TNT and COSCO enter strategic partnership to jointly develop China and Asia Pacific Logistics Business
Hoofddorp/Beijing -COSCO Group, the world's second largest and China's largest shipping company, together with TNT, a world leading global mail, express and logistics company, unveil a strategic partnership, with the formation of a Joint Venture (JV). The announcement is made jointly by Captain Wei Jiafu, President of COSCO Group and Mr Peter Bakker, CEO of TNT. The partnership will enable COSCO to further penetrate into the Asia Pacific logistics market, and it will enable TNT to expand its presence in China as well as its China-linked logistics business. As a first step in this strategic partnership, both industry leaders today signed the Letter of Intent for the establishment of a logistics JV. The JV aims at becoming the world's recognised leader in supply chain management in the Asia Pacific region. The combined strengths of both companies will create more comprehensive service offerings and geographical coverage to customers.
The new 50/50 JV is expected to be operational in 2006. The activities that will be injected into the JV initially are COSCO's home appliance logistics business in China and TNT's Pallecon materials handling business in Australia. The combined warehouse space will be approximately 1 million square metres and the number of employees around 1,000. The near term objectives are to develop the home appliance logistics business and to introduce the Pallecon business into China. The JV is also aimed at the continued growth of Pallecon and the active development of China linked logistics in Australia.
The new JV combines the strengths of COSCO's home appliance market knowledge, customer base and nationwide network with TNT's global network, Best-in-Class IT platforms and value-added logistics know-how to offer customers with simplified, seamless, end-to-end supply chain solutions.
Peter Bakker CEO of TNT: "This partnership with COSCO is an important and significant step for our China strategy. The marriage of our know-how and global position in logistics to COSCO's shipping strength and COSCO logistics' China leadership is an excellent match that has potential to grow rapidly and become industry leader for China domestic business and China linked services in the world.
Wei Jiafu, President of COSCO Group, emphasized that COSCO Group has decided to enter into this strategic alliance with TNT, one of the leading global 500 companies, with a view to fully leverage TNT's technologies and advanced management, and COSCO's network, client base, and China market's experience in order to achieve maximum mutual benefits and effectively strengthen each other's market influence in China and the Asia-Pacific region. This is a partnership between two powerful players, embodying a significant move in COSCO's overseas expansion of logistics business as an important component of COSCO's "strategic transformation from a global shipping carrier into a global logistics player." Founded on genuine goodwill and mutual support by both parties, this JV is bound to have a bright future
About the Companies
TNT N.V.is a global provider of mail, express and logistics services. The group employs over 161,000 people in 63 countries and serves over 200 countries. For 2004 the company reported sales of € 12.6 billion. TNT N.V. is publicly listed on the stock exchanges of Amsterdam, New York, London and Frankfurt. The TNT N.V. website is: http://group.tnt.com
TNT China is the Chinese branch of TNT Group and provides integrated business solutions through its three main business sectors – direct marketing, Logistics and Express. These services cover direct marketing solutions, door-to-door express delivery services and supply chain management. It currently employs 4,500 skilled professionals across its distribution network of over 100 operation locations and services more than 600 cities in China. TNT China currently operates in seven international gateways in China which includes: Beijing, Shanghai, Guangzhou, Dalian, Hangzhou, Xiamen and Shenzhen.
By joining with Shanghai Automotive Logistics Co. to form Anji-TNT Automotive Logistics Co. Ltd, TNT China has become the largest third-party automotive logistics provider in China.
TNT Pallecon Logistics services industry with a unique and innovative range of Intermediate Bulk Handling solutions for the storage, distribution and handling of raw materials, ingredients and finished products. Our domestic and global Intermediate Bulk Container (IBC) hire service can provide an efficient, economical and innovative way to warehouse, distribute and handle your product - whether it be free flowing or viscous liquid, granular, powders or semi solids - through our domestic and global network of hire depots.
