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EU to open up postal market from 2009

Posted by | Sep 29, 2006 | |

Europe’s market for postal services will be thrown open to unfettered competition from 2009, according to proposals to be presented by the European Commission as early as next month.

Brussels is keen to sweep away the last remnants of an era in which postal services were dominated by state-owned monopolies, and complete the market’s transformation into a competitive service sector. The Commission also hopes that full postal liberalisation will lead to lower costs for consumers and businesses.

However, the plan could face severe resistance from trade unions worried about job losses, and member states such as France, which are traditionally keen to defend public services against private-sector competition.

The European Union postal services sector is estimated to be worth more than euro90bn (GBP61bn) a year, and employs some 5m people. The market has already seen deep changes in recent years, not least thanks to a landmark EU law from 1997 that allowed competition in an ever-growing number of postal services.

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TNT shareholders approve logistics sale

Posted by | Sep 29, 2006 | |

Dutch mail firm TNT’s shareholders approved on Friday the 1.48 billion euros (USD1.88 billion) sale of its underperforming logistics business to U.S.-based private equity fund Apollo Management.
Proceeds from the sale, announced a month ago, will mostly be returned to shareholders via a share buyback.
The deal was approved with 99.9 percent. Roughly 34 percent of capital was present.
TNT announced last December its intention to sell its logistics activities to concentrate on mail and express delivery, which has 36,000 employees and represents about a quarter of group revenue.

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TNT aims for 10% share of German Light Mail Market

Posted by | Sep 29, 2006 | |

TNT, the Dutch mail and parcel delivery service provider, is aiming for a 10 per cent share of the German light mail delivery market by 2012, together with turnover of around 1bn euros. The German postal market is to be fully deregulated with effect from the end of 2007, when the country’s former monopolist Deutsche Post will lose its remaining monopoly, in the area of light mail. TNT has more than trebled its turnover in Germany in the course of the past two years, and estimates turnover of 200m euros on that market for 2006. It is concentrating on business customers rather than private mail, but, with the ending of the mail monopoly in Germany, it plans to collaborate with Hermes, the parcel subsidiary of German mail order group Otto, to provide a private postal service. Hermes holds a stake of around 20 per cent in the German light mail subsidiary of the Dutch group.

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TNT re-emerges as possible takeover target

Posted by | Sep 29, 2006 | |

Dutch mail and logistics company TNT has become the subject of renewed takeover speculation after the European Union’s highest court ruled that the Netherlands is breaking the law in owning a “golden share” in the global mail and express delivery company.

The European Court of Justice said the government’s stake, which gives it veto power over TNT’s mergers and acquisitions, is incompatible with the free movement of capital in the 25-nation EU.

The Dutch government has held the stake since the 1980s when the former state-owned post and telephone company was privatized and split into a telecommunications group and a mail operator. The company subsequently expanded into logistics and express delivery.

TNT shares rose 3 percent immediately after the court ruling on speculation that the decision would make it easier for companies such as UPS, FedEx and Deutsche Post to take over the group. La Poste, France’s state-owned mail monopoly, also has been named as a likely suitor.

TNT was at the center of takeover speculation last November when Cornelius Geber, a former executive of Swiss logistics giant Kuehne & Nagel, said he was trying to organize a consortium to launch a bid.

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Bush nominates Thurgood Marshall Jr. to be Postal Governor

Posted by | Sep 29, 2006 | |

President Bush nominated Thurgood Marshall Jr. to the Board of Governors of the U.S. Postal Service on Sept. 26.

If approved by the Senate, Mr. Marshall, who lives in Virginia, would be a Governor for the remainder of a nine-year term, which will expire Dec. 8, 2011. He would take the seat that was occupied by Ned McWherter, who was appointed in October 1995.

He is a partner at Bingham McCutchen, a Washington law firm that counsels and devises strategies for advancing clients’ interests before Congress and other regulatory bodies.

Mr. Marshall is also a principal with the Bingham Consulting Group.

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Further changes in management at Deutsche Post

Posted by | Sep 29, 2006 | |

Deutsche Post, the German postal service operator, is reported to be planning changes to the second and third level of management in its business with letters at the beginning of October. The company itself has refused to comment; industry experts say that it is reacting to increasing competition in this sector.

The top level of management is not expected to be affected, although Hans-Dieter Petram, the member of the management board who is responsible for this area of business, is said to be training Jurgen Gerdes, the second highest-ranking manager in this division, as his potential successor. Mr Petram’s contract is due to expire in November 2007.

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DHL launches new express service in Eastern China

Posted by | Sep 29, 2006 | |

On September 26, DHL launched a new express service in China, which is suitable for air express with over 70 kgs of weight and provides an economical solution for heavy shipments from eastern China to America.

It signals the express giant begins to take actions in China’s express freight market with its advantages in the fields of express and freight services.

Compared with other express services, the new service of DHL especially fits express of large amount of freights with less urgency. Through its worlwide network, DHL provides door-to-door delivery service by handling all export requirements with a bill.

Data from China’s Ministry of Commerce shows America has become the largest export market of China. Every year, large amount of finished or semi-finished products are exported to overseas markets, America in particular. Therefore, the new products of DHL will meet the demand of the growing market.

At present, the new service has covered 17 Chinese cities in eastern China like Shanghai and cities in Anhui, Jiangsu and Zhejiang Provinces.

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DHL launches parcel delivery desks in 100 Staples stores

Posted by | Sep 29, 2006 | |

DHL has launched a parcel delivery service in more than 100 Staples’ stores and aims to have a presence in 1,000 retail outlets by the end of next year.

DHL’s Service Point desk enables customers to drop off parcels at Staples, instead of waiting for a courier at home. The Service Point desk is live in 137 Staples stores in the UK, as well as London internet cafe Rex Lounge.

The Express4you service has four different tariffs within the UK, Europe, US and the rest of the world. DHL claims the service is attractive for retailers, because it will increase footfall.

DHL Service Point retail development manager Richard Noble said: “A lot of retailers, such as Staples, [want to] generate added footfall, such as getting new customers into stores to make additional purchases on top of the DHL service.”

Ideally, DHL wants to sign retailers with extended opening hours, making supermarkets and convenience stores key targets.

He added: “Retailers earn a commission for each parcel that they handle. It is a fairly substantial commission – we are not here to do people out of money.”

In addition to the drop-off service, the logistics firm aims to add a collect in-store service in the middle of next year.

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