Royal Mail loses contract to TNT

Royal Mail has been dumped by Preston council bosses in favour of postal operator TNT. Preston Council’s postal bill was slashed by over GBP 17,500 in the move.

Preston Council is expected to approve plans to transfer all mail to TNT although Royal Mail will still deliver the bulk of the mail through what is known as ‘Downstream Access’ – this is where rivals can sort and handle mail but leave Royal Mail to deliver it.

Royal Mail has complained to Postcomm that Downstream Access allows its rivals to poach business contracts but leaving Royal Mail to do the legwork.