JEDDAH: The unprecedented economic and social initiatives that King Abdullah, Custodian of the Two Holy Mosques, unveiled all the more augur well for the sustained development of the Kingdom. The new package worth around $93 billion announced Friday, on top of the first deal announced in late February that was valued at around $36 billion, reflects the commitment of the Saudi government to further boost the economy and the bourse, where prices of shares stay buoyant and attractive to buyers. On top of this, the allocation of SR250 billion ($66.7 billion) to build 500,000 housing units indubitably assures continuous activity in the construction industry. The latest measures amounted to 21 percent of the country's 2010 GDP or 56 percent of last year's actual budgetary expenditures. In total, both measures amount to 29.7 percent of last year's GDP and more than half of the $203.2 billion in oil export revenues accrued during the past year. The stimulus package has also fostered the confidence of both foreign and domestic stakeholders. Against this backdrop of continuous economic expansion and Kingdom's resilience to withstand adverse developments in the region, express logistics and supplies services companies play a crucial role as time is of the essence in the punctual and fast delivery of goods that are necessary in the development process. In a country that relies heavily on imported goods, promptness or lack thereof spells the difference between meeting the project deadline and the lost man-hours due to nonavailability of required materials. Martyn Wright, managing director for Saudi Arabia and Bahrain, TNT Express – one of the world's leading providers of business-to-business express delivery services – said the Kingdom of Saudi Arabia is now the "engine room" of the Middle East and Africa region amid its massive infrastructure and industrial development. He noted that the Saudi economic cities' developments have trickle down effects, making the country a "very exciting place" offering a "huge amount of opportunities" and Jeddah becoming a powerhouse for the EU and Middle East countries. He said TNT Express is able to offer its customers an extensive domestic and international network, integrated with the latest technology. This allows TNT Express to provide a unique combination of on demand, time-sensitive, door-to-door services around the world. With 50 aircraft at its disposal, the company has the capacity to carry anything with dispatch under "guaranteed definite transit time," Wright noted, adding that average transit time is normally 48-96 hours from point of origin to the final destination. He said the company's revenue grows at a CAGR of 20-25 percent in 3-4 years due to its efficient customized solutions. At present, TNT Express is the second dominant industry player in the Kingdom, and with its dedicated workforce and focused growth in parcels, freight, value-added services and emerging platforms, Express is optimally positioned to grow "with our customers and meet their needs for a true global integrator." "We have another 10 years to catch up to be in the number one position here," he added, noting that TNT Express expands its market by one percent annually. TNT SAB Express Saudi Arabia was recently honored with two awards that underlined its long term commitment to serving the Saudi Arabian community. TNT SAB received an award from the Jeddah Chamber of Commerce and Industry for its community-oriented efforts during the recent floods in Jeddah. It was also a recipient of ISO 9001:2000 Quality Management System certificate; ISO 14001:2000 Environmental Management System; Safety Management System OHSAS 18001; Technology Assets Protection Assessments; and Social Accountability (SA 8000). It also received SAP accreditation and recognitions from Planet Me and the World Food Program, aside from the Dow Jones Award as "Super-sector leader" for "Industrial Goods and Services" (including 'Industrial transportation') of the 2010 Dow Jones Sustainability Indexes (DJSI). Nonetheless, despite the string of accolades, the company will continue to further enhance its facilities, like developing business-to-consumer delivery services to leverage the developments in e-commerce. On the obstacles that the company faces in the Kingdom, Wright aptly said: "The hardest thing we have met is cultural resistance versus government agencies doing the right thing" to complete the necessary paper works expeditiously. He said everyone must observe the rules and that the same rules must be applied to everybody irrespective of cultural affinity or differences in securing the customs clearance, noting that "if it happens, it will be a huge opportunity for Jeddah to become a powerhouse for Europe and the Middle East." TNT Express operates an intra-regional road network in addition to air-based products in the Middle East for a more efficient and faster services. Globally, TNT Express recorded a 13.6 percent increase in revenues to €7.053 billion in 2010 against €6.208 billion the previous year, while its operating income surged 195.1 percent to €180 million from €61 million a year ago, according to the company's 2010 Supplement. Its underlying operating income soared to €317 million last year from €240 million registered in 2009. Revenue from Europe, Middle East and Africa operations reached €4.45 billion in 2010 from €4.14 billion in the previous year. Net sales grew to €4.67 billion from €4.37 billion in the period under review. Marie-Christine Lombard, Group Managing Director, TNT Express, said in the Supplement's Introduction that TNT's "new intercontinental connections will fuel the growth … in the emerging platforms." TNT Express targets to raise its revenue to €10 billion by 2015 with its proactive approach to meet customers' needs. "With our strong regional networks … our dedicated intercontinental airline hauls and – last but not least – our brand and our people, we are exceptionally well placed to connect demand with supply across the globe and answer the need for speed, quality and service," she noted. She added: "We will continue to develop business-to-consumer delivery services to leverage the developments in e-commerce. In addition, we will extend our regional networks, particularly in the Middle East and Asia."
