Author: Archive

Start of Royal Mail strike looms

Posted by | Jul 25, 2007 | |

A two-week campaign of staggered strike action throughout Royal Mail is set to begin at 1900 BST.

Each division within the firm has been allocated a different day to strike, in a move designed to cause continuous disruption throughout the period.

Union members are protesting over pay and job losses which they say will come from the modernization of the firm.

Royal Mail says the changes are needed for it to stay competitive and vowed to keep delivering mail during the action.

The first action will see staff at Post Offices and Royal Mail sorting offices walk out in a 24-hour strike.

Royal Mail called the Communication Workers Union’s (CWU) decision “hugely disappointing”, but said it could not change its position. It also said it would have contingency arrangements in place.

The strikes will see each section of the company, from the sorting and collection centers to those who make the deliveries, walking out for two separate 24-hour strikes over two weeks.

The move is designed to cause continuous disruption to the nation’s postal service throughout the period at a “minimum cost” to CWU members, union officials say.

The union says the action reflects its growing frustration with the Royal Mail for its failure to take worker demands for job protection and increased pay “seriously”.

The CWU fears 40,000 jobs will go as a result of increased mechanizations of the system. It is also objecting to a 2.5 pct pay offer.

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EC gets tough on Royal Mail's VAT exemption

Posted by | Jul 25, 2007 | |

Royal Mail, reeling from a series of strikes by postal workers over pay and working practices, suffered a fresh blow on Tuesday when the European commission stepped up its threat to take the government to court over its decision to exempt all the former monopoly operator’s services from VAT.

Laszlo Kovacs, EU tax and customs commissioner, formally requested the government to amend UK legislation allowing Royal Mail to charge zero VAT on high-value bulk mail and commercial deliveries for which rivals must pay the standard rate of 17.5 pct..

The zero rate applied to stamps for normal deliveries to more than 20m British homes under the “universal service obligation” (USO) — guaranteeing one delivery a day, six days a week, to every address in the UK for the same price — would be unaffected.

The commission’s move is the second stage in the infringement procedure and could lead it to take Britain to the European court of justice, Europe’s highest court. UK laws on exemption for all Royal Mail’s services are deemed incompatible with the sixth VAT directive.

The government showed little sign of giving way to Brussels on the issue. “We are satisfied that our position is consistent with the EU VAT rules in this area, which require VAT exemption for services provided by the ‘public postal services’,” a Treasury spokesman said.

Royal Mail said it remained opposed to the imposition of VAT on its postal charges. “While the issue of VAT is a matter for the UK government, we have said that an increase in prices as a result of the imposition of VAT is the last thing we want for any of our customers, particularly charities and small businesses.”

A spokesperson for TNT Post, one of Royal Mail’s rivals, said: “This action supports our view that the VAT distortion needs to be removed.”

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Tan moving up at DHL Express

Posted by | Jul 25, 2007 | |

Dennis Tan, chief financial officer of DHL Express Singapore, has been appointed senior vice-president and head of global express controlling at DHL Express.

He will report to Oliver Gritz, CFO of DHL Express, and his areas of responsibility include financial reporting and planning, costing and transfer pricing, IT controlling as well as the newly created positions for marketing and sales controlling and ground operations controlling.

Tan has been instrumental in managing and leading various key projects such as the integration of financial reporting systems in the region, as well as the implementation of the new regional business planning software.

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Nour Suliman assigned new general country manager for DHL in Saudi Arabia

Posted by | Jul 25, 2007 | |

After remarkable growth by 22.30 percent in first half of this yearAs part of DHL’s continuous plan of expanding and growing business in Saudi Arabia, the world’s leading express and logistics company, today announced the appointment of Mr. Nour Suliman as the new General Country Manager in the Kingdom.

Considering the ever-growing demand on the logistics services and the huge potential of the transportation and logistics market in the Kingdom, Mr. Suliman will take the responsibility of driving the efforts towards developing the service portfolio offered by DHL in Saudi Arabia.

Commenting on his new mission, Suliman said: “I’m honored to move to the biggest and one of the fastest growing markets in the region. Certainly my new position in Saudi Arabia will bring about its challenges of the Saudi market being completely different from other markets across the region in terms of volume, customer needs or high-rhymed growth”.

DHL’s expansion strategy, Suliman added, puts the Saudi market on its top priorities due to its volume and growth. “The economical boom the in Kingdom imposes great challenges on the logistics and transportation industry that should go in-line with this boom. It also addresses the growing needs of the industrial and commercial sectors to top-notch logistical and transportation services”, Suliman explained.

DHL has scored remarkable growth in its shipment and logistical business estimated at 22.30 percent in the first quarter of the current fiscal year compared to the same period last year. This growth positions DHL as one of the most growing companies in the Saudi logistics market.

