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TNT job cuts necessary, says advice group

The planned reorganization and job cutting at post company TNT is necessary, and extra steps may be needed in future if costs continue to rise, according to an independent report by the Boston Consulting Group.

Postal workers unions asked Boston Consulting to examine whether serious job cuts announced by the company earlier this year were unavoidable.

TNT plans to cut its workforce by 7,000 by 2010, but has said that figure could rise to 11,000 if the unions won’t agree to a pay freeze and cuts in secondary benefits.

The company is facing increasing competition from firms that pay workers for each item they deliver, rather than a traditional salary with pension rights.

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DHL Exel chooses Paragon Software Systems

DHL Exel has adopted Paragon Software Systems’ routing and scheduling software for use on its BP forecourt and convenience stores contract. Previously, DHL Exel operated a system of fixed routes to deliver chilled and ambient goods to 300 BP stores throughout England from its Lutterworth, Leics depot, supported by outbases at Bellshill and the Golden Fleece Services at Junction 42 of the M6.

Paragon’s software has allowed DHL Exel to adopt a more flexible, automated approach, reducing its 61 routes to between 47 and 53 per day. Transport manager Lee Sylvester says: “Savings have been both immediate and substantial, with a significant reduction in fleet usage, manpower and fuel – impacting positively on our carbon footprint.”

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La Poste Real Estate: New managing director

Philippe Lazare, Executive vice-president of La Poste, managing director of La Poste National Scale and Territorial development (“Grand Public et du Développement Territorial”) and chairman of La Poste Real Estate (“Poste Immo”), named Cristian Cleret as managing director of La Poste Real Estate (Poste Immo) from september 2007.

Poste Immo is a subsidiary company of La Poste group, dedicated to the real state business. Poste Immo was formed in 2005, when La Poste conceded 3,877 properties (buildings, offices and factorings) to this company. La Poste had registered till that moment a total of 4,577 properties.

In the practice, Post Immo allows La Poste to recuperate the VAT (Value Added Tax) of the real estate investments.

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DHL opens new international gateway in Mexico

DHL announced the opening of a new international gateway in Hermosillo, Mexico, that offers international next day service and enhances the company’s capabilities to meet the growing needs of businesses shipping between Northwest Mexico and the United States.

The new DHL Hermosillo gateway operates daily flights between Hermosillo and Phoenix, Arizona, with all northbound shipments being routed through Phoenix to DHL’s principal air and ground hub in Wilmington, Ohio. The new service enables next day delivery for all shipments up to 150 pounds (70 kilos) from Hermosillo to the entire U.S. network. The service also provides for second day delivery to and from Guaymas, Ciudad Obregon, Navojoa, Empalme and other surrounding communities, as well as later shipment cutoff times for international deliveries from the region. The new flight will particularly benefit customers shipping high value automotive parts, electronics, textiles, medical devices and other products produced and manufactured in Northwest Mexico.

The announcement follows the recent launch of DHL’s Merida, Mexico gateway to meet the increasing demand from customers shipping between the U.S. and Mexico from Southeast Mexico. The investments in the new international gateways and U.S.-Mexico flights are part of DHL’s North America Trade Lane initiative, which was launched in November 2006 to increase the speed and efficiency of cross-border shipments across North America.

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DHL carries “Flame of Hope”

DHL, announced a global partnership with Special Olympics International, by providing logistics support for the Law Enforcement Torch Run for the 2007 Special Olympics World Summer Games in Shanghai, China, and the 2009 Special Olympics World Winter Games in Boise, Idaho, USA. The partnership between DHL and Special Olympics marks the first time that the “Flame of Hope,” which is traditionally carried by law enforcement personnel and Special Olympics athletes, will be transported globally prior to reaching the Opening Ceremony of the 2007 World Summer Games on 2 October 2007.

The 2007 Special Olympics World Summer Games in Shanghai will host 7,500 athletes with intellectual disabilities from more than 160 countries and regions. The Torch Run is Special Olympics’ largest grass-roots fundraiser and public awareness vehicle, with the objective of showcasing the unification of society and the inclusive nature of Special Olympics.

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Tanfield Group wins contract from Royal Mail for zero emission vehicles

Electric vehicle developer Tanfield Group PLC said it has won a contract of undisclosed value from UK state-owned postal group Royal Mail for its next generation zero emission vehicles.

Tanfield said Royal Mail has placed an order with its Smith Electric Vehicles division for one of each of its Edison and Newton delivery vehicles for trials. The vehicles will be used in London in parcel and postal distribution operations.

Chief executive Darren Kell said: ‘The adoption of the Low Emission Zone in London and expected road pricing in 10 other urban conurbations across the UK will significantly increase the addressable market for electric vehicles.

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Managing Domestic Logistics for Siemens Home and Office Devices in China

Siemens Home and Office Communication Devices (Shanghai) Ltd., a wholly owned operating company of Siemens Ltd. China, has awarded Kuehne + Nagel China a contract to provide domestic warehousing and distribution services for its full range of Gigaset products, including cordless phones, home media devices and broadband products.

In the scope of the new agreement, Kuehne + Nagel is providing a comprehensive range of logistics services, including inbound receipt, storage, pick and pack operations, as well as distribution to Siemens’ customers across China.

As part of its value-added offer, Kuehne + Nagel has set up a spare parts & repair centre and installed a high security area at its 10,500 sqm multi-user facility in Shanghai. In addition, the application of state-of-the-art warehouse management systems, such as radio frequency-based barcode scanning technology, enables the seamless availability of information down to the item level along Siemens’ supply chain.

“We require a logistics provider who can meet our high demand for operational flexibility, reliability and cost-effectiveness, particularly so with our ambitious expansion plan in China. Kuehne + Nagel have demonstrated its capabilities with the ideal combination of logistics excellence and local market knowledge,” commented Johann Goettler, Chief Financial Officer of Siemens Home and Office Devices (China) Ltd.

“We are delighted to be supporting Siemens as its preferred logistics partner. Our globally integrated and technology-driven solutions are highly scalable, allowing for efficient customization of services to meet the changing requirements of Siemens as it continually expands its business in China,” said Andy Weber, Managing Director of Kuehne & Nagel (Asia Pacific) Management Ltd.

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Spain's Seur to invest EUR 270 million by 2010

Seur, partly owned by France’s GeoPost (La Poste), is to invest EUR 270 million in new technology and a new corporate image over the next three years.

President Manuel Valle told the Cinco Días business newspaper in Spain that the company’s vehicles, franchises, uniforms would be given a brand new look; over EUR 70 million would be invested in IT systems and another EUR 50 million improving mail technology.

Seur would grow by about 10 pct this year, said Valle, having had a strong first four months of the year (EUR 200 million of revenues from January to end April). “The image we want to create is one that is modern and trustworthy. And technology is one of the pillars of our business,” he is quoted as saying by the newspaper.

Seur has 85 franchises in Spain and 300 other sales points.

Earlier this year, GeoPost, La Poste’s international express subsidiary, raised its stake in Spain’s Seur group to almost 20 pct through their joint venture, Seur-GeoPost, buying Seur’s Santander franchise. It owns 60 pct of the joint venture.

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