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DMNews talks with Dan G. Blair, chairman, Postal Regulatory Commission

Q: How would you describe the PRC’s role in relation to the USPS?
A: The role of the PRC is to ensure transparency and accountability of the US Postal Service. As chairman, I exer¬cise day-to-day control over the adminis¬trative process of the commission, which comprises five full-time commissioners who are appointed by the President and confirmed by the Senate.
Q: Following the passage of the Postal Accountability and Enhancement Act of 2006, how has the role of the PRC changed?
A: Under the old law we were primar¬ily involved in rate adjustment cases in which there would be 10-month litigation. And the commission had to recuse itself from the outside world and not have contact with mailers or other parties. Now, under the new law, we’re transforming more into the role of a regulator with more oversight authority that gives us the ability to reach out more to the community. We now hear from individual mailers, nonprofit groups, magazine publishers. I want to encourage that, because our role requires that we have an open and continuing dialogue with the public as well as with the postal service.
Q: You just completed your first year as chairman. What were the PRC’s ma¬jor accomplishments in the past year?
A: When I came on in December of 2006, we were at the tail end of a rate case under the old law. We got that out about five days ahead of schedule. We also got the new rate regulations out in October of 2007, eight months early. That was significant because first, it showed we could get up and ready un¬der the new law rather than proceeding under the old law, and second, by get¬ting the new regulations effective sooner rather than later, it allowed the postal service to seek any rate increases under the new law rather than the old law.
I think everyone was well aware of the shortcomings of the old law. The new law gave the postal service a broad mandate and more flexibility to better act like a business, includ¬ing its rate-setting structure. The PRC is going to ensure that new rates that the postal service proposes are in compliance with the law. Con¬gress gave the postal service greater authority, but at the same time, it presented us as a counterbalance to ensure that the law is being obeyed.
Q: What’s next for the PRC in 2008?
A: We’ll issue our comments on the postal service’s annual compliance report at the end of March. I would also anticipate that the postal service will be coming in with a notification for proposed rate changes within the first quarter. But nothing’s formal yet.
One of the things that’s on the front burner is developing addi¬tional rules regarding complaint procedures. We’re working on ad¬ditional rules for data reporting re¬quirements for the postal service.
We still have two outstanding cases under the old law regarding negotiated service agreements that are proposed for two parties. We’re working to complete those.

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1,000 new scanners for Amtrak

Amtrak has invested in 1,000 new scanners for its depots and drivers. The scanners will all be phased in by the end of February, with full GPS capability in March.

The Dolphin 7900 scanners supplied by Unique ID will ensure full visibility through the Amtrak network, including real-time PODs and immediate data transfer.

Alan Jones, Managing Director, says: “The existing depot network IT system is four years old
and technology has moved on a lot since then. This investment – of about GBP 500,000 a year and funded by Lloyds TSB – ensures we have a robust and reliable system for tracking parcels throughout the network, and allows us to incorporate new features as they are developed.”

Unique ID has a long-standing relationship with Amtrak and has selected a dedicated team to help phase in the new system. “They have worked with us to develop the right system for our network and our customers, and will help ensure that the transition to the new system goes smoothly,” says Mr Jones.

The new management team at Amtrak has introduced significant improvements since it took over the company a year ago. An additional 18 double-deck trailers have been added to the fleet and the depot configuration has been changed to improve network efficiency. The company has also invested in new single-deck trailers and vans and has recently launched a credit card ordering system.

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TNT Launches New Morning Delivery Service

Adding a new time-guaranteed service – ’10:00 Express’ to the existing ‘9:00 Express’ and ’12:00 Express’ and ‘Express’ service, TNT puts a strong emphasis on morning deliveries and now offers more morning delivery services.

The ’10:00 Express’ provides customers with a genuine ‘first-thing’ service for organisations that don’t open until 9am, saving half-an-hour at the most important time of the day.

With the new offering, TNT recognises a universal customer need for guaranteed morning delivery, more choice of services and less complexity through service alignment.

