TEXT-TNT starts road services into China

July 4 (Reuters) - The following statement was released by Dutch mail company TNT (TNT.AS)

TNT starts the only scheduled road services between China and Southeast Asia

Asia Road Network up to 30% cheaper than air and three times faster than sea Intra-Asia road services poised to support regional trade and business growth

Amsterdam, Guangzhou, Singapore, 4 July 2008 - TNT, the global express company, today announces the start of the only scheduled road services between China and five countries of Southeast Asia, using its Asia Road Network. From China, international road services to Southeast Asia will first be available from the South of the country. In a second step, TNT will link the Asia Road Network to its Chinese domestic network to offer customers seamless road connections between many parts of China and Southeast Asia.

The Asia Road Network connects to TNT's international express network at Nanning, the capital of the Guangxi Zhuang Autonomous Region, and Guangzhou, the capital of Guangdong Province.

Introduced at the end of 2005, TNT's Asia Road Network is a fast, reliable, and secure integrated road network linking China with over 125 cities across 5,000 km in Vietnam, Thailand, Singapore, Malaysia, and Laos. It features fully inclusive secure, door-to-door, day-definite distribution service with complete track and trace capabilities, supported by a 24/7 real-time GPS tracking system. The trucks depart on schedule like trains, leaving to arrive at one of TNT's hubs and depots, in time for parcels to be unloaded, sorted, and shipped out again or delivered locally.

"China is a very important market for TNT's strategic growth in the region; similarly, the Chinese market is also integral to many of our regional and global clients. This extension in China is driven by customer demand. Being customer focused is at the centre of how TNT approaches business. Our customers want reliable, cost effective, and secure transportation solutions and this unique service is exactly that," says Marie-Christine Lombard, Group Managing Director of TNT's Express division.

The extension of TNT's Asia Road Network into China is timely as regional trade is expected to thrive. Under the impending China-ASEAN Free Trade Area to be set up with six ASEAN countries in 2010, the estimated bilateral trade volume between China and ASEAN will reach US$250 billion, up from US$160 billion in 2006 (1). With the Asia Road Network, TNT is well positioned to offer businesses in the two fast-growing regions with secure, time-definite, and cost-effective delivery services, and in turn, facilitate the growing trade and business flows in the region.

Michael Drake, Managing Director of TNT Greater China: "Our road service provides more choice to customers shipping to and from China. It is up to three times faster than sea freight and up to 30% cheaper than air freight. That is a winning formula in times of high fuel prices."

Due to China's geographical proximity and close business links, Vietnam, in particular, will benefit from TNT's completed Asia Road Network. As Vietnam's economy continues to grow, bilateral trade volume between both countries is on the increase and offers strong business opportunities for TNT.

TNT's Asia Road Network draws on TNT's 35-years experience in managing Europe's most extensive road network. Across Europe, TNT has about 750 trucks on international routes every day, connecting a total of 101 hubs and international depots in 35 countries. By exporting this innovative network approach to Asia, the TNT Asia Road Network will serve as a strategic initiative to further strengthen TNT's leadership position in China and the rest of Asia.

(1) Source: Ministry of Transport of the People's Republic of China, January 2007