TNT wholly owned subsidary TNT Hoau has opened a regional road hub in Wuhan, Hubei Province, China. This new regional hub is part of a TNT plan to expand and tap the growing domestic market
Although it will be owned by TNT the new facility will be totally managed by TNT Hoau.
This is an important step in the development of a Chinese domestic delivery arm for the company. TNT plans to open 10 regional road hubs over the next five years to tap China’s growing domestic economy, which is still expected to grow by at least 6.5% (some analysts suggest more) in 2009. Logistics in China are still overly fragmented and this is a step towards much needed rationalization.
The 46,620 square-meter hub at the Wuhan Dongxihu Bonded Logistics Centre — it is pretty much in the geographic and economic heart of central China — will enable TNT to reduce delivery times in the provinces of Fujian, Jiangxi, Hunan, Sichuan and Chongqing city by up to 2 days, at 10% lower operational cost.
The Journal of Commerce reports that Michael Drake, regional managing director of TNT North Asia (or his PR adviser) said, ‘This is all about increasing the competitiveness of our services to bring even greater value to our customers in China. Our continued investment in TNT Hoau, despite the current economic challenges, is a clear demonstration of our focus to be the market leader, and will be critical to TNT’s continued success in China.’ Quite so.