TNT pumps €4.5m into Asia Road Network

TNT today announced that it will make further €4.5m (RM17.95m) investment in its successful Asia Road Network (ARN). This brings the total investment to date in the fully integrated ARN, which currently serves six countries and 127 cities in Southeast Asia and southern China, to more than €12.5m (Around RM 50m).

Most of the new investment will be to acquire a fleet of trucks specially designed to suit pan-Asian routes.

The 41-foot trucks and trailers are larger and more environmentally friendly than their predecessors. This announcement coincides with the fifth anniversary of TNT’s unique ARN. TNT has had brisk and growing demand for its road solutions in the last five years. Capacity on the ARN has grown over 20% year-on-year. At the same time,b volume between 2009 and 2010 (year to date) has grown by 70%.

Onno Boots, regional managing director of TNT Southeast Asia and India said: “Five years ago, we announced our intention to develop a road network in Asia, very much like our Europe Road Network. We were the first to attempt such an ambitious project in Asia, and we faced a set of unique challenges. TNT did what we do best, which was to innovate, facilitate and create an unrivalled road network that offers our customers a combination of cost efficiency, speed, security and reliability. Over the years, we have seen the profile of freight diversify to include more high-value goods, such as electronics, healthcare products and automotive and industrial equipment.”

Transporting goods by road on the ARN is, on average, 30% cheaper than air transportation and three times faster than sea transportation. Apart from cost efficiencies from using the ARN, TNT has also noted that more businesses in Asia are taking steps to reduce their carbon footprint by using overland transportation when the speed of delivery is not the most important factor. In the future, TNT expects to see a further shift in transportation from air to road as the ARN and other international transport routes continue to develop.

Gerry Power, managing director of TNT Malaysia & Brunei said: “The ARN is the backbone that cohesively connects Malaysia, SEA & China to each other and to the rest of the world. In the five years since its inception, it has become a well accepted alternative to air transportation for our customers in Malaysia, who extensively rely on it to move their goods efficiently and cost effectively. Malaysia occupies a key position in the ARN due to its strategic location and we are committed to enhance the ARN by investing in our fleet and bringing in one-of-its kind, Euro 6 spec 41 footer trucks which are three tonnes lighter, have 20% more load bearing capacity with enhanced security features like camera in cabs, GPS tracking and remote locking mechanism. All of this with 17% less carbon footprint than the industry standards to ply the 7,650 km long (and growing) ARN”.

The ARN is seamlessly linked to TNT’s air networks and is supported by its multiple facilities across the region, most notably the S$20m TNT Regional Hub – an integrated air and road hub located in Singapore.

TNT’s new fleet will comprise of 12 trucks and 14 41-foot trailers. Produced by Scania, the model R380 trucks were specially designed for TNT and tailored specifically for maximum efficiency on pan-Asian routes. The trucks are also amongst the first Scania R-series assembled and sold in the region, coinciding with TNT’s requirement for double beds for the long, 7,650km routes within the ARN. These new trucks represent the future of road transportation in the region. TNT and Scania have collaborated closely on design and security features which are still, to this day, completely unique in the region. The security systems have been provided by Astrata, with whom TNT will continually partner to ensure systems and processes are kept up to date.

David Stenberg, general manager, Asia Road Network said: “In a recent report , the total volume of road freight carried domestically and internationally in Asia is expected to grow by 8.4% for the next four years, from 2,090bn tonnes-km in 2010 to 2,889bn tonnes-km in 2014. A number of years ago, TNT recognised that there was a fantastic opportunity to create and invest into a road network that spans the region and offers customers an attractive and safe middle option in freight transport, outside of air and shipping. We are very proud of our new fleet of trucks; they represent the future in trucks, as does our ARN in road transport.”