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Publication of Postal Directive marks start date for real market opening

The publication marks the entry into force of the directive and sets the clock ticking for abolishing legal monopolies on postal services by 31 December 2010. The Directive is the result of a broad political consensus on the way forward for the regulatory framework of European postal services. The Commission will monitor and assist Member States pro-actively in implementing the Directive. In particular, it will pay close attention to potential entry barriers that would deprive users of the benefit of a dynamic and open market.

The mission of EU postal reform continues. Next steps will require close monitoring of the development of competition notably by national regulatory authorities whose role has now been strengthened further. Particular attention will be paid to quality and prices of universal postal service. The Commission services will assist Member States in the transposition of the Directive to ensure that postal reform remains true to its objective of high quality and innovative postal services.

The text published reflects the overall political agreement between the institutions and keeps the key elements of the Commission’s initial proposal and in particular: the accomplishment of the internal market of Community postal services via the abolition of the reserved area in all Member States; the confirmation of the scope and standard of universal service; reinforcement of consumers’ rights and upgrading of the role of national regulatory authorities; the offering of a list of measures Member States may take to safeguard and finance, if necessary, the universal service.

With the removal of reserved areas, users of postal services can expect the services available to them to develop and further improve. In this open environment, universal service providers will be motivated to become more reliable and efficient and to further increase their customer focus in the light of potential competition from new market entrants. In line with the goals of the Lisbon agenda, full market opening will also directly foster the creation of new jobs in new postal companies, and, indirectly, in the industries dependent on the postal sector.

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Hungarian Prime Minister says Magyar Post could be listed

Prime Minister Ferenc Gyurcsany said this morning that lottery company Szerencsejatek, Hungarian Electricity Works MVM, postal service Magyar Posta and the State Motorway Management Company AAK could be among the state-owned companies to be listed at the Budapest Stock Exchange, according to MTI-Econews.

Speaking during a morning television program, Gyurcsany said that the state-owned Volan bus companies is not among the state-owned companies whose shares the government might float on the BSE as part of a program announced on Feb 18.

The prime minister added that the government’s current plan would stipulate a 10-15 pct preference and a 1 mln forint limit per individual on the purchase of the shares of state-owned companies to be included in the share program.

Gyurcsany said that 5 pct of the price of the shares would have to be paid at the time of their subscription.

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Atlas Air Expands Service with DHL

Atlas Air Worldwide Holdings Inc. said on Wednesday it expanded its service with DHL Express, adding two more 747s under a three-year contract.

The air freight company will start the service on March 29. Another six of Atlas’ 747s are slated to provide express service for DHL starting on Oct. 27.

Atlas, which did not provide financial terms of the agreement, plans acquire three 747s to meet added demand from DHL and others.

Once the DHL service begins, “we will no longer be exposed to the commercial risk of filling the aircraft, the yield risk of pricing the freight that is on the aircraft, or the related risk of fuel and fuel-price escalation,” Chief Executive William J. Flynn said in a statement.

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DHL Inks 175,000-SF Build-to-Suit Deal with AMB

AMB Property Corp.’s largest global customer recently signed a build-to-suit lease in Houston. DHL Global Forwarding, an entity of Deutsche Post World Net, will occupy 175,000 square feet at AMB IAH Logistics Center II.

AMB is developing AMB IAH Logistics Center II on a site close to Houston Intercontinental Airport (IAH). The project is on the main road of IAH’s future master-planned international air cargo terminal. The developer said the land could support another 150,000 square feet of additional development.

DHL’s parent company, Deutsche Post World Net, has leased more than 3.8 million square feet from AMB as of December of last year.

AMB said it is building momentum in the Houston market, noting its purchase of an approximately 1 million-square-foot airport-proximate portfolio and a build-to-suit facility for Agility it started developing last summer. Agility’s Project Logistics division will occupy 253,000 square feet at AMB IAH Airfreight 7, which is also close to IAH and the Port of Houston.

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DHL Express grows and expands in Eastern Europe

DHL Express is growing its local business and opening new facilities in Central and Eastern Europe to continue its expansion in the region.

In the Czech Republic, its domestic business PPL CZ increased volumes by 28 pct to 15 million parcels in 2007, thanks partly to the launch of B2C services with home deliveries, DHL Czech Republic announced.

PPL extended its network to 13 locations last year with new logistic centres at Humpolec in southern Bohemia and Libeznice near Prague as well as shared facilities with DHL at Teplice and Plzen.

In Slovakia, the express operator last month opened a regional terminal in Zvolen, mid-way between the capital, Bratislava, and the eastern city of Kosice. The facility, which is shared with DHL Freight, will cope with the company’s rising volumes, said country manager Laurenc Svitok.

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Teamsters reach tentative agreement with DHL (U.S)

The Teamsters union has reached a tentative labor agreement with DHL Express, a unit of Deutsche Post, the two sides said on Wednesday.

“This agreement is truly historic,” Brad Slawson, Chair of the Teamsters national negotiating committee, said in a statement. “It is the first new national master agreement negotiated in the transportation sector in decades.”

The deal will be reviewed by the Teamsters and DHL members, who will then vote on it. The Teamsters said the deal would cover thousands of DHL employees nationwide.

“”We’re pleased that the parties have reached a tentative agreement and look forward to its ratification,” said DHL spokesman Richard Gibbs.

DHL has around 20,000 employees in the United States.

The company has struggled to make headway in the U.S. market, which is dominated by United Parcel Service Inc and FedEx Corp.

Most of the UPS work force is unionized, while only FedEx’s pilots currently have union representation.

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TNT sceptical it can find buyer for mail operations if it decides to exit Germany

TNT NV is sceptical it would find a buyer for its German mail operations if it decides to exit the business, chief executive Peter Bakker told Sueddeutsche Zeitung.

TNT is considering exiting the German mail business as its margins are under pressure by the introduction of minimum wages paid at incumbent Deutsche Post World Net AG.

PIN Group, a German group of regional mail companies, is currently looking for a buyer.

‘But the fact that a large number of its companies has filed for insolvency doesn’t leave me very optimistic’, Bakker said.

Bakker said TNT has raised hourly wages to 7.50 eur from around 7.30 eur previously, but can not afford to pay the mandatory 9.80 eur minimum wage.

TNT previously said it would have to write off some 80 mln eur, if it closes its German mail operations without finding a buyer.

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Gati Ltd. is new GLS partner in India

On April 1st, parcel exchange between GLS and Gati Limited will begin. The two companies signed a partner agreement on 25 February 2008

With its full-area coverage distribution network, only Gati Ltd. delivers to 594 out of 604 districts in India. The company has over 3,500 employees and operates with 2,000 business associates to provide these services. Freight and parcel shipments are as much a part of the portfolio as are warehousing and supply chain management solutions. In addition to road and rail-based transports, Gati operates closely with Air India to realise national air express deliveries. Ship transports are also available for freight and container transports in the Asia Pacific region. The company is listed on the Indian National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Parcels from India are distributed by GLS through the airfreight office in Frankfurt as well as the central hub in Neuenstein, Germany, to the hubs of its subsidiaries and partners in Europe. In India, shipments from the GLS system first arrive at the central distribution center in Delhi. From there, Gati sends them to their respective destination via 19 express distribution centers. This all serves to bring the seventh largest country in the world, covering an area of 3.2 million square kilometres, with its 1.1 billion inhabitants, a lot closer to European parcel consignors.

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