Author: Archive

UK Royal Mail facing VAT showdown

Five private mail companies are preparing to take the Treasury to court over its pledge to preserve Royal Mail’s special VAT-free status. TNT, the Dutch courier company, will front the challenge, which could end up in the European Court of Justice. TNT is supported by Hays, Deutsche Post, UK Mail and Express Dairies, which is also looking to expand into post deliveries. The companies believe they are unable to compete with the state-owned Royal Mail on equal terms because they must charge 17.5 per cent VAT on deliveries. “This creates an uneven playing field,” said Angus Russell, TNT’s legal adviser. “We must bite the bullet and challenge this. TNT will take the lead.”

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TNT Austria increases turnover

TNT Express Austria is heading for success in its 2004 business year. In the first 6 months of the current fiscal year the company was able to increase turnover by 12% to EUR 26 million, and results before taxes by 85%* to EUR 2.4 million. The basis for these growth rates was laid by increased consignment volumes, up by 14% to 681,000 units.
* 85% figure verified against TNT Austria website.

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FedEx moves local Asian markets to region-wide loyalty plan

International courier company FedEx is rolling out a new regionwide online loyalty programme to encourage closer relationships with its small- and medium-sized customers. The programme will replace local loyalty schemes which currently operate differently in national markets. “With a consolidated programme, there is a common brand identity, which will have a greater impact and awareness among customers,” commented Malcolm Sullivan, VP of marketing and communications for FedEx’s Asia Pacific division. The FedEx Reward Centre Programme is currently being piloted in Singapore, China and Japan prior to rollout over an unspecified period across Asia-Pacific. The scheme’s online platform will also make it cheaper to run than existing programmes, Sullivan said, with savings from bulk purchases and sharing capital equipment and operations.

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Utah next for DHL expansion

DHL Worldwide announced plans Thursday to open a regional sorting facility in Salt Lake City. The USD3 million facility initially will employ 38 people, and serve destinations in Utah and parts of Idaho. The hub is part of DHL’s plan to invest USD1.2 billion to develop an integrated delivery system across North America. The company, a unit of Germany’s Deutsche Post World Net, opened a similar facility in Denver, both to serve as strategic east-west network links.
Five other sorting centers will be opened in as-yet undisclosed cities, a direct challenge to FedEx Corp. and United Parcel Service.

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TNT aims to increase China branches to 100 from 25 by 2010

TNT said it aims to increase its branches in China to 100 from the current 25 by 2010, and service 1,000 Chinese cities, up from the current 500. TNT, a unit of Netherlands-based TPG NV, which opened its mainland headquarters in Shanghai today, said in a statement that it also plans to boost warehouse capacity and staffing levels by up to 10 times by 2010. ‘China is identified as one of TNT’s key growth areas. We foresee that the market will be a key driver for TNT’s future global growth,’ chief executive Peter Bakker said.

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New TNT China head office in Shanghai opened in presence of full TPG board

TPG N.V. have opened their new TNT China head office in Shanghai. The full Board of Management of TPG attended the opening, after a week in China filled with site visits, as well as meetings with key officials. During the opening event Peter Bakker, CEO of TPG, outlined the company’s leadership vision, business model and plans for China.

Peter Bakker: “The impressive visit this week has confirmed to the Board of Management that China indeed has the potential to be a key driver for TPG’s future global growth. We are encouraged by the progress made by our people on the ground. The opening of the new office located at prestigious landmark of Shanghai, People’s Square, obviously is a milestone. But the real difference will be made by our people and their drive, commitment and professional standards to further develop our business in China.”

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French postal unions call for strike

Employees of the French post office (La Poste) have been urged to stop work on January 27 in protest against what the French postal unions Sud-PTT and CGT-PTT call the merchandisation of public services. On the job front, moreover, the unions claim that La Poste is no longer recruiting civil-servant status employees. January 27 is the day on which the French senate is due to debate the bill on the regulation of postal services.

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