SingPost's European tie-up Springs to life
SINGAPORE Post’s (SingPost’s) global mail joint venture with European counterparts TPG and Consignia has unveiled its new brand name, Spring, and announced that the venture hit its revenue target in the first six months of operations.
Spring said it aims to grow at up to 10 per cent a year.
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The venture by SingPost, which is owned wholly by Singapore Telecom; TPG, or TNT Post Group of the Netherlands; and Consignia, Britain’s national postal administration; was launched in March 2000.
However, it ran foul of European Commission anti-competition rules and only after a year of lobbying and with TPG agreeing to sell its Dutch international mail operations did the venture start operations finally on July 2 last year.
The venture had been operating under its Netherlands-registered name, G3 Worldwide Mail, until last week when it launched formally its brand name Spring.
G3 Worldwide Mail is 51 per cent owned by TPG, with Consignia and SingPost each holding 24.5 per cent.
As part of the deal, another Asia-Pacific joint venture, G3 Worldwide Aspac, was formed, with the three-company alliance holding 50 per cent and SingPost owning the other half.
G3 Worldwide Aspac chief executive Teo Yew Hwa told The Straits Times yesterday that the venture had hit its annual revenue target of 450 million euros (S$730 million), notching up more than 200 million euros for the six months from July to December last year. This was despite the global economic downturn and the Sept 11 effect.
Mr Teo said Spring, with a client list which includes magazine publishers Newsweek and Forbes, printer Times Printer and direct marketeer Singapore Exhibition Services, is aiming for 5 to 8 per cent year-on-year revenue growth this year and 8 to 10 per cent growth subsequently.
Despite the prevalence of technology and the widespread use of e-mail competing with the conventional mail industry, Mr Teo is confident that Spring’s innovative customised mail logistics solutions will help it achieve its target.
