ONE of the North-East's oldest shipping companies has invested £1.5m to expand its fleet.

GT Gillie and Blair, which lists Corus and Cleveland Potash among its clients, has bought three new cargo ships as part of expansion and modernisation programme.

The family owned shipping company, which has been in Newcastle for almost 100 years, now operates 11 ships but has plans to take its fleet up to 16 within the next three years. The new ships are able to carry 2,200 tonnes of cargo each.

The company said the investment was needed to meet demand from new contracts that the firm has secured over the last 12 months.

The three new ships will be delivered to Gillie and Blair during the first half of this month from Scottish ship owners Messrs BUE Marine of Edinburgh. They will work throughout Northern Europe carrying mainly bulk cargoes including wheat, barley, coal, steel and fertiliser.

Gillie and Blair director Geoff Gillie said: "This investment is part of a long-term plan to expand and modernise the whole Gillie and Blair fleet."

The new arrivals are to be renamed and will be registered in Newcastle. They will be given maritime names, in keeping with the rest of the fleet, and from September will be known as Sea Kestrel, Sea Osprey and Sea Ruby.