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Competition is interested in parcels

DPD (France), post firm, will focus mainly on the delivery of parcels in the Czech Republic. It is a field of post services, where the national post firm Ceska posta (CP) (Czech Republic) has lost its monopoly. DPD transports about 5 mil parcels per year in the Czech Republic in 2006. According to the volume, DPD is in the third position after CP and DHL (US). DPD is a part of the multi-national group GeoPost, which is the third largest provider of express and parcel services in Europe. CP has about 39,000 employees and one-third of them are bearers. CP should be transformed from a state company to a joint-stock company shortly its privatization is being considered.

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New post companies are coming, the monopoly of CP weakens

TNT Post (Netherlands), post company, is starting to offer services, which have been ensured by the national post company Ceska posta (Prague, Czech Republic), in the Czech Republic during 4 2006. TNT Post will deliver heavier ordinary parcels and addressed trade notifications in the Czech Republic. TNT Post will focus on lucrative firm customers, which have ensured proceeds of about CEK 8 bil per year to CP so far. DPD, which is owned by the post company Groupe La Poste (France) through GeoPost, is extending its operation in the Czech Republic too. The Czech Republic has cardinal importance for DPD. That is why the firm decided to build a new large-distribution centre in this country. The coming of competitors to the Czech post market is allowed by a new standard, which is decreasing the monopoly of CP gradually. The monopoly should definitively end in 2009, when further firms are able to deliver common letters and parcels up to 50 g.

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UPS targets China

China has to be a great opportunity for UPS, which now controls all its own operations in China, in what has become a major growth engine.
Today, UPS is expanding its number of flights to China, building more infrastructure and creating a stronger brand presence, calling itself a “technology company with trucks.” Now, its business in Asia and China is leaping ahead.
Part of that China presence is because of the expansion of air services. UPS has, or is adding, new flights connecting Shanghai and the U.S. and is increasing its weekly flights to 18. It plans to establish an air hub in Shanghai in 2007. UPS serves the 23 largest Chinese markets, which account for 80% of China’s global trade.
UPS now has 33 large, wholly owned branch offices that serve more than 200 cities in China. The offices are staffed by UPS’s own employees, such as service providers and salespeople, and use the company’s own technology. In China, the company has 500 salespeople–whereas in the U.S., it has several thousand.
UPS also plans to expand its service to an additional 100 cities in China. To remain a top-tier logistics player in China, it will continue opening new branches, as well as 22 more offices to serve the new expansion cities. It is also building further connections between the ground and the air.

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Norway Post to buy Dutch logistics company.

Norway Post is to buy Scanex B.V. This acquisition will strengthen Nor-Cargo’s market position in the Netherlands for goods going to and from Norway and the Nordic region.

The Netherlands is a hub for both European and overseas transport and is therefore an important entry gate for goods going to and from the Nordic region. Scanex is currently a Nor-Cargo agent and Nor-Cargo is the market leader in the transport of goods between Norway and the Netherlands.

”With the acquisition of Scanex, we have ensured our international transport of goods to and from the Nordic region and the Netherlands. Scanex is a sound company that Nor-Cargo knows well and has close links with. This purchase was a natural step in the further development of both parties,” says Arne Bjørndahl, senior vice president of Norway Post and head of the Logistics Division.

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Slovak Slovenska Posta Invests 6.4 Mln Euro in Post Offices 2006

Slovak postal services operator Slovenska Posta has planned investments of 238 mln Slovak crowns (USD8.1 mln/6.4 mln euro) in the construction and reconstruction of post offices in 2006, the company said.
Slovenska Posta has already invested some 30 mln crowns (USD1.0 mln/802,000 euro) in the reconstruction and upgrade of its post offices in Banska Bystrica, Ruzomberok, Bratislava, Presov, Sobrance, Levoca and Klin.
A further 20 mln crowns (USD677,700/535,000 euro) will be allocated for the reconstruction of Slovenska Posta post offices in Puchov and Sala, while 35 mln crowns (USD1.2 mln/936,000 euro) will be spent on the construction on new post offices in Sturovo and Leopoldov.
The postal services operator has planned the opening of new post offices also in Presov, Ruzomberok and Trnava.

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Now, book rail tickets in post offices

Rail travellers may soon be able to book tickets online in post offices, with Indian Railways Catering and Tourism Corporation initiating talks with Department of Posts for using its network to issue e-tickets.

“We are in talks with Department of Posts to use their 1.5 lakh post offices for issuing e-tickets. We have also written to all district magistrates to work out a model, which will enable people in distant villages with computers and internet access to get e-tickets,” IRCTC Managing Director P K Goel said.

IRCTC is taking steps to increase points of ticket sales and facilitate online bookings through internet cafes, ATM networks of banks and post-offices among others.

It has also signed an MoU with State Bank of India under which the bank would set up internet facilities at its ATMs and branches where its customers can get printouts of train tickets while they pay with their SBI cards.

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Ruling to force sale of TNT shares by Dutch government

The European Court of Justice has ruled that the 11 per cent stake in TNT Group held by the Dutch Government is an obstruction to competition in the market for postal services, which is being liberalised within the EU. The ruling is not a surprise as the EU has adopted a policy stance against State holdings in postal and logistics companies, one which the Netherlands Government supports – in contrast to some other countries in the EU. However, the prospect of both a withdrawal by the Dutch State and a large tranche of stock being available on the market has only increased speculation of a takeover of the remaining parts of TNT Group.

One likely option is that the Dutch State will sell the stock back to TNT itself, with TNT then cancelling the stock. Whether TNT has the desire or ability to support this approach at present is an open question. TNT is already engaged in a programme of stock buyback in order to satisfy shareholders.

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Nationwide Government Mail service launched

The Government Car and Despatch Agency (GCDA) has launched Government Mail in partnership with Amtrak Express Parcels. The nationwide service gives Government direct access to a nationwide network of 100 delivery centres and 1200 vehicles providing next day delivery of documents and parcels.

Government Mail is part of the Department for Transport (DfT) and is a result of a rebranding of GCDA’s InterDespatch Service; an established distribution service that has traditionally carried mail between government departments. With the launch of Government Mail, the Agency is able to provide a true one-stop-shop solution to meet all of the varied collection and delivery requirements of Government and the wider public sector.

Run in partnership with Amtrak, Government Mail will be providing next day delivery to destinations nationwide, offering best value services across government. The service matches the best capabilities of established public and private enterprises, allowing Government to single-source all mail and parcel requirements, reduce costs and improve efficiency.

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