It will provide contracted logistics services under the new name of Ceva Logistics (Thailand).

The company plans to invest Bt100 million to Bt150 million in Thailand this year in new business infrastructure, including vehicles, warehousing, trucking, an information-technology system and equipment like fork-lift trucks and rackings.

Another Bt20 million will be spent on a six-month rebranding process to transfer the TNT Logistics brand into the new Ceva identity. Under the ¤1.4-billion (Bt64.96 billion) acquisition, all of TNT Logistics' facilities and 36,000 employees in 26 countries around the world, including 1,800 full-time staff in Thailand, were transferred to Ceva.

Winfried Kiesbueye, who had been with TNT Logistics in Thailand for almost six years, has joined the new Ceva Logistics (Thailand) as country general manager.

Kiesbueye said logistics comprised one-third of TNT's business in Thailand, alongside mail and express services. And with the acquisition, all 15 blue-chip customers handling 21 logistics contracts in Thailand would be transferred to the new company.

"We have very important business here in Thailand for our Asia business unit," said Colin Moran, managing director of Ceva Logistics Singapore.

He said Ceva was the largest "pure play" contracted logistics company in the world. It has its headquarters in Amsterdam, and its regional headquarters for Asia in Singapore will oversee its operations in Thailand, Malaysia, Singapore, Indonesia and South Korea.

Ceva Logistics achieved worldwide turnover of Bt175 billion in 2005, and almost 10 per cent of its global revenues were from the Asia-Pacific. The region has also enjoyed organic growth of 20 per cent per annum, and the company expects to double its business in the Asia-Pacific in the next five years.

"The company is also looking for identified acquisition possibilities to support its organic growth," said Moran, adding that logistics was enjoying fantastic growth and is probably one of the best industries in terms of organic growth.

"We aim to build the awareness of our new identity through several initiatives, including the re-establishment of new country offices. So far, the Ceva offices in Thailand, Malaysia, Singapore and Indonesia have already been re-established. We also will be changing uniforms and vehicles to a burgundy colour."

Under the acquisition, almost 120 big trucks, 90 subcontracted trucks and 14 warehouses in Thailand will be transferred from TNT Logistics to Ceva.

Kiesbueye said the rebranding process in Thailand would take about six months. Ceva will launch a print-media advertising campaign next month, as well as sponsor industry-focus conferences, including the Auto Asia supply-chain management forum at Bangkok's Millennium Hilton Hotel in June.

Moran said logistics costs accounted for 16 per cent of Thailand's gross domestic product. The company plans to cut those costs 10-20 per cent through new warehouse design, more efficient transport planning, inventory and stock reductions and improvements in productivity through technology and best practices learned from its global network.

"The trend we are seeing is that local companies are starting to see the benefit of outsourcing logistics in reducing their logistics costs. And our job is to review their logistics structure and the way they operate and design a solution that improves their logistics operation and reduces their cost," said Moran.

"In Thailand, we are still concentrating on growth within auto logistics, which is the key sector for us here. We will also focus on telecommunications, consumer electronics and expanding into the industrial sector."

Kwanchai Rungfapaisarn

The Nation