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UK Post Office's GBP 150m subsidy 'in jeopardy'

Posted by | Jun 11, 2008 | |

The government’s financial support for post offices may be jeopardised if the network fails to win a tender to run the card account through which millions are paid benefits, MPs were warned yesterday.

Brussels has approved a government subsidy of GBP 150m a year to enable Royal Mail to run a network of 11,500 post offices by keeping loss-making branches open. But Post Office Ltd’s managing director, Alan Cook, said winning the card account was crucial in meeting state aid rules.

The government has put the card account out to tender from 2011 and Cook said: “The grounds of approval (from Brussels) are on the back of having the card account.”

The loss of other government work and a decline in the number of people using the card account had posed problems for the network, Cook told the all-party business and enterprise committee. If it lost the tender, the reduction in the level of services it would be providing would make it hard for the government to secure renewal of the social network payment, he said.

Post Office Ltd is closing 2,500 branches as part of its plans to curb heavy losses made by the network. Government funding will enable it to retain 11,500.

Cook told the committee the company would oppose any plans to shrink the network further but added that Post Office Ltd had to work within the limits of the funding provided by the government.

He revealed 100 local authorities had expressed interest in an initiative being pioneered by Essex County Council to take on post offices being closed under the network change programme.

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Spain is eurozone bargain for motoring holidays in Europe

Posted by | Jun 11, 2008 | |

Spain emerges as the best value destination for UK holidaymakers in Europe in a new report by Post Office® Travel Services – despite the fact that pump prices in Switzerland have made it cheapest for unleaded petrol for the second year running.¹

In its’ Motoring on the Continent report, the Post Office® reveals that Switzerland is now the only major motoring holiday destination where unleaded fuel costs less than GBP 1 per litre.

However, the report places Spain as best value across Europe for both diesel fuel and motoring in a hire car. At GBP 1 per litre, it is also cheapest in the eurozone for unleaded petrol. Prices are around 30 per cent lower than in either Belgium or the Netherlands, which are popular motoring holiday choices for UK tourists.

The cost of unleaded petrol rose substantially in all 12 countries surveyed over the past 12 months. Increases ranged from 20 per cent in Italy and the UK to 32 per cent in France. But, although these figures make the much-debated rise in UK petrol prices look comparatively modest, the falling value of sterling masks the true position in Europe.

Post Office® head of travel Helen Warburton said: “Sterling has fallen in value by 14 per cent against the euro in the past year – and by even more in the other motoring holiday destinations. When we extracted this percentage from the price rises, we found that the UK had suffered the highest underlying price hike – 20 per cent at the pumps.

The report paints a very different picture for UK holidaymakers travelling to Europe in a diesel car. Spain is the cheapest destination by a wide margin. At 94p for a litre of diesel it is seven per cent cheaper than its nearest rival Austria (GBP 1.01) but 26 per cent lower than the UK, where diesel prices are some of Europe’s most expensive.

The differential between unleaded petrol and diesel was most marked in the UK and Sweden, with diesel costing 13p and 16p per litre more respectively. However the Post Office® found that diesel costs significantly less than unleaded fuel in four countries – the Netherlands, Belgium, Germany and Spain.

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UPS Canada to expand logistics campus in Burlington, Ontario

Posted by | Jun 11, 2008 | |

Less than two years after its grand opening, UPS Canada is already expanding its Burlington strategic logistics campus. The expansion of more than 175,000 square feet will support faster shipping turn-around for the local, national and international businesses UPS serves in the area.

The centre, located at 4156 Mainway in Burlington, will expand from its current 800,000 square feet in two buildings to more than 975,000 square feet with the addition of a third distribution centre. The decision to enlarge the facility was made after the current centre, including 55,000 square feet of storage area, hit maximum capacity.

The campus serves as a key central supply chain facility in Canada for major national retailers. Increasing e-commerce activity across Canada is driving customer requirements for post-sales service and returns management. The latest UPS expansion also is expected to support after-sales activity and critical parts inventory management for high-value technology components and computer products.

The strategic logistics campus opened in September 2006 and currently employs 500 people to provide order fulfillment, freight receiving, shipment preparation and inventory management. The expansion is expected to create 15-to-20 new jobs for southwest Ontario’s economy.

Customers who better manage their supply chains typically realize cost reductions of 10 to 20 percent. The multi-client campus links with UPS Canada’s transportation network of package and freight services. A portion of the facility is a specialized healthcare centre focused on the needs of pharmaceutical and medical device industries with compliance and quality assurance that adhere to Health Products and Food Branch Inspectorate regulations.

The UPS Burlington logistics campus is part of a global network of more than 1,000 warehousing and freight processing facilities and critical parts stocking locations in more than 120 countries.

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Retail shippers offering Postal Service products pay of (U.S)

Posted by | Jun 11, 2008 | |

Hundreds of retail shipping service owners accepting letters and packages for their customers are finding that offering U.S. Postal Service products and services makes good business sense and pays off big. Since its inception two years ago, more than 2,000 retail shipping service operators have surpassed USD 40 million in sales by participating in the Postal Service’s Approved Shipper program.

“The Approved Shipper Program enables the Postal Service to become more competitive in the retail package market while providing our customers with alternate access to postal products and services,” said U.S. Postal Service Retail Vice President Kathy Ainsworth. “Since our April 2006 program launch, more than 2,000 shipping retailers have realized the value of the program through nearly USD 42.5 million in sales. Retailers have the option of adding a surcharge while continuing to sell competitor products and services.”

According to Gary Laing, owner of The Shipping Room, in Oneonta, NY, his walk-in business increased 50 percent since signing up two years ago, and Postal Service sales exceeded USD 500,000 last year.

