Competition grows fiercer in courier service industry<\/p>\n
JAKARTA (JP): Courier service competition is tougher than ever
\nin Asia and the Pacific as the robust economic growth over the
\nlast few years has encouraged major firms to expand.<\/p>\n
Phil McConnell, a director of the Asia-Pacific Synergy
\nPlanning Group, told The Jakarta Post that the better economies
\nin most of the Asian and Pacific countries have created the
\nfiercest competition ever among the courier service companies.<\/p>\n
The Asia-Pacific Synergy is a giant international cross-border
\nintegrator for the DHL Worldwide Express courier service company.<\/p>\n
McConnell said that to anticipate the competitive sphere, DHL
\nhas established cooperation with Asia's major courier companies
\nand set up a logistics center in Singapore.<\/p>\n
DHL, which has cooperated with PT Birotika Semesta of
\nIndonesia since 1982, claims to have partnerships in over 30
\ncountries in the region. Under Birotika's management, DHL
\noperates 56 branch offices throughout Indonesia.<\/p>\n
Despite the increasingly stiff competition, Paul Moorhouse,
\nchief executive officer for the Asia-Pacific and the Middle East
\nfor TNT Express Worldwide is upbeat about the prospects for
\nexpansion of services in the region.<\/p>\n
\"The economic boom in the region, including Indonesia, is a
\ngood vehicle to support our intensified services to its
\ncountries, which contribute some 24 percent to our total annual
\nturnover,\" he said here on Thursday.<\/p>\n
The Amsterdam-based TNT, which has embraced the local courier
\nfirm, PT Skypak International, in a joint operation since 1979,
\nreported that its total turnover in worldwide services steadily
\nincreased to US$1.5 billion in 1992-1993 from $1.06 billion in
\n1991-1992 and $934 million in 1990-1991.<\/p>\n
\"Much brighter economies in the region will certainly give us
\nan option to improve our services in the future,\" he said.<\/p>\n
This month, for example, TNT plans to operate two new
\nairplanes in the region and another two in December. TNT now has
\nthree planes serving the region.<\/p>\n
New products<\/p>\n
Both Moorhouse and McConnell concurred that their newly
\nintroduced service products are part of their firms' commitments
\nto improving services in the region.<\/p>\n
TNT and its partner Skypak International launched the Asian
\nAir Express Network, which offers overnight freighter service
\nfrom Jakarta to Singapore, Seoul and Hong Kong and return, on
\nThursday.<\/p>\n
Skypak International's president, Soediono Somantri, told
\nreporters that TNT last year launched a similar network for
\nserving Jakarta, Manila and Taipei with an investment of $50
\nmillion.<\/p>\n
\"With the new product, we can guarantee that documents,
\nparcels and cargoes will be delivered within 24 hours in the
\nAsian countries,\" he said.<\/p>\n
He claimed that TNT offers lower prices for its services than
\nany of its competitors in the country.<\/p>\n
TNT, which is owned by TNT Ltd. of Australia and GD Net BV, a
\nconsortium of the post offices of Germany, France, Sweden, the
\nNetherlands and Canada, plans to introduce the third phase of its
\nnetwork this year for serving Jakarta, Bangkok, Kuala Lumpur and
\nShanghai.<\/p>\n
Money back<\/p>\n
DHL which has operated in the country for more than 25 years,
\noffers a strong challenge with a 100-percent guarantee to its
\ncustomers if deliveries take more than overnight. \"We guarantee
\nyour money back if your documents or goods do not arrive
\ntomorrow,\" McConnell said on Wednesday.<\/p>\n
TNT offers to refund only part of the fees if deliveries take
\nlonger than 24 hours.<\/p>\n
DHL has also launched the so-called Asia Overnight package,
\nwhich provides a door-to-door service from Jakarta to Kuala
\nLumpur, Bangkok, Hong Kong, Tokyo, Singapore and Sydney.<\/p>\n
Both DHL and TNT use Indonesia's local carriers, Garuda
\nAirlines, Merpati, Sempati Air, Mandala and Bouraq, for
\ndeliveries in the country.<\/p>\n
McConnell said that his company, which operates in 215
\ncountries throughout the world, relied on its own air fleet of
\n130 airplanes for its services.<\/p>\n
Because DHL is partly owned by Lufthansa and Japan Airlines
\n(JAL), it can also use 110 of JAL's airplanes and 203 aircraft
\nfrom Lufthansa for document and goods deliveries.<\/p>\n
JAL and Lufthansa each holds a five-percent stake in DHL.<\/p>\n
McConnell said DHL is capable of making around 50 million
\nshipments a year.<\/p>\n
Moorhouse said his company operates its own 26 aircraft in
\nEurope. \"There is no need for us to operate our own aircraft in
\nAsia and the Pacific,\" he said.<\/p>\n
For the Asia-Pacific services, TNT is supported by the Pacific
\nEast Asia Cargo Airlines, which is jointly owned by TNT and the
\nPhilippine government. (fhp)<\/p>",
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