TNT to ferry shipments on own freighters

TNT India is looking forward to launching its own freighters on the India-Europe route in the coming months. The subsidiary’s move follows the near integration of Speedage Cargo Express, a semi-road express firm it acquired last September, with its own processes and service standards.

“In the last eight months, we have invested ample time and money in the transformation of Speedage, which has started getting the feel and look of TNT. We will now look at introducing TNT freighters on India-Europe route for better control,” said Abhik Mitra, managing director, TNT India.

TNT is close to completing the re-branding process of Speedage. Also, the transition of Speedage processes and service standards to TNT’s levels has helped improve the firm’s average yield for road express services by 10-12%, but it still remains below the market average.

According to Mitra, after launching the European service, TNT would look at the India-China route, and eventually turn attention to launching a domestic air express.

“By 2008, we will seriously look to launch our aviation operation for our domestic air express business,” said Mitra. He also said that the company would consider both organic and inorganic routes for launching its domestic aviation operation. “Today, there are no air express companies, with their own aircraft, worth acquiring. There was Blue Dart, but that has been acquired,” said Mitra.

Currently, the company uses cargo space on commercial airlines for its international and domestic shipments.

TNT India has set its sights on becoming the leading express cargo firm in the country by 2010, and has already committed investments of Rs550 crore to achieve its aim