TNT Malaysia revenue surges 40pc

TNT Express Worldwide (TNT Malaysia), a subsidiary of Dutch logistics group TNT NV, saw revenue grow a phenomenal 40 per cent for the first seven months of the year.

Growth was supported by increased business in all segments, in particular the oil and gas (O&G), heavy machinery and high technology segments.

"O&G is going very strong for us. We started it last year and its been our biggest growth areas, we are seeing a lot of newer and bigger customers coming in through O&G," TNT managing director for Malaysia and Brunei, Gerry Power, told Business Times.

He said the high technology segment is also making a come back after taking a hit from the economic crisis last year.

TNT Malaysia recorded a 19 per cent growth in revenue last year, from a year earlier.

"We are not complacent though, because the next part of the year is normally quiet. We should be able to end the year on target, but next year is still uncertain amid fears of a double dip (in the global economy)," Power said, declining to disclose exact figures.

Coming out of the economic troubles last year, TNT's Asian Road Network (ARN) has been well placed to benefit from cost sensitive and time insensitive customers.

The ARN is a 7,650km road network that connects six countries, from Singapore to China. Transportation on TNT's road network is about 30 per cent cheaper than air.

"The ARN gave us that something else that kept us on the radar of our customers during tough times, and now that they have seen the benefits of it, our customers are continuing with the service," Power said.

Six of the 12 new prime movers TNT is taking delivery of this year, will be deployed to Malaysia.

The growth of the ARN has not hampered the performance of its air freight division though, as Power said the segment is growing just as fast.

"The market in Malaysia remains buoyant. Manufacturers are happy again, they are back to five and six production days a week," Power said.

TNT saw the kilogramme of cargo carried grow by 65 per cent year-on-year.

"We hope at this stage to bring an (TNT) aircraft into Malaysia. It hasn't happened yet but it will happen. We want to make Malaysia a truly integrated air and road network," Power said.

Currently, TNT uses commercial partner Malaysia Airlines to fly its cargo out of the country, or it trucks its cargo down to Singapore, which is a stopover point for TNT's aircraft.
(Source:www.cargonewsasia.com)