An interesting clip on Youtube as been released by the user TNTcommunications on TNT’s China Operations.
While the China domestic market one of great interested by everyone in the express market, TNT has taken a much different approach. The clear leader at this point being Fedex, who purchased Datian and have 38 guaranteed cities, I have yet to see TNT do much more than to buy out their partner Sinotrans.
Where TNT has taken a stronghold is through their Shenzhen Anda operations, and their capabilities in their automotive services.
With that being said, if TNT is anything like the other groups then they are defiantly looking at ways to improve their position, and while FedEx has a clear advantage at this point, it is safe to say that anything is possible in the domestic market.
Stumble it!
February 15th, 2008 at 6:59 pm
There is no way the Chinese government is going to allow continued foreign dominance in a semi-strategic sector of this kind. Look for their encouragement of a strong domestic small package competitor and discouragement of the foreign firms through a wide range of subtle (so still WTO compliant) operational restrictions. Have been seeing this in a few industries recently.
February 15th, 2008 at 7:40 pm
ShaMao,
I would agree on a limited extent. The local industry is a fragmented mess of 80.000 logistics providers right now, and there is clearly a movement to support a few while the others wil be left to their own capabilities.
In my conversations with local providers though, I can tell you that many of the strongest local firms welcome foreign participation as it will only speed up the processes of maturing the industry. Many of the strong local firms are run by/ set up by former employees of international firms.
but I do expect the postal law to stand firm on document delivery. thus protecting China Post.. and that will hurt some of the internationals
February 29th, 2008 at 4:52 pm
TNT has a smaller market share than fedx, however, TNTs geographic coverage is more extensve than that of fedx. This seems to blend into the consistenmt message by the TNT executives that their objectives are long term, TNTs recent purchase of the largest linehaul network in China is a significant strategic move.