SFPC chief executive Brian Byrne has described the redevelopment plan as "potentially a very exciting chapter in the development of the city of Limerick, underpinning its rightful place as the capital of the midwest region, and providing a welcome significant boost to jobs along with a reduction in traffic congestion."

However dock workers, backed up by local councillors and commercial interests in the city, say 250 jobs will be lost and Limerick docks will eventually close if the land is sold to private developers.

"Limerick docks belong to the people of Limerick, and the Shannon Foynes Port Company are charged with the responsibility to manage and develop the docks on behalf of Limerick people, " says city mayor Cllr Joe Leddin (Labour).

He describes the proposed sale as "reckless" and claims the management of the port company has an obligation to work in consultation with the elected members of Limerick City Council regarding any intended redevelopment of the site.

The SFPC claims the planned commercial centre could employ 1,000 people as well as creating 750 jobs during the construction phase.

And the company says the project, termed the "Limerick Docklands Initiative", has the potential to inject 50m into the local economy annually.

The SFPC is the authority responsible for marine activity in the Shannon estuary along with shore-side operations including cargo handling, warehousing and logistics. The company is the country's largest bulk cargo handler.

Annual volumes handled by SFPC through its Shannon terminals totalled 11.4 million tones in 2005 compared to 10.2 million tonnes in 2000. In the past six years, it has invested 25m in the modernisation of existing facilities. It employs 53 staff and has a turnover of 6bn.

At least 12 property companies are known to have expressed an interest in developing the site, situated in the heart of the city. However, some proposed developments are believed to be contingent on the docklands ceasing to operate as a functioning port. Among the proposals for the site are one for a cultural centre for the arts and another for a national convention centre.

"That's part of the problem . . . the fact that there is no exact blueprint, " says Fianna Fail councillor Kieran O'Hanlon, who represents the council position on the SFPC board of directors.

"Closing the docks is one option, but at this stage it would be wrong to say it's the plan. For over a thousand years there has been shipping activity in Limerick. My view, and the view of the council, is that we want to see a working docks in Limerick."

The SFPC has given assurances that the capacity of the working docks will not be impaired over the short to medium term at least.

Local suspicion at what is regarded by some as a plan to downgrade the docks over time is heightened by the ongoing upgrade and restructuring of the port at Foynes, 20 miles away, including the construction of 400 metres of jetties, open quay storage and new warehousing. However, the SFPC points out that Foynes can already cater for ships with 10 times the capacity of the largest vessels docking at Limerick.

Liam Wolfe is chairman of the Port Users Group, an umbrella organisation formed to represent effected commercial interests in the city.

"The way I see it, closing the docks is akin to telling a shopowner he can no longer open up the main doors leading out onto the high street.

I'm involved in the fertiliser business. I have colleagues in the timber, oil and steel trades who depend on the docks for imports and exports. It's our lifeline."

In a bid to resolve the impasse, the SFPC has now decided to enter negotiations with the Port Users Group and representatives from the city council.

"We are very much looking forward to this process of consultation and see it as imperative as we move forward, " says Brian Byrne.

"The Limerick Docklands Initiative is a very exciting project for Shannon Foynes Port Company and for Limerick and we are aware that it must proceed in an allinclusive manner and we will now devise a structure to achieve that."