TNT is confident of strong growth in Asia this year despite the economic slowdown as customers turnto its low-cost ‘asset-light’ model of road-based regional transportation, and it plans to continue
investing in the region.“It is no secret that overall volumes are down but despite that, the Asia freight servicesmarket is evolving fast, and TNT is at the forefront of that evolution,” Onno Boots, RegionalManaging Director for TNT Asia, told CEP-Research.
“Due to the current economic climate, more customers are turning towards using a morecost-effective, but yet reliable method of transporting their goods. A significant portion of our2008 growth was due to our customers turning to road solutions or a combination of road and air.Compared to the beginning of last year, TNT is running on double capacity on its unique Asia RoadNetwork. TNT’s road service is three times faster than sea transportation and 30% cheaper than airtransportation,” he added.
TNT expects to increase freight volumes in the region by 20% this year following 40% growthin 2008, the Bernama news agency cited Boots as telling a media briefing in Singapore this week.
The express and freight operator announced in April 2008 that it would invest €100 millionover the following five years on its Asia network to target growth opportunities in the region’sexpress freight services market. “We have, in the last 12 to 15 months, delivered on our promisesto invest and expand our services across the region, whether opening new facilities in Hanoi,Bangkok and Singapore, or offering new freight services and enhanced customer services,” Bootssaid.
Major developments included introducing a Singapore stopover on the thrice-weekly B747-400ERF services between Shanghai and Europe, opening road hubs in Bangkok and Hanoi, expanding theSingapore depot, extending the Asia Road Network into China, and offering new express freightproducts.
Looking ahead, Boots said TNT plans to grow in service logistics, a market worth an estimated€2.3 billion in Asia Pacific, including €410 million in Southeast Asia alone. Major investment inhubs and depots will continue, and the company is investigating ways in which it can take itslow-cost, flexible network model to India. Other developments are also underway in security,freight services and customer services.
“TNT remains committed in strengthening its network coverage, connectivity andinfrastructure. Through the various developments from this investment, TNT aims to build aleadership position and further strengthen its foothold in the region by leveraging the growingdemand for freight express services between Southeast Asia, China and Europe to grow its business,”he told CEP-Research.
“Looking ahead, we’re seeking to further develop our infrastructure and capabilities in theregion. We expect growth momentum for TNT to increase as we have always maintained a long-termbusiness strategy to successfully build on our capabilities and to ensure that we remain nimble inthe highly-competitive global business landscape.”
