A MASSIVE investment in Newport Docks is under way, after Associated British Ports (ABP) signed a new deal with Corus.

The company is spending £800,000 on a new crane at the docks, on the back of a three-year handling deal with the steelmaker.

ABP's South Wales ports director Budha Majumdar said: "This investment enables us to offer Corus a choice of ports for the export of its steel coil products.

"Corus is our biggest customer - when it sneezes we catch cold - so we were very happy when it recently committed itself to the future of South Wales steelmaking. "In response we are happy to show our commitment to the company and make this investment."

Mr Majumdar said the sterling exchange rate has moved in Corus' favour and he has seen the company pushing exports very hard.

He said: "It can now take advantage of chartering ships which have discharged cargoes at Newport or Cardiff, or charter ships on the high seas, and leave the decision on whether to pick up at Newport or Swansea to the last minute - according to where most steel is being held." The crane will be used for the loading of coil steel for export and will give Corus the choice of identical handling facilities at Newport or Swansea.

Purchased in Austria, the Liebherr mobile harbour crane has already been delivered for assembly, and is said to resemble "a giant Meccano kit".

This week the first ship was unloaded at ABP Newport's new £4.6 million timber-handling terminal which was built on the back of a contract with Saint Gobain - owner of the Jewson brand.

Mr Majumdar said ABP South Wales was 'having to run very hard to stand still" due to loss of coal imports after the closure of the AES power station at Fivefoots, and the end of steel slab imports to compensate for the loss of No 5 blast furnace at Port Talbot.

He said: "In the port industry the problem is that there is such a long gestation period before you can bring new customers on-line."

But he said his management team are working on a number of deals and they hope to make a series of announcements in the coming weeks and months.