TNT acquires Speedage to build leading position in domestic express market India
TNT N.V. announced the acquisition of ARC India Limited which operates under the trade name Speedage Express Cargo Services, one of the leading road express companies in India.
This acquisition is a key component of TNT's Focus on Networks strategy as announced in December 2005. Acquiring Speedage is in line with TNT’s strategic objective to become the leading provider of express deliveries in the emerging markets in Asia, specifically India. Combining Speedage’s strong domestic road network with TNT’s international and domestic networks will form a powerful platform for further expansion in the fast growing Indian express market.
Mr. Peter Bakker, Chief Executive Officer of TNT N.V. said: “We are pleased to announce another excellent step in the implementation of our Focus on Networks strategy today. TNT will gain a top 3 position in the fast growing Indian domestic road express market with the acquisition of Speedage. The combined revenues for TNT in India after this acquisition will be approaching € 100 million in 2007. We believe that the combination of Speedage road based capabilities with TNT's international express operations will form the first integrated and strongest network available in India. Furthermore, it clearly complements our network strategy in Asia".
Mrs. Marie-Christine Lombard, Group Managing Director of TNT’s Express division, said: "The road based Express segment is projected to more than quadruple in the coming decade. Furthermore, the sustainable economic growth in India, major government investments in infrastructure and an opportunity to leverage on Europe being the largest trade partner with India, should support us to reach our objective to become the market leader in Express in India by 2010.”
Founded in 1995 and with an annual profitable turnover of Euro 17 million in FY 2005 / 06, Speedage has a strong and impressive list of customers, which includes global players, large and medium sized companies. This acquisition will add 514 depots, 26 transit hubs, 730 vehicles and 1,195 employees (and approx. 1,300 sub-contracted staff) to TNT’s existing resources enabling TNT to offer a comprehensive network covering all parts of India.
“Speedage is a result oriented company that has established a substantial network in India. With a 60% growth in its revenue over the past year, it is one of the fastest growing companies in the road express industry. This acquisition will allow TNT to extend the integrated air and road products spanning across ‘time critical’, ‘day definite’ and special services to a broad range of customers”, said Abhik Mitra, Managing Director, TNT-India.
1. TNT Express is one of the world’s leading business to business express delivery companies. The company delivers 3.5 million parcels, documents and pieces of freight a week to over 200 countries using its network of nearly 900 depots, hubs and sortation centres. TNT Express operates over 19,000 road vehicles and 43 aircraft and has the biggest door-to-door air and road express delivery infrastructure in Europe.
2. TNT Express employed over 48,000 staff worldwide per year end 2005 and is the first ever organisation to achieve global recognition as an Investor in People. The company reported revenue of Euro 2.9 billion in the first half of 2006. Operating income from TNT Express increased by 21.5% to Euro 277 million in the first half of 2006 compared to the same period in 2005.
3. TNT N.V. provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximize its network performance. TNT serves more than 200 countries and employs over 128,000 people. In the first half of 2006, TNT reported Euro 5.3 billion in revenues. TNT N.V. is publicly listed on the stock exchanges of Amsterdam and New York. TNT recognizes its social responsibility, and has formed partnerships with the United Nations World Food Programme and the United Nations Environmental Programme to fight hunger and pollution in the world.
Tesco Direct select TNT Logistics for Home Delivery
TNT Logistics UK has been awarded a five-year contract to operate two man home delivery services for the newly-launched Tesco Direct. The nationwide service will utilise dedicated Tesco Direct vehicles as well as TNT Logistics’ multi-user TNT Home fleet, which already delivers furniture and larger goods for other retailers.
Neil Ashworth, Supply Chain Director, at tesco.com, says TNT Logistics’ long-standing experience in home delivery was a key factor in awarding the company the business. “They are the ideal logistics partner for us as they have the expertise we require to ensure the deliveries are made as promised to our customers. In addition, through the use of the TNT Home fleet, they give us the flexibility to grow the business in a cost-effective way. As with all parts of the Tesco business, the focus upon customer service is paramount, and TNT have demonstrated an enthusiasm to work with us to make the customer experience amongst the best in the market.”
Tesco Direct will at the launch offer in excess of 8,000 product lines and about 1,000 of these will require the two-man home delivery service – from sofas and wardrobes, to home gyms and outdoor play equipment.
Customers can order through the tesco.com website, by telephone or by visiting the Tesco Direct desk located within selected Tesco stores.
The logistics operation will be run out of the brand new 38,000 sq metre National Distribution Centre at Crewe which TNT will manage on Tesco’s behalf and also utilise six home delivery platforms, from Glasgow to Exeter. Initially over 200 TNT staff will be employed on the operation increasing as sales volumes accelerate.
TNT Logistics has installed software systems, including its HDi home delivery system, Red Prairie’s DLx warehouse management system, Paragon route planning and PenPod for the collection of electronic signatures.
