Author: Archive

EPCglobal Inc initiates RFID pilot project to enable sea container visibility between Hong Kong and Japan

Posted by | Oct 30, 2006 | |

EPCglobal, the not-for-profit standards organization dedicated to driving global adoption of the Electronic Product Code for supply chain excellence, today announced that the Transportation and Logistics (TLS) Industry Action Group has initiated a RFID (Radio Frequency Identification) pilot program. The Ministry of Economics, Trade and Industry (METI) in Japan is an active participant in the TLS Action Group and is providing extensive support for this important pilot.

The first phase of the pilot, which is planned to be completed in February 2007, will assess the use of both passive and active UHF EPC/RFID tags for sea-shipment of cartons and containers between Hong Kong and Japan. Associated data will also be exchanged through EPC Information Services (EPCIS). The Hong Kong EPC Network developed by GS1 Hong-Kong will be used to communicate with other EPCIS networks in Japan. A second phase, scheduled for completion in September 2007, will be handled between Shanghai and Los Angeles.

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EU reforms pose challenge to Polish state monopolies

Posted by | Oct 30, 2006 | |

The European Commission (EC) is opening up the EU’s postal market to cross-border competition, and Poczta Polska must now whip itself into shape to compete with its European counterparts. And as the EU presses ahead with internal market reforms, many of Poland’s state monopolies could find themselves forced to compete with foreign companies on their own turf.

The EC has cracked open the postal market, which could be the first step in dismantling barriers to sectors traditionally controlled by state giants. Poczta Polska is in for a rough ride, as it will have to transform itself to cope with competition from foreign and domestic firms; and the Polish antitrust regulator is also taking a harder line in other sectors. “In preparing the proposal, we have put consumer and user needs first. With full market opening in 2009, we can look forward to more innovation, better services and improved efficiency,” said Internal Market and Services Commissioner Charlie McCreevy. “Without it, EU postal markets will be increasingly unable to meet the challenges of the ‘communications revolution.'” While this is unlikely to ruffle those outside the industry, it should be remembered that Poczta Polska is one of the biggest companies in the country. Company revenues last reached 6.5 billion zloty (EUR1.67 billion), with net profit at 101 million zloty. It currently employs nearly 100,000 people and has a vast network of 8,400 offices – some of which can be found even in the most remote parts of Poland.

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Third quarter operating income up 8.9% on last year (TNT)

Posted by | Oct 30, 2006 | |

CEO Peter Bakker:
“TNT’s Board of Management is pleased with the results of the third quarter. Operating income grew by 8.9% fueled by new records in Express both in terms of revenue growth and the Q3 margin level. The Mail operating margin was in line with the outlook but Mail Netherlands saw ‘above trend’ volume decreases in this quarter. We confirm the full-year outlook for TNT.

The completion of the sale of our Logistics division – for which all approvals have now been obtained – is still expected before the year end. Part of the earlier-indicated costs related to the sale of Logistics was booked in the third quarter results. Good strategic progress has been achieved with the acquisition of a road express operator in India and further accelerated growth of EMN. To further focus our business on operating networks, we announce today our intention to exit Freight Management.

All-in-all, we are satisfied with the strategic progress and the structural improvements in our operating performance made so far this year.”

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Austrian Post acquires majority in German specialty logistics service company trans-o-flex

Posted by | Oct 30, 2006 | |

Österreichische Post AG (”Austrian Post”) announces the acquisition of a majority stake in trans-o-flex GmbH and its affiliated companies („trans-o-flex”) from private equity funds managed by Odewald & Compagnie (”Odewald & Cie.“) and Alpha Group („Alpha“). Odewald & Cie. and Alpha will retain a stake of 25.1%. The management and supervisory board of Austrian Post have already approved the transaction. The transaction still requires approval by the relevant antitrust authority.

trans-o-flex is one of Germany’s leading specialized logistics service providers for express delivery in the business-to-business segment with a focus on the life science, consumer electronics/home entertainment and lifestyle/cosmetics industries. By assuming corporate leadership at trans-o-flex, Austrian Post is taking control over one of only a few Germany-wide logistics networks with 39 delivery centres. In 2005, trans-o-flex handled approx. 49 million shipments and employed approx. 890 employees. The range of services offered by trans-o-flex also includes specialized services such as transportation of hazardous goods and temperature controlled products. To handle its international freight traffic activities, trans-o-flex operates the European logistics network EURODIS, a combination of European logistics companies that is currently being built up.

