TPG Post, SANDD and Selekt Mail Nederland reach agreement on returned items

TPG Post, Sandd and Selekt Mail Nederland – the three largest players in the Dutch postal market – have signed an in-principle agreement that should resolve the problem of return items. With the growing competition in the postal market, the new players Sandd and Selekt Mail Nederland experienced handling of return items as a barrier.

Private individuals who receive mail not intended for them usually send it back marked ‘Return to sender’ via TPG Post’s red postboxes. They do so even if Sandd or Selekt Mail Nederland delivered the items and not TPG Post. TPG Post treated this mail flow as ‘unfranked items’ for which it charged excess postage. Under the agreement reached today, TPG Post will stop charging excess postage for these return items. They will be returnable to the return addresses of Sandd and Selekt Mail Nederland for an agreed rate that the two companies will pay TPG Post.

The new market players expressed satisfaction with the breakthrough. John Kuiper of Selekt Mail Nederland said: ‘We were fortunately able to find a solution that is workable for all concerned. Items can still be returned via the red postboxes and we will pay a fair rate.’ Bart Stomphorst of Sandd added: ‘The costs of return items were high. This was obviously an unsatisfactory situation, particularly for the charities for which we work a lot. I am glad that the situation has now been resolved.’ The agreement is also good news for TPG Post. Herma Verhagen, Commercial Director of TPG Post, said: ‘It was not easy to come up with a solution that met the wishes of our competitors and at the same time fitted in with our bulk process. We are happy to have reached an agreement through constructive consultation.’

The definitive agreement will take effect on 1 May 2004 and will remain in force for one year during which its operation will be evaluated.