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International Engines and TNT Logistics sign the largest Logistics contract in the autoparts sector

11 October 2002 - 14:44 CET

International Engines South America has recently contracted TNT Logistics as the logistics operator for its industrial centres in Canoas (Rio Grande do Sul state) and in Jesus Maria, Argentina. The partnership is part of an extensive International project named "Global Logistics Operator" resulting in the company being the first to have a contract for logistics in the autoparts sector with this scope.

The partnership between International Engines and TNT foresees servicing for the Brazilian and Argentinean units. Operations at the Canoas plant, in Rio Grande do Sul, include transport (port-plant, transport of components and finished engines and road transport to and from Argentina), material handling (internal material management and supply of the production line) and international operations (customs expedition, port activities, documentation and international transport to the USA and Europe).

In Argentina, the contract between the companies will include foreign trade management (import and export process management at the Jesus Maria plant) and the operation Land Rover (a door-to-door operation from engine dispatch at the Jesus Maria factory to sequenced delivery at the Land Rover industrial base in Solihull, England).

According to Waldey Sanchez, International Engines' CEO, the choice of TNT resulted from the presented synergy of solutions, the qualified technical body, intensive use of information technology and its global scope. There were all decisive factors to support its Supply Chain strategy.

In the opinion of Gianfranco Sgro, the CEO for TNT Brazil and South America, the fact that TNT is an international logistics provider was vital to win the new contract. "TNT, being a global company present in various countries, has the expertise to provide services to International not only in Brazil but also in Argentina, Europe and the USA", he adds. The credibility of TNT's technical team, which led the customer to trust in the possibility of implementing a project this size with minimal wear, was another important factor during negotiation.

TNT will open a new branch in Canoas, for which it intends to hire a further 50 employees and to invest in technology and equipment to support operational requirements.