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Distribution remains a challenge in China. Is there hope?

Posted by | Oct 30, 2006 | |

Distribution remains a challenge for foreign companies in China, but recent developments offer hope.

Moving goods around China, long a bugbear of foreign companies operating in the country, is getting easier. This is thanks to rapidly improving infrastructure and a number of key regulatory changes allowing foreign freight-forwarders to set up 100%-owned ventures and foreign companies in most sectors to operate their own distribution arms.

For specialist logistics businesses, the big change came at the end of 2005, when freight-forwarders were allowed, as agreed under the terms of China’s World Trade Organisation (WTO) accession agreement, to set up wholly foreign-owned operations. For other companies, particularly manufacturers, the introduction in 2004 of a whole new category of business—the foreign-invested commercial enterprise (FICE)—gave foreign enterprises the right for the first time to establish both wholesale and retail businesses.

A subsequent relaxation of the rules that came into effect in March this year allows local rather than central commercial authorities to approve most FICE applications. This has led to a major fall in processing time, and a huge surge in approvals. In Shanghai, the country’s biggest commercial centre, the 600-plus FICEs established in the first half of 2006 outnumbered the entire total for 2005. While various restrictions remain on FICEs’ freedom to operate, particularly on the number of outlets a company can operate in any one region, there are now no geographical limits on where a company can set up such businesses.

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UPS says evaluating Airbus A380 orders

Posted by | Oct 30, 2006 | |

United Parcel Service Inc., the world’s largest package delivery company, has set up a team to evaluate its multi-billion dollar purchase of Airbus A380 freighters, saying all options remain open.

The move, announced in a conference call with analysts on Thursday, and confirmed by the company on Friday, is a further sign of doubt among Airbus customers over the A380 superjumbo, which is now two years behind schedule.
On October 4 Airbus — majority owned by European aerospace group EADS announced a third delay to A380 production due to problems with the plane’s wiring.

The announcement caused airlines around the world to review their purchase plans for what will be the world’s largest commercial plane, although none has yet canceled orders.

UPS, whose freighter fleet makes it the world’s eighth-largest airline, has 10 A380s on order, worth more than USD2.5 billion, with an option to buy 10 more.

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TNT decides to divest Freight Management business unit

Posted by | Oct 30, 2006 | |

Peter Bakker, CEO of TNT, stated: “the business unit as such is in excellent shape, however, as we are focusing on the growth opportunities in our core Mail and Express network distribution activities, our Freight Management business unit would benefit from a different corporate environment. Our initial exploration has identified strong interest in this business.”
TNT Freight Management is a freight forwarding business using air and sea transportation and originates from Wilson Logistics which was acquired by TNT in 2004. The business unit employs 2,300 people, operating from 126 offices in 28 countries with a significant presence in the Nordic region. The business unit represents approximately euro 800 million in annual revenues.

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MPs attack plan for Royal Mail share payouts

Posted by | Oct 30, 2006 | |

The government should reject Royal Mail’s proposals to give up to 20% of the company’s shares to employees, an all-party committee of MPs has concluded.
The trade and industry committee said Royal Mail’s arguments about motivating staff “lacked robust evidence and were little better than mere assertions”.

Senior managers at Royal Mail, led by the chairman, Allan Leighton, have insisted the share scheme should be an integral part of its business plan. The group needs to tackle a huge pension fund deficit and invest in automating its letters business, through a combination of government support and higher stamp prices.

In its latest report on Royal Mail, published today, the committee said it was “surprised to hear that the management of Royal Mail has placed conditions on agreeing to the government’s financial package (in the form of a proposed employee share scheme) given that the company is technically insolvent because of its pension liabilities.

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