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German start-up Red Parcel Post invests EUR 130m in first sorting centre

Red Parcel Post, the start-up German B2B parcels carrier, will invest about EUR 130 million in the first of its four planned logistics centres. The company’s operational launch has been repeatedly postponed and is now scheduled for the first half of 2008.

The 60,000 sqm parcel sorting centre will be built in Stegelitz/Burg between Magdeburg and Leipzig, in Saxony-Anhalt, eastern Germany, the federal state’s economics ministry announced. The site will also be the parcel company’s head office, creating about 260 new jobs. It is due to go into operation during the first half of 2008.

Saxony-Anhalt is providing a subsidy for the investment that media reports put at about €20 million. RPP will have a fleet of about 700-800 delivery vans for regional distribution.

Red Parcel Post (RPP) owner Walter Hellmich, head of the Hellmich construction company, said the parcels company planned to handle 35 million parcels a year initially.

It plans to create a high-tech parcel sorting and distribution network based on four regional centres (Magdeburg, Duisburg, Hamburg and Frankfurt) and using RFID/satellite technology for parcel tracking and tracing. The technology is being developed in close cooperation with the Fraunhofer research institute in Magdeburg.

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Tesco tries its hand at estate agency

The estate agency industry has been under threat of a shake up from the internet for a while now and things are looking bleaker for them as Tesco moves into the market. However, the supermarket may have difficulties with its offering since it wants to list property from estate agents as well as private sales.

Tesco’s new property sites lists private sales followed by property for sale through estate agents. In exchange for GBP 199 (a lot less that the percentage of sale value charged by estate agents) Tesco is offering sellers an advert with up to 20 images. This is linked to virtual earth images and local information such as OFSTED and local government sites. Also included in the price is a pdf of the property details, a for sale sign and an area for managing the sale and communicating with the buyer.

The Telegraph reports that Tesco has approached online sites advertising property for sale from estate agents and has not had much success with finding partners. Warren Bright, chief executive of Propertyfinder, said: “We were approached some months ago but we have chosen not to participate, as their proposition is not in the interests of the estate agent, who is our customer.”

The site currently lists fish4homes and SmartNewHomes as search partners.

However, another industry which should be looking at its charges is lawyers offering conveyancing. While online services are already undercutting the average prices charged by traditional firms, the weight and trust of Tesco’s name behind MyHomeMove (with which it’s partnered) could find more people trusting online legal practices.

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Correos, Western and Corte Ingles launch campaign for immigrants

Correos, Western Union and “El Corte Ingles” (Spanish retail store) are launching a campaign during July and August for the Argentinian and Uruguayan people living in Spain. The purpose of the campaign is to facilitate the remittance of money.

Each customer who sends money to Uruguay and Argentina in one of the 250 offices will gain a typical tea and dessert from these countries.

The Spanish government estimates that there are around 4 million immigrants in Spain and around 120,000 from Argentina and Uruguay.

In 1999, Correos signed an agreement with Western Union to include money transfers in its 2,124 office networks.

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Sigma shareholders need good lie down

Sigma, which had the worst performing share price of any of the ASX’s top 100 companies, last year, had forecast 10 to 15 per cent growth on last financial year’s USD 101 million net profit.

But in a statement yesterday Sigma wiped out the forecast growth, indicating that the coming year’s profit would remain at about USD 101 million.

It attributed the profit downgrade to diluted access to a government funding scheme and heightened competition in the generic pharmaceutical market.

Sigma managing director Elmo de Alwis said Sigma’s competitor, global freight company DHL, should not be able to access the Federal Government’s community service obligation fund, which is worth USD 12 million a month.

The CSO funds pharmacy distributors to ensure all pharmacies across the nation are adequately stocked. Mr de Alwis said he had received legal advice that DHL should not be allowed access to the scheme because it only distributed for the generic drug manufacturer Alphapharm.

If DHL was taken off the scheme it would boost the USD 4 million monthly payment Sigma received from the pool. But analysts said Mr de Alwis had been overly optimistic in including a revision to the CSO scheme in Sigma’s original profit forecast.

Increased discounting by generic drugs companies and the expiry of Sigma’s sole licence to produce some generic products would also hurt the company’s future earnings, Sigma said.

