TNT unveils USD 2.5 million Gulf expansion

The company is to open new road hubs in the UAE, Bahrain and Saudi next year as well as an additional trucking facility in Kuwait.

This latest investment is a direct response to TNT's rapid regional growth as the company focuses on improving its penetration across Gulf markets over the next five years.

TNT Express, the world's leading business-to-business express delivery company, has unveiled a USD 2.5 million expansion to enhance and expand its Gulf-wide ground infrastructure.

'Our non-document and road products are growing at 40% each year and have significantly contributed to annual revenue growth of over 30%. It is widely anticipated that these growth rates will prevail for another three to four years,' said Mark Pell, TNT's Managing Director, Gulf.

'The expansion of our Middle East Road Network (MERN) will be critical in achieving sustained growth. We recently launched an industry first route to Iran from the UAE and we'll be servicing Syria, Lebanon and Jordan by mid 2006 by road. It is therefore vital that our ground infrastructure is upgraded to meet this development.'

In the UAE, TNT will open a new MERN hub at the south of Jebel Ali Free Zone (JAFZ) in Dubai. The facility will be used to process road shipments to Qatar, Saudi, Bahrain, Kuwait, Oman and Iran.

'We also plan to build a 5,000 square metre facility for our operations in Dubai and Sharjah which will house the main northern Emirates collection and delivery operations, as well as customer specific value added activity, ' added Bryan Moulds, Country Manager, TNT UAE. 'Two retail outlets are also planned for Dubai and Sharjah.'

In Bahrain, TNT's immediate plan is to invest in an additional 1,500 square metres of warehousing and office space to accommodate an anticipated surge in business via Bahrain and from its Middle East Road Network.

'Through increased infrastructure investment, we are targeting a 40% increase in business from the Kingdom over the next year, 'said Ahmed Gamal, Country Manager, TNT Bahrain.

'Our planned expansion in the Kingdom will create an additional 20 jobs for Bahraini nationals. We will also open another retail outlet, in Manama, for walk-in customers.'

And in Saudi Arabia, TNT/SAB Express is also undergoing major expansion. The company recently opened a new warehouse and office in Dhahran.

'We're planning a new hub in Riyadh early next year and in 2006 we will add at least 12 retail outlets for walk-in-customers that will also support the development of Kingdom-wide domestic services, 'said Taha Al-Harazy, Country Manager, TNT/SAB Express.

Kuwait will also see a new 1,000 square metre trucking facility next year to accommodate growing inbound road volumes and to act as a base for shipments to Iraq.

'The express market is growing at around 15% a year Gulf-wide and this a huge opportunity on which TNT can capitalise, 'added Pell.

'We will continue to develop our business in specific areas – sea-to-road, value-added warehousing solutions and freight network development, providing customers with the best possible solutions in express distribution."

1. TNT Express is the world's leading business to business express delivery company. The company delivers 3.4 million parcels, documents and pieces of freight a week to over 200 countries using its network of nearly 900 depots, hubs and sortation centres. TNT Express operates over 19,000 road vehicles and 42 aircraft and has the biggest door-to-door air and road express delivery infrastructure in Europe.

2. TNT Express employs 45,000 staff worldwide and is the first ever organisation to achieve global recognition as an Investor in People. The company reported sales in 2004 of €4.7 billion. Profits of €96 million earned by TNT Express during Q3 2005 were higher by 37.1% than the same period in 2004 (€70 million). The TNT Express website is: www.tnt.com

3. TNT N.V. is a global provider of mail, express and logistics services. The group employs over 162,000 people in 63 countries and serves over 200 countries. For 2004 the company reported sales of €12.6 billion. TNT N.V. is publicly listed on the stock exchanges of Amsterdam, New York, London and Frankfurt. The TNT N.V. website is: http://group.tnt.com

For further information please contact:
Sarada Chellam
MCS/Action, PO Box 20970, Dubai, United Arab Emirates.
Tel: +9714 390 2960; fax; +9714 390 8161
Or
May Mohr
MCS/Action, P.O. Box 20970, Dubai, United Arab Emirates.
Tel: +9714 390 2960; fax; +9714 390 8161