TNT HAS MARKED the 55th anniversary of its presence in the Asia Pacific by unveiling its
vision to be the market leader in integrated express, logistics and mail in Asia by the year
2005, and to achieve a threefold growth in its overall business within this period. Notably, TNT said it wanted to treble its express business and increase its logistics business by more than 10 times by the year 2005.
In a bid to gain market leadership by 2005, e-logistics provider TNT has mapped out a strategy that will be dominated by strategic alliances and mergers and acquisitions. Martin Phillips, director for sales and marketing for Asia, said in an interview at the Shangri-la Hotel in Makati City, that the
company will engage in such activities to further strengthen its
hold on the market.
To gain the top position in the e-logistics market, Mr. Phillips
said that the company has to grow its courier services by 300% and
its logistics business by 1,000% in 2005.
Despite investing over $20 million in the US, it has no plans to take on FedEx,
UPS. The brouhaha over Deutsche Post’s takeover of DHL Worldwide Express has
overshadowed recent initiatives by TNT to expand its business in the U.S.
While DHL, whose ownership status is being challenged by FedEx and United
Parcel Service, hopes to play in the same league here as the two giant
integrators. TNT has no such aspirations. Still, TNT, whose customers include Abbott Laboratories, Pepsico, Playboy and the World Bank, has quietly ramped up its presence in the U.S. Over the past two years, it’s invested $20.5 million in the U.S., primarily in technology, depots and trucks.
General manager for TNT in Ireland Philip Bracken, says express companies always notice it first when there is a dip in the economy.
“Analysts look at us in Europe and Ireland as they follow the fortunes of FedEx in the US because we are a good indicator of economic health,” he says.
If that is so, then a short, sharp shock is on the cards. After a strong first quarter in which TNT started operating three aircraft nightly out of Ireland – one aircraft from Dublin which called at Liverpool en route to its Liege hub, and two others from Shannon and Cork. The integrator dropped back to two in early April.
Integrators are feeling the pinch as the dip in the republic’s economy starts to bite, but TNT remains confident of retaining market share General manager for TNT in Ireland Philip Bracken, says express companies always notice it first when there is a dip in the economy.
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