Asia's First Road Network Enhances Links Between Singapore And Malaysia
TNT, one of the world's largest express services providers, recently announced the enhancement of Asia's first road network with a direct link between Singapore and Penang, Malaysia. The direct SIN-PEN route will offer significant opportunities and benefits for businesses of high value shipments – in particular high-tech and electronics industries – looking to export or import between the two cities, offering them greater synergies in supply chain management.
This tailored service is set to contribute a further 30 per cent growth to volumes on the Asia Road Network, which has already enjoyed double-digit growth in overall volumes since its launch in 2005.
High Tech and Electronics Industries to benefit from direct route
TNT expects significant demand for the service, which will ply the SIN-PEN route five times weekly, to come from the high-tech and electronics industries that are well established in both countries.
Onno Boots, regional managing director of TNT Southeast Asia, said, "The direct route to link Singapore with Penang is in line with the initial success of TNT's Asia Road Network service, which already offers our customers a secure and time-definite delivery service and cost savings of up to 40 per cent compared to air freight. With the new Singapore-Penang route, it will boast faster delivery times of up to 30 per cent where businesses can now look forward to next-day delivery of shipments."
To support demand for an established and extensive transportation network to handle growing volumes and get products or spare parts to customers without delay, TNT has increased its capacity to the direct SIN-PEN route by 20 per cent.
Direct SIN-PEN road service supports trade growth
The high-tech and electronics sectors in both Singapore and Penang are key industries where components are manufactured for export globally. In 2006, Singapore's total trade amounted to USD510 billion, an increase of 13.2 per cent from 2005. This was contributed by Malaysia which was Singapore's main import and largest export market, with electronics components as one of the main drivers of this trade growth(www.state.gov/r/pa/ei/bgn/2798.htm
Added Damien Tan, managing director of TNT Singapore, "TNT's shipment volumes between Singapore and Penang have doubled over the past year, making it an opportune time to enhance the link between these two cities. With TNT's direct Singapore-Penang road service, TNT is well-positioned to meet customers' increasing requirement for reliability and fast turnaround times in the hi-tech and electronics sector."
Already, Singapore is home to the world's top ten Electronics Manufacturing Services (EMS) companies, with the potential to further grow its electronics manufacturing services across industries as diverse as medical devices, aerospace and industrial equipment.
Similarly in Penang, the electrical and electronics sector continues to dominate domestic and foreign investments, accounting for USD183 million in approved domestic investments and USD1.14 billion in direct foreign investment in 2006, its highest investment growth in the manufacturing and related services sectors in 26 years.
Plans to enhance links fit network growth strategy
The service extension will form part of the company's larger strategy to strengthen Asia's connectivity, both within the region and to Europe. Already an established leader in intra-European connectivity and a pioneer which launched Asia's Road Network, TNT has invested a total of EUR8 million to date in the development of the network.
The service now links Singapore, Malaysia, Thailand and Vietnam with plans to reach China through the north-eastern border of Vietnam by the end of 2007. Once completed, the network in Southeast Asia will cover almost 60 per cent of the region and link over 120 cities across 4,000 kilometres.
With 24x7 real-time Global Positioning Satellite (GPS) tracking of TNT's container trucks, the service has seen strong take-up among customers with high-value goods such as electronic, automotive and computing components. As with all TNT services, the Asia Road Network offers customers a fully inclusive door-to-door, day-definite solution with complete track and trace capabilities.
SOURCE: TNT