TNT builds in Europe
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• TNT's latest offshoot, Contract Distribution — Europe, has won two more major Continental contracts.
This follows TNT's move into EC distribution with Nutricia (Commercial Motor 14-20 September 1989).
The bigger of the two new contracts is with Thorn Lighting in Germany, to provide a distribution and warehousing operation based at Amsberg. The other deal, with the Moorkens Motor Company, is to distribute Mitsubishi vehicle parts to more than 110 dealers in Belgium. Ten staff and eight vehicles will be dedicated to the operation, based at TNT's Bornem depot near Brussels. Brian Bolam, who heads the new division, says that deals are now being negotiated with other European firms. "Of the estimated 165billion-guilder (g55 billion) transport market in Europe, it is forecast that a minimum of 25% is potential contract dis tribution business. TNT Contract Distribution — Europe aims to achieve 5% of this figure by the end of the decade," says Bolam.
"This will give us in excess of two billion guilders (g666 million) annual turnover at cur7 rent rates, and in our opinion this is a realistic target. Our UK contract distribution business is targeted to hit over 300 million guilders (.2100 million) turnover in the next financial year," he adds.
TNT has already launched several other operations on the Continent, including Skypack, Express Europe and XP. This infrastructure may be used in its contract distribution expansion plans, says Bolam.