Author: Archive

DTI sets up review of UK Royal Mail’s future in the free market

Posted by | Jun 12, 2005 | |

Alan Johnson, the Secretary of state for Trade and Industry, is to appoint a special committee to review Royal Mail’s future. Mr Johnson is considering potential candidates to chair the committee, and an official announcement is expected within a fortnight. The committee would consider the impact of competition, Royal Mail’s plans to improve profitability and the future of the Post Office network, a well-placed source said. The review, promised in the Labour manifesto, is a prelude to the postal market being fully opened to competition in 2006.

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Postwatch chairman Carr turns up heat on UK Royal Mail

Posted by | Jun 10, 2005 | |

Postwatch chairman Peter Carr has waded into the row over Postcomm’s pricing proposals, tongue-lashing Royal Mail for claiming the price- freeze would starve the company of cash. The watchdog maintains that the plans allow a minimum capital expenditure of GBP750m up until 2010. It claims, in fact, that Royal Mail will spend GBP40m less than its budget under the current deal. A Postwatch spokesman says: “Royal Mail is making an issue out of nothing. It is not being starved of investment. Quite the contrary, it has the freedom and the money.”

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TNT/Royal Mail: GLS sale would suit both sides

Posted by | Jun 10, 2005 | |

TNT has expressed interest in acquiring Royal Mail’s European parcel unit GLS Holding, among other global targets, to expand its express delivery network and increase market share. Although Royal Mail has yet to make a comment, a possible sell-off could work well with the group’s plans for semi-privatization.

According to the German magazine WirtschaftsWoche, TNT may be planning a series of acquisitions, one of which could be Royal Mail’s subsidiary General Logistics Systems (GLS), CEO Peter Bakker said in an interview.

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Palletline strengthens management team

Posted by | Jun 10, 2005 | |

Palletline has strengthened its management team with three key appointments:
Colin Enticott is promoted into a new role as general manager operations. Enticott has been with Palletline for five years.
Clive Brooks steps up to another new role as national service development manager. Brooks has previous general management experience at Europa, a Palletline member, and almost twenty years’ experience of depot operations.
Mark Warwick moves from regional service development manager to general manager London.

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Irish An Post seeks partner for new move to banking

Posted by | Jun 10, 2005 | |

An Post has written to 28 financial institutions in the first stage of a process which could see the post office network restructured as a fully-fledged bank by sometime next year.

The postal company is hoping to leverage off its network of 1500 post offices and its reputation as a safe and reputable company, in order to take a slice of the most profitable banking market in Europe.

An Post wrote to five indigenous and 23 foreign banks earlier this week asking them to submit initial proposals within 10 weeks. Based on these submissions, the list of possible partners will be reduced to less than 10. Detailed discussion will then take place with the short-listed banks and the final partner is expected to be chosen by the end of the year.

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Investment plan to modernize French Post

Posted by | Jun 9, 2005 | |

On June 2nd the Board of Directors of the French Post approved an investment plan of 770m euros to be spent over the 2005 to 2007 period to help modernize the network of Post Offices. Of the total amount 150m will be devoted to a training program and another 150m devoted to implementation of an IT system that would allow the Post to adopt new trends and launch new products. The balance will be devoted to renovations that will reduce queuing time in post offcies. Press Release available in French.

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UK PPA warns lifting of postal controls will hit B2B sector

Posted by | Jun 9, 2005 | |

Business-to-business magazines that depend on doorstep distribution could suffer under plans to end price controls on press postage, the Periodical Publishers’ Association (PPA) has warned. The current Presstream system, which forces Royal Mail to keep prices low for subscription-based magazines, will be unregulated from April 2006 under proposals from the postal services regulator, Postcomm. Postcomm said it believed publishers would be protected from soaring prices because there was sufficient competition in the market to keep charges low.

But Ian Locks, PPA chief executive, said: “The competitive playing field for the Presstream service is set within the context of the postal delivery of magazines.

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CCI queries Irish An Post over 12c price move

Posted by | Jun 9, 2005 | |

Businesses are digging in their heels against another expected rise in postage prices, saying it would be the death knell for An Post.

The Chambers of Commerce of Ireland (CCI) has urged the Communications Regulator to reject outright the current request by An Post to increase the price of a stamp from 48c to 60c.

It warned that businesses will turn to competitors when the sector opens up early next year if prices are hiked any further. “The company is undoubtedly under pressure,” said Sean Murphy, CCI Head of Research and Public Affairs.

“It is continuously failing to meet next day delivery targets set by the regulator; mail volumes are falling, previous price increases have failed to yield adequate revenue returns, and the European postal market liberalisation is well under way and due to intensify,” he said.

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