TNT Asia Expansion
November 30, 2005 by Splatty
Filed under Integrators
TNT continues it’s expansion in the APAC region by creating Asia’s first integrated road network delivery service. The service will initially begin serving Malaysia, Singapore, and Thailand with plans to expand into China, Cambodia, and Vietnam over the next couple of years.
Said Michael Drake, regional managing director of TNT Asia: “From a customer’s point of view, I think the essence of it is we are now offering a choice. Maybe they can move things by sea freight, by air freight or express but no one is offering something in the middle – which is a fully integrated road network.
“So it is a choice, an alternative, which means they can re-engineer the way they move their goods.”
TNT says countries in Asia spend between 20 to 30% of GDP on logistics.
This is more than twice that in the US and Europe where logistics costs are typically under 10%.
And that has a lot to do with the utilisation of road transport.
“About 80% of European and American freight is moved by road, but in Asia that figure is only 20%. And as the region expands and matures, we’ll see a similar level – it may not reach 80% but certainly 40% to 50% of the freight will be going by road,” said Drake.
TNT has so far invested S$4 million in depots, trucks and other infrastructure to kick off the service.
Its vision is to build a 4,000-kilometre road network from Singapore to China, linking 120 cities.
Source- Channel News Asia
Seems like a very ambitious undertaking given the complexities involved in handling road freight in China.
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