A YEAR after Newport finally won coveted city status, there does appear to be a sea change in its fortunes.

But it has not all been plain sailing - the discovery of a medieval ship on the city's new theatre and arts centre site led to storms.

And clouds have been cast by job losses in the area, along with further fears this week for job cuts at Corus' Llanwern site.

There was also a warning last year from a business leader that Newport's city status had alienated many in the rest of Wales.

However, just last week Newport was tipped as a "hot spot" by a national newspaper, and its rising fortunes led one politician to warn that it could overtake Swansea as Wales' second city.

Sir Harry Jones, leader of the city council, says the past year has been an exciting time for Wales' newest city.

He says: "It has been a year in which we have begun to benefit from our new status and have also begun to take on the responsibilities that come with being a new city.

"We said when we received city status that we wanted the benefits to be felt by the whole region and wanted the new status to assist economic regeneration, particularly following the Corus job losses.

"Over the past year there has been a 14 per cent increase in the number of inquiries received by our economic development team.

"The interest from developers and investors, we believe, has been achieved in part by the increased profile that Newport has had since becoming a city."

Sir Harry says Newport's urban regeneration company, the first of its kind in Wales, is about to be launched.

The council believes the company will continue to keep high the city's profile as an ideal location for businesses.

"Through the company we hope to establish Newport as the economic engine which will drive the whole south-east region.

"The land off junction 28 has now been firmly established as the most prestigious business location in South-East Wales. The new jobs that will be created there will bring benefits to the region as a whole."

Sir Harry adds the council are also pursuing a strategy for expansion of the city - more jobs, more houses and a significantly increased population by 2011.

He says: "The strategy for growth will provide employment opportunities, a more vibrant city centre and regeneration of brownfield sites."

He also says that perhaps one of the most popular announcements of the past 12 months was the £100 million plan for the city centre development, which will transform Kingsway, provide a large department store and new car-parking facilities.

Sir Harry says: "The scheme will bring new prosperity and life to the heart of the city."

Newport has continued to build its reputation as a sporting city over the past year, with Spytty quickly becoming established as the top sports complex in Wales.

The national cycling centre is on track to be opened later this year, adding yet another quality facility to the Spytty site.

Progress was being made on building the theatre and arts centre, and Sir Harry said they were delighted the National Assembly had provided funding to allow the medieval ship to be displayed there.

He says: "During our first year as a city we have laid some important foundations for the future prosperity of our city.

"There is still much work to do, but I think we have demonstrated during this first year as a city that we can use this new status for the benefit of our community and those living throughout the region."

* In the picture: Newport mayor Bob Poole cuts a city birthday cake with mayoress Ronnie Poole. With them are baby Eleanor Lawrence, the first to be born after city status was announced , sister Olivia and their mum Alex.