TPG awarded new logistics contract in China
TPG, through its Chinese logistics joint venture ANJI-TNT Automotive Logistics Company (ANJI -TNT), part of its TNT Logistics division, has signed the largest automotive inbound logistics contract awarded in China to date.
The five-year contract between ANJI-TNT and Shanghai Volkswagen (SVW) was signed at the recent first anniversary celebration of the ANJI-TNT joint venture and is expected to have total revenues of over EUR 100 million.
The automotive market is currently booming in China with a 56% sales growth rate in locally produced passenger cars being achieved between 2001 and 2002. Similar growth rates are also being experienced in 2003. SVW is the biggest single producer of passenger cars in the local market. The Volkswagen Group, through its joint ventures with SAIC and with FAW (First Auto Works), is the largest car manufacturer with 44% market share in the Chinese market last year.
By winning this landmark contract against major competitors as part of a formal SVW tender process, ANJI-TNT further strengthens its position as the leading automotive logistics provider in the fast-growing Chinese logistics market.
The scope of the contract covers all local inbound logistics activities to support SVW production in three separate assembly plants and two engine plants in Anting near Shanghai. As part of SVW’s expansion plans for the Chinese market, the company also intends to launch regular new model programmes with one new model already launched in 2003 to add to the four already being produced. This development in the range of models will add further complexity to the supply chain.
ANJI-TNT is also currently the dedicated logistics provider in China for finished car distribution for SVW’s sister company SVWSC (SAIC Volkswagen Sales Company). The new contract therefore further enhances the ANJI-TNT relationship with this client in China.
The new inbound contract was awarded shortly after TNT Logistics signed a major contract for the entire logistics operations for the production of the new Volkswagen Touran in Germany. It also builds on TNT Logistics’ strong relationships with Volkswagen in Germany and the UK.
Roberto Rossi, Group Managing Director of TNT Logistics, says: “This landmark contract builds on our relationship with VW and re-enforces TNT Logistics’ position as one of the world’s leading automotive logistics providers. It is also in line with the company strategy of enlarging TNT Logistics’ presence across Europe, North America, South America and Asia.”
