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Postcomm statement on Royal Mail's industry consultation on zonal access price structures (UK)

Postcomm welcomes Royal Mail’s industry consultation on a revised zonal access price structure. This consultation impacts on two projects which Postcomm has been undertaking over the past several months.

The first project is Postcomm’s general review of zonal access pricing (under which Royal Mail charges a zonal price for delivering mail to the “final mile” for large customers and other postal operators).

The second project concerns TNT Post UK Limited’s request to Postcomm for a direction under Condition 9 of Royal Mail’s licence for two access products, both of which it requested to be zonally priced but with a two zone pricing structure.

Postcomm hopes that Royal Mail, TNT Post and the wider industry will be able to work together to put in place appropriate terms for both zonally priced access and nationally priced access to the Royal Mail network. If agreed, these new arrangements could help to secure the provision of a strong and self financed universal service in parallel with the development and sustainability of both access and end-to-end competition.

Postcomm will aim to publish its observations on Royal Mail’s industry consultation by the end of August 2008.

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UPS Board declares dividend (U.S)

The UPS Board of Directors today declared a regular quarterly dividend of USD 0.45 per share on all outstanding Class A and Class B shares.

The dividend is payable Sept. 9, 2008, to shareholders of record on Aug. 25, 2008. UPS has either increased or maintained its dividend every year for more than three decades.

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Spanish Postal Service to invest EUR 11 million in PDAs

Correos is planning to invest EUR 11 million in PDAs for delivery workers in Spain this year. It now plans to buy a further 7,000 in line with technical improvements to Spain’s postal network (with a budget of EUR 8.9 million).

Correos said it would enable mail workers across Spain’s rural and urban areas to provide a modern and up-to-date service and improve the quality of mail delivery including registered mail.

PDAs are similar to hand-held digital scanners but provide unique facilities such as digital signatures, which means the sender can know that an item has been delivered, and when. The addition of communication between postal workers and delivery offices will also improve the quality of Spanish postal services.

Royal Mail in the UK is also rolling out the use of PDA units to its entire delivery network as part of its modernisation plans. Similar equipment has already been installed in many Royal Mail vehicles.

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Secured Mail to Get GBP 1.6m Investment

UK postal operator Secured Mail, is set to expand after securing a GBP 1.6m investment from Manchester-based Aquarius Equity Partners.

Secured Mail, one of 22 licenced postal operators in the UK, operates a fleet of vehicles and has a well established client base. According to MD Mark Bigley, the investment will give Secured Mail a much-needed boost for growth and enable the business to become an even bigger player in the postal industry.

Steve Sealey at Aquarius said Secured Mail was just the business model it was looking for and that it was an ideal investment in an emerging market.

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Austrian Post – Good development in the first half-year 2008

The first half of the 2008 financial year developed very satisfactorily for Austrian Post. The 7.3 pct increase in revenue is not only related to the initial consolidation of the newly-acquired subsidiaries, but also includes organic growth. This development is even more gratifying in the light of the loss of two important mail order customers in the Austrian parcels segment since the beginning of 2008.

The resulting decline in parcels revenue could be more than compensated for. Total Group revenue climbed by 8.8 pct in the second quarter of 2008.

All three divisions made a positive contribution to revenue growth. The Mail Division improved by 8.6pct in the first half of 2008, whereas revenue of the Parcel & Logistics Division was up 7.1pct and the Branch Network Division also registered a gain of 0.2pct. Growth in the Mail Division was related to the initial consolidation of the new subsidiaries as well as to an operational increase. Revenue and earnings of the Parcel & Logistics Division were negatively impacted by the loss of two parcels customers, but the newly-acquired subsidiaries could offset the resulting loss of revenue. In particular, financial services developed favourably in the Branch Network Division.

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Postcomm to Amend Postal Operator Licences

With Postwatch soon to be absorbed into a larger multi-consumer watchdog known as the National Consumer Council on 30th September, Postcomm is making adjustments to its paperwork which includes existing postal operator licences.

To prepare for the abolition of Postwatch and the new complaint handling standards, Postcomm needs to make relevant licence modifications to postal operators’ licences to reflect the transfer of functions from Postwatch to the new NCC and the new complaint handling standards.

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DHL expands within SAARC region

DHL is looking at expanding its business within the SAARC region (South Asian Association for Regional Co-operation) with an integrated product portfolio that will bolster transportation and trade between SAARC nations.
DHL is the first logistics player to foray into the SAARC segment and plans to service the estimated 120 pound Express market share in the region.
This set of innovative logistics solutions will help in quicker transit times, better customer service through online track and trace, one invoice, door-to-door delivery and special SAARC zone pricing.
These services use DHL’s enhanced infrastructural support to gain direct connections to key SAARC destinations – Pakistan, Sri Lanka and Bangladesh.
It has been observed that trade can significantly increase once trade barriers are lifted. According to an AT Kearney study in 2007, with implementation of NAFTA, ASEAN EU in 2003, trade grew significantly by 44 pct, 49 pct & 63pct respectively since implementation.

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Siemens to supply Itella, Finland, with combined parcel and bundle sorting systems worth a total of about 50 millions euros

Siemens Mobility Division has won an order from Itella, the Finnish Mail and Logistics Service, to equip its mail centers in Helsinki, Kuopio, Oulu and Tampere with new sorting technology. The center in each of these towns is to be equipped with a parcel and bundle sorter system (PBSS), and a tray handling system (THS) for letters and flats. It is the first time in this sector that these technologies for handling and sorting different types of mail are being combined. Siemens will be handling this order together with Interroll Automation (PBSS) and Cimcorp (THS). The total value of the order is about 50 million euros. The systems are scheduled to come into operation between the middle of 2009 and the beginning of 2011.

A combination of technologies for sorting different types of mail items has never before been implemented in the postal sector. The close intermeshing of the technology and timing of these two logistics projects together with stage by stage installation while operations are running are presenting tough challenges. Both projects are part of Itella’s major investment of 160 million euros in mail sorting facilities. Itella is investing in automation technology to increase the efficiency of its mail sorting and improve its ergonomics and quality.

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