TNT expects 20% growth in express delivery market

Dubai: Express delivery and logistics company TNT expects its business to grow 25 per cent in the UAE this year.

According to a senior company official, the industry will see a growth of 15 to 20 per cent.

This growth trend will be visible across most countries in Asia, TNT regional vice-president Jinendra Sancheti told Gulf News.

"World trade is shifting eastwards. Physical volumes of goods are shifting to the East," he said, referring to increase in imports by Asian countries.

He said rising commerce would create "exceptional" growth in the express delivery market.

Netherlands-headquartered TNT is investing more than Dh10 million in the UAE this year to expand the network and increase its geographical presence.

The company is building a Dh4 million warehousing and distribution facility in Dubai Airport Free Zone.

"We are investing in all key emerging markets under a $100-million, five-year plan. Dubai is an important economic zone of emerging markets," San-cheti said.

TNT has opened a new Middle East road network hub in the south of Jebel Ali Free Zone.

The facility will be used to process road shipments to Qatar, Saudi Arabia, Bahrain, Kuwait, Oman and Iran. The company will also build a 5,000-square-metre facility that will house the Northern Emirates collection and deliveries.

Possibilities of establishing a presence in the upcoming Logistics City are also being evaluated.

TNT's planned expansion is expected to increase its UAE workforce by 20 per cent next year.

"We are expecting a growth of 25 per cent in our UAE business. The express market itself will see an average growth of 15-20 per cent over the next few years," Sancheti said.

While acquisitions remain part of the company's growth plans, TNT does not see the region throwing up such opportunities.

"There are only limited opportunities. Acquisitions are not simple in the Middle East," the official said.