The Role of Postal Networks in Expanding Access to Financial Services. Volume 2. Country profiles
Egypt
Kazakhstan
Namibia
Romania
Sri Lanka
Uganda
Vietnam
The public monopoly in the German postal sector had already been called into question
in the public debate in the 1980s. In 1985 the German government, which at that time
was composed of a coalition of the Christian Democratic Party (CDU) and the Liberal
Party (FDP), established a government committee that dealt with possible forms and
steps of privatisation and liberalisation concerning the postal and telecommunications
sector (Wehner 2005: 5, 6). The official start for the privatisation and liberalisation of
the German Post (Deutsche Bundespost) was in 1989. Through the first postal reform
(Poststrukturgesetz/Postreform I) the German Post was divided into three sectors: postal
service, postal banking and telecommunications. The political functions (regulation of
the monopolies) were separated from the entrepreneurial ones. In the course of the
second postal reform (Postreform II), which came into force at the beginning of 1995,
the three postal corporations were transformed into incorporated companies. In the first
instance the German Federal Government retained all shares of the German Post which
was renamed the Deutsche Post AG (DPAG). These two steps were affected by the
(partial) privatisation and the preparation of further liberalisation measures. The process
of liberalisation reached its preliminary climax in 1998 when a new Postal Act
(Postgesetz) came into force. Via this Act the postal market was gradually opened to
competition by successively restraining the exclusive license of the DPAG; the end of
the exclusive license was originally planned to be in 2002 but was lengthened until the
end of 2007. Moreover, the rules for licensing were laid down and the terms for the
access to the market were defined.
In November 2000 the material privatisation of the DPAG began with its initial public
offer (IPO). In the course of the IPO the DPAG was renamed as the Deutsche Post
World Net (DPWN). In order to prepare for the imminent end of its monopoly the
DPWN made several acquisitions abroad.
Postal and small freight delivery statistics 2005
Read MoreA packed audience of 300 postal industry leaders was on hand at the annual Gala Dinner on Tuesday evening (31 October) to see the 2006 UK Mail Awards presented. London-based direct marketing specialists WDMP Communications walked away with three awards, including those for both the best Domestic and International Marketing Campaigns of the Year for Carphone Warehouse and Chelsea FC respectively. Other winners on the night included Marketscan (Database Management), Neopost (Technology) and UK Mail, who were named best Downstream Access Supplier. Royal Mail’s Tonbridge Mail Centre was Mail Centre of the Year, while Royal Mail themselves went away with the Innovation award.
Read MoreThe Profitability of The Mail Division of Deutsche Post: A Final Report
By Dr. Richard Hern, Tomas Haug, Phillippa Lowe, Marco Schönborn, and Yves Gueron
In this report, a NERA team led by Associate Director Dr. Richard Hern and Analyst Marco Schönborn assesses the profitability of DP’s mail division and updates conclusions presented in two earlier NERA reports from 2003 and 2005.
Using the most recent available data from DP’s Annual Reports, the team considers estimates of profitability for 2005 and over a longer period dating back to 1998. Their estimates are based on calculations of the return on capital employed (ROCE) of the mail segment, which they compare to the cost of capital for DP’s mail segment. By comparing ROCE and the cost of capital over a period of time, it is possible to assess whether investment in the company is appropriately rewarded, under-rewarded, or over-rewarded. The team concludes that while DP has faced competition in other segments, it was able to generate substantial profits in the mail division. NERA’s results, which are in line with the findings of the 2003 and 2005 reports, demonstrate that DP’s profits in the mail division are significantly higher than in other divisions and have been so over the whole period under investigation.
Read MoreIn an industry over-staffed with apostles of globalisation, Peter Bakker, chief executive of TNT, the Dutch express delivery group, is a heretic. While competitors evangelise about how global networks are transforming the world of commerce, Mr Bakker enjoys debunking their myths.
“Only 5 per cent of volumes being shipped in express delivery networks move between continents,” he said. “Our belief is this is mainly a regional game.”
TNT is the smallest of the “big four” express delivery groups, behind UPS, FedEx and DHL, and the only one without a significant presence in the US. Instead of seeking to match its rivals’ geographic breadth, the group has focused on a patchwork of domestic markets in Europe and Asia.
The strategy rests on Mr Bakker’s argument that, even in an era of globalisation, what matters most is local and regional strength.
More than 80 per cent of TNT’s business is in Europe, where it vies for market leadership with German-owned DHL.
Because most of its volume stays within Europe, Mr Bakker says TNT can be selective about which other markets it enters. In the US, for example, he says the cost of challenging UPS and FedEx on home soil would outweigh the returns.
Read MoreCompetition in the postal market is showing “great promise” as businesses benefit from lower mail prices and a better service, the industry regulator said today.
Postcomm said its latest Business Customer Survey showed a competitive market had delivered early benefits, although more progress was still needed.
One fifth of the 1,213 firms quizzed said mail prices had reduced significantly, while 34% thought the quality of Royal Mail’s service had improved and 38% believed the choice of operator had improved.
Sarah Chambers, chief executive at Postcomm, said: “The results of the survey show there is great promise for the further development of competition in the UK mail market, but it is clear there is much still to be done.
“Although Royal Mail remains by far the largest operator in the market, competition has encouraged it to raise its game, especially on quality of service.”
Postcomm said twice as many businesses had switched to major competitors such as TNT, DX and DHL than in the previous year.
Read MoreNorway Post’s operating revenues have grown by 19 per cent to NOK 17,009 million as of 30 September 2006. The earnings before income and taxes (EBIT) came to NOK 839 million, NOK 156 million less than at the same time last year as a result of the termination of government procurements and a reduction in revenues from banking services.
”The results show that we are following our strategy of achieving profitable growth in the Nordic region. Norway Post is further developing its operations in the fields of mail, logistics and ICT in the Nordic region in order to compensate for the decline in A-priority and B-economy post and banking transactions,” says Group CEO Dag Mejdell of Posten Norge AS.
Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.
