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Deutsche Post to buy the rest of DHL

In an effort to secure for itself a concrete place in the international parcel business, Deutsche Post is set to purchase the remaining shares of express air courier DHL International of Brussels.
Deutsche Post, which is 70 percent owned by the German government, is Europe’s largest postal company, The company said July 5 it will purchase the 25 percent stake of DHL owned by Lufthansa for about $593 million. It currently owns 50 percent of the company and controls its management.
In addition to the Lufthansa shares, DeutschePost said it has plans to acquire additional shares owned by Japan Air Lines and other institutional investors. DHL is the largest air express carrier outside the U.S.

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US Postal service partners with Barthco

The US Postal Service and Barthco International Inc. recently signed an agreement that makes Barthco the key logistics company responsible for distributing international small-package parcels to the US.

The new business cooperation, called the International Customized Mail Agreement (ICM), is part of a recent US Postal initiative to partner with prominent commercial businesses in the transportation of overseas goods.

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Jamaican Postal Corporation seeking to franchise service

THE Postal Corporation of Jamaica is examining the implementation of a franchise programme to increase efficiency and extend its customer reach within the next six months.
The idea is to get businesses in communities to offer postal services, including mailbox rentals, Internet kiosks, money transfer, fax and photocopying services.
“We are in the process of developing a franchise programme where a franchise (in a particular community) would be paid a flat sum and in return, would be responsible for the delivery of the mail and the provision of other services,” Dr Blossom O’Meally Nelson, postmaster-general and chief executive officer of the Postal Corporation told JIS News in a recent interview.
O’Meally Nelson explained that the proposed franchise programme, that has already been drafted, is a reactionary measure to the increased challenges being faced by the corporation, including mounting debt.

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UPS, FedEx in air war with DHL

The nation’s two largest package carriers are trying to keep the world’s largest package carrier out of the country.
United Parcel Service Inc. and FedEx Corp. filed separate petitions in August asking the U.S. Department of Transportation to review the ownership of DHL Airways. They suspect that DHL Airways Inc. is violating a federal law that restricts to 25 percent the foreign ownership of airlines operating within the United States.
The companies believe that DHL Airways is owned and controlled by Deutsche Post, the German postal monopoly that is 70 percent owned by the German government, but the ownership is disguised in a complex arrangement of subsidiaries.
“We are talking about the government of Germany competing against private individuals in the United States,” said Norman Black, a spokesman for UPS. “Nothing more. Nothing less.”

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PostComm allows Deutsche Post to set own price levels

Deutsche Post will be allowed to set its own prices when it breaks into the UK business post market, posing an aggressive threat to Consignia’s fading monopoly.
The regulator is set to grant a one-year interim licence that allows Deutsche Post to collect pre-sorted and some unsorted mail from customers in the UK. The group will use rival company Consignia’s network to deliver about 90 per cent of the mail, while the rest will go through its subcontracted delivery services.
Deutsche Post and Consignia will have to agree a fair price between them, says Postcomm. “Deutsche Post must decide what to do,” says a Postcomm spokesman. When asked if there was the potential for Deutsche Post to undercut Consignia on discounts or pricing for bulk mail, he says: “I imagine they will have something to offer but it is up to them.”

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