09/01/2008 15h22
TNT Mercúrio starts integrating operations in South America
Gazeta Mercantil - 09/01/2008
After getting profitability "above two digits" in the Brazilian operation, TNT Mercúrio has its eyes on the South American market. The company's goal is that the South America represents 7% of the total volume of fractioned cargo handled in the Brazilian operation until 2012. Nowadays, South America represents 3.5 % of the volume transported by the company. The president of the company in Brazil, Roberto Rodrigues, said that the project of road integration in the region is in its conclusion stage. "We are mapping this market, but the idea is to integrate the operations in Argentina, Chile, and Peru first. Today, we already have TNT units in these countries, but they don't have the unique service", said Rodrigues. The whole project of the operation in South America, according to Rodrigues, was made by a Chile-based consulting company, Evalueserve, which identified efficiency in a new custom in the Brazil and Argentina route. "Today we work through the municipality of Uruguaiana, but we'll start the transport through the municipality of São Borja, because we saw that the flow will be faster and will diminish our transportation time", said the executive. Rodrigues, however, affirmed that the company will have to make investments to expand, or even create costumed terminals in order to structure the operation. With the project in operation, TNT Mercúrio believes that it can have 25% of the market of fractioned cargo in Brazil in five years. Today, TNT Mercúrio has 15% of the transportation of fractioned cargo up to 500 kilograms in the Country, with 85 million volumes. The goal is to grow nearly 10% a year. "The Brazilian market of fractioned road cargo represents nearly € 1,5 billion a year and we already reached an income of € 200 million. It represents such an important market that induced the headquarters to put Brazil as one of the key operations of the group", said Rodrigues. According to him, the company is modifying the automation system to structure the whole operation in Brazil. Rodrigues also affirmed that the company foresees the expansion of units in Brazil to reach the goal of 25% of the Brazilian market. Today, TNT Mercúrio has 102 units, from which 53 are branches and 49 are franchises. According to him, TNT works in the states of the South, Southeast and Northeast regions. The routes in the Mid-west and North regions of Brazil are operated in a partnership with Expresso Araçatuba. Besides expanding the number of units in the Country, TNT Mercúrio is also investing in the expansion of its fleet. This year, the company foresees buying 400 new vehicles, including trailers and trucks.
