News / Northwards deal could open new routes
A DIRECT freight link between Shetland and Norway could be one outcome from a takeover deal struck by Lerwick-based haulage business Northwards and Norwegian transport giant Sea Cargo.
On Tuesday the two businesses announced Sea Cargo had purchased a 62.5 per cent controlling share in the island company set up in 2002 after a management buy out of the road haulage arm of shipping line P&O when they lost the northern isles ferry contract to NorthLink.
The deal sees the return of a familiar face to Shetland in the form of Murray Prentice, who sold his own haulage company JBT three years ago and left the industry for corporate consultancy work in Glasgow.
Mr Prentice has been taken an as a non executive director and consultant to help the two companies merge their operations over the next few months.
Northwards managing director Neil Leslie described the deal as “a very positive move” for his company, which would strengthen its existing operations and potentially open up new areas of business.
Sea Cargo and Northwards have worked out of the same depot in Aberdeen’s Matthews Quay for almost nine years. The Norwegian firm approached their Shetland counterparts six months ago about the potential merger.
Mr Leslie said Sea Cargo, which was formed in 2001 when a number of major Norwegian shipping lines joined forces, was the only company operating direct freight links between Aberdeen and Norway.
“Sea Cargo are coming in with three or four new vessels and are always looking at new routes, and who is to say they could not combine their work in Shetland and in Norway,” he said.
“There is nothing on the table for that at the moment, but Sea Cargo is a company that will do anything to achieve an opportunity if they see it as being a profitable option.”
Mr Leslie said the deal was a good start to the new year and there was no risk to the 100 full and part time jobs at its bases in Shetland, Orkney, Aberdeen, Scrabster and Inverness.
“It’s business as usual and maybe a few months down the line we will be busier and have a few more strings to our bow. This is probably going to develop us into a more efficient company than we are at the moment.
“If we take some of the strategies and processes that Sea Cargo do in their business and apply them to Northwards I can only see things being a lot rosier for us.”
Sea Cargo’s fleet renewal programme will see the world’s first freighters powered solely by liquefied natural gas in a bid to improve their environmental performance.
Sea Cargo managing director Ole Sævild said: “I am very pleased with the new strategic joint venture – and very optimistic about the possibilities. The concept of this joint venture includes introduction of new and modern services, equipment and not least
new routes to complete the existing transport network.
“Sea Cargo, who is also a ship owner with a focus on vessels operations and sea based infrastructure, will certainly also be looking at the possibilities of introducing a new and modern sea-based infrastructure – using modern multi-purpose ships with cargo handling facilities for any type of cargo.”
Attempts by West Burrafirth businessman John White to set up a direct freight link between Shetland and Norway two years ago on the back of the NORSHUKON “Motorway of the Sea” project linking Kritiansund and Zeebrugge have failed to materialise.
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