Author: Archive

The FFPI welcomes the Commission’s decision to investigate State aid to the Polish Post

The Free and Fair Post Initiative (FFPI) welcomes the decision taken yesterday by the European Commission to launch a formal investigation on the compensation for the incumbent Polish Postal Operator, Poczta Polska, for providing the
universal postal service. In particular, the Commission will verify whether the Polish Post has correctly applied the proper cost allocation principles in evaluating the cost of the universal service and if there has been any overcompensation that might benefit the Poczta Polska at the expense of consumers and of competitors. “I fully share the view of Competition Commissioner Neelie Kroes who had commented that ‘if the aid goes beyond what needed for the provision of the universal service, Polish citizens will lose out by having their tax money spent unnecessarily and by having a less
competitive market for liberalised postal services’”, said FFPI President, Philippe Bodson. “It is key for postal users and for citizens that state aid rules are applied fully and straightforwardly”, he concluded.

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UK lost letter problem not yet licked

Postwatch welcomes Royal Mail’s announcement of an improvement in the amount of mail delivered without loss, damage or substantial delay during 2004 – 2005.
Peter Carr, Chairman of Postwatch said: “Recent experience of overall customer complaints shows a significant reduction which reflects the improvements in service levels being achieved. However, whilst any improvement in the delivery service is welcome, it still remains the case that over 15 million items of mail were lost during the year 2004 – 2005.

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UK Postcomm removes most bulk mail products from universal service

Postcomm has today proposed removing all but two bulk mail products from Royal Mail’s universal service provision from April 2006. Identifying the products which remain as universal services provides customers with clarity and gives Royal Mail greater flexibility to compete in the bulk mail sector, since restrictions on most of its bulk mail products would be removed, paving the way for the company to vary its rates for those products, while continuing to provide them on a UK-wide basis. Bulk mail services account for about half of Royal Mail’s total business volume. In order to protect customers, two products will remain within the universal service: Mailsort 1400 (first and second class) and Cleanmail (first and second class).

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Fortec licencees

It’s been a while in coming but Fortec says its pallet service to Europe brings a genuinely new service to the export market as well as to the network’s members.

Fortec, the pallet network owned by French giant Geodis, was launching its new pan-European link to its licensees at a conference on Wednesday this week. Managing director Rod Abrahams, speaking to Motor Transport in advance of the conference, said the Fortexport service will be unique in offering daily departures plus guaranteed delivery times, for example: 48 hours to Germany, Benelux and the northern half of France; 72 hours to the rest of France and parts of Italy.

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Cathay Pacific’s venture with DHL soaring

Sales contributions from Cathay Pacific Airways’ cargo partnership with logistics giant DHL could almost triple by 2007 as demand expands in the Asia Pacific, according to a statement from the carrier to the stock exchange yesterday.

Cathay, which is the majority 60-40 partner with DHL in the all-cargo airline, Air Hong Kong (AHK), said DHL’s growing appetite for space on AHK flights might generate annual sales as high as 2 billion dollars by 2007, compared with an estimated 715 million dollars last year.

The international express delivery specialist uses AHK’s seven-strong freighter fleet to connect a network of Asian cities – from Shanghai to Singapore – to its USD100 million central Asia hub at Chek Lap Kok.

Asia’s biggest express operator by volume has also been reviewing expansion plans for the hub, which is operating at near its daily 440-tonne capacity after a year of operations.

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TNT Post expands Belgian business

Dutch postal company TNT Post and press distributor Agence et Messageries de la Presse (AMP) are from 1 July 2005 jointly introducing a new easy-access parcel service for Belgian consumers and small and medium-sized enterprises in Belgium. With this service, TNT Post is further expanding its existing business in the Belgian postal market. The new service offers rapid delivery of parcels within 24 to 72 hours in Belgium and the rest of Europe. TNT Post has been active in the Belgian market for some time now through its European Mail Network activities in the field of newspapers, unaddressed advertising material, printed matter and samples. For the past 18 months, TNT Post Parcel Service Belgium has been expanding its business in Belgium. The company will eventually extend its service to cover other sectors of the Belgian postal market.

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UPS` retail franchise plans in India face roadblock

United Parcel Services (UPS), which plans to set up a network of retail franchise shops in the country under the brand name UPS Stores, may find the going tough. The company’s plans are likely to get stalled with the Centre’s recent reluctance to allow foreign direct investment in retail. A section of the government does see it as an attempt to gain an indirect entry into retail. Besides, the department of posts has objected to UPS’ proposal, viewing it as a violation of the Indian Postal Act, which reserves the mail delivery system as a government function.

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Canada Post announces one-cent domestic rate increase for 2006

Canada Post Corporation today announced in the Canada Gazette a one-cent increase (2 %) in the domestic basic letter rate as well as its proposed increases for USA and International letter rates for implementation on January 16, 2006. Under the price-cap formula approved by the federal government in 2000, basic letter rate increases, when warranted, will not exceed 66.67 percent of inflation as measured by the Consumer Price Index from May prior to the last increase to May of the current year. Increases will be implemented no more than once a year, in January, and announced six months in advance in the Canada Gazette Part I.

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