TNT has announced a further €4.5 million investment in its Asia Road Network (ARN) due to thegrowing demand for its road solutions in the region during the last five years.
This financial injection brings the total investment in the fully integrated ARN to more than€12.5 million marking its fifth anniversary.
Most of the new investment will be needed to acquire a fleet of trucks specially designed tosuit pan-Asian routes. TNT’s new fleet will comprise 12 trucks and 14 41-foot trailers that arelarger and more eco-friendly than their predecessors. Produced by Scania, the model R380 truckswere specially designed for TNT and tailored specifically for maximum efficiency. The trucks arealso amongst the first Scania R-series assembled and sold in the region, coinciding with TNT’srequirement for double beds for the long, 7650km routes within the ARN.
TNT and Scania have collaborated closely on design and security features which are still, tothis day, completely unique in the region. The security systems have been provided by Astrata toensure systems and processes are kept up to date.
Some of the design features of TNT’s new trucks include a 20% higher capacity, enhanced securitythrough an in-built security system that enables efficient, round-the-clock remote monitoring ofthe trucks and improved fuel efficiency and reduced emissions. The new trucks are 17% moreefficient when measured against the industry benchmark. In addition, they are three tons lighterthan predecessors resulting in reduced wear and tear.
The first two trucks have already been delivered to TNT and will become operational withimmediate effect.
David Stenberg, General Manager, TNT Asia Road Network, said: “According to a recent report, thetotal volume of road freight carried domestically and internationally in Asia is expected to growby 8.4 % for the next four years, from 2,090 billion tonnes-km in 2010 to 2,889 billion tonnes-kmin 2014. A number of years ago, TNT recognised that there was a fantastic opportunity to create andinvest into a road network that spans the region and offers customers an attractive and safe middleoption in freight transport, outside of air and shipping. We are very proud of our new fleet oftrucks, they represent the future in trucks, as does our ARN in road transport.”
During the last five years, the capacity of the ARN has grown over 20% year-on-year. At the sametime, volumes between 2009 and 2010 (year to date) have grown by 70%. In Singapore alone, volumesgrowth grew by 52% between January 2009 and January 2010.
Onno Boots, Regional Managing Director of TNT Southeast Asia and India, commented: “Five yearsago, we announced our intention to develop a road network in Asia, very much like our Europe RoadNetwork. We were the first to attempt such an ambitious project in Asia, and we faced a set ofunique challenges. TNT did what we do best, which was to innovate, facilitate and create anunrivalled road network that offers our customers a combination of cost efficiency, speed, securityand reliability. Over the years, we have seen the profile of freight diversify to include more highvalue goods, such as electronics, healthcare products and automotive and industrial equipment.”
The ARN is seamlessly linked to TNT’s air networks and is supported by its multiple facilitiesacross the region, most notably the S$20 million TNT Regional Hub, an integrated air and road hublocated in Singapore.
TNT said road transportation via ARN is, on average, 30% cheaper than air transportation andthree times faster than sea transportation. Apart from cost efficiencies through the ARN, morebusinesses in Asia are taking steps to reduce their carbon footprint by using overlandtransportation when the speed of delivery is not the most important factor. In the future, TNTexpects to see a further shift in transportation from air to road as the ARN and otherinternational transport routes continue to develop.
“TNT understands that air freight will continue to be an attractive proposition for companieswith time-sensitive requirements. To facilitate a complete door-to-door solution within Asia, TNTdecided to invest into the development of a Regional Hub located in Singapore two years ago. Thisintegrated air and road hub was specifically built, at a cost of around S$20 million, to allow aseamless link between our air and road services. Basically, if the trucks were any closer to theplanes, they’d be on them. The idea is, of course, to minimise handling times and costs and allowour customers unparalleled reach and access across Southeast Asia and India either by road, air ora combination of both,” Boots added.
The ARN currently serves 7 countries and 127 cities in Southeast Asia and southern China.
