TNT Express is to spend €185m (£145m) improving its European road network during the next four years as part of its strategy to move more by road.

The parcel carrier, which last month warned that it is not likely to hit its 2015 profit target, plans to refresh its trailer fleet, and has already put 100 new trailers into operation as part of this, a spokesman confirmed.

The investment also includes an upgrade of its scanning and sorting equipment at 12 international road hubs across the UK and on the continent, upgrading its routeing and scheduling software, and opening and expanding depots.

It hopes the additional funding will speed up and improve the reliability of scanning, improve morning delivery capabilities, give it more capacity to accomodate increases in volume, reduce unit costs and improve health and safety among its workforce.

CEO Tex Gunning said: “The new €185m investment in TNT’s European road network that we announce today will improve efficiency and service quality and strengthen TNT’s position as the preferred road delivery service in terms of quality, speed, coverage and value.”

The investment, which will be made between now and 2017, was revealed as TNT published its third quarter results. Adjusted turnover in its Europe Main division, which incorporates the UK, Ireland, Benelux, France, Germany and Italy, fell 5% to €2.3bn from €2.4bn in the same period last year. Adjusted operating profit increased 9.5% to €115m.

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