Stuart Stobie, Divisional Managing Director, TNT Express UK, said: “We’re determined to ‘own the morning’ in the worldwide express delivery market by offering the widest range of delivery options of any carrier. This new ’10:00 Express’ service is crucial as very often time is the most precious commodity in business, and if we can give our customers more of it, we are on the road to success.

TNT conducted extensive research involving 7,500 express service users in key markets around the world. The results demonstrate that, apart from speed, weight and coverage capabilities, customers expect convenience, reliability and control from their provider of express services. TNT’s new range of services directly answers these requirements.

Drawing on TNT’s fully integrated air and road network infrastructure, the new service portfolio offers greater geographical coverage for deliveries by 9:00, 10:00 and 12:00 to more cities and business locations worldwide than before.

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DHL to make Belgade regional center

Belgrade will soon become DHL’s regional center, the company’s representatives say.

The company is panning to make Belgrade the regional center for the Western Balkans in October, DHL Beograd General Manager Darko Babiæ has announced.

Babiæ said that DHL is planning to introduce flights from Belgrade to its distribution center in Leipzig, Germany, which would make the Serbian capital the regional hub.

DHL packages arriving from all around the world shipped to Macedonia, Albania, Montenegro and Bosnia-Herzegovina, and packages from these four countries, will all be delivered via Belgrade.

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DHL continues to expand its service points network in Russia

DHL is expanding its presence in the Russian market and announces opening of two more service points in Moscow and one in Kazan.

DHL network currently encompasses over 500 cities in Russia. Opening of the new offices is part of the program to expand DHL’s service points network. This program has been developed in line with the global strategy of the company, which sets provision of the most reliable and accessible service as one of DHL’s priorities. In 2007, DHL opened a total of 12 service points across Russia.

The new offices stand out both for the range of services provided and technical capabilities. They are styled to meet the company-wide requirements for such centers all over the globe and provide a vivid example of DHL corporate style. All DHL service points offer the customers a full range of express products both within Russia and abroad.

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Hermes demands exemption from German value-added tax (Germany)

Otto’s logistics group Hermes, which specializes in package delivery, is demanding that the German government exempt it from paying value-added tax, Financial Times Deutschland reported, citing chief executive Hanjo Schneider.
‘We want to be exempt from value-added tax, just like Deutsche Post,’ he said.
Schneider said Hermes filed an application for exemption in November, and said the company will take legal action if the application is denied.
He also said the company is considering demanding compensation for the two months it has already waited for a response from the finance ministry.
Under current rules, rival Deutsche Post World Net AG’s basic postal services are exempt from the 19 pct VAT while comparable services provided by rivals are not, even after the company’s monopoly on delivering letters expires at the end of the year.
Deutsche Post obtained the exemption in exchange for the guarantee that it will deliver mail to every household in Germany, whether it is on a North Sea island or in mountainous regions of southern Germany.
‘We offer this universal service in the package sector as well,’ Schneider said.
Hermes, which has annual sales of about 200 mln eur, could save about 40 mln eur on value-added tax, the newspaper said.

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CEVA Logistics selects IT2's Treasury Management System

IT2 Treasury Solutions announces that CEVA Logistics, the global supply chain management company, has selected the IT2 Treasury Management System as its cash and treasury management technology solution.

CEVA combines two logistical companies, TNT Logistics and EGL Eagle Global Logistics, which merged in August 2007. CEVA employs around 52,000 people, and operates an extensive office network with facilities in 151 countries. Its sales turnover in fiscal 2006 was EUR 6 billion. CEVA is an un-listed company, owned by affiliates of Apollo Management, L.P., one of the leading private equity investors in the world.

CEVA Logistics, located in Amsterdam, the Netherlands, was divested from TNT, and was therefore without any existing treasury operation and system. CEVA’s new treasury team selected IT2 to provide a best practice solution, which will initially support FX and interest hedging, cash & liquidity management and guarantee management. IT2 will also handle CEVA’s cross currency / cross border cash pool arrangement.

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