The board of the Port of Dover is looking to put the organisation on the market to raise up to £400m of private capital in order to fund future expansion.
The board has written to Transport Secretary Lord Adonis for approval of the privatisation move.
Labour's MP for Dover, Gwyn Prosser, spoke of fears of "losing control of a strategic asset", and of who the new owners would be. Prosser also warns of further job losses. The port's employee count has shrunk by 60% over the last eight years.
It is thought a bidding war for Europe's busiest ferry port could ensue between existing port operators and infrastructure funds.
A locally-based charitable trust to channel funds to community projects will be set up should the Port be privatised. As a trust port, which it has been for the last 400 years, this is not possible.
Dover is being advised on the possible sale by investment bank NM Rothschild.
The move will secure the port's future and fund further expansion, which will be necessary as an increase in cross-Channel volumes has been forecasted. As a trust port, it would be limited by the public borrowing ruling.
The board is also seeking approval from the Government to build a new ferry terminal in the western docks, thought likely to cost £400m.
