TNT launches inventory service
Service logistics business sees growth in Southeast Asia, reports the Journal of Commerce.
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Launch of senior debt syndication by Apollo Management VI, L.P. for TNT Logistics
Louis No. 1 Plc, an affiliate of an investor group led by Apollo Management VI, L.P., announces the launch of the syndication process for its and its subsidiaries’ euro805 million senior debt facilities in connection with the recent acquisition of the logistics business of TNT N.V. by subsidiaries of Louis No. 1 Plc. The euro805 million senior debt facilities comprise a euro500 million senior secured term loan facility, a euro150 million senior secured revolving facility and a euro155 million senior secured synthetic L/C facility. Meetings with prospective lenders have been scheduled for Tuesday 14 November and Wednesday 15 November in New York and London, respectively.”
Read MoreTNT Logistics signs a new contract with Infoglobo
TNT Logistics Brazil has signed a 5-year contract with Infoglobo, a Globo corporation company, and the first one in Brazil in the publishing & media industry. The agreement is worth euro9.4 million and 40 employees have been hired. “With InfoGlobo, TNT Logistics continues with its diversification strategy, entering into a new segment in Brazil, the publishing & media industry”, says João Guilherme Araújo, TNT Logistics Operations Director. “It is a great challenge for TNT Logistics in Brazil”, he adds.
The service will be implemented in stages. During the first stage of the contract, TNT Logistics will be responsible for all material handling activities and newspaper dispatch for distribution. “Infoglobo chose TNT Logistics to operate this segment due to the capability of its employees and its expertise in operating complex supply chains”, explains Marcello Moraes, the General Distribution Manager of Infoglobo. The printing centre is installed in the city of Duque de Caxias (RJ).
Read MoreTNT Logistics' position in pecking order may soon be challenged
TNT has announced that it is to sell its logistics division to affiliates of Apollo Management, a US private equity firm, for E1.48 billion. While the sale of the business unit has been on the cards since 2005, Datamonitor’s Chris Morgan questions whether the new TNT Logistics will be able to take part in further market consolidation which is no doubt inevitable in the short term.
In December 2005, Dutch postal group TNT made known its intention to divest its logistics division in order to focus on its core competency of express parcels and mail delivery. TNT Logistics is the second-largest player in the global contract logistics market, although Datamonitor research shows the company had a market share of just under 2% in 2005 – indicative of how highly fragmented the industry is.
Even after the recent wave of merger and acquisition activity, market leader DHL-Exel held a market share of just over 5% last year, and the current market environment makes further consolidation inevitable. While the global logistics market holds a great deal of potential for major players, without the backing of its parent company, one must question whether TNT will have the financial clout to take part in any significant merger activity in the short term.
Selling the unit to a private equity firm rather than a logistics company had been on the cards for some time. Deutsche Post World Net has only recently acquired Exel in a multi-billion euro deal, and this will take some time to fully integrate. Meanwhile, UPS’ European logistics strategy is unclear, as the purchase price would use up vital funds that could be better directed towards expansion in the less mature, higher-growth markets in the Asia-Pacific region.
Read MoreTop Logistics Firms honored at the 2006 Frost & Sullivan ASEAN 4 Logistics Awards
Singapore, July 20, 2006 – Frost & Sullivan, a global growth consulting firm today honored top logistics firms in five major sectors from Indonesia, Malaysia, Singapore and Thailand at its ASEAN 4 Logistics Awards based on a Voice of the Customer research. Sectors included are automotive, pharmaceutical, retail, fast moving consumer goods and IT/electronics.
“Logistics service providers which secured the highest ratings for their performance and capability from customers in a particular industry sector were named winners,” says Kavan Mukhtyar, Director of Transportation, Asia Pacific at Frost & Sullivan.
“In determining the winner, it is not the size of the company that matters, but rather the quality of service in meeting its customers’ expectation that is important,” he says.
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