TNT Logistics and EGL have officially relaunched under the name of Ceva Logistics, at the same time outlining an ambitious plan to increase turnover from €6bn (£4.3bn) in 2006 to €10bn (£7.1bn) by 2010. CEO John Pattullo says the company is now the fourth-biggest logistics firm globally, and pulling together the freight-forwarding business of EGL with the contract logistics of TNT means Ceva is in a strong position to boost its global presence.
"The two businesses are incredibly complimentary. EGL was strong in the Americas, TNT was strong in Europe and both had businesses in Asia. Now we have a strong presence across all three. "TNT was dependent on the automotive sector, but EGL adds market share in technology and consumer and retail as well," he says. Pattullo adds that only 4% of customers overlapped. "Together we can provide end-to-end supply chain solutions."
He adds the company believes it is in a strong position for growth and has set itself an ambitious turnover target of €10bn by 2010, from a starting point of €6bn last year. "We can achieve this by focusing on: unity of approach and systems operational excellence and growth. Both companies were growing less than the market. TNT grew 1% last year, while its market grew 7-8% EGL grew 9% and its market 12%. To reach €10bn we need to grow 15% a year, but we believe that is achievable in a growing market."
The areas Ceva has earmarked for growth and investment are sea freight, particularly out of China, and road freight in North America. It also aims to expand its business into a wider market in China, build a presence in Dubai and develop national presences in Eastern Europe.
