TNT will invest €100 million (P6.5 billion) over the next five years to strengthen its network coverage, connectivity and infrastructure, defining its long-term aim as building a leadership position by leveraging on the soaring demand for freight express services between Southeast Asia, China and Europe. This demand is mainly driven by customers in the high-tech, equipment and machinery and health-care sectors that are now increasingly moving large volumes of high-value goods between Southeast Asia, China and Europe.

Commenting on the inaugural landing of TNT’s Boeing 747-400 ER Freighter in Singapore, James McCormac, chief operating officer of TNT’s express division, said, “As the market leader in Europe, and with the strongest domestic road network in China that remains unrivalled, TNT is well-placed to offer truly differentiating solutions for customers. Our strategic objective is to build a leadership position in domestic, intraregional and selected intercontinental express flows in the emerging Asian region. TNT’s volumes between China and Europe have grown over 20 percent in 2007, and we’re certain that the stop in Singapore will further accelerate this volume growth”, he added.

Onno Boots, regional managing director of TNT Southeast Asia, said, “While we pride ourselves in offering customized solutions to businesses, TNT has grown to be recognized as the leader in providing innovative solutions for the health-care, high-tech and equipment and machinery sectors. As our customers increasingly move large volumes of high-value goods between Asia and Europe, they want the same quality of service, a single point of contact, clear visibility and accountability throughout their shipment’s transit which we are able to provide.”

With Singapore as its Southeast Asian hub, TNT’s connectivity between Europe, Southeast Asia and China will further be enhanced to tap into significant trade flows between these regions. According to a study by TNT, Greater China is one of Southeast Asia’s largest trade partners, representing some 24 percent of total express volumes transported by air. This is followed by Europe representing 20 percent, with trade within Southeast Asia accounting for 11 percent. Within Southeast Asia’s air trade, the high-tech sector alone accounts for over 76 percent of total trade value. 

Enhanced connectivity for Philippine traders

IN the Philippines, 11 percent of exports are bound for China and 12 percent go to Europe, particularly to the Netherlands and Germany. Intraregional trade between the Philippines and Southeast Asian nations account for almost 60 percent of the Philippines’s total export revenues in 2007—one of the biggest trading partners being Singapore, which accounted for 6 percent of total export revenues for the Philippines in 2007.

Cetin Yalcin, newly appointed country general manager, believes the introduction of the new 747 stop in Singapore is beneficial to Philippine customers. “The introduction of Singapore as a new hub for TNT’s 747 brings a new level of connectivity between the Philippines and China, Europe and the rest of Asia through Singapore. We see this as a welcome development, especially for our clients who are active traders with these countries,” he said.

Complementing the Asia Road Network, which links over 120 cities in Singapore, Malaysia, Thailand, Vietnam and China, the enhancement of TNT’s air network offers customers an integrated, multicountry, multimodal solution and hence a one-stop-shop approach to developing customized solutions for moving heavy, high-value shipments.

With its strong domestic network capabilities, TNT moves freight between major cities in Southeast Asia to China with an average transit time of 48 hours. To Europe, the company offers transit times as short as one day.

Levy on tankers may start in 3rd quarter

THE Department of Transportation and Communications (DOTC) said it is in no hurry in implementing the law that slaps a 10-centavo levy on tankers for every movement of oil products, but the agency wants all holes to be plugged before the law takes effect.

THE Philippine Ports Authority (PPA) has asked Malacańang to take over the resolution of the labor dispute at Dumaguete Port in the central part of the country, after the situation went from bad to worse, while the state firm and shipping companies are counting their losses.

THE cost of shipping Middle East crude to Asia, which climbed for the first time in 11 days Thursday, may rise as the number of shipments in April exceeds expectations and refineries start looking for vessels to load next month.