Williams Shipping has developed a new one-acre cargo handling yard and bought a powerful reach stacker for its transport services division in Southampton as part of the investment.
It will allow the family-run firm to increase throughputs, improve efficiency, win new business and deliver greater results for existing clients such as freight forwarders.
The business is also aiming to create new jobs with a total of six employees expected to work on the reach stacker and in the yard.
Managing director Jonathan Williams said: “We have successfully built our business on delivering a high quality and professional service over more than 120 years.
“This significant new investment demonstrates our ability to adapt to the changing needs of the market and our commitment to reaching the highest possible standards.
“Cargo handling and transport are a major growth area for us and this investment allows us to grow the business as part of our strategic long-term plan.
“It will open up new employment opportunities, support the maritime and logistics sector and help us realise new revenue streams across multiple sectors.
“For a long time we have provided heavy haulage, and this new service allows us to link this service directly to the port which is on our doorstep.
“It also ties in with our marine facilities, where we already handle loads on and off the quay with our 100 tonne crane and 200m of quayside.”
A proportion of the funding for the expansion came via the Solent LEP’s Solent Marine and Maritime SME Growth Fund.
According to the LEP, the marine and maritime sector supports more than 40,000 local jobs.
He added: “We are grateful for funding support for the project from the Solent Local Enterprise Partnership (LEP).
“It shows great confidence in us as a company as well as the strength of the marine sector and related industries in the area.”