Penang, Malaysia - TNT, one of the world’s leading providers of integrated express services, has increased its presence in Malaysia with the opening of a new facility today – The TNT Penang International Gateway. Located at Kompleks Kargo Kedua, next to the airport runway, the integrated air and road facility – the first in northern Malaysia - will improve the transit times of goods passing through Penang and will increase the company’s capability to handle a greater volume of goods. The new facility will provide significant opportunities and benefits businesses in the hi-tech industry, specifically the electronic, computing, telecommunications and semi-con sectors.
TNT’s Penang International Gateway was officially opened today by Y.A.B. Mr Lim Guan Eng, Chief Minister of Penang. Y.A.B. Mr Lim said, “The fact that TNT is investing in yet another facility in Penang despite the challenging economic times is a big confidence boost to doing business in Penang and also Malaysia. The electrical and electronics industry is a key pillar of Malaysia’s economy and forms a significant portion of Penang’s total trade . TNT’s top-notch services and the attention it pays to providing a high level of security meets the demands of the industry especially in North Malaysia.”
Speaking at the official ceremony, Onno Boots, Regional Managing Director for TNT Southeast Asia and India said, “It is important for TNT to stay nimble and adaptable during these challenging times but also to stay focused on further developing our infrastructure and integrated air-and-road networks in the region. The opening of our Penang Gateway facility is yet another demonstration of our commitment to grow in Malaysia and the region. We understand the needs of our customers especially in the hi-tech sector and want to offer them the most cost-effective supply chain solutions for their business.’
Gerry Power, Managing Director of TNT Malaysia and Brunei said, “The northern region of Malaysia is the second largest contributor to Malaysia's GDP. Penang alone generates some 24% of Malaysia's exports and 21% of Malaysia's imports and more than one third of this trade is in high value, time sensitive hi-tech goods, where TNT has well established capabilities and a comprehensive portfolio of services. For TNT to continue to be well placed to capture current and future trade demands in Penang, the time is right for us to expand our facilities, enhance our services and strengthen our presence here. Despite the economic uncertainties of the past twelve to eighteen months, TNT Malaysia has recorded robust double digit growth and with the addition of the Penang International Gateway to our network, I
am confident that we are on the right track to tripling our revenues in the next three years in line with our strategic ambition.”
‘Hi-tech’ synergy with Penang and the Northern Corridor Economic Region (NCER)
TNT’s investment in the new facility is in line with the presence of large and well-established hi-tech manufacturing companies in Penang. Penang contributes 21 per cent to Malaysia’s total imports and 24 per cent of Malaysia’s total exports . Within Malaysia, the north region consisting of Penang, Perlis, Kedah and northern Perak contribute to about 24 per cent of the country’s GDP.
The strong presence of the hi-tech industry in Penang complements TNT’s focus on the industry. This year, TNT recorded a double digit growth in its hi-tech business sector in Asia (year to date) and in TNT Malaysia, revenue growth was more than 20 per cent (year to date). Despite the economic downturn, this growth was attributed to TNT’s cost-efficient and lean supply chain solutions.
Faster and economical services for TNT customers in north Malaysia
The TNT Penang International Gateway is northern Malaysia’s first integrated air and road facility. Located next to the airport runway, the facility is seamlessly connected to TNT’s air network and its unique Asia Road Network (ARN). With the new facility, transit times into and out of Penang is reduced by a day. Shipments from Penang into Europe can now be transported by air in two days. Also, next morning door-to-door delivery service from Penang into Singapore by air is possible with the new facility.
In addition, the ARN - the region’s first fully-managed and operated scheduled road express freight service route that stretches 7,620km over 127 cities across Malaysia, Singapore, Thailand, Vietnam, Cambodia and South China. This means that customers have the choice of transporting their goods via road, air or a combination of both – thus enabling them to choose from the fastest to the most cost-effective transport modes for their supply chain needs. Transportation by road with TNT is 30 per cent cheaper than air and three times faster than sea transportation.
Capable of handling 320 tons of cargo daily, TNT’s International Gateway in Penang further enhances TNT’s freight services within Malaysia and Southeast Asia and between Southeast Asia, China and Europe. As the airport infrastructure in Penang grows, the facility will be able to support greater growth. TNT has more than 1,500 depots in China, more than all its competitors put together. TNT also has the largest road and air network in Europe.