Industrial scheme for oil tank farm site

The South West Regional Development Agency provided the money to buy the Mere Tank Farm from Portland Port.

Eight tanks will be demolished and the 10-acre site will be used for light industrial units which it is hoped will provide jobs and boost Portland's economy.

Portland Port Group director of communications Rupert Best said: "While we have operated the Mere Tank Farm very successfully for the past 10 years we recognise that its location stands in the way of the regeneration of Osprey Quay in advance of the 2012 Games and so we have agreed to its sale."

The money from the sale of the tank farm will be invested in port facilities in particular berth development.

Mr Best said that he was investigating setting up a smaller tank farm on the port estate.

He said: "We are thinking about something to replace some of the facilities of the Mere Tank Farm."

Head of operations for the South West Regional Development Agency Bruce Voss said: "The project will allow the Portland Port to invest in other areas of the port business while Osprey Quay develops its focus on the marine leisure sector and as a sailing centre of excellence."

The development is designed to attract sail makers, chandlers, wet suit makers and other marine industry to the new units.

Weymouth and Portland Borough Council brief holder for tourism and the economy Councillor Lynne Herbert said: "There can be little doubt that without the borough's involvement in the Olympics we would not have had the funds to transform the area in this way.

"This project will be of significant benefit to the borough's economy and we are extremely grateful to the RDA for funding it."

The first phase of the development has already started as waste oil tanks on Castle Road have been taken out of use and cleaned ready for demolition.

The main phase of the development will start in March 2008 when Portland Port will cease all operations and decontamination work will be carried out.