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TNT, Murdoch to compete with UK Royal Mail

Rupert Murdoch has linked up with another giant of Australian business, TNT, in its bid to compete with Britain’s state-owned postal service Royal Mail. Transport and delivery company TNT has entered Britain’s letter market with its TNT Premier service which guarantees delivery in 48 hours and handles one million items a week. As its service expands and the market opens up, however, TNT and other private mail providers have complained about Royal Mail’s “dirty tricks” and uncompetitive behaviour. Murdoch’s pay TV network BSkyB is the latest of five major customers to defect from Royal Mail to TNT, including food distributor Booker and mail order firm Express Gifts, the British newspaper The Guardian reported.

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Polish Post a joint stock company

MPs from the Sejm’s infrastructure and treasury committees gave a green light to transforming the Poczta Polska (PP) Polish postal service into a company, owned solely by the State Treasury. The draft resolution stipulates that the Sejm agrees to this move but reserves the right to keep its option to sell PP’s shares in the future. “This is not a privatisation. We are giving PP a chance to change its legal status so that it will be able to compete with other companies on the market,” said Malgorzata Ostrowska of the Democratic Left Alliance (SLD). The Deputy Minister of Treasury, Wojciech Halka, also thinks that turning PP into a joint stock company will allow it to conduct necessary restructuring that will better prepare PP for competing on the liberalised postal services market.

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Japan Post and TPG of the Netherlands seeking alliance

Japan’s state postal service plans to form a business alliance with the Dutch post and logistics group TPG, a media report said Wednesday.

TPG executives have been holding talks here with Japan Post since Tuesday on details of the alliance expected to focus on international express services, the Jiji Press news agency reported.

No official was immediately available at Japan Post to confirm the report.

The two companies signed an agreement late last year to aim for a “strategic alliance to become leading players in the express and logistics market in Asia,” Jiji added.

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UK Royal Mail’s market share being eroded

Royal Mail’s monopoly of the postal market is starting to be eroded, as rival mail companies poach the group’s biggest business customers. TNT Mail, owned by the Dutch post office, said yesterday it had won contracts to handle mail for several high-profile corporate clients, including Sky. The company said that it was handling nearly 1m items of post every week. Business Post, owned by UK Mail, has been operating in the UK since early last year and boasts clients such as Powergen, while DHL Global Mail, part of Deutsche Post, will launch its own UK business at the end of this month. Andy Barrett, head of marketing at DHL Global Mail UK, said the group had signed contracts with two large business customers. Although private sector competition to Royal Mail is growing rapidly, the state-owned group is expected to retain its market dominance for many years.

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FedEx goes after high-speed rail deal

FedEx Corp. said yesterday it was in talks with the French government about
using the country’s prestigious high-speed rail network to transport
packages and freight. FedEx, which uses Paris Charles de Gaulle airport as its main European hub, hopes the government will agree to link up the
high-speed TGV network to its facility, but a deal is likely to take years to negotiate, FedEx officials said.

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Japan PM to press ahead with controversial postal reform

Japanese Prime Minister Junichiro Koizumi reiterated Tuesday the need for planned controversial post office reforms despite differences within his ruling Liberal Democratic Party (LDP). Koizumi’s pet project to privatize the national postal service has divided the ruling party because his plan risks offending the one million Japan Post workers who traditionally have voted for the LDP.
“With no reform, we will see no growth. Reform is necessary in any era,” Koizumi told an annual convention of the party, which has ruled Japan almost continuously since it was founded about 50 years ago. “The LDP must continue to push for reform by going back to our founding principle that we are a national party that seeks prosperity of the entire Japanese public,” he said.

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Postal workers kick off three days of French strikes

French postal workers kicked off three days of strikes in the public sector Tuesday, as unions mount a challenge to the cautious liberalisation policies of President Jacques Chirac’s centre-right government. Some 300,000 staff were urged to stop work on a day that the National Assembly began debate on a bill to open the state-owned La Poste to outside competition in accordance with European Union directives. At mid-morning management reported that only 13 percent of workers were on strike, though the figure was higher in Paris.

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Patrick Devedjian opposes ART dissolution

The French National Assembly will discuss the postal law on 18 January 2004, which also covers French teleocms regulator ART, reports Les Echos. According to AFP, an amendment proposing the dissolution of the ART could be tabled at this session. French Trade + Industry Minister Patrick Devedjian is opposed to Parliament interfering with the ART. He argues this would affect its independence, especially as it must make very important decisions in the coming days over the future of telecoms market for the next four years.

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