Plans to turn part of the Tilbury Power Station site into a new port have taken another step forward.

Forth Ports has announced that a formal application has been submitted to the Planning Inspectorate to build a new terminal on a 152 acre site adjacent to the current Port of Tilbury, opposite Gravesend.

Demolition of the power station has continued in stages throughout the year, and consultation on the new port project began in February.

Known as Tilbury2, the development is central to the Port of Tilbury’s £1bn investment programme for 2012-2020, which includes the UK’s largest warehouse – run by Amazon UK – at the nearby London Distribution Park.

Forth Ports says Tilbury has doubled the size of its business in the past 10 years and is projected to double the volume of cargo across the quay from 16million to 32million tonnes, and triple employment from 3,500 to 12,000 jobs over the next 10-15 years.

They say expansion is needed to cope with rising demand for construction materials and aggregates, imported and exported cars, as well as an increase in ferry traffic carrying goods between Europe and the UK.

Rt Hon Dr Liam Fox MP, international trade secretary, said: “Ports play a key role in the long term growth of the UK economy, with Tilbury being a great example of an ambitious, successful operation which is growing to deliver the capacity businesses need to export products from the UK across the world.

“As an international economic department, we will continue to champion the growth of our maritime sector, and we would certainly encourage local businesses to make the most of the fantastic connections Tilbury has to offer.”

It is hoped Tilbury2 will be operational in 2020, acting as a satellite of the main port, with a roll on/roll off ferry terminal, a site for importing, processing, manufacturing and distributing construction materials, and a storage area for imported and exported goods.

There will also be a new national rail and road connection into the site.

Charles Hammond, chief executive of Forth Ports said the new port would offer much needed capacity to support growth in London and the South East, adding: “Tilbury2 is a significant part of port’s £1bn investment strategy as we look to provide the next generation of logistics facilities to equip Britain to take advantage of new business opportunities and cement existing trading relationships.”