TZ Limited (ASX: TZL) has taken another step towards its goal of becoming the dominant provider of Smart Parcel Locker solutions in the Asia Pacific region with its contract to supply Pos Indonesia for its initial trial program.
It is understood that if the trial is successful, it is Pos Indonesia's intention to build a parcel locker network throughout Indonesia.
Pos Indonesia is a state-owned company responsible for providing postal services throughout the more than 17,000 islands that make up the country.
The contract was awarded to TZ's integration partner Gunnebo Indonesia c/o PT. Indolok Bakti Utama.
"We are pleased to be working with Gunnebo Indonesia to supply, commission and support the deployment of a TZ Smart Locker System for Pos Indonesia," TZ Asia Pacific regional manager Benjamin Ford said.
"Our work in Singapore has not gone unnoticed in the region and this is the first of what we hope will be a number of deployments in 2014 in Asia for Postal and Logistic providers.
"It is TZ's stated objective to be the dominant provider of Smart Parcel Locker solutions in the Asia Pacific region and with Pos Indonesia, Singapore Post and our own A.D.A.M. Parcel Locker network in Australia, we are well on our way to achieving that objective."
Indonesia is the state-owned company responsible for providing postal service in Indonesia. It was established with the current structure in 1995 and now operates 11 regional divisions.
It posted revenue of 4.2 trillion rupiah (A$398 million) and profit of 301 billion rupiah.
Gunnebo is a global provider of security solutions and services based in Jakarta, Indonesia.
This is focused on five core business areas - bank security & cash handling, secure storage, entrance control, fire products, and global services.
Singapore Post and Australia
The rollout of Parcel Locker Banks by Singapore Post is a key vote of confidence in TZ Limited's Smart Parcel Locker solutions.
As of the last update in October 2013, 15 Locker Banks had already been installed in Singapore and considering that an order for 30 more Banks had been received, it is not inconceivable that more units have since been installed.
To top it off, TZ also noted in October that Singapore Post planned to have 100 Locker Banks operational within the next 12 months.
Singapore's business to e-consumer industry (B2C) is rapidly expanding with an estimated market value of S$1.6 billion (A$1.4 billlion) in 2011. This is expected to grow to S$4.4 billion by 2014, according to Singapore Post.
In Australia, TZL is taking on Australia Post by increasing the number of venues and locations that its ADAM parcel lockers are located at.
The company had last year ordered an additional 18 Locker Banks with deployment ongoing into early this year.
It also boosts a trump card in its partnership with Temando, which boasts relationships with over 30,000 retailers around the world that use its applications for direct online purchases between 200 different delivery services.
This meshes well with TZ's carrier agnostic ADAM lockers that accept deliveries from any courier.
Shares in TZ Limited are likely to trade higher today on the initial order for Smart Lockers from Pos Indonesia.
It follows on from its integration partner FBA Italy winning a tender earlier this month to supply Italian postal service Poste Italiane with its Smart Parcel Locker requirements for an initial pilot program.
Taken together with the ongoing roll-out of Smart Locker Banks with Singapore Post, it highlights the growing momentum that TZ Limited's smart locker solutions have in the market.
A successful trial by Pos Indonesia could well lead to a full scale rollout in Indonesia, providing a major boost to revenues and earnings.
TZ Limited is looking increasingly likely to meet and possibly beat its FY2014 revenue target of $8 million.
Shares in the company are currently trading at $0.18, having met Proactive Investors' earlier valuation of between $0.16 and $0.20. We are in the process of re-examing our share price target.
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