The Department for Levelling Up, Housing and Communities has assigned £11.25 million to the port as part of a successful local bid to boost visitor numbers to Portsmouth, which also included the development of the UK’s longest urban park in the north of the city.

The port development, known as “the International Terminal Transformation”, will help manage an anticipated increase in passengers in the near future – with plans to exceed more than 200 calls across the next three years.

This would see Portsmouth port managing an additional 250,000 passengers a year, above its current two million, creating the need for additional capacity.

The port is looking to become a hub for “small and mid-size” ships operated by luxury and expedition lines and promises its terminal expansion will be “cutting-edge in environmental development”.

Port director Mike Sellers said he was “delighted” the government had recognised the necessity of its growth plans. 

“This year, for example, with the arrival of Virgin Voyages we were required to provide temporary additional facilities to ensure secure passenger segregation as part of Covid protections – but we need a permanent base,” he said.

“Our rise in passengers is a result of responding to growth in the cruise and ferry industry, which the port is ideally positioned to deliver thanks to its enviable waterfront location.

“Following our recently completed berth extension, we are now in advanced discussions with companies new to the UK market, to agree a partnership with the port and our expansion plans are critical to meet market demand.”