News | December 15, 2006

Logistics Centre: TNT Opens New Global Express Centre In Penang

Unveils Archive Services, a first for Asia

TNT Express, the leading global provider of integrated B2B express delivery services has accelerated its growth in Malaysia with a new facility in Penang and the introduction of an innovative service offering – TNT Archive Services, a first in Asia.

The RM 8 million TNT Global Express Centre was officially opened on Friday, 8 December 2006 by Tan Sri Dr. Koh Tsu Koon, Chief Minister of Penang. Tan Sri Dr. Koh said, "The presence of leading global business express delivery companies such as TNT reflects the vote of confidence and the positive climate of doing business in Penang and Malaysia. TNT's world-class services and high level of security certainly augurs well with the demand of the industry to serve the Northern Corridor Economic Region (Northern Corridor), which comprises the states of Perlis, Kedah, Penang and northern Perak."

‘High-tech' synergy with Penang
TNT's investment in the Penang facility is in tandem with the rapid growth of the state. Its large and well-established concentration of high-tech manufacturing companies makes it a preferred business environment for TNT.

Gerry Power, Managing Director of TNT Malaysia & Brunei, said, "TNT is primed to support Penang's burgeoning manufacturing industry. Demand for TNT's solutions has been especially strong, and with the growth in volumes in the past year, we feel it is time to scale up our operations. We are also attracted to Penang's potential to become a key centre for life-science and biotechnology industries and this investment underscores the synergies between TNT's strengths and Penang's capabilities.

"Penang is the country's third largest domestic economy after Selangor and Johor, in which TNT already has sizeable operations. Penang's excellent road, sea and air infrastructure and readily available pool of educated and highly skilled talent also make it an ideal choice," added Mr Power.

Faster, secure services for customers in north Malaysia The TNT Global Express Centre, Penang, is located at Bayan Lepas, a short 15 minute drive from the Penang airport. Thanks to new advanced handling equipment and special customs handling capabilities, customers in north Malaysia can now enjoy shorter shipment times. TNT has also increased its staff strength by over 35 per cent to enhance deliveries within Penang.

The new 22,000 sq ft TNT Global Express Centre in Penang will serve an expanding market in Penang as well as the neighbouring states of Perak, Kedah and Perlis. As with all TNT facilities across Malaysia, the new centre is monitored around-the-clock, providing the high level of security necessary for the transport of high-tech and high value goods.

There is also a Banking Services Centre, which helps banks with sortation and personalised delivery of products to their end-customers. The TNT Global Express Centre is also Life-Science ready for the safe handling of time and temperature-sensitive clinical specimens such as blood, vaccines and drugs. The facility plays an important role for hospitals and laboratories in Penang, as TNT coordinates a sizeable portion of the state's clinical shipments. Last but not least, the centre is able to handle Dangerous Goods (DG).

Mr Power said, "True to TNT's culture of innovation, we have leveraged our expertise in transporting high-tech and high value goods, and generated innovative solutions to tackle the challenging, emerging life science industry. We are happy to find that these have been well accepted by markets such as Penang."

TNT launches Archive Services, a first in Asia
TNT also conducted a nationwide launch of TNT Archive Services today, becoming the first express company to offer an archiving and records management service. Investments in the infrastructure required to bring this service to market was RM1 million, and Malaysia is the first Asian country to launch this service.

Proper classification and storage of business records of up to seven years is legally required of all companies in Malaysia. The cost and complexity of maintaining proper archives is especially acute for documentation-heavy businesses such as banks, legal firms and hospitals. An average-sized company with about 200 employees can generate between 100 to 500 A4-sized boxes of documents. A rough estimation of a bank's transaction and customer records can easily fill anywhere from 10,000 to 100,000 boxes per bank for instance. By outsourcing the archiving function, office space and manpower are freed up, resulting in significant cost savings.

"Outsourcing has become an integral part of business, allowing companies to concentrate on core income-generating activities. Besides, it might cost a company more money to hire staff who are skilled in managing a systematic filing system on an on-going, long-term basis. Some customers have shared with us that the greatest trouble they face is in locating their old records. Under TNT's tried-and-tested processes, we are confident of returning records more efficiently than if they were to be stored in the customers' own site," said Mr Power.

"We are poised to open more Archive facilities across Malaysia within the next six months. The nature of the business is such that growth is inherent to a certain extent, as existing customers continually expand the amount of archived records," he added.

Secure storage and systematic management
A dedicated Archive Services supervisor from TNT will manage the highly-computerised operations, and the business records are stored in a specially secured environment, under camera surveillance 24 hours a day. Should customers require any document, TNT is able to deliver it within the same day or on the next business day.