TNT Express Worldwide will triple its business in Thailand within the next five years to become a leading player in the market.

That’s the prediction of the company’s new country general manager, Winfried Kiesbueye, who says that the company is ready for a major expansion in business.

“Over the last five years an enormous amount of effort has been put in to getting the machinery and systems in place and we are now ready to take off.

“The company is like an airplane which has been systematically designed and built and now it is my job to fly it,” says Kiesbueye, who has managed TNT operations in a number of European countries.

“We expect to triple our business in the next five years and our target is for TNT to be number one in the market place. We certainly have the capability to grow to take that position,” he adds.

TNT’s express and logistics operations will be at the forefront of the development. Kiesbueye sees growth across all market bands on the express side and is confident of driving substantial business in the automotive and electronic sectors.

“We have already proven with our logistics services that there is substantial business for us here in Thailand. We will show our customers that they need to focus on their core products and leave the supply chain management to us. It is more efficient and is more economical for us to handle it for them.”

TNT has been developing pioneering ecommerce solutions for its customers and this will lead to the company taking a strong advantage in Asia, believes Kiesbueye.

“In five years, the situation in Asia will be very different. Ecommerce in the United States is now maturing, in Europe everyone is now gearing up to the possibilities, and Asia is next. It is a very exciting time for our business and TNT is ready to take advantage because our investment is not only substantial but is ongoing and that is vital.”

TNT intends to link directly with ecommerce sites to provide seamless solutions for the shipping needs of the businesses as well as cater to its own regular customers through a variety of Internet services.

“With more companies going on-line with their products means that they require efficient fulfillment solutions which is what TNT can offer,” says Kiesbueye.

In Asia, TNT recorded 30 percent growth figures last year and aims to maintain that performance this year. TNT has determined that total Asia business could be worth US$26 billion by 2007 and US$8 billion will come from China alone.

In Thailand, TNT has over 300 staff and handles over 20,000 items a week. Kiesbueye sees investment in business development and staff training as key factors for growth of the Thai operation.

He believes that Bangkok’s energy will bring the best out of him and he aims to create a success-orientated team with the right philosophy.

“TNT is on the right track. We have funding, skills and vision. Our mission is clear and we look forward to our future exiting growth in Thailand,” he adds.

DaimlerChrysler Thailand (DCT) will no longer accept Mercedes cars bought from unauthorized dealers at DCT service centers. Benz executives said it was a mistake when the company said earlier that all Mercedes cars were most welcome to Benz service centers-a statement which was vehemently opposed by the official Benz dealers.

DCT’s ‘welcome-to-all’ policy had made sales slump in the past several months as sales of Benz cars in the grey market continued to rise, however, doors have been closed to the independent importers as all new Mercedes models would be from now on launched in the same week as it was in England. “It was a shame that independent dealers did not have to invest in after sale services,” said a DCT executive.

Adversely affected by foreign retail giants, local retail outlet chains are making repeated calls for assistance from the government. Viroj Junprateepthong, former president of the Thai Retailers Association, and owner of Tang Hua Seng department store chain, which is among the oldest locally owned retail outlet, said the situation was worsening and they stood no chance to survive without the government intervention.

It was not long ago that the local retail chains expanded in the booming years, and then suffered in the economic crisis. They also did not have adequate liquidity to support projects to fight against foreign chains, which are financially much stronger. The Thai-owned chains felt the heat from this competition when major Thai discount stores fell to foreign hands recently.

“The market is too much liberalized and without limitation,” said Mr Viroj; “shop-house outlets were going down one by one; and it was worse when British-owned Tesco-Lotus, and French-owned BigC extended their hours to midnight at some branches, and some others to around the clock. The Department of Interior Trade should take actions in order to help protect the Thai market.”

Last year when Sharp, the market leader, introduced electronic-controlled models to the market. They stole a march on their competitors. However, Hitachi and Sanyo have now launched their own electronically controlled rice cooking pots to compete for a share in this billions of baht segment.

Sujit Arunkarnchanawat, marketing manager of Hitachi Sales (Thailand), said the company had allocated Baht10 million to promote sales of its electronic rice cookers after finding that sales in this category rose 30%. This electronic kitchenware with ‘fuzzy logic’ technology was now made in Thailand, he said.

Sanyo (Thailand) recently launched its ‘Micom’ computer-controlled rice cookers to build up the brand image. Sanyo, which was once the market leader, said it was focusing more on foreign markets; but producer of Sharp products said the brand name was strong enough to maintain market share.

Universal Broadcasting Corporation cannot run any commercials in its broadcast - whether in form of product logos or TV commercials. The death blow to the only pay TV in Thailand was given by Mass Communication Organization of Thailand which by law owns the net work. MCOT sources said the UBC controversy was resolved in a recent ruling by the Office of the State Council.

The Council ruling is also the death knell to the Nation Group which earlier this month launched the Nation Channel - an around-the-clock news channel - on UBC 8. Nation Multimedia Group, which lost influence in the Independent Television network this month, after Shin Corp stepped in as a major shareholder, had pinned high hopes on its UBC news channel.

The CEO of UBC, Somphan Jarumilin, is quoted as saying that monthly charges could rise to Baht1,600 if commercials were not allowed.

The Council also ruled that Channel 11 can carry product logos in its broadcast while UBC cannot because the two TV networks were operating under different regulations. Advertisers have already withdrawn from UBC 8 as logos could not be carried any more. UBC was seen trying to negotiate with MCOT for amendment to the agreement.

Starting next month, China Eastern Airline, a domestic airline in China, would start its two-flights a week charter service to Phuket after successful trials.

Chinese millionaires have been fond of Thailand’s ‘Pearl of the Andaman’, said an industry source. The airline also hoped that Thais would visit China’s southern city of Shanghai.

Charn Sattayanan, President of local chamber of commerce, said the new charter flights from China would be on Tuesdays and Fridays, starting Sunday, July 16. The Tourism office in Phuket said the new flights were much welcome as they would come during low season.

Shanghai would be an excellent destination for Chinese in Thailand as they could connect to other major cities including Houng Shan and Hangzhou.