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24th UPU Congress: July 2008

International decision-makers will participate in a high-level debate on 25 July 2008 focusing on the theme “The postal sector, an essential component of the global economy”.
The conference will set the tone for 24th Universal Postal Congress, which opens in Geneva, Switzerland, on 23 July and lasts until 12 August 2008.
Three panel discussions on how postal services can work effectively in an era of globalization, the challenges and the new frontiers for the postal sector in an ever-changing world, and partnerships for the global supply chain will be held throughout the day.

“The general debate will be one of the highlights of Congress and particularly important, strategically, for the entire postal community. Indeed, it represents an opportunity for UPU members as well as postal stakeholders the world over to exchange insights on the future of the postal sector. The debate aims to confirm the sector’s appropriate positioning in view of the world’s economic reality, the new issues affecting the sector, and the UPU’s next four-year strategy,” says UPU Director General Edouard Dayan.

Journalist Muriel Siki, from the Télévision Suisse Romande, and Professor Matthias Finger, from Ecole Polytechnique Fédérale de Lausanne, will lead the round table discussions.
With two months to go before the 24th UPU Congress opens at the Geneva International Conference Centre, preparations for the event are going well. Some 1,500 delegates from the UPU’s 191 member countries are expected to attend the Congress, held only every four years. The international postal meeting will also draw hundreds of observers and participants from international organizations and stakeholders from the postal sector at large.

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Postcomm consults on repeating the suspension of Royal Mail’s bulk compensation scheme and adjustment to the ‘C’ factor to 2008/09

Royal Mail has asked Postcomm if it can suspend its bulk compensation scheme and adjust the C-factor for another year. These arrangements were first made for 2007/08 because industrial action made it difficult for Royal Mail to meet its quality of service targets, which would have triggered compensation payments to bulk mailers and reductions in future revenue. It now wants to repeat the scheme in 2008/09.

Postcomm published a consultation letter which seeks stakeholders’ views on Royal Mail’s request, which it has made on the basis that there may be further industrial action in the future.

Stakeholders are invited to respond to the letter by the 27 June 2008. Postcomm expects to make a decision by the end of July 2008.

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U.S. Postal Service may build new facility near Nashville airport

The United States Postal Service is considering whether to build a new processing and distribution facility near Nashville International Airport.

The Postal Service is discussing a deal with the Metropolitan Nashville Airport Authority to lease and develop 47 acres of vacant land near the airport. The plot, which lies at the intersection of Old Murfreesboro Road and Faircloth Road, is designated for non-aviation use, said Emily Richard, an airport spokeswoman.

The authority’s board of commissioners has been briefed on the proposal several times — most recently in February — but no agreement has been reached, Richard said.
Panattoni Development Co., a Sacramento, Calif.-based industrial and commercial real estate company, would likely manage the facility.

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USPS targets large shippers

USPS is expected to announce a slate of large express freight contracts in August after being allowed to bid for commercial contracts for the first time.

Earlier this month, USPS was allowed for the first time to offer tailored contracts to customers, having been almost frozen out of the commercial market.

Previously, the company had to offer flat-rate pricing to all customers. “In express, it was extremely limiting,” said Gary Reblin, vice president for expedited mail at USPS. “We realized we were behind the eight-ball.”

Reblin said in an interview that USPS is bulking up its sales force to target niche markets such as small businesses and the retail returns sector, focusing on smaller packages.
USPS said it had an advantage over rivals by leveraging its existing mail and package delivery infrastructure.

He said a number of larger shippers were starting to commit to its service, and the company plans to announce a number of three-year contracts later in the summer.
USPS differs from existing operators in offering flat-price deals with annual increases, avoiding the fuel surcharges that shippers said were becoming an increasingly important part of contract negotiations.

The company has a market share of around 30 pct in the U.S. air express market – ranking first above FedEx – but only 4.3 pct of the expedited segment for next-day and two-day delivery.

Reblin said it aimed to grow its share of the expedited market, but declined to provide targets.

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Consultation Starts On Changes To Post Office® Network – Post Office Ltd announces plans for the North East, Tayside and Fife

Post Office Ltd today (28 May 2008) opened a six-week local public consultation on its Area Plan for the North East, Tayside and Fife.

