An application for planning permission has been submitted for a retail park with ancillary coffee shop/ restaurant units on the site of the former customs clearance station at Carnbane Way.
It follows a public consultation by Damolly Developments in Newry in January.
Damolly Developments based in Warrenpoint plan to build eleven retail units from 991 sq metres to 2830 sq metres plus four cafe/restaurant units on the 17 acre site.
Nine of the units will be built alongside the canal with a landscape corridor of at least 10m alongside for the benefit of wildlife.
It’s estimated that the carpark will have spaces for 878 vehicles.
There are future plans for a possible footbridge connection to the Newry Canal Towpath and consultations have already been made with the Inland Waterways Association of Ireland Newry and Portadown branch.