News | February 18, 2009

TNT Launches Domestic Day-Definite Road Service In China

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TNT, one of the world's leading express companies, is launching its first domestic day-definite road distribution service in China. The service will be delivered through TNT-Hoau, TNT's wholly-owned subsidiary in China. Leveraging on TNT-Hoau's domestic road distribution leadership position in China and TNT's strong international road distribution expertise, this premium road service will also move the company into a new value-added arena, in terms of time, security and service quality.

The TNT-Hoau day-definite road distribution service will utilise TNT-Hoau's existing extensive road distribution network to deliver on-time, door-to-door or depot-to-depot services. It will complement TNT-Hoau's trusted less-than-truckload (LTL) road service to boast TNT's full-service offerings capability in China. The day-definite service is designed to meet the needs of corporate customers who see value in their shipments arriving on time, in good condition, and on a highly consistent basis.

The day-definite service will first be offered between 115 depot pairs covering the key economic areas of the Yangtze River Delta, Bohai Economic Rim and the Pearl River Delta regions. TNT-Hoau plans to increase the coverage of this premium service to over 260 depot pairs by July 2009. This service will also offer customers with industry-leading innovative offerings. All shipments will be bar-coded to allow customers to ‘track and trace' their shipments, via the Internet, giving them greater control and planning opportunities, which can also save on supply chain cost. The day-definite trucks are equipped with Global Positioning System (GPS) technology to enable ‘real-time' tracking of each truck throughout the process. To ensure greater consistency, in terms of service quality to customers, a dedicated service hotline has been set up to support the launch of this new service.

As China's leading domestic road distribution service provider, TNT-Hoau is in a good position to provide customers with innovative solutions to reduce logistics costs and improve operational efficiency. The company already manages the industry's most extensive road distribution network consisting of 1,260 depots served by 56 domestic hubs covering more than 500 Chinese cities. Moreover, China's road distribution infrastructure is now stronger than ever. In 2008, China's total road mileage increased to 3.68 million km, serving nearly 90% of all Chinese towns. Within this, China also has the world's second longest highway network after the United States – China's National Trunk Highway System (NTHS) now stretches across 60,300 km of expressways. Furthermore, a sizable proportion of China's RMB 4 trillion stimulus package will be directed at the construction of transportation infrastructure, such as building new roads.

"The Chinese government has provided the industry with excellent transportation infrastructure which allows us to develop innovative road distribution services that help our customers increase their market competitiveness," said Michael Drake, Regional Managing Director, TNT North Asia. "The day-definite service, with its on-time, secure, service quality promise, will do exactly this. It can help our customers optimize their supply-chain processes and operational cost, it will also enhance the leading position of TNT-Hoau in the Chinese market."

"For TNT-Hoau, our focus has always been on creating the best products and services that will best meet the needs of our customers and creating the most value for them," said Edward Xu, CEO of TNT-Hoau Group. "The launch of this new service today not only demonstrates our confidence in the Chinese road distribution market but also effectively helps our customers become more successful by increasing competitiveness with our faster and high-quality services, especially under the current economic climate. This is the real intention behind launching day-definite road distribution services. Based on our customers' positive feedback from the initial trials, results from our own survey, coupled with the dedication of our staff, we are confident of the long-term and successful growth of this reliable and premium road distribution service in China."

TNT entered the Chinese market more than 20 years ago, and is today a leader in the provision of fast and reliable China-Europe international express services. TNT operates 34 international express branches and 3 international gateways in China that connect over 500 Chinese cities to more than 400 cities in Europe in the shortest possible time.

The TNT-Hoau Day Definite road distribution service, offering on time, secure and reliable services, is operational immediately.

SOURCE: TNT