TNT Acquires Hoau.. WHAO

Wednesday, March 14, 2007 15:53

According to Air Cargo and Reuters, TNT has just closed a substantial deal for Hoau… i.e. it was just approved.

While the numbers are not known, the facts that are being reported are:

  • Hoau was established in 1995
  • Hoau has 1100+ depots around China
  • Hoau has 12000 employees
  • Hoau has 3000 trucks

For those wondering how TNT was going to fit into the picture (they recently offloaded a lot of logistics assets), I guess we know… they will concentrate on air.

No doubt, UPS, FedEx, and DHL will be looking at this deal very closely as each have announced their intentions to build rather than buy, and the air hub’s of each will go online in the next 18 months or so (UPS and DHL in Shanghai, FedEx in Guangzhou).

Given DHL just made a major announcement for distribution center space, and FedEx just closed Datian, I am only left to wonder what UPS has in store as they approach their 100th year of operations.

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2 Responses to “TNT Acquires Hoau.. WHAO”

  1. Eric Joiner says:

    March 15th, 2007 at 11:25 pm

    Which do you think is more important…FedEx acquisition of DTW for domestic parcel or this TNT acquisition of Hoau? Also just a note…the DHL acquisition of space in Shanghai is for their Global Forwarding business, not their express business. DHL Express has substantial hub and spoke operations already in China.

  2. rbrubaker says:

    March 16th, 2007 at 5:20 am

    Hi Eric,

    The FedEx acquisition for me was a deal that made sense on many levels as it expanded their network and service capabilities in a number of areas. It appears that the integration has gone well, and that is a first as many others in China struggled to integrate partners.

    The TNT deal is strictly for air, and as such, the deal should improve their access in to that space. However, the postal law could impact this deal depending on the issue surrounding China Post’s monopoly over small package/ document.