TNT raises Romanian bet by $7m

TNT Romania, the local branch of the European express distribution company will invest over $7 million on the domestic market in the next three years, while its total investments so far amount to more than $10 million. The stake is to get the best position possible on the express distribution market before the EU accession.

“Eastern Europe will be the next step in the development of our business. We are currently operating on 56 airports in 24 countries in Europe and will have to expand to 80 airports,” stated Hans de Bruyne, general manager of the company’s hub in Liege, Belgium. He said the western European market was almost completely covered by the company’s network, so that the development was aimed at Eastern Europe.

“As of 2007, when Romania joins the EU, its transport needs will increase. Romania will become an interesting investment environment for the European competition, mainly, but also for the international competition, ” TNT Romania country manager Stefan Velicu said.

Under the circumstances, TNT decided to up the flight capacity for the Romanian route by introducing a BAE-146 freighter this week. This is an over 10 tonne aircraft and will fly between Otopeni and Liege every day.

“This aircraft alone will entail one million dollar investments this year,” Velicu said. He added TNT Romania’s turnover would go beyond $10 million in 2003, compared with the $7 million last year. “Earnings before interests will go up in their turn from $1 million last year to $1.2 million in 2003,” Velicu added.

TNT Romania’s market share will therefore increase to 34% according to the company’s estimates.

“The market will grow by 10%-11% this year, which means healthy growth for the Romanian express distribution market. We have managed to post 25%-30% growth year by year, which allowed us to become market leaders now,” Velicu says.

ionut.bonoiu@zf.ro