Neil Crossthwaite, Managing Director, TNT Logistics UK, says: “We look forward to working closely with Tesco Direct as they build this whole new business offering. Our team has experience in launching major home delivery supply chains from scratch and I am sure our partnership with Tesco Direct will be an outstanding success.”
“We look forward to expanding the operation as Tesco Direct wins more and more customers. Through the resources of TNT Logistics, we can offer instant access to the expertise, IT systems, personnel and vehicles at precisely the level that suits Tesco Direct’s rate of growth.”
TNT Logistics’ other customers within the home delivery sector include House of Fraser, The Pier, Habitat and B&Q.
FedEx Completes Acquisition of Watkins Motor Lines
Addition of Long-Haul Less-Than-Truckload (LTL) Units Expands Heavyweight Service Portfolio for Customers
FedEx completes acquisition of the LTL operations of Watkins Motor Lines and certain affiliates creating FedEx National LTL and FedEx Freight Canada.
FedEx Corp. announced it has completed the $780 million cash purchase of the LTL operations of Watkins Motor Lines and certain affiliates. A privately held company based in Lakeland, Fla., Watkins Motor Lines is a leading provider of long-haul LTL services with more than $1 billion in annual revenue.
The operations of Watkins Motor Lines and Watkins Canada Express, Watkins' LTL carrier in Canada, which together include more than 140 service centers and more than 14,000 tractors and trailers, will be re-branded FedEx National LTL and FedEx Freight Canada, respectively. Re-branding of both operations will begin immediately.
"These strategic additions to the FedEx portfolio offer more flexibility and greater value to shippers in the less-than-truckload sector," said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp. "FedEx Freight, FedEx National LTL and FedEx Freight Canada create a reliable, single-source provider of one- and two-day regional as well as long-haul LTL services that customers have been requesting." Other benefits customers will enjoy include easy access to bundled transportation solutions available with other FedEx operating companies, specifically FedEx Express and FedEx Ground.
FedEx National LTL and FedEx Freight Canada each operate as a separate network within the FedEx Freight segment, which also includes FedEx Freight, FedEx Custom Critical and Caribbean Transportation Services. More than 470 service centers comprise the FedEx Freight, FedEx National LTL, and FedEx Freight Canada networks. The companies will operate nearly 54,000 tractors and trailers to meet customers' regional and long-haul LTL needs.
"FedEx National LTL and FedEx Freight Canada will provide the certainty and reliability of service that customers have come to expect from FedEx Freight," said Douglas G. Duncan, president and chief executive officer of FedEx Freight. "As integration moves forward, FedEx National LTL will strengthen its focus on providing core long-haul services, while FedEx Freight Canada begins identifying service enhancement opportunities as we work together to grow our LTL market share throughout North America."
With a workforce of nearly 9,000, FedEx National LTL will benefit from Watkins' rich heritage in the transportation industry and a strong workplace culture similar to that of FedEx. "Over the years, Watkins' teams have earned a stellar reputation for professionalism and dedication to customer service," added Duncan. "They share these customer-focused priorities with an engaged FedEx workforce, a factor that will facilitate a smooth integration process, help grow our business and guide our company toward an even brighter future."
Source : www.shippingline.biz
Sphinx Egypt sits well within Worldwide Project Consortium
The Worldwide Project Consortium has welcomed Sphinx Egypt Ltd. Co to its specialist global logistics network.
WWPC General Manager, Kevin Stephens, based in Queensland, Australia, said today (December 11, 2006) Sphinx Egypt, with offices in Cairo and Alexandria, had more than 20 year’s experience delivering outstanding service along the important transport artery between Egypt and Europe.
“Sphinx Egypt has an expert team that ensures the Worldwide Project Consortium is well positioned to maximise opportunities in one of the most dynamic emerging markets in the world,” Mr Stephens said.
“The Worldwide Project Consortium has an enviable track record of success that can help meet the logistics needs of a diverse range of clients, particularly those working on large oil and gas projects in the Middle East region.”
Mr Stephens said Sphinx Egypt Ltd. Co. was headed by Dr. Naim Amen and had substantial experience in custom clearance and freight forwarding, particularly large-scale projects throughout Egypt including heavy lifts and oversize cargo.
WWPC members will be gathering in Cape Town, South Africa, from March 29-30, 2007 to attend the annual Partnering for the Future Conference. More than 100 participants are expected to attend.
Major sponsors at the conference included Rickmers-Linie GmbH, Germany; Volga-Dnepr (UK) Limited; Air Partner plc, U.K.; Macs Maritime, South Africa; Beluga Chartering GmbH, Germany; and Sun Communications PR and Media, Australia.
Source : www.shippingline.biz
DNV: Surveying in cyberspace-increasing safety by improving training
The very first 3D survey simulator specially designed to improve safety in the shipping industry is now in use. By this - virtual ships used for extensive training, knowledge sharing and experience development are brought into the class rooms. Class surveyors and also port state inspectors are able to take major steps forward through improved and accelerated training. Later on ship officers and superintendents will be able to start using the new tool too.