TNT Invests Euro 100 Million to Capture Freight Opportunities Between Southeast Asia, Europe and China

Logistics Insight Asia - Top Story, 21/4/2008

TNT recently announced that it will invest euro 100 million over the coming five years to strengthen its network coverage, connectivity and infrastructure. The company aims to build a leadership position by leveraging on the soaring demand for freight express services between Southeast Asia, China and Europe. This demand is mainly driven by customers in the high-tech, equipment and machinery and healthcare sectors that are increasingly moving large volumes of high-value goods between Southeast Asia, China and Europe.

With Singapore as its Southeast Asian hub, TNT’s connectivity between Europe, Southeast Asia and China will further be enhanced to tap into significant trade flows between these regions. According to a study by TNT, Greater China is one of Southeast Asia’s largest trade partners, representing some 24 per cent of total express volumes transported by air. This is followed by Europe representing 20 per cent, with trade within Southeast Asia accounting for 11 per cent. Within Southeast Asia’s air trade, the high-tech sector alone accounts for over 76 per cent of total trade value.

With regards to Singapore, the study revealed that express volumes moving from Singapore to Europe account for about 24 per cent of total volumes transported by air while volumes between Singapore and China stand at 9 per cent. Within Southeast Asia, Singapore’s healthy trade links with Indonesia, Malaysia, Philippines and Thailand account for almost 15 per cent of total volumes transported by air from Singapore.

Complementing the Asia Road Network, which links over 120 cities in Singapore, Malaysia, Thailand, Vietnam and China, the enhancement of TNT’s air network offers customers an integrated, multi-country, multi-modal solution and hence a one-stop-shop approach to developing customised solutions for moving heavy, high-value shipments. With its strong domestic network capabilities, TNT is capable of moving freight between major cities in Southeast Asia to China with an average transit time of 48 hours. To Europe, the company offers transit times as short as one day.

TNT, http://group.tnt.com