Cramlington-based LTG sign £3m contract with Centrica Energy

A rapidly-expanding firm providing international transport for the oil and gas industry has signed a contract worth £3m

Photo credit: Michal Wachucik Lubbers Transport Group chief operating officer, Tony Tailford
Lubbers Transport Group chief operating officer, Tony Tailford

A rapidly-expanding firm providing international transport for the oil and gas industry has signed a contract worth £3m to supply its services to Centrica Energy.

Lubbers Transport Group (LTG), which has its UK headquarters in Cramlington, Northumberland, has sealed a deal which will see the company handle part of Centrica Energy’s road transport needs in the UK for its exploration and production operations.

The initial contract between the two companies is over a fixed three-year period worth £3m, but the agreement includes an option to extend the contract for two further one-year deals.

The contract will see increased activity at the Cramlington headquarters, as well as local road work in Aberdeen, Great Yarmouth and servicing routes in between.

LTG’s chief operating officer, Tony Tailford said: “This is a significant contract for LTG as an organisation and one that underlines the strength of our position in the oil and gas logistics marketplace. We have grown significantly as a company over the past 12 months and we are now in a much stronger position to service larger oil and gas businesses such as Centrica Energy.”

The company was created by the merger of RTH International and Dutch company Lubbers Transport BV. Tailford ran RTH with his father, as subcontractors involved with an Aberdeen freight forwarder and Lubbers had a similar relationship with the Scottish firm.

When the freight forwarder dropped RTH, Tailford met up with Lubbers, formed a partnership and merged in 2005 to create a highly successful business that now employs more than 100 people across its operations in Cramlington, Aberdeen and Norfolk and nearly 300 throughout Europe.

The company now operates 120 trucks and 290 trailers across its network of bases and it has also expanded other services, including rig move activities and warehouse and container rental.

The merged firm’s sales have bucked the economic downturn to grow UK revenues from £14m in 2010 to £17.8m in its last filed accounts for 2012.

In 2008 it acquired Danish transport firm Dan Carrier and since then bases have been opened in Italy and Romania, while activities have also been increased in Istanbul, Turkey, Kutno, Poland and more recently Stavanger in Norway.

Heavy investments have also been made in its fleet and expanding its European routes network, including the UK.

Tailford added: “Our growth over the past few years has been exceptional and we have focused our attention on tailoring this to best fit with our client base.”

The company recently completed a majority stake acquisition deal with AAC Capital that saw LTG receive a £30m long-term investment.

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