Ambitious £14 million plans to revitalise Newhaven were unveiled today.

A total of 105 flats and six shops in four blocks will be built at the port town's West Quay.

There are also plans to extend the riverside walk and cycleway, create new public access to the refurbished marina and upgrade the Fort Road junction.

The investment by marina operators Sea Containers Property Services marks the second phase in the regeneration of the port as a key gateway to Sussex.

The £11 million phase one development is expected to be completed early in the New Year following three years of construction.

Already 66 homes have been built, along with pedestrian and cycle routes.

A new fish market, processing and ice plant, storage units and rebuilt landing stages have also been added.

Proposals for phase two, drawn up by Brighton architects Morgan Carn, have now been submitted to Lewes District Council for approval.

Sea Containers Property Services hopes work will start in mid-2003 and be finished in four years.

The company believes the development will draw Newhaven out of the doldrums and attract further investment.

Paul Rann, managing director of Sea Containers Property Services, said properties would be sold on a leasehold basis.

He added: "The facilities we are planning will continue our ambitious regeneration of the waterfront area and surrounding the marina."

Community leaders in Newhaven also gave their backing, including Sarah Ireland, programme manager of the Newhaven Economic Partnership.

She said: "West Quay is already known for its high-quality development.

"Waterfront properties are very popular and the scheme will add to the regeneration transformation taking place in Newhaven."

Sally Foote, office manager at Newhaven Community Development Association, said: "This is something Newhaven needs. It has been in regeneration for long enough. It is now time for it to be put firmly on the map."

The announcement by Sea Containers came as the town faces a crucial stage in its development.

The Single Regeneration Budget seven-year funding, which has fuelled Newhaven's renaissance since 1996, runs out in March.

It was awarded in response to concerns about high unemployment, poor education performances and low business interest in the area.

The Government cash, amounting to £6.4 million, has paid for schemes such as the Denton Island Training and Business Centre at a derelict site.