TNT announced it will invest €100 million over the next fi ve years as it seeks to tap the robust trade volumes between Asia and Europe. TNT COO James McCormac said the investment is aimed to "strengthen its network coverage, connectivity and infrastructure" as a result of "soaring demand for freight express services between Southeast Asia, China and Europe."
Th is demand is mainly driven by customers in the high-tech, equipment and machinery and healthcare sectors that are increasingly moving large volumes of high-value goods between Southeast Asia, China and Europe. McCormac said the "strategic objective is to build a leadership position in domestic, intra-regional and selected intercontinental express flows in the emerging Asian region" using Singapore as its Southeast Asia air hub.
McCormac was speaking in Singapore last month to mark the occasion of TNT's first scheduled flight to Singapore Changi Airport ¨C and the first in TNT livery for Asia as a whole ¨C where it became the 10th all-cargo airline to serve the airport.
Commenting on the inaugural landing of TNT's Boeing 747-400 ER Freighter in Singapore, McCormac said: "As the market leader in Europe, and with the strongest domestic road network in China that remains unrivalled, TNT is well-placed to off er truly differentiating solutions for customers."
Noting that TNT's volumes between China and Europe have grown over 20 per cent in 2007 from a year earlier, Mc- Cormac added: "We're certain that the stop in Singapore will further accelerate this volume growth".
The weekly freighter service between TNT's Europe hub in Liege, Belgium and Singapore before continuing onto Shanghai, will see inbound high-end products for its life sciences centre in Singapore for redistribution across the region via its newly established road network, according to Onno Boots, regional managing director of TNT Southeast Asia. The group, well known for its road network in Europe recently connected the final pieces of its ambitious Asian road network now stretching from Singapore to China.
"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," said Boots.
According to a study by TNT, Greater China is one of Southeast Asia's largest trade partners, representing some 24 per cent of total express volumes transported by air. Th is is followed by Europe representing 20 per cent, with trade within Southeast Asia accounting for 11 per cent. Within Southeast Asia's air trade, the high-tech sector alone accounts for over 76 per cent of total trade value.
The study also revealed that express volumes moving from Singapore to Europe account for about 24 per cent of total volumes transported by air while volumes between Singapore and China stand at 9 per cent.
Senior Minister of State for Finance and Transport, Mrs. Lim Hwee Hua, who officiated at the inaugural landing ceremony, said, "TNT's new Liege-Singapore-Shanghai services is signifi cant as Singapore will be the first country in Southeast Asia to host TNT's physical freighter services. Its growing presence in Singapore is a strong endorsement of Singapore's status as an air express hub and another step in TNT's longstanding and successful partnership with Singapore."
Apart from occupying an extensive facility at the Express and Courier Centre within the Changi Airfreight Centre which TNT is looking to expand, TNT also launched a Life Sciences Express Hub in Changi South Distri-centre in March 2007. Th is facility, TNT's largest worldwide, allows Biomedical Science companies to base their logistics hubs in Singapore and reach customers in Asia within 24 hours.
