Author: Archive

Size pricing unlikely to be introduced in UK before 2006

Posted by | Sep 21, 2004 | |

Size-based pricing is unlikely to be introduced before April 2006, according to postal watchdog Postcomm. Up until now, it was thought that the new pricing system could be introduced as early as September 2005. Speaking at a meeting organised by Royal Mail, Richard Moriarty, Postcomm director of competition and regulation, said Postcomm had received 9,000 responses to its size-based pricing consultation and was undertaking a thorough analysis of all feedback, while continuing to work with Royal Mail on understanding the cost justification for the proposals. At the latest meeting, Lorna Clarkson, Royal Mail’s director of commercial policy and pricing, acknowledged magazines were particularly affected by the size-based pricing proposals. She said the publishing market was an important sector and that Royal Mail was committed to working with PPA to address publishers’ concerns around the introduction of a uniformity measure for magazines.

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French postal workers strike against planned closure of post offices

Posted by | Sep 21, 2004 | |

Nearly one in 10 postal workers in France went on strike Tuesday to protest against reorganisation plans they fear will lead to nearly half of the country’s 14,000 post offices being closed and massive lay-offs. “Around seven to nine percent of personnel” observed a nationwide stoppage called by three of the state-owned organisation’s main unions, management at La Poste said in a statement. It added that it had taken steps to ensure mail and courier deliveries would not be halted. “Disturbances will therefore be very limited for all clients, both companies and individuals,” it said. La Poste is planning on reducing the number of post offices dotted around France in an effort to streamline operations and put it on a competitive footing compared to counterparts in other European countries, but it has been coy on details.

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UK postal firms warn of risk in rushing to open up the mail

Posted by | Sep 21, 2004 | |

Postal operators warned yesterday that the decision to end Royal Mail’s letters monopoly 15 months earlier than planned could result in a “cowboys’ charter” and damage attempts to introduce more competition into the market. Royal Mail said it welcomed the earlier opening of the market provided the “handcuffs” which prevent it from making an acceptable return on revenues came off. Adam Crozier, its chief executive, also said there had to be careful licensing of new entrants to avoid a “free-for-all with customers left to find their way among potentially dozens of rivals with varying quality of service”. Existing private mail businesses gave the proposals a guarded welcome but also warned that the liberalisation of the market needed to be handled carefully or it could damage consumer confidence and ultimately strengthen Royal Mail’s stranglehold. Britain’s longest-established private mail business, DX Network Services was one of those to express reservations. Guy Buswell, the managing director of UK Mail, was also apprehensive.

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UK Royal Mail wants more scope to set stamp prices

Posted by | Sep 21, 2004 | |

Royal Mail has called for more freedom to set stamp prices, especially for bulk business mail, to enable it to better compete with private sector groups entering the UK postal market. The state-owned group was responding to proposals by regulator Postcomm to liberalise fully the UK postal market by January 2006, more than a year earlier than planned. About 30% of the postal market has been open since April last year, meaning that private sector companies can now offer bulk mail services consisting of more than 4,000 letters. A further 30% of the market was to be opened by April next year, with full liberalisation by April 2007. But Postcomm is now suggesting the middle stage be scrapped and competition brought in to all parts of the postal market by January 2006. Royal Mail said the market should be opened sooner but only if pricing restrictions were removed.

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‘Mature’ French market belies trade growth

Posted by | Sep 20, 2004 | |

France has emerged from its economic lull, according to the government, which has upped the 2004 GDP growth forecast to 2.3%. But business leaders are finding it hard to square the country’s new position in the front rank of EU economies with their still struggling bottom lines. “The finance minister talks about 2% growth, ” says Geraud de Chantérac, VP of GeoPost’s French arm, Chronopost France. “We’ve talked to all our competitors and we don’t know where that figure comes from.” Express operators facing little vitality in the domestic market are targeting international services for growth. “The domestic market is very mature, ” says Eric Jacquemet, MD of TNT France. “But the international market is growing by more than 5% a year and we are growing at an even faster rate.” TNT is the third largest operator in France’s international express market, just below Chronopost’s 18.5%. DHL is the clear market leader, with 36% of the market.

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DHL expands in Abu Dhabi

Posted by | Sep 20, 2004 | |

DHL is expanding its operations in Abu Dhabi with an investment of more than USD1m, including its first retail outlet in Al Muhairy Mall and new airside facilities at Abu Dhabi International Airport. DHL’s courier and freight capacity has grown by 350 per cent in the past few years and the company claims a 42 per cent market share in the UAE.

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Vote seeks to thwart Swiss Post Office’s cost cutting

Posted by | Sep 20, 2004 | |

Voters will decide on September 16 whether to support the people’s initiative, launched by a trade union and the country’s main consumer organisation. Its backers want to ensure that the local authorities are consulted before post offices are closed. Supporters of the initiative say the country’s small and medium-sized businesses, the backbone of the Swiss economy, depend on a closely-knit network of post offices. The proposal also calls for government subsidies for loss-making post offices in remote areas. “We accept that the postal service needs to be restructured, but we need clear rules,” said Christian Levrat, president of the Communications trade union. Levrat, who is also a Social Democrat parliamentarian, said post offices have a social function – namely to bind communities together – and therefore the organisation should not be privatised.

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