The week that was: 14 January 2011
TNT sells-off two units, new postal rates at USPS, and Royal Mail privatisation moves a step closer… Hello, and welcome to ‘the week that was’, focussing on the big stories across the post and parcel industry over the last seven days. Let’s dive straight in.
In the Netherlands this week, TNT announced the sale of mail units in Belgium and Italy. The Dutch company signed an agreement to sell its mail unit in Belgium and its unaddressed mail activities in Italy to management and private equity firm NPM Capital. The move comes after TNT announced late last year that it would spin off its Express unit to concentrate its European mail activities on addressed mail in Germany, the UK and Italy. TNT’s mail unit in Belgium, De Belgische Distributiedienst, handles the distribution of unaddressed mail and daily newspapers next to providing database management services. In 2009, its revenues stood at EUR 100m. The company confirmed that the parcels activities of TNT Post Pakketservice in Belgium are not included in the sale. RSM Italia, the unaddressed mail business in Italy, generated revenues of EUR 38m in 2009. TNT Post Italy will continue with the addressed mail business and the mailroom activities.
As postmaster-general Pat Donahoe settled into his new role at USPS, he met with mailer groups on Thursday to discuss new postal rates. The consultation was part of a “new climate” in customer relations he is seeking to implement at the US Postal Service after taking over the leadership at the start of the year. “Working together as an industry we can address continuing economic challenges in a way that allows the Postal Service to generate much needed revenue while being more responsive to ongoing customer needs,” Donahoe insisted. Following the meeting, the USPS announced increases to postal rates that will take effect from April 17. The date gives the mailing community more than 90 days to make the necessary technology and system changes to accurately handle the new prices, the Postal Service said. The loss-making Postal Service said price increases to First Class and Standard Mail were expected to generate $340m in extra revenue for the rest of its fiscal year and $720m for an entire 12-month period.
In the UK, privatisation of Royal Mail took a step closer late Wednesday night after the Postal Services Bill was passed. MPs in the House of Commons passed the Bill, which will now go to the House of Lords. The Bill – which includes privatising up to 90% of Royal Mail, as well as separating Post Office Ltd from the business – was passed with a government majority of 81. This is the first time that legislation to enable Royal Mail to benefit from private capital has been approved by MPs. Business secretary Vince Cable said: “I am delighted that our proposals have passed through the Commons. Upon taking office the Government realised it had to move swiftly to tackle the challenges facing Royal Mail and the Post Office to ensure the future of the important services they both provide. We’re absolutely determined to secure the future of these two proud institutions.” Minister for postal affairs, Edward Davey, also praised the decision. He said: “Today is good news for everyone who wants to see a successful Royal Mail and Post Office network.”
And finally…
Here’s a reminder that the nominations have opened for the 12th World Mail Awards, to be held in Brussels in May! Click here for more details.
