Author: Archive

Royal Mail review likely to prompt call for split

Posted by | Dec 17, 2007 | |

A wide-ranging review of the effect of competition on Royal Mail is expected to be announced today amid concerns that the group’s ability to provide a core service is being damaged.

However, the review is also likely to trigger strong pressure for a major revamp of Royal Mail, including splitting it in two.

As part of its licence to operate, Royal Mail must provide a universal service, meaning that post can be sent anywhere at a flat rate.

The postal group has asked Postcomm, the industry regulator, to modify this obligation to reflect its costs.

It has been unsuccessful in its request, although it has been allowed a series of stamp price rises.

In the review, rival postal operators, such as TNT and Business Post, are likely to be asked to help to fund Royal Mail’s universal service obligation.

John Grogan, the Labour MP for Selby, who has campaigned to keep full public ownership of Royal Mail, said: “If the private sector companies are strong enough, then I think they should make a contribution to the universal service.

The rival players are likely to resist such moves because they claim that they are disadvantaged by Royal Mail charging too much for them to use its infrastructure and also that Royal Mail is exempt from VAT while they have to charge it.

Instead they are expected to use the Government’s review to demand that Royal Mail’s operations are split up to promote more competition.

They want to see Royal Mail’s letters division, with which they compete, separated from its network operations, which they have to use for the final-mile delivery.

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Pitney Bowes Acquires Two Software Companies In Location Intelligence Market

Posted by | Dec 17, 2007 | |

Pitney Bowes Inc. announced today that it has recently made two acquisitions of international software companies to expand the company’s capabilities and geographic presence in the field of location intelligence.

The first acquisition is Encom Holdings Pty Ltd, located in Sydney, Australia. Encom was founded in 1984 and has been a leading reseller of Pitney Bowes MapInfo location intelligence technology for many years, with a particular focus on the mining and drilling industries. Encom serves more than 1,000 clients worldwide.

The second acquisition is of the software distribution unit of Acxiom France, located in Asnies-sur-Seine, France. Acxiom has been the exclusive distributor of PB MapInfo technology in France since 1989. In addition to offering several of PB MapInfo’s software products to the French market, Acxiom provides its own geomarketing and data analytics products, as well as other geographic data and professional services. Acxiom’s key customers are large organizations in both the private and government sectors in France.

“These acquisitions are consistent with our strategies to broaden our software capabilities and to grow our international revenues,” said Pitney Bowes President and CEO Murray Martin. “We see literally a world of opportunity in the location intelligence market, and we intend to pursue it aggressively. Businesses and government agencies worldwide are just beginning to understand the importance of location-assisted decision-making to their everyday operations.”

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India Post may be selected for outsourcing

Posted by | Dec 17, 2007 | |

IMG Khan, Secretary to the Department of Posts aid the Universal Postal Union (UPU) is likely to prefer India’s Department of Posts, one of the biggest postal services in the world, for outsourcing postal services across the world.

In his inaugural address after laying the foundation stone for the Technology Development Centre on the Postal Training Centre campus here, Khan said he held talks with the Director General of Universal Postal Union, Switzerland, and informed him that the Union could decentralise its services to India.

“The India Post is capable of taking the challenge and help provide technology services, maitain and implement them,” he stated. The secretary said the software technology developed at the PTC in Mysore had gone overseas.

Soon, the South Asia Postal Union will come into existence. India will be in a position to offer more technological solutions and services for the World when the Technology Development Centre in Mysore operates to its full strength.

The Director General of Universal Postal Union was positive on India’s strengths. The UPU, in all probability, will decentralise its services to India Post soon, he hoped.

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TNT to undercut German governments planned minimum wage for postal sector

Posted by | Dec 17, 2007 | |

Deutsche Post AG rival TNT NV plans to introduce its own, lower pay scale in response to the German government’s planned introduction of a minimum wage in the postal sector, Financial Times Deutschland reported.

