FEARS that an ambitious scheme to develop Southampton’s waterfront could be delayed by a planning decision made on the Isle of Wight have been allayed.

Red Funnel Ferry’s chief executive Kevin George has confirmed that the firm’s plans for redeveloping their terminals in Southampton and East Cowes have been “de-coupled”.

In April planners on the island rejected Red Funnel’s application to build a new terminal and marshalling yard at East Cowes.

There were concerns that this decision could have a knock-on effect on the firm’s plans, already approved, to move its Southampton terminal to Trafalgar Dry Dock in the Western Docks which would free up land for the £450 million Royal Pier development.

Following the Cowes setback Mr George said Red Funnel would “consider downscaling our plans in Southampton”.

A rethink over the size of the new Southampton terminal plans could have delayed its relocation, set for the end of 2017.

But this week Mr George said: “The Southampton and Cowes plans have been de-coupled. They are independent schemes.

“Cowes will not be a delaying factor. We still want to move in Southampton and we want to help facilitate the Royal Pier waterfront development.”

The new £33.5 million Southampton terminal complex will include new berths for Red Funnel’s fleet and a 357-space four-deck multi storey car park.

Today (Friday) Red Funnel submitted revised plan for its East Cowes terminal.

The Isle of Wight Council planning committee rejected the first application amid concerns the £6.5m “gateway” scheme could lead to the loss of marine industry jobs in the area.

Red Funnels say it now wants to proceed with the development in two phases The first phase will expand the existing marshalling yards but will retain the two largest industrial units on Seaholme Yard, thus protecting marine employment, until Kingston Marine Park (KMP) is open as an alternative site for the companies affected.

According to Red Funnel KMP will provide better facilities than the Seaholme Yard and at least two of the firm affected are keen to move there.

The revised planning application also retains seven properties in Dover Road originally scheduled for demolition.

This is had proved a stumbling block to Red Funnel’s plans as four of the properties – including a Chinese restaurant and a pub refused to sell up.

Kevin George said: “I can confirm that, at this point in time, Red Funnel has no intention of progressing with a compulsory purchase order, although we would like to discuss various options directly with the residents of Dover Road.”

He said that keeping the Dover Road properties would result in 40 fewer new parking spaces at the terminal.

In phase two, an appeal will be made against the planning committee’s original application refusal and covers the demolition and redevelopment of the current terminal site with mix of retail, restaurants and residential properties.

Mr George said that that, if approved before the end of this year, the first phase of development could begin during 2017, phase two during 2019 and that the whole scheme could be completed by 2020 – a year later than originally envisaged.

Back on the mainland plans for moving and enlarging the Southampton terminal are the first phase of the Royal Pier scheme which will see the construction of more than 700 apartments, a hotel, shops, restaurants, shops at the pier site.

The £450mproject - which would involve the reclamation of land from the River Test - would also see Mayflower Park expanded and a new 130ft Spitfire statue erected.

Stewart Dunn, chief executive of Hampshire Chamber of Commerce, welcomed the news that Red Funnel was pressing ahead with the Southampton scheme.

"This is terrific news," he said.

"We are very supportive and welcome the news that the East Cowes development will not hold up plans for the Southampton terminal which is so important for the city's waterfront strategy."