Royal Mail wins city contract (UK)

Royal Mail has won a contract with Manchester city council worth GBP 4.2m initially, with the potential to grow to GBP 8.4m.

Royal Mail will handle all of the council’s mail and expects to cut the authority’s bills by increasing the amount of post which can be sorted mechanically and by introducing more cost-effective mail products.

The contract will run for two years initially but will be extended for a further two if savings targets are met.

Dave Hulton, Royal Mail’s relationship manager in Manchester, said he was confident of doing so.