THE North-East's oldest shipping company, which two years ago was the subject of a management buyout, has hit the acquisitions trail.

Casper Shipping Limited, of Middlesbrough, has bought BS Freight Limited, an air freight company based at Durham Tees Valley Airport, for an undisclosed figure.

BS Freight will continue to operate as a separate business and will hope to capitalise on the growing status of the airport as an international freight hub.

Its new owners anticipate an increasing level of partnering on contracts, with BS Freight now able to utilise the shipping company's expertise in customs clearance to offer North-East businesses a comprehensive freight forwarding service.

"There is tremendous synergy between the two businesses," says Kevin Shakesheff, managing director of Casper Shipping. "Before acquiring BS Freight, Casper Shipping was one of its biggest customers."

Casper Shipping, established in 1872, is one of the UK's longest surviving shipping agency and forwarding companies. It employs 35 people, mostly on Teesside, but also has offices in Hull, Immingham, near Grimsby, and Grangemouth, in Scotland.

Its customers are chiefly operators of chemical and gas tankers, and bulk cargoes such as coal and steel.

A driver has been added to BS Freight's four staff as road courier services are brought in house.

Durham Tees Valley Airport has announced plans to invest £40m in its infrastructure, including a new terminal, business park and cargo village for freight flights and Mr Shakesheff believes exciting times lie ahead for BS Freight.