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Austrian Post builds up European parcels network

Posted by | May 2, 2008 | |

Austrian Post is poised to make four more acquisitions as it builds up its parcels subsidiary trans-o-flex and the Eurodis international network, adds services and expands logistics infrastructure.

The listed company is currently conducting due diligence on four relatively small parcels and mail companies, three of them in Eastern Europe and one in Western Europe, chairman Anton Wais said at a media briefing in Frankfurt earlier this week.

Austrian Post, which already bought ten companies in 2007, has a budget of EUR 150 million for acquisitions over the next 18 months. During this period, it also expects to purchase the remaining 25pct in German subsidiary trans-o-flex out of this budget for a previously agreed price, Wais added. But it is not interested in acquisitions in Poland or Turkey due to strong competition between major players in those countries, he noted.

The group already has subsidiaries in Slovakia, Czech Republic, Hungary, Croatia, Serbia, Germany, Netherlands and Belgium. The subsidiaries’ established brands will be maintained in the short term, and Austrian Post will start to review group-wide branding in mid-2009, Wais added in response to questions.

Austrian Post currently generates 27pct of group turnover outside Austria. The parcels and logistics division generates 73pct of its EUR 739 million revenues outside Austria, with the bulk coming from Germany. The division’s EBIT margin, which dropped to 1.7pct last year as B2C customers in Austria switched to new entrant Hermes, is targeted to improve to 2-3pct this year and to 5pct in 2009/2010.

The European parcels network will be built around Eurodis, the trans-o-flex partner network covering 21 countries. This currently offers common products and has an integrated IT system, but a linehaul network will not be created.

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DHL Express announces new CEO for UK and Ireland

Posted by | May 2, 2008 | |

DHL Express announced the appointment of Ken McCall as CEO of its UK and Ireland operations.

Previously Managing Director of Network Operations for DHL Express Europe, McCall was responsible for the management of the most significant network change in DHL Europe’s history, the move of its intercontinental hub from Brussels to Leipzig. This experience together with his in-depth knowledge of the industry ensures McCall can further establish DHL Express’ leadership in this dynamic key market.

DHL Express is the UK market leader in express delivery and therefore the UK and Ireland represent one of the company’s key business regions throughout Europe. Within the UK DHL Express employs over 9,000 staff and oversees almost 92 million shipments a year.

Prior to joining DHL in 2004, McCall spent 25 years at TNT working in various international roles, including a series of senior management roles in Asia, most notably as CEO of TNT in China.

McCall is a member of DHL Express’ European Management Board and in his new role will report directly to Scott Price, CEO of DHL Express Europe.

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DHL Express employees ratify Teamster national labor agreement

Posted by | May 2, 2008 | |

DHL Express U.S. employees represented by the International Brotherhood of Teamsters voted to ratify a new, historic national labor agreement between the Teamsters and DHL yesterday. The national agreement’s approval, following three weeks of voting among the affected employees’ groups, puts in place a five-year deal between the express package delivery company and the Union that represents the vast majority of its employees who handle customer shipments.

The new national collective bargaining agreement applies to practically all DHL’s unionized operations nationwide. The deal provides for increased operational flexibility that allows DHL to enhance labor resources management and improves its competitive position. It also provides for annual wage and benefit increases for DHL’s Teamster-represented workforce.

The agreement, covering approximately 10,000 DHL employees, also signifies a new chapter in the relationship between DHL and the Teamsters, which has steadily evolved since DHL acquired Airborne, Inc., in 2003.

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Royal Mail goes to court over zonal pricing decision (UK)

Posted by | May 1, 2008 | |

Postcomm received summons that Royal Mail intends to seek a judicial review of the regulator’s decision to reject the company’s recent ‘retail zonal pricing’ application.

Postcomm say the initial application was received in February 2007, studied with great care, and consulted on widely, at Royal Mail’s request. Postcomm rejected the application because it put forward a pricing structure that appeared to have a number of discriminatory features and would have been introduced in a way that would lead to unreasonable changes for its customers. It is now for the court to determine the merits of the case.

Postcomm has not ruled out any future moves towards retail zonal pricing for products outside the universal service should Royal Mail propose an alternative approach that avoids the problems presented by the recent application. Postcomm is generally supportive of pricing that is more reflective of costs.

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TNT Post completes regional postal network through new London and Midlands offices

Posted by | May 1, 2008 | |

TNT Post completed its regional postal network, enabling even more local businesses UK wide to benefit from the deregulated postal market.

TNT Post’s newly launched London and Midlands offices will join TNT Post’s already established businesses in Scotland, the North and South West. This milestone achievement gives TNT Post complete UK postal coverage for SME’s and local businesses enabling the company to offer innovative, high quality and cost effective mailing solutions to businesses both large and small.

The accelerated growth has led to several new appointments and promotions to accommodate the regional expansion. Notably, Charles Neilson joins from TNT Post Doordrop Media to take on the role as divisional managing director for the regional network. Neilson will be responsible for developing the regional businesses to offer further expansion opportunity, particularly in the end-to-end and SME markets.

Last year TNT Post began a phased rollout of its new web-based letter service, TNT-it, to businesses in the North. With the Midlands region next to benefit from TNT-it, the service is designed for small businesses to send letters and documents straight from their PC to TNT Post’s print and fulfilment facilities. As TNT-it removes the need for users to print, fulfil and post documents, time and money are saved by the elimination of the need for businesses to resource stationery, franking machines, stamps and post collection. This allows businesses sending as few as one letter to benefit from the savings and efficiencies that the deregulated market has already made available to companies with larger post volumes.

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Postal Service Wins White House Environmental Awards

Posted by | May 1, 2008 | |

Five U.S. Postal Service environmental initiatives have been recognized by the Office of the Federal Environmental Executive, part of the White House Council on Environmental Quality. Two initiatives received the prestigious 2008 Closing the Circle Awards and three received honorable mentions. Since the inception of the program in 1996, the Postal Service has won 39 awards.

The Postal Service’s Vendor Partnership for Envelope Reuse initiative won the Closing the Circle Award for “Waste/Pollution Prevention — Civilian.” This program encourages customers, vendors and business partners to reuse and recycle mailing products. The Postal Service partnered with three companies — MailAgain, Abitibi Paper Retriever, and Ecoenvelope — to create reusable envelopes and make recycling easier for our customers.

Winning the Closing the Circle Award for “Environmental Management Systems — Civilian” was the Postal Service’s Environmental Performance Track Initiative. This award recognizes the organization’s increased participation in EPA’s Performance Track Program in its Northeast and Western Areas. The Performance Track Program acknowledges and drives environmental excellence by encouraging facilities with strong environmental records to go above and beyond their legal requirements.

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