Dairies seek mail licence

Express Dairies has applied for a licence to deliver letters and parcels with the morning milk.

If Postcomm, the regulator, grants the application, the company will be given a 12-month licence to carry up to 4.6m items a year.

Royal Mail delivers about 80m items a day. Express Dairies has 106 depots in England and Wales, with 3,500 separate rounds, delivering to 1.5m households and 26,000 businesses a day. It already delivers 12.8m leaflets and catalogues for itself and other firms.

The regulator is next week expected to publish final proposals for opening up the postal market to more competition.

Postcomm Press Release:
Postcomm consults on an interim licence for Express Dairies

On 24 May Postcomm began consultation on the proposed issue of a short-term licence to Express Ltd (Express), a subsidiary of Express Dairies plc.

Express is seeking a licence to trial the delivery of packets and letters from businesses to householders. They would be delivered by the company’s milk delivery network. If granted, the licence would be for 12 months and would limit the number of items to be carried to 4.6 million a year. By comparison Royal Mail delivers around 80 million items a day.

Express currently delivers to around 1.5 million households a day and 26,000 businesses. As well as milk and other products, each year the company also delivers 12.8 million leaflets and catalogues for itself and others.

Notes

The deadline for responses to the consultation is 24 June 2002. The consultation and text of the proposed licence can be found on Postcomm’s website www.postcomm.gov.uk. Copies are available from Postcomm at 6 Hercules Road, London SE1 7DB.

The licence is for a minimum of 12 months, but may be surrendered by the licensee at any time. After 12 months it can be terminated by Postcomm giving three months notice.