Dutch express company TNT said it will focus on its express parcel and freight operations over the next five years to offset shrinking mail volumes.

The group plans to accelerate growth in the US$30 billion-a-year European standard parcels market by targeting next day domestic delivery and economy cross-border shipments.

The company outlined its strategy in a five-year plan, dubbed “Vision 2015”, which highlighted the challenges it faces as its domestic and European postal markets are liberalised.

TNT said it will also leverage its extensive European trucking network and high growth international import volumes to extend its market leadership in day definite freight transport within Europe. It will build its international business through partnerships like the one with Conway in the US and through its owned networks in developing markets.

TNT said it also plans to boost its market leadership in day definite markets in China and South America and expand its road network in Australia, India, the Middle East/Africa and South America.

The company will focus its mail operations on the domestic Dutch market which is facing “an environment of sharp further volume decline” and annual revenue declines of four to six per cent. TNT’s international volumes have fallen to 2006 levels since the onset of the global economic downturn and European air traffic has slipped back to 2002 levels.

TNT said it aims to boost the earnings margin for parcels and freight to between 13-16 per cent in 2015 from 9 per cent currently. It plans to maintain mail margin at the current level of 16 per cent even as revenue declines.

TNT’s net profit shrunk 12.4 percent in the three months to 30 September from a year ago to US$147 million, the fifth consecutive quarter of declining earnings.