TNT Express Worldwide expects direct distribution business from Asia to top US$20 million by 2000.
The company says the opening of its Liege hub in Belgium - in the heart of the air-cargo triangle of Amsterdam, Frankfurt and Paris - will boost direct distribution from Asia.
Michel Houthuys, regional corporate accounts director for Asia, said an increasing number of electronics and automotive parts industries, which saw business grow 200 per cent in 1997-98, were using direct distribution services instead of conventional European distribution centres.
TNT, owned by TNT Post Group (TPG), has invested 125 million guilders (about HK$478.75 million) in this greenfield site to provide state-of-the-art handling systems, using highly sophisticated equipment.
The express centre has six sorting units and is designed to handle 1,000 tonnes of freight per night. It also provides capacity of 30,000 packages an hour, with potential to handle increased volumes after 2000.
Speaking at the opening of the Liege facility, Mr Houthuys said globalisation, shortened product life and continuous innovation meant increasing requirement for supply flexibility.
