Thursday, Nov 11, 2010

(Adds comment.)

By Robin van Daalen

Of DOW JONES NEWSWIRES

AMSTERDAM (Dow Jones)--Dutch postal and express company TNT NV (TNT.AE) said Thursday it will step up security against the threat of parcel bombs following recent incidents in which explosive devices were found in packages en route to the U.S. from Yemen.

Parcel-delivery companies and authorities around the world have been discussing air-cargo security in the wake of the discoveries. Two bombs hidden in packages were intercepted last month in Dubai and the U.K.

"Together with security officials, customers and the industry, we are determined to enforce all reasonable measures to allow the safe transport of world trade," said Marie-Christine Lombard, managing director of TNT's express unit.

The company said it had reinforced air and ground security controls, including the screening of packages, in all countries in which it operates. It has asked subcontractors, associates and partner airlines to apply the same measures to shipments of TNT packages.

TNT spokesman Ernst Moeksis said that while the measures would lead to additional costs it was too soon to give an estimate. He said that TNT would implement organizational and technical measures to enhance security, adding that timely and full disclosure from safety and intelligence agencies would be required.

The company said it also is conducting a risk assessment to identify areas where security could be enhanced, including evaluation of airports where it currently operates and those at which it plans to operate. It will intensify dialogue with customers and security officials to improve security standards.

The U.S. government Monday took additional steps to improve airline security, including new restrictions on shipments bound for the U.S. It will continue to ban shipments from Yemen and will impose a ban on air cargo from Somalia. The U.K. already has taken similar steps.

The discovery of the bombs has heightened fears that the air-cargo system could be a weak link in security in the world's air-travel network. Security of passengers has been strict since the 9/11 attacks on the World Trade Center in New York, although there has been recent criticism that the rules aren't uniform across the world.

In early November, TNT said it had detected the presence of a suspicious package on board one of its cargo planes, flying from Athens, Greece, to Liege, Belgium, but declined to comment on the investigation carried out by the authorities. When it detected the package, TNT Airways instructed the crew to divert to Bologna, Italy, and warned security officials.

The Dutch company carries about 230 million packages a year and serves 200 countries around the world. It owns its operations in 64 countries, but relies on partners elsewhere. Its express unit generated revenue of EUR1.59 billion in the third quarter of this year as a recovery in world trade helped lift tonnage by 9.8% the previous year.

TNT's largest European competitor, Deutsche Post AG (DPW.XE) said it doesn't comment on specific security measures. However, it added it had "very high security standards" and was "always evaluating the situation."

-By Robin van Daalen, Dow Jones Newswires; +31-20-5715210; robin.vandaalen@dowjones.com

(Hilde Messer in Frankfurt contributed to this article.)

(END) Dow Jones Newswires

11-11-10 1346GMT