Job losses are on the cards at the Port of Sheerness.

Consultation is taking place with at least 20 employees of owners Peel Ports but exact details are not expected to be revealed for another fortnight, a spokesman said.

The job losses will affect everyone from management down to those on the quayside.

Peel Ports took over the port from the Medway Docks Group two years ago and employs 324 people. The spokesman added: “The company is restructuring at the present time and this would have taken place even if there was not an economic downturn or credit crunch.

“I cannot be precise as to numbers and cannot say at this stage how many are likely to go, but it is expected to be more than 20.

“I cannot go into any further details at the moment due to the sensitive nature of the discussions.”

Paul Kavanagh, managing director of Peel Ports, said in an article in shipping magazine Lloyd’s List that he joined in August “at an exciting time, when we have a series of major investments and developments ongoing and planned”.

He added: “However, obviously I have also joined at a time when recession is kicking in and we are starting to see the signs at Sheerness and on the Medway generally.

“Some of the smaller operators on the river are reporting quieter times and some have laid people off.”

Sheerness has been traditionally strong in three cargo areas – cars, fresh produce and paper – with steel exports having grown dramatically in recent years.

All of its car shipments are now in imports, dominated by VW and Gefco, the latter being the transport arm of Peugeot Citroen.

And with UK car sales down 21 per cent in September, usually the market’s busiest growth, the port has seen the impact of the downturn.

At its busiest, Sheerness car volumes peaked at 450,000 a year, but they are now about 370,000, according to Mr Kavanagh.

A Gefco spokesman said: “We have let about 20 temporary posts go due to the downturn.”