Work has started on the first phase of a multi-million-pound scheme to transform a large area of industrial land beside Southampton Water.
Associated British Ports (ABP) has embarked on an ambitious project to upgrade the Port of Marchwood, which it runs on behalf of the Ministry of Defence.
Stage one of the scheme involves a 21-acre site that will be redeveloped at a cost of £25m.
Speaking at a ground-breaking ceremony, New Forest East MP Sir Julian Lewis said: "After years of careful planning, today marks an exciting new stage in the evolution of ABP Solent Gateway.
"Marchwood Port will thrive in both its military and commercial roles as a result of this ambitious upgrading of its facilities.
"As part of the future Freeport, the modernised site will undoubtedly play a vital part in the complex mix of environmentally sensitive and economically valuable locations here on the Waterside."
Sir Julian was joined by representatives from Hampshire County Council, New Forest District Council, Solent Freeport, and government departments.
The proposed development will improve facilities in a move aimed at strengthening the Solent's position as a leading gateway for trade as well as increasing the port's ability to support MoD operations.
Pedestrian and cycle routes linking the facility to Marchwood village - home to about 6,000 people - are also planned.
The port's director, Richard Parkinson, said the planned investment was "absolutely key" to realising the site's potential.
He added: "The development has gone through a rigorous planning approval process and is designed with significant features to benefit the local community and the environment."
Alastair Welch, ABP's regional director, added: "The Solent is a leading gateway for the UK to connect with the world and the UK’s number 1 port for deep sea trade.
"Developing this connectivity is key for the success of the UK economy as a whole and specifically the 115,000 jobs and £8bn of value ABP’s regional activities, including ABP Solent Gateway, supports."
The port used to be run by Solent Gateway, which was acquired by ABP more than a year ago.
The move sparked fears that ABP is planning to launch a new attempt to develop Dibden Bay, a huge area of reclaimed land between Marchwood and Hythe.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here