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TNT International Express, one of the world's leading business-to-business express carriers, vowed Monday to enhance its performance in the lucrative Chinese market, after ending its 15-year joint venture with Sinotrans.

Beijing-based Machplus Worldwide Express has been appointed as the main distributor of TNT Express' products and services in China following the end of the joint venture last week.

"The needs of customers in China are changing due to the greater market orientation and globalization,'' said Bryan Chan, managing director of TNT Express for the Chinese mainland and Hong Kong.

"As a result, we are expanding our business beyond courier service to meet the demand,'' he told a Beijing press conference.

According to him, the company is set to introduce new value-added express logistics solutions to the Chinese market to further its expansion plan over the next three years.

"China is a strategic market for us, we are very confident about China's economy development despite the impact of SARS,'' Chan said.

By the end of this year, the number of TNT Express branches will rise from the current 12 to 25 and the number of gateways are expected to grow from three to seven cities.

Besides opening up more branches, he said, the company will also introduce the entire range of express delivery service that include value-adding express logistics solutions for more specific fields such as electronics, high-tech manufacturers, telecommunications and pharmaceuticals.

Last week, the company launched a national toll-free customer service hotline and also started shipping loads heavier than 30 kilograms.

To enhance its performance, TNT's parent company, TPG, and the State Postal Bureau of China (China Post) signed a memorandum of understanding in April for further co-operation in the express and logistics industry.

Both sides agreed to immediately form a task force to explore potential areas of mutually beneficial co-operation in the areas of mail, express and logistics.

Attracted by China's sustained economic development, the world's leading express delivery service providers, such as UPS, Fedex, and DHL, have all launched joint ventures in China and recorded good business growth due to their wide-range delivery network and high labour efficiency.

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