Tag: TNT

Consolidation gains momentum in Europe’s Express and Parcels market

The latest findings to emerge from independent market analyst Datamonitor’s (DTM.L) “European Express Benchmarking 2004,” research reveals that the European* 34 billion Euro express market is consolidating. The top 6 players in the industry account for over 50% of these revenues compared to 2001, when they accounted for 44% of the market value and 47% of that in 2002. “The European express industry forms one of the fastest growing segments in the transportation business. Industry consolidation has continued apace as express and parcel delivery companies merge, make acquisitions and form strategic alliances in order to gain scale and enhance their capabilities. 2005 promises new opportunities for these companies with the expansion of the EU. Europe’s fast moving express industry proves difficult to keep track of and the players must be aware of competitors’ operations, changes within the industry and opportunities,” says Emilio Pedrinaci, courier and express analyst at Datamonitor.

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TNT expands in Abu Dhabi, Al Ain

The announcement of the expansion by TNT, the leading business-to-business express carrier, was made by Mark Pell, managing director Gulf and Saudi Arabia.

Ben Roberts, former country manager-Kuwait is heading up an expanded sales division in the capital and Al Ain and the company’s new depot in Abu Dhabi is in full swing. The new depot has brought about a streamlining of services and transit times.

TNT has undertaken major expansion of its operations in Abu Dhabi and Al Ain with a major new facility and additional personnel, the company has revealed.

Pell says: ‘We now operate our trucking network in and out of all the GCC countries and we created the Abu Dhabi road hub because of its massive success. We recently opened a new state-of-the-art depot in Kuwait for the same reason. The Abu Dhabi road hub has streamlined our transit time in the UAE and that is why we are stepping up our operation in Al Ain. We can offer customers in Al Ain the best service they have ever had.

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Middle East transport sector to undergo major changes

The Middle East’s transportation industry including the $10 billion (Dh36. 8 billion) logistics and express mail market is set for more competition, consolidation and privatisation in the coming five years, a study from The National Investor (TNI) said.

“Following the worldwide convergence towards ‘one stop shop’ supply chain and logistics management solutions, we believe the transportation industry in the Middle East is on the verge of revolutionary developments such as consolidation and privatisation,” said the comprehensive research report obtained by Gulf News. The report comes in the wake of the ongoing initial public offering (IPO) of Arab International Logistics Company that plans to acquire Aramex International.

The Middle East logistics market is valued at more than $10 billion with the GCC market accounting for about 10 per cent of this. The UAE accounts for roughly 35 per cent of the GCC but Saudi Arabia leads with a 55 per cent share.

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The battle for parcel supremacy

Whenever David Abney looks up from his desk on the executive floor of United Parcel Service’s headquarters in Atlanta, he sees a large map of China mounted on the wall. “I have it right in my line of sight,” he says. “It reminds me and visitors to my office of the size of the place and the opportunity it provides for us.”

As president of the package delivery company’s international business, Mr Abney is quick to stress that Europe, South America and the rest of Asia are also important markets. But the fact that only China is granted its own map shows where his priorities lie.

“China is the largest and most exciting opportunity in the 30 years I’ve been with UPS,” he says. “It’s not a case of ‘should we’ or ‘can we’. If you’re going to be a global company in future you absolutely have to be a player in China.”

Over the past few months, UPS has committed an additional $600m of investment in China as it vies with rivals FedEx, DHL and TNT for leadership of the market.

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UPS acquisition of Stolica reflects growing attractiveness of Polish parcel delivery market

United Parcel Service (UPS), the global delivery company, announced last week that it would acquire 100 percent in Poland’s Messenger Service Stolica for an undisclosed sum, in a move reflecting a growing attractiveness of the Polish parcel delivery market in the wake of EU enlargement.

The market of parcels of up to 35 kilograms delivered on the next day is estimated by the delivery companies themselves to have been worth some ZL600 million last year, with about 40 million parcels shipped. The largest player on that market last year was DHL Express Polska (created by the consolidation of Deutsche Post’s DHL and Servisco businesses) with estimated 25-percent share. Stolica was close behind with 22 percent, and Masterlink was third with 12-percent share. UPS had an estimated 5-percent share in the up to 35 kilograms next-day delivery parcels market in 2004, on par with TNT, Spedpol, and the Polish Post’s Pocztex. Szybka Paczka had 9 percent.

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