TNT turnover to surge 30%

Bogdan Enache, TNT”s country manager, says the simplification of customs procedures has had a positive impact on international courier services, despite the company”s lower-than-expected growth last year.

In 2005 the operator of international delivery services registered turnover worth 20 million euros, only 14% higher year-on-year, falling short of the 40% officials had estimated earlier in the year.

“Last year”s estimates took into account the pace of growth TNT Romania had witnessed during previous years, when 50% advances were registered in consecutive years. We must not overlook, though, the fact that the market of international courier services has reached a level of maturity also expected to be attained in Romania, which entails a certain stabilisation,” stated Bogdan Enache, TNT country manager. Moreover, once turnover came to be worth millions and tens of million euros, rates of growth have subsided, believes Enache.

Last year”s expectations of higher growth are also accounted for by a change of strategy related to the structure of shipments. “The development strategy our company has embraced stipulates an orientation toward the shipment of freight in large and very large volumes.

This type of shipment can entail, depending on a certain weight, a lower profitability margin, but is better suited to customers” demands and matches our development strategy”.

TNT for this year forecasts a 30% turnover increase to 26 million euros.

“We expect this year”s turnover to soar by 30%, given the pre-EU integration stage we are in, a stage that will mark a peak on the market of national and international courier services,” said Enache

With 20 offices nationwide, 388 employees and a 170-unit car fleet, TNT has earmarked investments worth 1.7 million euros for this year, a level similar to 2005.

“This year, we will further invest in the company”s operational capacities, which are the basis of an organic, well-structured growth, depending on market demands and capacities,” explained Enache.

Though TNT Romania is trying to gain a solid position on the market as a delivery solutions integrator, express delivery continues to be the most profitable service offered by the company.

“International delivery services account for the largest volume of overall shipment operations our company carried out, and the most remarkable progress was registered by heavy-load air transportation,” states Enache. TNT owns 3 aircraft for freight transportation, one that can carry 10.5 tonnes, which operates from Otopeni airport and the other two (1.5 tonne capacity) servicing Timisoara and Cluj-Napoca.

“We estimate the market of international delivery services has already got close to 40 million euros, as a result of the trend in 2005. As regards its future evolution, we can only expect it to grow since one of the most alluring sectors for investors is that of services, and Romania has made significant progress in this direction,” said Enache.

TNT Romania

* Posted turnover worth 20 million euros in 2005, only 14% higher year-on-year, below expectations initially projected at 40% growth

* For this year projects 30% turnover growth, to 26 million euros

* Has 20 offices countrywide, 388 employees and a 170-unit car fleet

* Has earmarked investments worth 1.7m euros for this year, similar to last year”s

* Express delivery services accounts for the most of the company”s turnover

lavinia.marin@zf.ro