IBEC has expressed concern about the impact on Dublin Port of this week's €1.2 billion takeover of Liverpool port.

Peel Ports, a company with a strong track record in property development, has acquired control of Mersey Docks and Harbour Board, which owns Liverpool's shipping gateway.

Not only does Liverpool handle the largest volume of Ireland's shipping trade with Britain, but Mersey Docks and Harbour Board also owns Marine Terminals on Dublin's south bank - which accounts for about 40 per cent of container trade through Dublin.

IBEC's transport director Reg McCabe said that proposals by Dublin City Council to facilitate redevelopment of Ringsend peninsula were "very likely to be exploited by Peel" which is "principally known for its focus on commercial property development", and might not be so interested in maintaining a lo-lo terminal.

"In the circumstances, IBEC is calling on the Government to review, as a matter of urgency, Dublin City Council's plans for the Ringsend peninsula to ensure that port services are not compromised by inappropriate development," Mr McCabe said yesterday. Such a review was "particularly desirable" in view of "a potential conflict between this plan and the need for additional facilities to accommodate projected growth in trade through Ireland's premier port", he said referring to Dublin Port's plans to expand.

An international report on global port congestion published earlier this year said that 2004 was the worst on record for congestion at the world's container ports, and the peak season this year may be even more difficult.

Global port handling is currently growing at 9.5 per cent annually, according to the report by HVB Group and Drewry Shipping Consultants. It notes that several port terminal operators have not geared up for the increased use of "super-generation" container vessels.