Europe's busiest ferry port, Dover, has taken a step closer to privatisation by submitting an application to the secretary of state for transport to restructure the organisation.

Dover Harbour Board (DHB) said that by restructuring, it would be able to introduce private capital and would therefore, move fully into the private sector, meaning it would no longer be a trust port.

DHB said the move would ensure "that the necessary capital is secured for investment in the port to deliver new capacity as and when it is required'.

This would guarantee the port's ability to "meet the needs of its customers over the long term and securing the position of the Port of Dover as a key international gateway in the light of forecast growth in ro-ro traffic volumes".

DHB is currently trying to fund the development of a new £400m (US$648m) terminal, which it said it would need to meet future traffic growth.

DHB CEO Bob Goldfield told IFW the government had refused to let DHB borrow the funds it needed to secure the development, and this was one of the reasons for privatisation.