Regulator set to open third of postal market

THE UK’S postal regulator is set to throw open nearly a third of the Royal Mail’s market to competition in a move which will put pounds 1.25bn of business at risk.

PostComm is expected to unveil a radical shake-up of the postal system at the end of the month which will result in rival operators being granted long-term contracts to compete with Consignia for 30 per cent of its monopoly business.

The move comes as Consignia, formerly known as the Post Office, is preparing to cut 30,000 jobs as part of a pounds 1.2bn cost-saving plan. The company is also facing a national strike ballot over a pay dispute.

So far Postcomm has issued six short-term licences lasting 12 months and allowed three new entrants into the market. But a report published yesterday by ABN Amro said the regulator would set out proposals in the next 10 days to allow private operators to compete for 30 per cent of the Royal Mail’s business on a long-term, basis.

David Ireland, ABN Amro’s support services analyst and the author of the report, said: “We expect Postcomm to pursue a line of least resistance, targeting segments of the UK market which involve Consignia’s most important business customers, offer most encouragement to new entrants and allow Consignia the best opportunity to fight back.”

The contracts are likely to be for up to 15 years – the same length as Consignia’s postal licence – and will bring competition to Consignia from the likes of TNT, FedEx and Hays.

Mr Ireland said in other European countries that had introduced competition the incumbent had hung onto 80 to 90 per cent of the market but this was unlikely in the UK.

Copyright: Independent Newspapers(UK) Limited

Relevant Directory Listings

Listing image

METTLER TOLEDO

METTLER TOLEDO is a globally recognized leader in precision instruments and services for a variety of industries, including the post and parcel sector. With a rich history dating back to 1945, the company has built a strong reputation for innovation, reliability, and exceptional customer service. […]

Find out more

Other Directory Listings

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

 

Pin It on Pinterest

Post & Parcel
FedEx new facility “a crucial part of our strategy for the Netherlands”
Emirates Courier Express launched to “challenge the status quo”
Evri announces robot dog delivery trial
Deutsche Post issues Germany’s first recycled stamp
SingPost: key executives step down
FedEx new facility “a crucial part of our strategy for the Netherlands”
Emirates Courier Express launched to “challenge the status quo”
Evri announces robot dog delivery trial
Deutsche Post issues Germany’s first recycled stamp
SingPost: key executives step down
1
2
3
4
5
Listing image
Listing image
Listing image
Listing image
Royal Mail: Reaching 90% automation is a key milestone
Royal Mail: customers don’t need to go out of their way to drop off their parcel
Royal Mail to roll out parcel lockers at more than 60 shopping centres and retail parks
£1.2 billion class action against Royal Mail on behalf of purchasers of bulk mail services
Share This