Author: Archive

UK Mail deal opens door to delivery network

Royal Mail is in preliminary talks with the Dutch and German postal services, TPG and Deutsche Post, about allowing them access to its delivery network
after reaching a ground-breaking deal with a British rival yesterday. The deal is the first of its kind in Europe and was concluded after two years of talks. It in effect freezes regulator PostComm out of the process of enabling access to Royal Mail’s network of 73 mail centres and 1,450 delivery offices. It is understood that negotiations on a similar deal have already begun with TPG, which has a full licence, and with Deutsche Post, which is holding talks with PostComm on a winning a full licence to compete in Britain. Other groups waiting in the wings are Hays and Express Dairies.

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German Regulator, RegTP, presents Annual Report

The regulator‘s annual report reveals that the German postal services market generated revenues in 2003 of more than EUR23bn. Around two thirds of the postal services market – essentially, courier, express and parcel services, but parts of the letter market too – have already been opened to competition. Almost two thirds of the revenues are accounted for by Deutsche Post AG (DPAG). The remaining third is split between a number of providers, courier, express and parcel service providers in particular. Revenues in 2003 in the licensed area (delivery of letters up to 1000g in weight) were in the region of EUR10bn. A third of the letter market is open to competition; the competitive potential is thus about EUR3.3bn.

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New organization at Deutsche Post to strengthen mail business

A separate MAIL International Divisional Board to be chaired by Klaus Knappik is being formed within the MAIL Corporate Division. “Through its new organizational orientation Deutsche Post is supporting the tapping of growth opportunities in the international mail market,” emphasizes Corporate Board Member Dr. Hans-Dieter Petram. The Deutsche Post strategy aims to tap into additional growth perspectives based on the importance of the respective national mail markets and the framework regulatory conditions associated with them. This encompasses offers along the entire value chain for mail. The new management structure will strengthen Deutsche Post’s international mail business.

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UK mail deal sets precedent for market liberalisation

A significant hurdle to the liberalisation of the postal market was cleared yesterday after Royal Mail agreed for the first time to deliver letters collected and sorted by a private company. The terms of the agreement are likely to set a precedent for deals between the state-owned mail group and companies such as Deutsche Post of Germany and TPG of the Netherlands, who have tried to break into the UK market for several years.
From April, Royal Mail will deliver post that is collected and sorted by Business Post, its private sector rival. Rather than emptying post boxes on the street, Business Post, through its subsidiary UK Mail, will collect mail from businesses such as phone companies and utilities that send letters in bulk.

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Banks still up in arms over plans for La Poste

The seven main French banking groups have sent a letter to French prime minister Jean-Pierre Raffarin, in protest over plans to allow La Poste, the national postal services group, to offer credit. The Senate passed an amendment at the end of January to new postal legislation which will establish the change. The banks say there was no proper debate at the time of this vote, which took place during an overnight session at the Senate. They also say necessary conditions of transparency were not met in the reaching of the decision.

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DHL hits Singapore Changi handling costs

DHL Worldwide have said that high ground-handling costs at Changi Airport, Singapore’s main international airport, are hindering expansion in the island-state.

Uwe Doerken, chief executive of DHL Express, said the DHL group, which has invested more than USD1 billion in the Asia Pacific region since 2000, was looking to further expand its operations here, but costs were a prime concern.

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Freightway dividend soars over forecasts

The 7000 mostly New Zealand shareholders who bought into Freightways last year are getting a bigger-than-forecast first dividend payment. The express freight company, which debuted on the NZX last September, yesterday reported a $8.5 million interim profit and will pay out $7.25 million, or 5.85c a share, as an interim dividend. Freightways has 1000 couriers across its New Zealand Courier, Castle Parcel and Poste Haste brands and will tonight load about 26 tonnes of airfreight in Auckland and 12 tonnes in Palmerston North onto dedicated aircraft. Freightways is casting aside the image of being a mature business as the power of its national network and 39.5 per cent share of the express package market, which delivers 90 per cent of its profits, becomes more apparent to investors. New Zealand Post has about 43 per cent of the market.

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Astar asks DOT to toss latest challenge

Astar Air Cargo Inc. urged the Department of Transportation to throw out a request by rivals FedEx Corp. and United Parcel Service to review a ruling that found Astar is owned and controlled by U.S. citizens.

In a filing, Miami-based Astar accused FedEx and UPS, which carry nearly 75 percent of U.S. air and ground shipments, of “sour grapes.” Astar said the department” should let the parties compete in the marketplace” and reject moves by FedEx and UPS to reopen the case.

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