TNT Logistics, a Dutch logistics company, has announced a change of name to Ceva Logistics after its mother company in the Netherlands sold the business unit to New York-based Apollo Management.

Apollo Management is a private fund involved in equity, debt and capital markets. As of October, the funds under its management totalled ¤1.4 billion (Bt65.49 billion).

The transformation from TNT Logistics to Ceva Logistics in 26 countries including Thailand is expected to finish by November 2009.

TNT formerly had three business units - sending postal mail in the Netherlands, express transport in which the company has specific transport routes and schedules, and worldwide logistics businesses. TNT now has only the first two left in hand.

TNT now wants to concentrate on the express transport business, Winfried Kiesbueye, country general manager of Ceva Logistics, said yesterday. Meanwhile, Apollo has long been interested in investing in the logistics, distribution and transport industries. So far, it has acquired four companies in those industries.

He said the name Ceva was especially set to avoid confusion with the current TNT Express.

Kiesbueye said Apollo won't intervene in the business plans and decisions. The equity fund will only support with money if any further investment is needed.

In the early stages, the company has to invest in adjusting websites and electronic systems by the first quarter next year, changing all printed matter by mid next year and changing all signs and vehicle logos by the third quarter of next year.

Kiesbueye said Ceva requires a substantial budget to change all elements worldwide while Thailand needs 10 per cent of the total budget.

In terms of operation, the company will have to invest in staff and technologies. He didn't give an exact budget. Under the new name, Ceva has 567 warehouses and 38,000 employees. Its revenue last year was Bt175 billion.

Revenue generated in Asia represents 10 per cent of its total revenue. Thailand and Australia are its promising markets in the region. In Thailand, the company has 14 clients, which were transferred from TNT Logistics, mainly in the automobile, electronics and telecommunications industries. Next year, it plans to focus on the industrial sector such as steel, mining and building materials.

He said changing the name is a big issue but the company is confident that people will acknowledge Civa is not small company and has long experience in the industry.

Factors like politics that might become intense again don't worry Kiesbueye. He said the company always has a long-term view - as long as 10 years - not just one year ahead.

In addition, the logistics business still has room to grow. In the last two years, the previous government revealed that logistics costs accounted for 19 per cent of Thai GDP, which was too high. He said the cost should be reduced to 10 per cent. Therefore, there is room for a logistics operator to help clients save transport costs.

Kiesbueye said Civa might expand through acquisition in six months but it's too early to consider any prospects.

Nitida Asawanipont

The Nation