The works involve the complete reconstruction of over five hectares of terminal area with new heavy duty paving designed to withstand increased loads from container stacks and new cranes.

Hall Construction Services estimates the contract will create around 60 construction jobs over the course of the project.

Once works are completed in the autumn, the port will be able to handle up to 450,000 shipping containers a year.

The £15m job is the first phase in the expansion of Teesport’s to make it one of the country’s leading container hubs.

In the longer term, the project, named The Northern Gateway, will involve dredging a channel 14.5m deep a mile out to sea, to allow 300m long deep sea container vessels to dock at a new quayside, opening the North East up to new markets in the far east.

The quay will be built on the site of a former Shell oil refinery on the South bank of the Tees, which has been lying vacant for around 20 years.

David Robinson, PD Ports’ Group chief executive officer of owner PD Ports, said: “This latest investment, which will potentially involve some spending £29m, signifies a long term commitment to our unitised business, on the back of major growth opportunities.”

PD Ports is also planning to use some of  its land on Teesside to build a wood burning power station and a centre of excellence for companies working in the offshore renewable energy sector.