TNT to invest in Chinese domestic road network
Added: 09/09/2010 Reporter: Peter James
TNT have announced plans to increase its investment in the Chinese domestic road delivery market. The investment of €170 million will enable TNT Hoau, TNT’s road distribution arm in China, to enhance its day-definite road distribution network, introduce new services, and hire additional staff.
This investment has come on the back of strong first half figures. Sales of TNT Hoau’s day-definite service during the first two quarters of 2010 exceeded those of the entire year of 2009. This has been credited in part to service coverage expanding in early 2010 to include 26 of the biggest cities in China. The day-definite network now covers 800 delivery centres throughout China, with a concentration on the major economic regions, including the Yangtze River Delta, the Pearl River Delta, and the Bohai Bay. The on-time delivery rate is 99%.
TNT Hoau’s service is being used by small, medium, and Fortune 500 companies, especially in the high-tech, electronics, machinery, and textile sectors. To support the service, TNT Hoau has bought 400 EU III-compliant trucks and set up a dedicated customer hotline.
TNT Hoau also provides less-than-truckload (LTL) services nationwide. Overall, TNT Hoau manages a road distribution network of 1,500 depots and 57 domestic hubs, which serves more than 600 Chinese cities.
TNT has also increased its capacity for import and export from China offering international road and air delivery within Asia and between China and Europe. In July 2010, the company increased its service frequency to six flights per week to/from Shanghai and five flights per week to/from Hong Kong.
