kind of larger vessel which is becoming increasing popular in the sea freight market, said Peter Conway, the authority's chief executive.

"It is a great investment for the harbour and for the surrounding area," said Mr Conway. As well as employing 38 full-time and 30 part-time staff, the harbour indirectly generates more than 700 jobs in the local economy and brings as much as £13 million worth of purchasing power into the local economy annually.

"Warrenpoint Port is located in an area that is designated as severely disadvantaged both in economic and social terms," he said. "This investment will play its part in addressing this issue, enabling the port to continue to drive the local economy."

Warrenpoint is currently ranked eighth for tonnage capacity out of the 18 ports across the whole of Ireland. It is the third-largest in the North.

Work on the project will start in spring 2006, provided planning permission is granted.