Drogheda Port, the second biggest port on the east coast, will not be taking up planning permission to expand its storage facilities in Drogheda because the levy imposed by Louth County Council is as expensive as the cost of the development.
The chief executive of Drogheda Port Company, Mr Paul Fleming, confirmed that the cost of the expansion would be around the same as the planning levy of €780,000 imposed by the council.
The council identified the levy as a contribution towards the cost of a proposed road linking the port with the new M1 motorway.
"The expansion consisted of an extra four acres of storage ... and will not now go ahead as a direct result of the levy," Mr Fleming said.
He confirmed that the company was looking at other areas which could accommodate an expansion of the port business.
Eleven sites have been identified as having potential between the southern side of Dundalk and north of Skerries. They include seven along the river Boyne, with two on the coast north of the estuary and two to the south.
Some are believed to be in Co Meath and Fingal, and, as such, would add to the rate base in these local authority areas, and not in Louth.
Mr Fleming confirmed that Drogheda Port had reached capacity, even though a new terminal opened only three years ago at Tom Roe's Point.
It handles 1.5 million tonnes a year - 50 per cent more than the previous terminal could - and has had to turn away business, which has gone to other Irish ports.
A recommendation from the consultants Baxter Eadie on the most suitable location for expansion is expected towards the end of the year.