German forwarders form mail network to take on Deutsche Post
Five German freight forwarding and logistics groups have linked up to form a private mail carrier “ Xanto” to compete with Deutsche Post. The companies are all ex-founder members of parcel carriers DPD and German Parcel (now GLS).
The founders of “Xanto – the LetNet System” are Diehl Spedition, M&M Militzer & Münch, Honold Logistik Gruppe, G.L. Kayser and Cretschmar Cargo along with the management consultant Christian Holland-Moritz who will also act as managing director. Xanto will function as a cooperation network in which up to 100 local and regional mail carriers work together to provide a nationwide coverage while retaining their identity and independent status.
“Xanto is a network which has been created by logistics service companies that are used to cooperating and which will operate independently of publishing houses and large corporations,” declared Holland-Moritz. “With the end of the letter monopoly at the start of 2008, as a private competitor we will be able to offer a nationwide mail delivery service that will lie below the price level of Deutsche Post.”
Xanto itself will be responsible for network management, the main linehaul services, finances and quality management. The local partners will handle collections and deliveries. The main hub will be located in Fulda. The overnight transportation for the regional mail services is due to be provided by an as yet unnamed express company.
Xanto plans to hold an information meeting for interested mail companies in October and build up its network by end-2007. The two leading competitors to Deutsche Post in the German mail market are currently TNT Post and PIN Group, which is majority-owned by several major print media groups.
