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DHL enlarging in Seville

DHL Express, a member of Germany’s giant mail service provider Deutsche Post World Net, recently phased in a new logistics terminal on an almost 21,000 sqm tract of land in the Carmona logistics park in the province of Seville (Andalusia, Spain). The facility provides 7,390 sqm of useable space and is equipped with a total of 90 loading bays, 26 of which are for HGVs, and 64 for small delivery vans and CEP vehicles. The new DHL logistics platform handles domestic and international overland traffic, as well as sea and airfreight services. DHL invested over EUR 7.7 million in the new complex, which can process up to 3,500 parcels per hour.

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Deutsche Post World Net reports double-digit growth in first half

Deutsche Post World Net reported double-digit growth in its underlying EBIT for the first half, despite challenging economic conditions. Underlying EBIT, or earnings before interest and taxes excluding non-recurring effects, gained 12 percent to 1.9 billion euros.

Reported EBIT declined by 11 percent to 1.5 billion euros due to one-time charges at the Group’s Financial Services division and costs to restructure its DHL U.S. Express business. Revenue gained 3.4 percent, with growth being held back by negative currency effects. Excluding those effects, revenue grew
7.8 percent.

Deutsche Post has been able to maintain its position following the full opening of the German letter mail market on Jan. 1, 2008 with the impact of a worsening economic environment remaining limited. Total volumes in its Mail Communications unit increased by 3.2 percent in the second quarter, with the number of customer contact points being raised further.

Revenue in the Mail division rose 1.6 percent to 3.4 billion euros in the quarter. EBIT gained 1.9 percent to 321 million euros in spite of the new market environment and higher costs.

In the Express division the leading position in most markets outside the U.S. was maintained, helped by strong growth in its cross-border Day Definite and Domestic businesses. The division also benefited from its strong presence in fast-growing regions such as Asia/Pacific and Eastern Europe/Middle East/Africa (EEMEA). Accordingly, Asia/Pacific recorded organic revenue growth – excluding currency effects and other non-operative items – of 13 percent.

In the EEMEA region, organic revenue rose 26 percent, helped by higher fuel surcharges and strong performance of almost all products. In the Express Americas division, organic revenue increased 4.2 percent, due to increased demand for Day Definite products in Latin America, Canada and the Carribbean.

Measures to restructure the Group’s DHL Express U.S. business are on track, despite deteriorating market conditions and the weakening economic environment in the U.S. Deutsche Post World Net in May presented a plan to restructure DHL Express U.S. to cut losses by 1 billion dollars in 2011. By that time, the Group expects the contribution to the global network to exceed the losses incurred by the business. Negotiations about a planned air lift agreement with United Parcel Service (UPS) are making progress.

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Boom in Czechs purchasing American internet goods

The number of parcels arriving in the Czech Republic from the United States has shot up dramatically, with Czechs taking advantage of internet shopping and the strength of the crown.

Czech postal service is being inundated with parcels arriving from the United States. The postal service has handled over 120,000 packages arriving from the states in the first six months of this year alone – that is up from 70,000 during the same period last year. Ivo Mravinac is a spokesperson for Czech Post, he thinks the glut of incoming packages is down purely to economics:

“The dollar has taken a big hit against the crown and Czechs have done two things. One, they have become increasingly interested in internet shopping and two, they have realized that they can make big savings buying foreign goods, especially from the United States. And this has had a knock-on effect on the number of parcels we are receiving from America. In May 2007, we received 4,900 parcels from America, in May 2008, that number was up to 7,500.”

Couriers such as DHL and UPS back up Mr Mravinac’s statistics. DHL says it has experienced a 99 percent rise in the number of American parcels it handles.

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Royal Mail promotes media portfolio through new campaign

Royal Mail is highlighting its expertise and comprehensive suite of products which can assist and add value to marketing propositions through a new direct mail campaign.

The activity is designed to heighten awareness of Royal Mail’s wide range of DM campaign solutions including off-the-shelf creative products and industry-leading audience targeting solutions to an audience of 14,000 marketing campaign implementers and media agency staff.

The mail pack, which will also have a dual function as a ‘leave behind’ for Royal Mail’s sales team, is designed as a ‘DM seedbox’. The variety of products and services are covered in a set of ‘seed booklets’ to ‘help you grow your own direct mail’, aligned around the central proposition that Royal Mail’s media portfolio provides the media and advertising industry with ‘a DM resource like no other’.

