Forty drivers are set to lose their jobs as Port of Tyne looks to close its external haulage business.
The firm, which has a base in Tyne Dock, South Shields, has operated a separate logistics business that handled goods that were not shipped through the port.
This system was unusual, with the majority of ports across the country only operating logistic services for goods that are imported to their main site.
Port of Tyne has now followed suit and is closing its external distribution arm.
The move will lead to 40 drivers being made redundant, although a number of workers will be offered new positions within the company.
In a statement the Port said its vision is to grow its core business areas of automotive logistics, bulk and conventional cargo handling, cruise and ferry services, estates and port-centric logistics, focused around container specific transport and warehousing.
A spokesperson said: “Substantial challenges within the transport distribution market have resulted in the Port making the strategic decision to withdraw from the provision of 'distribution only' transport. This decision follows a business review and is in no way connected to Brexit.
“The Port will continue to drive container growth and deliver associated warehousing services by developing that section of the business in line with the growth strategy.”
By offering a port-centric approach, the Port will continue to support an increasing number of UK shippers, retailers and manufacturers who are switching their container import gateway from the congestion of the South of England.
The spokesman added the Port will create new opportunities within its container fleet limiting the impact to around 40 jobs, and every effort will be made to support and assist affected employees.