TNT Express Worldwide, a unit of TNT Post Group, has gained a strong foothold in the mainland's express distribution market through its partnership with China Post, which came into effect on January 1. China Post, which had access to more than 70 countries through its postal services before the partnership, has boosted the number of countries it serves to more than 200 through TNT's network. 'It is a two-way partnership,' said TNT Express Worldwide (HK) managing director Bryan Chan. China Post, which signed the partnership with TNT last year, will enable TNT to carry out express distribution on the mainland. Through product differentiation and selection of transportation mode, TNT has been able to speed up China Post's express service between the mainland and Europe from five to six days previously to two to three days. Mr Chan said there had been a 20 to 40 per cent improvement in the speed and efficiency of the system after TNT became involved. The company's long-term Asian strategy was to capture the No 1 position in moving express products in the domestic mainland market. In addition, TNT wanted to retain its pick-up and delivery business in the intra-Asia express market, which included Japan and pan-Asia. TNT recently concluded an arrangement with Japanese air forwarder KintetsuWorld Express to handle express cargo between Japan and Europe. 'We want to establish a stronger presence in Indonesia and Malaysia, too,' Mr Chan said. TNT expects its global express business to grow by 80 per cent by the end of 2005. Its business is growing at an average of 20 per cent per annum. Mr Chan said TNT was concentrating on the mainland because its potential was huge. It would provide express services from the mainland to wherever customers needed delivery. By developing the mainland business, TNT expects to increase its business to the United States. TNT's turnover in the US is still relatively small compared with revenues earned from its European business. TNT, a global provider of mail, express and logistics services, has long-term plans to introduce freighter services between the mainland and Europe, and also to the US, when business volumes justify the move. TNT uses commercial flights for its express services, which are growing at double-digit figures on the mainland. Last year, TNT established its own cargo airline company, TNT Airways, to rationalise and centralise management and operation of its 33-aircraft fleet that operates only in Europe. The express distributor, which has on order 12 A-300s, recently took delivery of two of the new aircraft. These are to replace TNT's existing B727s. The TNT air network, which moves 1,400 tonnes of express cargo weekly throughout Europe, is concentrating on developing the growing Asian market. TNT has its air hub at Liege, Belgium, and its road hub at Arnhem in the Netherlands. Both serve the whole of Europe, enabling express delivery before 9am the next day. TNT Express Worldwide (HK) director of corporate accounts Hans Olijve said TNT was in the final stages of linking its warehousing management system globally. 'We can go operational in about three months' time,' he said. A source said the company was testing the system with one of the largest mobile-phone manufacturers in Indonesia. The pact would enable a global link between various organisations from different countries. On e-commerce development, Mr Olijve said everybody was talking about it but many companies did not know how to go about it. Many firms in Asia were not ready for e-commerce. Many suppliers in India and Thailand were not even linked to the Internet. While business-to-business was developing, it would still take time to become firmly established, he said. Mr Olijve believed TNT's logistics activities in Europe were advanced and well developed.