Over the past twelve months alone, Royal Mail has constantly worked to innovate the direct mail medium and make it work more effectively for brands. New service introductions have included Personalised Integrated Media, developed with Sony DADC, which fuses digital with direct to create a truly individualised branded CD mailing, and Sensory Mail, created in conjunction with BRANDSense, to create standout mailing campaigns which engage all five of the senses, with further innovations coming soon.

The direct mail activity, which has been created by Meteorite, is being supported by adverts in marketing publications.

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Deutsche Post & Deutsche Bahn to bid for 800m euro German army contract

Deutsche Post World Net AG. and Deutsche Bahn AG. separately plan to submit bids for a major logistics contract to be tendered by the Germany army this summer, Handelsblatt reported, citing spokesmen for both companies.

The newspaper also said Kuehne & Nagel and Hellmann Logistics may be interested in the contract, without saying where it got the information.

Industry experts estimate the contract may have a volume of about 800 million euros, it said.

The German army, called the Bundeswehr, plans to tender basic logistics including warehousing of medical equipment and supplies, but not ammunition, the newspaper said, citing a spokesman for Bundeswehr advisor GEBB.

The contract will also comprise transport of materials, ammunition, medical equipment and supplies, domestically and abroad, though not the transport of soldiers.

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Brown to head Postcomm (UK)

Postcomm has appointed Tim Brown as Chief Executive, replacing Sarah Chambers.
Brown will replace Chambers when she leaves in September after her four-year secondment from Business, Enterprise and Regulatory Reform (BERR) to Postcomm comes to an end. Brown will also become a Postcomm commissioner.
Brown joined Postcomm at the beginning of 2008 as director of market development, having worked previously at DHL Express UK and Royal Mail.
Postcomm chairman Nigel Stapleton says: Tim’s extensive experience of the sector, gained at Royal Mail and in the wider competitive market, will be invaluable as we work towards establishing a new regulatory framework that will secure the universal service and provide more choice for all mail users and providers.
Chambers joined the postal regulator in 2004 from the Department of Trade & Industry, where she headed the automotive unit. She replaced Martin Stanley.

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Royal Mail’s performance is slipping (UK)

Postwatch commissioned Ipsos MORI to establish whether customers perceived Royal Mail service had improved, stood still or declined over the past two years.
The results showed that 43 per cent thought it was worse, 42 per cent believed it was the same and only 14 per cent that it was better.
Millie Banerjee, Chair of Postwatch, commenting on the results said: “It is not surprising that the vast majority of customers believe Royal Mail’s performance was either getting worse or was standing still during a two year period which included major disruption caused by industrial action.
“Many deliveries are made later in the day than they used to be. Some customers will consider this to be a worse service even if on average during the two years more 1st class mail was delivered next day than previously. It is important that customer perception is dealt with alongside the hard figures of Royal Mail’s performance.
“Adam Crozier has acknowledged that Royal Mail needs to become more customer-focused. It certainly needs to engage with customers to show it really does care about every item of mail arriving safely and on time. It needs to start to talk up mail as a product. These findings should give Royal Mail food for thought. Royal Mail must both be and be seen to be confident, customer-focused and efficient. Gloomy statements about the poor state of the postal industry damage customer confidence and perceptions and do nothing to improve Royal Mail’s position.”
Ipsos MORI conducted the survey by telephone using random digit dialling from the 2 to 6 July 2008. A representative sample of 2036 adults, across all age and socio-economic groups in England, Scotland and Wales were asked for their opinions.

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Japan and France to jointly offer logistics services

Japan Post Service Co., a mail delivery unit of Japan Post Holdings Co., said it will collaborate with French postal service operator La Poste in strengthening its international logistics businesses.

Starting in October, the two will offer distribution services between Japan and Europe using the networks of their respective logistics units.

Japan Post Service Chairman Norio Kitamura and La Poste Chairman Jean-Paul Bailly reached an agreement on the three-year tie-up, which is effective until 2011, at their meeting in Paris last Tuesday 29th July.

The two companies have so far exchanged information on postal services and personnel. It is the first time for the two to work together.

Japan Post Sankyu Global Logistics Co., a joint venture between Japan Post Service and major logistics service provider Sankyu Inc. and GeoPost, affiliated with La Poste, will take charge of the joint services of large-lot transportation of small cargo shipments between businesses and inventory control for corporate customers.

Express Mail Service from France to Japan, which has been suspended since 1991, will be resumed next year to boost transactions between the two countries.

The Japanese and French postal service operators will also jointly study ways to effectively use electric vehicles in their operations.

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