“The ‘Ship Package Here’ signs bearing the U.S. Postal Service Eagle logo gives me an edge as it tells my customers I offer products and services my competitors don’t,” Laing explained. “My revenue numbers make it clear that Postal Service offerings are in high demand.”

Other benefits include the program’s no-fee license agreement, free signs and other Postal Service materials.

To offer postal products and services, retail shippers must:
*currently use a postage meter or PC Postage account;
*ensure physical security of the mail;
*properly display Postal Service signs;
*comply with aviation security and hazmat requirements;
*follow the Postal Service product guide for approved shippers;
*accept Click-N-Ship® and other prepaid packages;
*obtain approval of the Postal Service’s local district manager;

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Dutch minister sees no post liberalisation until fair competition in Germany and UK

Posted by | Jun 11, 2008 | |

Dutch Economic Affairs State Secretary Frank Heemskerk said Wednesday he won’t take the decision to liberalise the Dutch postal market until fair competition exists in the German and UK markets, and postal workers are given a satisfactory employment contract.

The statement came after Deutsche Post World Net AG. filed a complaint with the European Commission to protest against the renewed delay of the opening of the mail market in the Netherlands.

The Dutch government on Tuesday decided not to end the mail monopoly as planned on July 1 2008 but to extend it indefinitely.

Both the Dutch government and national carrier TNT NV are unhappy about the German government’s introduction of a sector-wide minimum wage of up to 9.80 euros, saying it prevents fair competition within the German market.

TNT says that, unlike its rivals, Deutsche Post enjoys an unfair advantage through a VAT exemption on 40 pct of its operations in Germany.

A Berlin court ruled in March that a German law imposing a minimum wage at all companies in the letter-carrier industry is illegal.

The German government appealed the decision, with a higher court expected to rule in September, a TNT spokesman said.

Heemskerk said he will update parliament on the situation by October 1

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Bartolini opens new depots in Italy

Posted by | Jun 11, 2008 | |

Leading Italian express delivery company Bartolini is continuing to extend its network with the opening of several new depots.

On June 16, the company will open its new Roma Fiano 2 branch. The new facility covers approximately 6,000 sqm and is located 3 km from the Fiano Romano motorway exit and 38 km from the town centre. “The opening of the new branch, which is equipped with an automatic parcel sorting system, will allow us to serve the whole area to the north-west of Rome,” Bartolini said.

On the same day, the express company will open a 9,000 sqm branch at Termoli, south of Pescara on the Adriatic coast, located 3 km from the Vasto motorway exit and 20 km from the town centre. The depot, equipped with an automatic parcel sorting system, will allow the company to serve the southern area of Chieti province and part of Campobasso province.

In May, Bartolini opened a 9,000 sqm depot at Teramo, north of Pescara. The new facility, which is equipped with an automatic parcel sorting system, will allow the company to serve the bulk of the Teramo province.

In April, the company transferred its Turin South branch to a new and more modern facility covering approximately 5,000 sqm. Located right next to the “Interporto Sito” exit from the by-pass, it is 7 km from the city centre. “The opening of the new branch, which is equipped with an automatic parcel sorting system, will allow us to serve the whole southern area of Turin city and province,” the company said.

Bartolini, with 14,000 employees and over 6,500 vehicles, has some 160 branches across Italy and handles about 90 million parcels a year.

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German CEP operators expect moderate growth

Posted by | Jun 11, 2008 | |

Express and parcel delivery companies in Germany expect only moderate growth this year after 5 pct growth in 2007, according to an industry association.

Gunnar Uldall, former Hamburg economics senator and new president of the German International Express and Courier Services Association (BIEK), said that the CEP sector generated volume growth of nearly 5 pct and revenue growth of over 5 pct last year. Further moderate growth is expected for 2008. The association represents DPD, FedEx, Go!, Hermes, TNT and UPS.

The CEP industry was a key services sector with growing importance for the German economy, with its strong export focus, Uldall told a news conference. BIEK members had taken on about 3,000 more employees last year, and there is currently a need for qualified drivers, he noted. BIEK members employ about 65,000 staff directly or as self-employed drivers. There are about 173,500 people working in the German CEP sector as a whole.

Addressing key issues for the association, Uldall criticised Deutsche Post’s VAT exemption for letters up to 2kg and parcels up to 20kg which was a competitive distortion in the formally liberalised German mail market.

Since neither option was likely, however, BIEK proposed a compromise, with deliveries of up to 50 letters, including individual private letters, remaining VAT-exempt, and all other items, including bulk mail, parcels and added-value mail, being VAT-chargeable. This would not lead to a price increase for customers due to intense competition between Deutsche Post and private operators, Uldall said.

BIEK will also hold talks with Deutsche Bahn over opportunities to transport more express and parcel shipments by rail, and continue to promote the use of alternative fuels and motors to reduce CO2 emissions, he added.

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UPS expands logistics campus in Canada

Posted by | Jun 11, 2008 | |

UPS’s Canadian division is adding 175,000 square feet to its two-year-old Burlington strategic logistics campus.

UPS said the addition will support faster shipping turn-around for the local, national and international businesses UPS serves in the area. When the project is complete, the campus will be 975,000 square feet.

The campus is an important central supply chain facility in Canada for major national retailers. Increasing e-commerce activity across Canada is driving customer requirements for post-sales service and returns management, UPS said.

“UPS is focussed on giving Canadian businesses a competitive edge, and the services offered by this expanded facility will increase the efficiency of our customers’ supply chains,” said Jan Macaulay, Vice President of business solutions for UPS Supply Chain Logistics.

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