Noting the company's core competencies are in designing, implementing and running delivery network businesses, TNT CEO Peter Bakker explains that "high-quality networks have proven to be intrinsically more attractive than customer dedicated supply chains."
That said, TNT will retain some logistics operations in high-tech spare parts and its In-Night business (together representing $354 million in revenues). TNT also considers its freight management operations "an essential element" of its global network, especially connecting Asia and Europe. Freight management is excluded from the logistics divestiture plan.
Meanwhile, TNT is acquiring Hoau Logistics Group, one of China's leading freight and parcel transportation operators. The acquisition will make TNT one of the largest privately owned transportation networks for freight and parcels in China. The company already has 140 distribution facilities in China, representing 26 million square feet of warehouse space.