This is also an important step in the development of TNT’s South American Road Network, connecting Chile with Brazil and Argentina. The acquisition is a consequence of TNT’s strategy: the goal is to become the market leader in the courier industry on this continent and to increase international transport.
LIT Cargo, established in 1952, is a family-owned road transport company employing 1,500 people. The company operates on a nationwide scale and has an automated transport network comprising 55 branches and transshipment points, as well as 496 vehicles. LIT Cargo’s annual growth rate of 25 percent over the last three years is higher than the average for the Chilean market. The company’s strategic market segments include the automotive, pharmaceutical, and advanced technology sectors.
According to forecasts, the Chilean courier services market, worth EUR 165 million, will grow by 21 percent annually over the next five years. Even before the acquisition of LIT Cargo, TNT was the leader in the courier services market in Chile, operating mainly in the international transport market. TNT began operations in the country in 1986 through a representative company, and directly in 1995. The company entered the domestic market in 2002.
The value of the South American domestic courier services market was estimated at approximately EUR 2.2 billion in 2007. Over the last few years, it has been characterized by double-digit growth—two to three times higher than GDP. Despite the current economic slowdown, forecasts for this region—even when adjusted—predict further growth in 2009.