Express players look to crack the codes

new postcode system for Ireland, which the government hopes to introduce in the next three years, cannot come too soon, says David Canavan, MD operations and global trade services, northern Europe, FedEx.
Every address in Ireland will have a postcode of numbers or a combination of numbers and letters. This will make time-definite deliveries easier, in a country where traffic congestion is an escalating problem and a challenge for express operators in particular.

As the only member country without such a system, it will also bring the Republic of Ireland in line with the rest of the EU.

Other than in Dublin, there are no postcodes in Ireland.

As chairman of the Irish Association of International Express Carriers, which comprises the four major integrators FedEx, TNT, DHLand UPS, Canavan recently met communications minister Noel Dempsey, who is firmly behind the plan. "We [the association] are being consulted on the postcode issue and have until the beginning of next year to produce a recommendation.

Minister Dempsey says there will be a postcode system in place by 2008.

"It's vital for the transport industry and will allow us to offer customers a better delivery commitment.

Without postcodes we have to be even more careful about managing our vehicles and finding the best route." In Dublin, the opening of the port tunnel next year will bring trucks direct from the quayside on to the M50, making traffic management even more difficult.

Delivery outside of the congested big cities can prove challenging too without a more accurate address, he adds. "If one of my multinational customers decides to relocate to the west of Ireland they need to know they will get their shipments on time. And even in rural Dublin, duplicate place names pose a problem." However, the Irish post office, An Post is insistent that postcodes are not necessary in the Republic and says the cost of such an exercise, an estimated benefits.

Canavan believes this is because it already has its own private system in place, with a code assigned to every address. Improving the reliability of parcel and document delivery will increase competition throughout the sector.

Despite An Post's reservations, the government will soon appoint a project management team to work on the design and implementation of a postcode system, and to consider different options for the ownership, management and funding.

FedEx operates its own trucks in Dublin, Limerick, Clare, Cork, Galway and Waterford. Shipments for the rest of Ireland are handled by Nightline.

Canavan says: "We are seeing double-digit growth.

Outbound volumes are higher than inbound because the US market is such a major one, and we offer a next-day service to the US.

"Other operators say they can do it but often it's just the east coast and not the whole of the US. We're moving pharmaceuticals, dangerous goods and hi-tech there as well." Target Express has seen a 28% increase in volumes in the year to June.

Business growing at such a rate that it is considering expanding its air services, says director Seamus McBrien. "We already have the nightly aircraft from Coventry to Dublin, carrying smaller parcels and bagged courier documents, but we are looking at other options.

"We are not sure whether it will be an extension of the existing flight or an additional one, but we need to decide within the next few week, before the busy period." This comes on the back of significant investment in its depot structure both last year and this. In the last few months, Target has opened two new offices, at Knock airport to cover Mayo and Sligo, and at Castleireland, to cover Kerry, Tralee and Killarney.

Target's biggest growth has been in Belfast, Cork and Galway this year. It moves around 20 trailers a day from the UK, through 12 depots in Ireland. Each is responsible for freight to and from certain counties, but it is all first routed via Dublin. That could all be about to change.

"We want a hub in the Irish Midlands, maybe Tullamore or Athlone. We have identified a few sites but no decision has been made as yet. This will be our central hub for Irish traffic, allowing us to beat the congestion in Dublin, " says McBrien.

He is also going after a chunk of the home shopping market and is in talks with a number of high street retailers.

Posted: 19/09/2005