The week that was: 1 June 2012

Rounding up the biggest stories of the week as reported on Post&Parcel, including Deutsche Post’s state aid demand, the latest on US postal reform and FedEx expansion plans…

Deutsche Post to repay EUR 298m in state aid

The German government ordered Deutsche Post DHL to repay EUR 298m in state aid and interest as required by the European Commission.

The EU executive branch had decided back in January that the German postal service benefited from pension subsidies from the German government during the late 1990s and early 2000s that were not in line with market competition rules.

Deutsche Post had been allowed to include the issue of pension considerations when it increased postal rates, which the EU Commission decided amounted to illegal state aid.

US House schedules postal reform debate for July

US postal reform proposals will have to wait until July to reach the floor of the US House of Representatives, according to House Republican leaders.

Majority leader Eric Cantor issued a memo laying out a timetable for the House through the summer, listing the Issa-Ross Bill (H.R.2309) on the agenda for consideration after America’s Independence Day on 4th July.

Meanwhile, the US Postal Service announced it is to allow commercial mail customers to use their own corporate logos or other images in the permit indicia space on their mail from next month.

FedEx Express to expand in Brazil and Japan

FedEx signed a deal to acquire one of its express logistics partners in Brazil, Rapidão Cometa Logistica e Transportes.

The US integrator has worked with the Recife-based company for 11 years. Buying the company will give FedEx Express access to the 17,000 customers of one of the largest logistics companies in the country, 45 operational branches, 9,000 employees and 770 vehicles and trailers that can reach 5,300 locations in all states of Brazil.

This week, we also reported on FedEx Express plans to establish a new North Pacific regional hub at Kansai International Airport (KIX) in Japan from 2014.

Post Office rolls out contactless payment systems

The UK’s Post Office Ltd revealed it is to install contactless payment terminals across its network of more than 11,500 branches from next week.

The company said rolling out the technology to 30,000 counter positions from 6th June will see it becoming the biggest user of contactless acceptance technology in Europe. The project should be completed by October.

It will mean customers paying for items of GBP 20 or less by tapping their card or phone over a reader at the point of sale, and should help to reduce queues in UK post offices.

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