TNT's new deal for China - Freight Forwarding - TNT Express global courier - Brief Article

Business Asia, June, 2003

One of the first global courier firms to set up shop in China is entering a new phase of its business development in the mainland.

TNT Express recently announced the end of a 15-year joint venture with transport company Sinotrans, citing that both companies were heading in different directions in response to changing conditions, such as China's entry into the WTO.

Managing director of TNT Express in China and Hong Kong Bryan Chan says the needs of customers are now changing due to the increasing strength of the economy.

"TNT Express' mission is to create value for our customers and we are now in a position to expand our business beyond traditional courier services to meet the changing needs of the Chinese market," Chan says.

New relationship

The company has formed a relationship with Beijing-based Mach++ Express Worldwide, a relatively small cargo firm with close links to China Post.

This stems from a memorandum of understanding signed in April between TNT's parent company TPG and China Post, seeking closer cooperation in the express and logistics industry. Plans have already been announced to introduce new value-added express solutions in China to further TNT's expansion plans over the next three years.

By the end of 2003, the number of TNT Express branches is expected to rise from 12 to 25, and the number of international gateways from three to seven cities.

Services to ship heavier weights over 30kgs are now operating, as is a national toll-free customer service hotline.

China is a significant market for TNT, accounting for 22 per cent of overall sales in the region.

Chan says the company hopes to expand the boundaries of business for customers in China by increasing access to global markets.

As well as opening more branches, TNT plans to introduce the entire range of express delivery services, including value-adding solutions for vertical markets such as electronics, hi-tech manufacturers, automotive, telecommunications and pharmaceuticals.