TPG forecasts more international alliances

October 9, 2001 — Matthew Newman, Dow Jones: “Dutch postal and logistics company TPG NV (TP) said Tuesday that it expects more international alliances if European Union governments further liberalize the E.U.’s EUR80 billion a year postal market. ‘We foresee international alliances such as with Singapore Post,’ TPG spokesman Rutger Goethart said. ‘There’s huge potential growth internationally.’ Dow Jones: “Goethart said the company hopes to get a part of the EUR30 billion a year direct-mail market, which is growing about 5% a year. But TPG and other new entrants could be disappointed because several E.U. governments staunchly oppose a plan to fully liberalize the E.U. postal market. E.U. governments will decide on the long-running and politically sensitive reform plan at an Oct. 15 meeting in Luxembourg. Ministers want to reach a deal, but it is too early to say what the final compromise will be. The Belgian presidency of the E.U. has proposed a three-step process to open up the market, with certain exceptions to appease E.U. countries which are against liberalization. The Platform For Postal Reform, which represents 39 European organizations, including postal companies in the Netherlands, Sweden, Austria and Finland, wants E.U. governments to set a final date for liberalization. They oppose the Belgian plan because it includes a compromise that requires the E.U. Commission, the E.U.’s executive branch, to conduct a study in 2006 on whether liberalizing would hurt universal service coverage. If the study concludes that universal service won’t be hurt, full liberalization will automatically go forward in 2009. But if the study throws up the opposite conclusion, then the Commission must come up with a new reform plan, which would be reviewed by the E.U. parliament and the E.U. governments. ‘We’re seeking an unconditional final date with no review or study,’ Goethart said, speaking on behalf of the Platform For Postal Reform. He added: ‘With a final date, you don’t have legal uncertainty and new operators and (national postal company) unions can prepare themselves. Only then will you get the dynamism you need.'” (Source: Dow Jones, Matthew Newman reporting)