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TNT Express’s gross volume of operations surges 26% in Russia

The total volume of TNT Express’ operations in Russia rose by 26% year-on-year in 2008, according to company’s official data for released in April. Broken down, the company’s overall growth performance in 2008 was derived from a robust 50% hike in domestic deliveries and equally strong 20% increase in international shipments, thus maintaining its double-digit growth rate in the two strategically vital segments of the Russian express-delivery services market, and hence reaffirmed its leadership positions throughout the local industry.


Commenting on the company's 2008 performance at a Moscow press conference, Harro van Graafeiland, CEO of TNT Express in Russia, noted that the robust growth in domestic shipments stemmed from the expansion of the company's Russian regional network and portfolio of services, thanks to our successful regional expansion policy, which the company has implemented over past years. And, assessing the company’s overall performance last year, he called 2008 ‘a very successful year’ for the company in Russia. “Our key objective in 2008 was to meet the growing needs of companies in the Russian regions and provide them with top-quality express delivery services. The company has increased its geographical coverage of the Russian territory to 11,000 cities via the expansion of its regional networks. For instance, new offices were opened in Kazan, Rostov-on-Don and Krasnodar.” 


However, Graafeiland noted that today’s realities are forcing the company to review its business strategies. “We have recently expanded our operational capabilities in the Far East by launching line halls on the Vladivostok-Khabarovsk, Vladivostok-Novosibirsk and Vladivostok-Seoul routes that have enabled us to significantly reduce delivery times in these directions,” he added. 


Also, the company continued its robust investments into infrastructure and other core business-related facilities. For instance, the company's auto park in Russia was increased by 15%, its cargo processing centers in St. Petersburg and Moscow expanded further to handle more cargoes and quicken the processing and clearance procedures of cargoes and other forms of correspondences for shipment to their destinations, while a huge warehousing facility, equipped with latest warehousing and storage gadgets, including the CargoScan technology system that controls the weight and physical parameters of shipments, was built in 2008 in Mitino. Also, a free toll line has been installed to facilitate communications between potential clients and the company on a round-the-clock basis, while the company’s software products were overhauled and enhanced to boost the overall effectiveness of the shipment processes. 


Rounding up the conference, and outlining his vision for the Russian express-delivery services market, Graafeiland said he was optimistic for the future, noting that his upbeat stance on the Russian industry stems from the successful long-term development strategies put in place by company over the past several years as well as its anticrisis programs being implemented by the company’s management that are aimed at exiting the crisis stronger and better placed for the post-crisis market environment. “All these and other planned measures will help us keep our high growth rate in 2009, despite the negative impacts of the global economic crisis on the industry,” the TNT Express Russia CEO noted at the conference.