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First class plan (UK)

Royal Mail wants to build a new bulk mail distribution centre as part of a GBP 51 million investment programme in the north west.

As a result of the plans Liverpool Mail Centre, in Copperas Hill, and Crewe Mail Centre would both be relocated to the current regional bulk distribution centre, which is based in Warrington.

The move comes after a six-month consultation period with the Communication Workers’ Unions and Unite and it will see mail centres in Stockport, Oldham and Bolton closed.

Steve Cameron, Royal Mail territory director, said: “It is essential that we have the most suitable postal network to enable us to compete effectively in the years ahead. We need to invest to defend our market share and to retain existing business and win new customers.

“That means reshaping our network in a way that increases efficiency, makes the best of our investment in technology and allows us to improve our service to customers. We are also determined to provide a more modern working environment for our people.”

The changes are part of a GBP 1.2 billion programme to bring new technology and sorting equipment and will not take place until 2009.

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SMEs turn to TNT Post (UK)

TNT Post announces the addition of its 2000th SME customer.
Cunard, the luxury cruise line which is part of Carnival Corporation and PLC, has become TNT Post’s 2000th SME customer. Cunard will now send its customer loyalty magazine and marketing literature via TNT Post in varying delivery volumes of up to 67,000 mail items every three months. Despite its adhoc mailing volumes, Cunard has been using TNT Post’s PremierSort Flex service to access the benefits, service levels and cost savings enjoyed by larger organisations as a result of the liberalised market. PremierSort Flex is a day definite mailing solution that has been designed specifically to benefit local and SME businesses that send upwards of 250 unsorted mail items per day or have weekly, monthly or irregular mailshot requirements.
TNT Post has witnessed its SME customer base grow from 600 customers in July 2007 to 2000 this month, demonstrating an increase of more than 300 per cent in 12 months.

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UPS looks to China for M&A

United Parcel Service hopes to buy a firm in China and boost staff there in coming years.

UPS, a bellwether of the U.S. economy along with rival FedEx Corp, last month posted earnings in line with expectations but hit by rising fuel costs and a weak economy.

Trying to drive growth beyond a U.S. market that accounts for more than half its revenue, UPS will be opening two USD 180 million transport hubs in China and wants to nearly quadruple its staffing there in the next few years, hoping to serve growing demand for delivery services within a relatively untapped market.

“U.S. consumers are not buying, but I think the great opportunity for us internationally is business that never touches U.S. shores,” Dan Brutto, the president of the company’s international business, told Reuters in an interview on Monday.

UPS has doubled its headcount in China over the past 18 months to around 5,300, but expects that number to increase by at least 1,000 annually over the next 3-4 years, said Brutto.

It’s now looking for acquisitions within the world’s fourth largest economy, despite fears that Chinese growth will taper off over 2008 and 2009.

“You could say UPS China should really have 25,000 employees. The business is out there,” Brutto said.

(USD=6.85 yuan)

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FedEx supports growth in South West UK with new international and domestic facility

FedEx UK announced the launch of a new facility in Exeter to meet the growing demands of business in the region.

The facility, located in the Greendale Business Park, Woodbury Salterton, has doubled capacity in the South West and reduces delivery times by up to one and a half hours. The station, which processes packages going to and from customers, will handle both packages for FedEx UK domestic, and FedEx Express International customers.

The depot, which is located five miles from Exeter City Centre and three miles from Exeter International Airport, has the capacity to sort 500 packages per hour along a 70-metre conveyor belt system designed to allow the fast processing of parcels.

The 17,000 sq ft facility was also specially adapted to allow vehicles to load from any of the 13 double-shutter doors at the front and side of the building – freeing warehouse space inside the depot for peak periods and annual growth.

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UPS hopes China ads deliver

UPS may spend as much as USD 60 million this time on Olympics-related activities from ads to hospitality, says Jim Andrews, Editorial Director of the IEG Sponsorship Report.

For UPS, making a good impression during the Games is crucial. The company believes China’s appetite for American products will grow exponentially in coming years, driving the market for deliveries across the Pacific and within Asia. In 2006, it conducted a survey of what it identified as 1,200 “middle-class consumers” in six Chinese cities. The findings suggested growing demand for U.S. products ranging from beauty products to DVDs.

In China, UPS is competing fiercely with FedEx Corp.UPS has had to play catch-up since 1995, when FedEx acquired what were the only existing rights to make all-cargo flights directly to China from the U.S. In 2005, FedEx also became the first express carrier with a direct flight from mainland China to Europe.

Before 2004, the Chinese government permitted 20 cargo-only flights a week by American companies between the U.S. and China. But that is scheduled to increase to 131 flights a week by 2010 as China eases its restrictions, according to Robert Dahl, Project Manager of Air Cargo Management Group, a Seattle-based aviation consulting firm.

FedEx and UPS, which each have about 6,000 workers in the country, are building new airport hubs in China that are set to open later this year — UPS’s in Shanghai and FedEx’s in Guangzhou. UPS is also competing against DHL and TNT.

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Correos online service increase 64 pct in 2007

The percentage growth includes digital mail, fax and telegram. It said it reinforced the effectiveness and quality of its online services and that online services had seen continual and steady growth since 2004 when online services were first launched in Spain.

Last year the Correos web site saw some 22.788.818 visits (62,435 daily visits, including those of the Virtual Office and those of domestic and business customers). Digital mail saw growth of around 73 pct, the bureaufax Online 66.3 pct, and online telegrams 49.7 pct. Postal franking also saw an increase of 21.6 pct.

Shipments via the Internet grew by 15 pct and online payments increased by a staggering 323 pct. Correos online services allow customers to send money via PC to any destination within the national territory and Andorra with additional cost. Its stamp service has also seen positive growth, with some 700,000 customized stamps sold, popular for the promotion of organisations, fairs, exhibitions, contests, anniversaries, products, etc.

Their web site received an average of 1.9 million monthly visits and the number of registered users increased by more of a third (34 pct). Registered users were 95,832 by the end of 2007. The Virtual Postal Office is available 24 hours a day, 365 days of the year and allows customers to access postal services from home or office. Correos said it was committed to online services as part of its modernisation plans.

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15,000 DHL employees drive large-scale volunteerism initiative across Asia Pacific

DHL announced that more than 15,000 DHL employees participated in community engagement programs as part of ‘DHL Volunteer Day’, a community outreach program conducted in over 20 countries across Asia Pacific that seeks to encourage the spirit of volunteerism among employees.

This year’s events took place across the region from 6 to 10 August.

The company’s Corporate Sustainability Program is a three-pronged approach emphasizing the Environment, Social Responsibility and Employees. Program initiatives include the DHL GoGreen climate protection program; disaster management through the DHL Disaster Response Team; UNICEF partnerships; and ongoing green initiatives driven by DHL employees.

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Deutsche Post to expand automatic parcel delivery in deal with Aldi

Deutsche Post World Net AG. is planning to hike the number of its automatic parcel delivery stations in Germany to 2,500 from a current 1,000 by the end of 2009, also using stores of retailer Aldi, Focus reported in an article to be published tomorrow, citing no sources.

The total investment is seen at 20 million to 30 million euros, Focus added, with several hundred stations to be installed in Aldi stores.

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