'Pre-pack' administration deal secures 115 haulage firm jobs.

Byline: Iain Laing

AROUND 115 jobs have been secured after managers of a Teesside haulage company bought the business out of administration.

Bulmers Logistics, based in Grangetown near Redcar, went into administration last week after its business suffered from a slump in the volume of seabound container freight in which it specialised.

But it was rescued in a management buy-out after a "pre-pack" administration deal put together by accountant Deloitte's Newcastle office. Led by current md Johnathan Bulmer, the MBO means that around 15 Teesside-based staff will lose their jobs, but the pounds 20m-turnover firm, which had depots across the country, will remain based in Grangetown.

In total, around 50 staff nationally will be made redundant. The firm shed a similar number just before Christmas, but said this week that no further cuts were planned. Re-branded Bulmers Transport Limited, the firm has cut its fleet from 144 to 40 and closed offices in Hull and Immingham.

It will maintain its presence through licences bases at both ports and continue to keep another Ipswich base open.

Around half of its revenue is generated on Teesside where the company hopes to capitalise on extra volumes created by Teesport's pounds 300m deep sea container terminal.

It will continue to specialise in container haulage and freight distribution port transport services, pulling in additional support from subcontractors to cope with peaks in demand. Business director Andy Spence-Wolrich said cutting the firm's fixed cost base was crucial to its survival.

"If a truck is only getting half a day's work, you have to look at your fixed cost base," he said.

"Due to the economic situation, there has been a general decline in volume.

"The margins are very tight in logistics; you have to be very productive."

He said the opening of Tesco's new pounds 50m import centre at Teesport later this year should kick-start a revival.

"Once a site of that magnitude opens it will generate a huge amount of new business for Teesside's transport industry," he added.

The management team purchased the trade and assets of the former company from the administrators.

The downturn in container volumes looks set to continue this year as shipping lines are hit by a sharp fall in Billingham-based Nicholsons Transport is on course to turnover pounds 4m by May and pounds 5m by the following year.

Meanwhile Global Transport Logistics at Teesport has established a new company in Hong Kong, Global Transport Logistics (Asia), to secure extra business from the burgeoning Asian market - already the source of around 85% of its revenues.

"The opening of Tesco's new pounds 50m import centre at Teesport should kick-start a revival