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AFL, Singapore PE firm tie up for cargo airline

Cardinal Aviation Partners (CAP), a Singapore-based PE firm, has entered into an agreement with AFL Logistics, the logistics & supply chain management subsidiary of the Mumbai-based AFL group, to float a domestic cargo airline venture in India, Quickjet.

According to sources, CAP will hold majority stake in the venture while AFL Logistics will have a 13 pct stake. “We have entered into an agreement with CAP and intend to launch the service by December 2008,” said a top AFL executive, who requested anonymity.

The move is significant for AFL Logistics, as the company makes its entry into the air cargo space with this dedicated freighter service offering. As per the initial plan, Quickjet will flag off services with two Boeing 757s. The fleet will be expanded later, depending on the volumes.

AFL has been attempting to strengthen its logistics business in India since 2006. Earlier, the focus was on building warehousing capability. Of late, the logistics division has shifted its attention towards creating a strong road network in India along with the addition of more service offerings, with air cargo being the latest entrant.

According to sources close to the development, in a recent move, AFL Wiz has ended its 25 year franchisee alliance with DHL and has tied up with United Parcel service (UPS) as its franchisee in India. Under the arrangement, AFL Wiz will undertake pick up, delivery and offer credit facilities for international shipments of UPS customers in all locations over India.

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DHL plans more outlets in Malaysia

DHL plans to open several more DHL Servicepoint outlets over the next three years throughout Malaysia to strengthen its existing network.

The move is also to further grow its customer base, particularly the small and medium enterprises (SMEs), it said in a statement today.

It now has eight outlets in Malaysia with the latest being in Miri, Sarawak, which was opened today.

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Transport strike brings France to a halt

The French walked, used bikes, shared cars, or took the day off yesterday for the biggest national public transport strike since 1995. Unions said the strike will continue today.
Service on most trains on the national network, metros in Paris, and buses in major cities ground to a halt after public workers went on strike to oppose a government plan to roll back their pension privileges. About 319,000 people at railroads, power and gas utilities, schools, and the postal service failed to turn up at work. The special pensions cost the state about USD 7.1 billion a year.
The stoppage marks the first union challenge to President Sarkozy, elected in May on a platform of cutting taxes, reducing the cost of pensions, and liberalizing labor. The pension changes require employees to work 40 years instead of 37 1/2 years to earn a full pension. Pensions will also be linked to the national statistics institute’s price index. Mr. Sarkozy wants the plan completed by 2012.

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IPC leads environmental sustainability initiative

The International Post Corporation (IPC) announced today at its bi-annual Board meeting in New York City, its plans to develop a three-tier program to address environmental sustainability among its member posts. The program will focus on developing common sector-wide definitions and measurement systems; conducting stakeholder research and communicating sector-wide advances in environmental sustainability throughout the postal industry.

“Climate change is no longer an issue of debate,” said Jean-Paul Bailly, chairman and CEO of Groupe La Poste in France and chairman of the IPC Board. “Two prominent areas for concern to postal operators and our industry stakeholders are the operation of extensive road and air transport networks and issues related to direct mail, a strategically critical business for posts.”

Mr. Bailly added, “Because of the sector-wide urgency of the issue, the IPC Board will devote its annual conference this May to develop a common environmental sustainability initiative and map the way forward for the postal industry.” The conference, Leadership through Sustainable Development: Postal Industry Challenges and Opportunities will take place on 29 and 30 May, 2008 in La Chapelle en Serval, France. CEOs representing 24 member postal organizations and several selected CEOs from both inside and outside the industry are expected to attend.

Last month, IPC conducted a members’ forum on the subject of environmental sustainability, where it was decided that IPC should take a leadership role in providing the platforms for members to come together to define the way forward for the sector.

IPC has been a leader in providing postal delivery measurement systems for nearly 20 years, we are the natural partner for the postal industry and it makes sense that we are the organization to develop a common system for environmental measurement and research among the posts,” said Herbert-Michael Zapf, CEO and president, IPC.

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Saudi’s postal delivery system being modernised

Saudi Arabia is getting ready for home delivery of mail. The kingdom’s entire postal delivery system is being modernised. Mailboxes have been put up almost throughout Jeddah, and in an effort to make the system smoother, Jeddah Municipality plans to overhaul the city’s street-naming system.

Jeddah’s streets currently have names, districts are numbered and buildings have numbers, though not always displayed. The current system is confusing, and since most people get mail delivered at office addresses or at post offices, so far there has little need for a clearly defined address system.