After joining the customer service department at DHL in the Kingdom of Bahrain in 1978, Suliman occupied several senior management positions in different DHL locations including Egypt, KSA, UAE and Kingdom of Bahrain. With over 29-year experience, Suliman is one of the industry veterans across the region.

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TNT starts new service brand after HOAU acquisition

Posted by | Jul 25, 2007 | |

TNT has started a new service brand in China after it regrouped the acquired HOAU Logistics.

With the acquisition in March, the global giant has not only obtained the big ground transportation network and the huge customer base from the biggest freight and parcel delivery operator in Mainland China, but also successfully marched into the fragmented Chinese ground transportation market.

HOAU Logistics, headquartered in the northeastern province of Heilongjiang, has controlled 56 subsidiaries and 1,250 locations with a business network covering over 400 large and midsize cities.

In order to regroup the HOAU Logistics business, TNT has earmarked CNY 50 million to consolidate information systems and train related employees, disclosed Pang Fuxing (transliterated), new president of the regrouped HOAU Logistics.

Millions of US dollars are expected to be injected further in the following years, part of its efforts to create the biggest ground transportation network in the country.

The Dutch company has put into operation 260 trucks, the first batch purchased after the acquisition, under the new brand since last week. In the months to come, 1,250 branches and 3,000 across the country will start service with a new logo.

But the Chinese fragmented market is much now filled with not nice competitions. TNT will try offering time-definite ground transportation service in the country, just as it has done in the express delivery sector, in a bid to form advantages with rapid and reliable diversified service.

Meanwhile, the global giant has adjusted its express delivery business in China when other rivals like UPS and FedEx entered the Chinese express delivery sector in succession.

TNT will not expand in future beyond current partners and it has even ceased cooperation projects in some regions, told Michael Drake, managing director for TNT’s operations in the Greater China.

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Document Actions Dutch parliament calls for return of 'golden shares'

Posted by | Jul 25, 2007 | |

A majority in Dutch parliament backs a return of so-called golden shares held by the government to protect strategic industries against foreign takeovers.

Although the Dutch parliament is in recess, a roundup by the ANP news agency of the most important parties showed a majority supports the idea of giving the Dutch government special golden shares.

The measure would give the holder veto rights in certain circumstances and can be used to protect a company from possible takeover.

Ruling coalition partners Christian Democrat CDA and Labour are calling for a return of the golden share together with the far-left Socialist Party, the biggest opposition party.

The Dutch state in November shed its last golden shares in the former Dutch postal services company, since renamed TNT, to comply with rulings of the European courts, which oppose such arrangements.

On Monday EU Trade Commissioner Peter Mandelson, in an interview with a German newspaper, suggested that golden shares could be used to protect strategically important European companies against foreign takeovers.

There is growing unease in Europe about the growing clout of state-financed investment funds from Russia, China and the Gulf states in European industry.

On Monday in the European takeover battle over Dutch ABN Amro bank, British bidder Barclays announced it had teamed up with a state-linked financial institutions in China and Singapore to boost its new bid.

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TNT services in Vietnam to benefit Malaysian firms

Posted by | Jul 25, 2007 | |

Malasyan businesses that have significant trade with Vietnam will benefit from TNT’s new domestic express services and solutions.

In a statement today, TNT Malaysia and Brunei managing director Gerry Power said the company would invest more than RM 33 million ( USD 9.53 million) over the next four years for this initiative.

“The domestic expansion of TNT’s services and offerings presents Malaysian businesses with additional opportunities for growth in Vietnam.

“With TNT’s enhanced network, Malaysian businesses can enjoy greater reach within Vietnam while availing themselves to an efficient, reliable means of shipping their products seamlessly, from door to door,” he said.

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DHL to adjust air operations in Riverside, California

Posted by | Jul 25, 2007 | |

DHL announced plans to lessen noise impacts on the local community by changing out certain aircraft used during its nighttime operations at March Air Reserve Base in Riverside, Calif. Working with its contract airlift provider and leaders from the March ARB Joint Powers Commission, DHL will replace one DC-9 aircraft currently in operation with a quieter aircraft in September of this year. The company also continues to work with its airlift providers to potentially remove a second DC-9 from its operation in Riverside, as soon as September.

“We are aware of concerns in the surrounding area about nighttime noise from aircraft, and have been working closely with the Joint Powers Commission for the last several months to find potential solutions to these concerns,” said Red Alexander, Vice President for Aviation & Commercial Transportation, DHL Express. “While switching aircraft presents considerable operational and financial challenges for DHL, we want to demonstrate to the community that we are good neighbors.”

Alexander noted that the nature of a global cargo operation requires aircraft to move packages over night to ensure the movement of goods to trucks that make deliveries on the ground during the day.

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