TNT Post laments VAT laws as it plans “significant” UK growth
TNT Post outlined its ambition to compete with Royal Mail in the end-to-end market after commencing operations in Northern Ireland. Post&Parcel reported yesterday that TNT opened a depot in Newtonabbey, Belfast, with the aim of challenging Royal Mail.
Nick Wells, chief executive, TNT Post UK, confirmed that twenty jobs have been created at the depot, as the company launches a plan to “grow significantly” by winning new business in Northern Ireland.
Since the liberalisation of the postal market in 2004, TNT Post is allowed to compete with Royal Mail for the collection and sortation of mail, before it is handed over to the government-run organisation for final mile delivery.
Wells said that TNT Post’s ambition “is to compete in the end-to-end market (e.g. the delivery of mail in the final mile), however the anti-competitive VAT laws give Royal Mail an unfair advantage, making this an inaccessible part of the market at this stage”.
Despite this obstruction, Wells said TNT Post has seen “meteoric growth in the last six years”, also highlighting the company’s aspirations to reach-out into the neighbouring Republic of Ireland.
Speaking to Post&Parcel, Wells said: “TNT Post is already Royal Mail’s main competitor in the UK market, a position that the latest depot opening will help it retain.
“We are confident of growth in the Northern Ireland market and into the Republic of Ireland – building on the market share nationally and backed by the infrastructure across the six mainland depots.
“TNT Post is currently Royal Mail’s main competitor and largest customer – between Royal Mail and TNT Post there is ‘co-opetition’. TNT Post has seen meteoric growth in the last six years which it is on track to continue – it now handles one in five business letters (B2B and B2C) sent in the UK.”
TNT Post services in Northern Ireland include next day delivery post, FirstSort, as well as sorted and unsorted two and three day definite delivery services.
Can TNT compete with Royal Mail? Should the company be allowed to conduct its own final-mile delivery? Please comment below…
Yes TNT should be encouraged to deliver to the final mile. It’s only the politicians who will sustain an unnecessary daily USO.let TNT show that there is a 2 day a week service and when Royal has lost most of the business then the politicians will wake upi and allow a more flexible USO?