Takeover fuels T.E.I. growth 20 destribution points by June
T.E.I. Ltd, formerly Traffic Express International Co, an express service for the domestic market, plans to have at least 20 distribution points nationwide by June.
The move follows the company’s 100% acquisition by Netherlands-based TNT Post, a multinational express and logistics company.
According to Bob Turner, T.E.I.’s managing director, apart from taking over the Thai firm, TNT is committed to support “enormous” investment to enable the company to expand its express distribution network.
Traffic Express International Co used to be the local licensee of Federal Express. US-based FedEx took over the management of all T.E.I. operations in 1999 in Bangkok, Chiang Mai, Ayutthaya and Laem Chabang.
T.E.I. provides both express and logistics services nationwide through its road and air network.
The company has 140 employees and operates through five of its own centres and 13 agents, handling about 2,800 consignments a week. It has a fleet of about 50 vehicles and operates its own tracking system.
T.E.I. plans to add more two locations this year. Each costs about 500,000 baht to operate.
Mr Turner, who worked for FedEx for 35 years, bought a 49% stake in Traffic Express two years ago and decided to settle in Thailand.
TNT initially acquired a 51% stake in T.E.I. from Thai partners led by Boonsong Boonjai, and later took over the remaining 49% interest of Mr Turner, but allowed him to head the company’s management team.
The deal is expected to position TNT Post, Europe’s biggest mail, parcel and logistics company, as a serious challenger to FedEx and United Parcel Service in Thailand.
Mr Turner declined to provide financial details of the acquisition. “T.E.I.’s business growth was substantial over the last two years. The rate jumped by an average 200% a year.”
T.E.I. handles domestic freight for several multinationals including Compaq, HP, Unilever, Metro Systems and CP Orange.
Targeted customers are high-tech firms, direct sales companies, pharmaceutical makers and any other businesses that need fast delivery.
With business growing, the company has bought new trucks with GPS (global positioning system) satellite tracking capability.
The system links with a GPS satellite and displays a map on the computer screen to tell the driver where he is and how to get where he is going.
The next step is to have the satellite to tell the air tracking system the location of the truck.
The company plans to open a new warehouse for its Bangkok operations on Rama III Road this month. Copyright 2001 Bangkok Post. Source: World Reporter (Trade Mark) – Asia Intelligence Wire.
