Press Release

TPG and Correos de Chile sign joint cooperation

Publish Date : 18 July 2002 at 13:55 CET - Mail, Express and Logistics company TPG N.V. has announced that through its division TNT Express, it has entered into a 6-year co-operation with Correos de Chile, the Chilean Post Office, to develop new international and domestic express delivery services under shared brands for the Chilean market.

The joint cooperation combines the experience of TNT in the international express business and the strength of Correos de Chile in the Chilean domestic market. Through this cooperation, TNT Express and Correos de Chile will jointly become leaders in the Chilean express delivery market, offering customers wider coverage and shorter transit times than any other carrier in the country.

For TNT Express the major benefit of this joint cooperation is the ability to offer a nationwide service from Correos outlets across Chile. Until now nationwide services from TNT have only been available from Santiago, Concepción and Valparaiso. The deal will also increase the brand awareness of TNT in Chile, provide TNT with a greater presence in the ad-hoc delivery market and give the company greater access to small and medium sized enterprises.

For Correos de Chile, the major benefit is increased access to the international express parcels market at a time when traditional domestic mail volumes are declining. The deal will also accelerate Correos' evolution into an advanced postal organisation as it will benefit from TNT's expertise in training, in business excellence and in building successful partnerships with other Post Offices around the globe. The new co-branded service will gradually replace the international and domestic express services currently offered by Correos.

TNT Express will have access to 600 depots, 200 vehicles and 6,000 employees throughout Chile as part of this agreement. Correos de Chile will benefit from TNT's worldwide network of 40,000 people, 878 depots, 43 aircraft and over 19,000 vehicles.

As both partners are clearly committed to the success of this cooperation, a dedicated management team has been appointed that will be responsible for managing this business for the first six years. The first milestone for this team will be the operational launch in the Chilean market of the co-branded express service in the 4th quarter of this year.

Helmer Knust, Managing Director TNT South America , said, "We are delighted to be entering this joint cooperation with Correos de Chile allowing the growth of both brands on a domestic and international scale. We are fully confident that TNT and Correos will continue to go from strength to strength in Chile, and that this will benefit our customers both within and outside Chile. This cooperation supports the ambitions of TNT to further improve our position in the region."

Jose-Louis Mardones, Managing Director of Correos de Chile commented, "We carried out extensive research into who would be the most suitable fit for our business and concluded that TNT Express is by far the best company in its industry. This cooperation will help build our expertise in the express delivery market through transferring knowledge on issues such as processes and technology. It is another example of the process of change Correos is currently involved in and will help us to accelerate this development. This is good news for all the parties involved, allowing us to offer increased international express services for our customers, as well as leveraging this expertise for Correos as a whole."

Page publication date: 18 July 2002 at 13:55 CET