In line with the criteria and factors set by the UK Government in its response document, DTI, The Post Office Network, Government Response to Public Consultation in May 2007 (www.berr.gov.uk/consultations) ) – the Area Plan for the North East, Fife and Tayside proposes future provision of Post Office® services through a total network of 374 branches across the area, resulting in the closure of 42 existing branches. In addition, Post Office Ltd proposes the introduction of 37 outreach services, many of them remaining in their existing premises.

Under the proposals, 99.9% of the area’s population will either see no change to their nearest branch, or will remain within one mile (by road distance) of an alternative branch.

The detailed Area Plan proposal for the North East, Tayside and Fife is now available.

The North East, Tayside and Fife Area Plan proposes the introduction of 37 outreach services in the following rural communities, many of which will remain in their existing premises.

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Oxfordshire And Gloucestershire Area Plan – Public Consultation commences on proposed Outreach Service for Miserden and Rendcomb

Post Office Ltd has today (28 May) launched a six-week consultation for proposed partner outreach services for the villages of Miserden and Rendcomb.

These proposals are part of its network change programme to modernise and reshape its network of branches.

Post Office Ltd proposes running a partner service from the current Post Office site at Brompton Cottage, Miserden on Monday, Tuesday, Thursday and Friday between 8.30am and 1pm , then 2pm until 5.30pm. On Wednesday and Saturday the service would be available between 8.30am and 1pm.

A partner service is also proposed for Rendcomb from the existing site at the Village School. Under this proposal the service would be available from Monday to Friday between 8am and 5pm and between 8am and 1pm on Saturdays.

The proposals follow the decision by Post Office Ltd to close the existing branches at Miserden and Rendcomb and introduce an outreach service under the Oxfordshire and Gloucestershire plan, which was concluded earlier this year. The public consultation into the proposal begins today (May 28) and ends on 8 July 2008.

The standard range of products and services will continue to be available through the proposed partner Post Office services. Customers can still collect benefits in cash using our banking services or Post Office® card account.

Mark Partington, Network Development Manager for the Oxfordshire and Gloucestershire area said: “We welcome feedback from the local community during the six week consultation and look forward to receiving comments on the days and hours being suggested.”

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Austrian Post reportedly to buy Bosnian parcel firm

Austrian Post has acquired the private parcel delivery provider 24-VIP Express Logistics Services d.o.o in Bosnia, the Austrian business daily Wirtschaftsblatt reported, citing a decision published by Bosnia’s antitrust authority.

According to Wirtschaftsblatt, a spokesman for Austrian Post did not deny the acquisition, but pointed out that the group can only confirm the purchase after the closing. The acquisition price was not disclosed.

24-VIP is Bosnia’s biggest private parcel company, with a market share of 10%, the Vienna-based newspaper further reported.

Austrian Post Chief Financial Officer Rudolf Jettmar already announced in November last year that Austrian Post would spend as much as euro 150 million to expand into South-eastern Europe.

In addition, the Austrian Post parcel subsidiary in Croatia, Overseas Express, entered a cooperation agreement with 24-VIP in the beginning of May. Overseas Express generated revenues of euro 30 million in 2006 and a net profit of euro 600,000 last year. It was acquired in 2003 and has meanwhile expanded its market share to 35% on the Croatian market according to the company’s information.

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Cessation of Sunday and Bank Holiday Collections – Changes to Collection Plates

Part of the agreement given by Postcomm to Royal Mail’s request to stop Sunday and Bank Holiday collections was for Royal Mail to amend the information on the collection plates.
Postwatch visited 770 post boxes to see if collection plates no longer referred to Sunday and Bank Holiday collections, but found that none had been changed.
Postwatch was advised by Royal Mail that the removal of all references to Sunday and Bank Holiday collections to its collection plates will be completed by 25 February.
Between 17 March and 4 April Postwatch visited 653 post boxes and found that only 85 pct of collection plates had been changed. This is a disappointing result as it is now over 6 months since Postcomm approved Royal Mail’s application and Postwatch believes that all post boxes should have had their collection plates changed.
The results of our survey have been passed to Postcomm asking it to contact Royal Mail as it is in apparent breach of the conditions set by Postcomm when agreeing this application.

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