COSCO Group is a diversified transnational enterprise group with shipping and logistics as its core business.COSCO LOGISTICS Co.,Ltd.,co-invested by COSCO Group and COSCO Pacific Co.,Ltd (one of the H.K. Hang Seng Stock Index, code: 1199), is a modern logistics company at the leading market position in terms of scale and capacity. COSCO LOGISTICS ("CL") was found in Jan,8,2002. Presently, CL is the biggest joint venture Third Party Logistics company The establishment of COSCO LOGISTICS is one of the important strategic steps to "be the most competitive logistics provider and the best shipping agency".
COSCO LOGISTICS provides all-around modern logistics services to customers domestic and abroad, international shipping agency, international multi-national transportation, public freight forwarder, air forwarder, container yards management, storage and consolidation services, railway, highway and barge transportation, project development and management, as well as rent broker services． CL owns a professional team with talents on public logistics and shipping agency.
Aiming to "be the most competitive logistics provider and the best shipping agency", COSCO LOGISTICS dedicates to developing modern logistics. Backed by its global freight service networks COSCO LOGISTICS has developed in many specific market sectors, such as automobile logistics, home appliance logistics, retail logistics, exhibits logistics, power logistics, and petrochemical logistics. We also provide value added services to our clients. So far, it has won a great number of bids and has successfully provided logistics services for the ChangHong, TCL, Beijing Jeep, Hafei auto, The Right Side of Yangtze Three-Gorge Hydraulic, Sinopec Coal Substitute for Oil Project, CSPC Nanhai Petrochemical Project, India Baku Power Station, Pakistan C2 Nuclear Power Station Project、DEC India Sagardighi & Durgapur Power plant Project, Tibet Railway construction Project, and exhibition of Shenzhou V Re-entry Modules.. And it presents the leading role in automobile logistics, home appliance logistics, and power logistics.
COSCO LOGISTICS has modern scientific management method and collects persons with high ability level. Based on the traditional forwarding business, our advantageous position comes from the international logistics system and advanced services. The whole logistics operation platform is built on modern scientific technology. The validity of functions rests on the system of customer satisfactions. In order to build synthetic transportation system, we effectively integrate logistic resources and foster core competitive. This paves a secure and convenient way to the value maximum for customers and offers efficient, effective service for ship owners and shippers on planning and designing scientific and economical logistics programs.
Headquartered in Beijing, COSCO LOGISTICS has set up 8 regional corporations in Dalian, Beijing, Qingdao, Shanghai, Ningbo, Xiamen, Guangzhou and Wuhan, as well as a series of overseas representative offices in South Korea, Japan, Singapore, Greece and Hong Kong and it has signed the long-term cooperative agreement with more than 40 shipping agency enterprises in foreign countries. CL has built up an extensive network covering 29 provinces and more than 300 business branches and sub-offices around the country. CL is having and controlling more than 4000 logistics vehicles, has more than 30 bulk transport vehicles, and have domestic most advanced 2200 tons self-propelled trailer, and operate warehouses and pile with the total storage area more than 1,500,000 square meters. And CL has set up one's own chemical garden in Shanghai.
COSCO LOGISTICS establishes its leading station in china logistic market, depending on its powerful strength and continuous-improving knight service, obtains high praised social reputation. In the first appraise through comparison of one "Top Hundred Powerful China Logistics Company", COSCO LOGISTICS obtained number one in the list of names posted up. In the 2005 appraise activity through comparison of China First batch 5A Level Logistics Enterprises, CL obtained number one, besides obtained the number one of all logistics award in all previous china freight award appraise through comparisons.
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For further information, please contact:
Senior Press Officer TNT Group Media Relations
Tel: + 31 20 500 6224
Mobile: +31 6 109 187 90
General Manager of Management and Planning Dept.,COSCO Logistics Co., Ltd.
Tel: + 86 10 64673153
Mobile: +86 10 13601301641