By Genivi Factao

TNT Express Philippines said its Authorized Economic Operator (AEO) status, is its edge over competitors.The pass would help clients exporting to Europe.

Cetin Yalcin, newly appointed country general manager said the AEO status would benefit from fewer delayed shipments, reduced theft or vandalism, and improved communication between supply chain partners.

TNT said their clients would benefit from better transit time, as TNT will receive priority treatment during inspection at European customs.

The movement of goods will be faster through third country borders where the AEO status is recognized and data sets for entry and exit summary declarations will be reduced.

The European Union introduced the AEO status to all EU-established economic operators that are directly involved in importing/exporting, such as manufacturers, exporters, importers, warehouse keepers, clearance agents, and carriers.

TNT was the first express integrator to apply for this EU security customs standard, Yalcin said. "Our authorised economic operator status will be the core strength for us," he said.

He added that they see opportunity when FedEx leaves its Philippine hub this year, and they have tabled in expansion plans.

"Others should also try our service. We are targeting leadership position in airfreight volume into Europe, China and Southeast Asia, our core markets," he said.

Yalcin said they are investing P6.5 billion over the coming 5 years to strengthen its network coverage, connectivity and infrastructure, as demand for freight express services between Southeast Asia, China and Europe continue to increase.

He said in terms of value and volume, electronics were the largest clients in the country. They also cater to fresh tuna exports, pharmaceuticals as well as garments.

Yalcin added that TNT made a significant investment with the acquisition of Boeing 747-400 ER Freighter, which has the capacity of 100 tons per flight.

The $260 million aircraft will benefit Philippine exporters.  

"The introduction of Singapore as a new hub for TNT’s 747 brings a new level of connectivity between the Philippines and China, Europe and the rest of Asia through Singapore. We see this as a welcome development, especially for our clients who are active traders with these countries," he said.

TNT Philippines has 4 branches located in Cebu, Makati, Mandaluyong and at the Ninoy Aquino International Airport. They plan to add to more branches and were looking at Davao , Cagayan de Oro, Subic-Clark or Laguna for this expansion.

In the Philippines, 11 per cent of exports is bound for China while 12 per cent of total exports go to Europe, particularly to The Netherlands and Germany.