‘We will insist on the independence of our pay structure and if necessary do so via the courts,’ TNT Post Germany CEO Mario Frusch told the newspaper.

TNT, which is number two to Deutsche Post in the German mail market, plans a minimum wage of no more than 7.50 eur per hour, Frusch added.

This compares to the 9.80 for the industry contained in the government bill due to go before the upper house of parliament on Dec 20.

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Royal Mail response to Government review (UK)

Posted by | Dec 17, 2007 | |

Royal Mail is committed to maintaining a high quality, financially strong and sustainable postal service with the Universal Service Obligation at its heart, in line with the Postal Services Act and the EU’s Postal Services Directives.

The last few years have seen a huge change in the way in which people and businesses connect and communicate with each other and this is clearly having a major impact on the postal market.

We therefore welcome the decision by the Government to review the impact of liberalisation on UK postal services and trends in future markets development – and its likely impact on Royal Mail, alternative carriers and, most importantly, consumers.

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Emirates Post plans USD 817m IPO

Posted by | Dec 17, 2007 | |

The Director General of state-owned Emirates Post (Empost) announced that the company is planning to start discussions with financial advisers next month on the sale of 49 percent of its shares to the public, Gulf Daily News reported.

He pointed out that the postal company would choose three lead managers and complete a valuation before starting the initial public offering (IPO), adding that the valuation of the offering may reach USD 817 million.

Empost planned to sell existing shares to Gulf investors and foreign residents of the UAE, he said last year. It would use IPO proceeds to acquire logistics companies, financial services firm specialized in remittances, and express mail companies in Asia, he added.

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DHL Express France to delivery winter clothes

Posted by | Dec 17, 2007 | |

DHL Express France said it will again provide express delivery of winter clothes and skiing equipment to retail outlets in France and Europe this year, including international shipments for skiing equipment manufacturer Eider.

From now on until the end of March, DHL teams will handle more than 100,000 parcels amounting to 1,300 tonnes and deliver them to the summits of more than 90 major mountain resort areas in France as well as to big European cities.

In extreme winter and difficult traffic conditions, the DHL Express teams of Annecy, Chambéry, Voreppe, Grenoble and Besancon will handle volumes that could be more than 60 pct higher than normal business. DHL said it will support its clients by recruiting additional staff, providing additional vehicles, adapted routes and longer opening hours.

The biggest manufacturers of winter sports equipment like Rossignol, Dynastar and Eider rely on this service, DHL said. This winter, Eider has chosen DHL France for international express delivery of its sports equipment and winter clothes to European stores in 48/72 hours. DHL Express teams from Annecy and Besancon will deliver more than one tonne of winter clothes and skiing equipment for Eider, picking up the goods at its production site to transport them via lorries to English, Belgian, Spanish, Swiss, Italian, Dutch and Austrian retail outlets.

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DHL gives Transmile chance to rebuild reputation

Posted by | Dec 17, 2007 | |

DHL is maintaining its business relationship with loss-making Transmile Group Bhd, which was hit by massive accounting irregularities, and wants to give it a chance to turn around and rebuild its reputation.

DHL Asia Pacific chief executive officer Daniel McHugh said the leading courier services provider still has a “good, open relationship” with Transmile, and was in talks weekly on the challenges both companies faced. “Discussions go on every week with Transmile on how we operate our network, and how they operate their network.”

McHugh said DHL had a long-term business relationship with Transmile and it was willing to give the latter a second chance to rebuild its reputation, as it had done so with US-based Northwest Airlines.

Transmile plunged into the red and it had to restate its financial accounts after massive accounting irregularities were revealed this year.

Transmile provides express air cargo service to DHL, its single largest customer. It has said that DHL is expected to contribute almost half of its revenue from July 2007 to June 2008.

McHugh added Transmile was a component of DHL’s global aviation strategy by operating in multiple sectors in Asia. For instance, it undertook short haul flights, including the Bangkok-Singapore, Singapore-Jakarta and Beijing-Hong Kong routes.

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