TNT acquires LIT Cargo of Chile

Amsterdam - TNT announces the acquisition of 100 per cent of LIT Cargo, a leading express delivery company in Chile. The acquisition gives TNT a strong nationwide road network in Chile and strengthens its position in the country’s domestic express delivery market. Furthermore, it adds a key building block to the development of its South American Road Network (SARN), linking Chile to Brazil and Argentina. The acquisition fully fits with TNT’s strategy to become the intra-regional express leader in South America and to leverage this regional strength to grow intercontinental flows.

Created in 1952, LIT Cargo is a family-owned, profitable road express company with 1,500 employees. The company operates a nationwide, highly automated express parcel network, comprising of 55 depots and 496 vehicles. LIT Cargo’s compound annual revenue growth of 25% over the past three years has outpaced that of the Chilean market. The company serves several key vertical markets, including automotive, pharmaceuticals and high tech. 

Marie-Christine Lombard, Group Managing Director Express, member of TNT’s Board of Management, said: “TNT is on its way to becoming the intra-regional express leader in South America. We are developing strong operational platforms in Chile and Brazil to offer customers an integrated portfolio of domestic, cross border and intercontinental services.” 

Note to the editors: The €165 million Chilean domestic express market is expected to rise by about 21 per cent a year during the next five years. Before acquiring LIT Cargo, TNT was already a leading provider of express distribution solutions in Chile, operating primarily in the international sector. TNT started to service Chile in 1986 through an agent, and took ownership of its operations in 1995. It started to operate in the domestic express market in 2002. 

The South American domestic express market was valued at about €2.2 billion in 2007. It has shown high double-digit growth rates – two to three times that of the Gross Domestic Product (GDP) – over the past years. Despite the current economic slowdown, South America’s prospects, even if revised downwards, are for continued growth in 2009.