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Francotyp-Postalia Holding AG: Deutsche Post AG will negotiate new cooperation treaty

With the view to summarize the individual contracts into one cooperation treaty Deutsche Post AG cancelled the existing manufacturer contracts with Francotyp-Postalia GmbH and Francotyp-Postalia Vertrieb und Service GmbH.

In the sense of a strategic partnership the negotiations should be lead by the idea of cooperation as for example in connexion with bilateral marketing or communication measures. The cancellation was received on June 26, 2007 by both companies.

All existing approvals, rights of sales and charging standards for the up-to-date franking machines are not touched by the cancellation. This means that the cancellation will have no effect on models already authorised or approved by Deutsche Post.

Deutsche Post AG has, according to Francotyp-Postalia Holding AG information, cancelled existing contracts with all franking machines manufacturers in Germany with effect from 31 December 2007.

Negotiations are already in hand with a view to strengthening the relationship between Francotyp-Postalia and Deutsche Post. The target is to establish a strategic partnership between the two companies which would be mutually beneficial in the medium to longer term in light of the forthcoming deregulation of the German postal market.

‘A new cooperation contract offers the possibility of intensifying customer retention in the field of franking machines.’ declares Hartmut Neumann, CEO of Francotyp-Postalia Holding AG.

‘A future partnership with Deutsche Post AG enables us to set up new attractive offers for franking machines and enter new potential markets in the lower segment.’

The cancellation will have no effect on models already authorised or approved by Deutsche Post and the renegotiated contracts will apply only to new models which Francotyp may develop and bring to the market after 31 December 2007.

Through cooperation with Deutsche Post AG the Francotyp-Postalia expects to see further growth in the coming years.

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TNT gets on its trike to deliver to French city centres

BeCycle delivery tricycle TNT Express is turning to tricycles to deliver express shipments to French city centers and cut its environmental impact.

Nine months of tests in Lyon had shown all the advantages of this means of distribution in terms of reliability, efficiency, service quality and image, TNT Express France said. The three-wheeled delivery bikes were an ecological alternative for deliveries that reduced pollution and noise in city centre areas, it noted.

In Lyon, the express company is currently using four electrically-powered cycles in TNT colours and operated by drivers of the “BeCycle” delivery company to distribute documents and small parcels to about 150 business customers. TNT will expand the Lyon project by acquiring more BeCycle tricycles and adding more districts to the tricycle delivery rounds in October.

At the same time, TNT will introduce a similar service in eight other French cities over the next few months. In total, nine cities are expected to be served by 20 tricycles by the end of 2007.

Depending on the location, TNT will use BeCycle and “La Petite Reine”, which has been providing delivery in Paris since June 2007 and in Rouen. Service started in Bordeaux in July, Nancy, Grenoble and Dijon will gain tricycles in September, to be followed by Montpellier and Rennes at the end of the year.

The initiative is included in the international action plan of TNT which is aimed at reducing CO2 emissions.

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Hermes attacks Austrian Post with low prices

German consumer parcels specialist Hermes Logistik is relying on low prices, a nationwide network and Formula 1 legend Niki Lauda for a successful market entry in Austria. Hermes has created about 1,000 jobs with its operational start this week.

Hermes said that it wants to achieve a market share of 20%, which is about eight million parcels a year, by the end of 2008. Its prices will be up to 60% below those of Austrian Post, and parcels will be priced by size rather than weight.

The company has set up a nationwide network of 1,200 parcel shops and six parcel sorting centres, and taken on 700 delivery staff for its new service. The retail outlets for parcel drop-off or collection are in locations such as newsagents, petrol stations, dry cleaners’ or food stores.

Hermes has gained widespread publicity by signing up the Austrian-born ex-Formula 1 world champion Niki Lauda for advertising purposes. “I’m used to taking on monopolists,” declared Lauda, whose airlines Lauda Air and Niki have challenged Austrian Airlines over the last decade.

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TNT Express opens regional hub in Erfurt

TNT Express has officially opened its regional hub at Erfurt airport in eastern Germany. The event on Saturday, June 30, attracted 1,600 visitors during the airport’s summer party.

The regional hub, which went into operation at the start of the year, includes a 3,000 sqm depot along with regional air and road hubs.

“The new location at Erfurt airport is playing an important role in the TNT network,” commented depot manager Cornelia Stöckmann. “Shipments from all of eastern Germany are delivered here and sorted for onward transport by plane or truck.” The location directly at the airport saved transportation time and reduced transit times for local customers, she added.

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