The plan envisages a more organised numerical system that would fit in with the kingdom’s new postal system.

Husain Al Hijari, head of the municipality’s naming and numbering department, assured that after implementing the new address system, people would find it much easier to identify their way and reach their destination through the clear and organised signs and structure numbers. He said that the numerical address system started more than 29 years ago, but it stopped because people did not understand it.

Al Hijari explained that under the new system, main thoroughfares are called ‘roads’ and smaller routes will be ‘streets’. Some major streets have been renamed. For example, Prince Muhammad bin Abdul Aziz Street (more commonly known as Tahliah Street) is now Prince Muhammad bin Abdul Aziz Road. The same change was made to all major routes, such as Prince Majed Road, Sari Road and Palestine Road.

The city will be divided into four quarters that will meet at the Al Bai’ah roundabout in downtown Jeddah. Each quarter will be divided into four sub-sections. Residences will get a more formal numbering system that will ascend out from the city centre. This will make it easier for residents, especially in apartment buildings, to know their residential mailing address once the new Saudi postal system goes into full swing.

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Britain's Royal Mail, Union Halt Talks; Postal Workers Want To Scrutinize Deal Terms

Britain’s Royal Mail and its postal workers’ union have agreed last Thursday 18th October to temporarily suspend negotiations on the terms of a new agreement that will end their four-month dispute.

Union officials insisted on closely scrutinizing the details of the deal, including the 6.9 percent pay adjustment over two years for postal workers, before putting the contract to a vote.

The review of the terms effectively delays the signing of the compromise that will finally put the labor dispute behind them.

BBC reported that Royal Mail had agreed to meet the Communication Workers Union (CWU) to clarify outstanding issues, but it added that “the agreement reached and endorsed last Friday by CWU general secretary Billy Hayes and deputy general secretary Dave Ward stands.”

Marathon talks between Royal Mail and CWU last Friday resulted in an outline for a settlement of the dispute. Contested areas included pay, pension fund reform, retirement age and working practices and these were expected to have been ironed out in the settlement.

The union’s executives should approve the deal and thereafter, put it to the vote by the CWU’s 130,000 members. The vote was originally set for middle of this week had the union officials endorsed the agreement.

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Rural businesses are hit by postal dispute and the threat facing post offices

Postal strikes across the country have hit rural businesses hard and look set to put a number of people out of business.

Two one-day strikes, as well as subsequent wildcat strikes saw postal services disrupted for over a week – causing rural communication networks to come to a standstill.

Charles Trotman, chief rural economist for the Country Land and Business Association, said the strikes had been devastating for rural business.

In the South West alone, the strikes are expected to cost the rural economy up to GBP 10 million, according to Tim Jones, chairman of the Devon and Cornwall Business Council.

Mr Jones said the strikes could not have come at a worse time after rural businesses had already been hit by foot-and-mouth restrictions, fuel charge increases and the recent Northern Rock credit crisis.

The problems faced during the strikes are just the latest in a long line of problems faced by rural communities.

Plans to close many rural post offices have been met by fierce opposition from those who rely on the service.

Mr Trotman admitted that a compromise had to be found so that the service could continue to run as well as offer value for money.

One idea he and others have suggested is opening one-stop-shops for all Government services in rural areas, offering a postal service as well as assistance with tax and other issues.

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U.S. Postal Service removing stamp vending machines

People wanting to buy stamps after post office hours will no longer be able to get them in the lobby of the closed office.

The U.S. Postal Service began removing the vending machines from post offices and
other locations around the country this month. The spot where the machine sat in the Cape Girardeau post office is already vacant.

Cape Girardeau and Jackson postal employees said the machines were often in need of maintenance, and according to the U.S. Postal Service, some of the machines were 20 years old. Replacing the parts had become difficult because they were no longer manufactured, according to a statement on the service’s Web site.

Stamps will still be available over the counter at post offices during normal business hours. They can also be purchased online, by phone or by mail with a special form found in the post office.

Grocery and convenience stores as well as some ATMs will still sell them.

The U.S. Postal Service plans to install Automated Postal Centers in post offices. Customers would be able to weigh, pay postage for and ship packages from the machine as well as buy stamps.

As of right now, the closest APC is in Carbondale, Ill.

Officials from the postal service could not be reached for comment Thursday on when Cape Girardeau or Jackson will receive new machines.

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