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Express firms aim for double-digit growth in South America

As South America’s leading economies expand in 2007, the top international express companies are laying out their strategies for healthy growth in this key emerging market.

Foreign express companies are upping their activity in South America this year, expanding their networks and product and service offerings in the belief that optimistic economic growth forecasts for the region will hold good. DHL has restructured its Latin American operations in anticipation of double-digit growth, while TNT is expecting the same following its purchase of Brazil’s Mercurio. UPS expanded its routes and increased the frequency of services between the region and the rest of the world at the beginning of this year, while FedEx is upgrading cargo-carrying capacity to the region through fleet upgrades and targeting small-and-medium-sized enterprises (SMEs) in six top countries.

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Marketers still ignorant on Pricing in Proportion

More than a fifth of senior marketing executives and print managers have never even heard of Royal Mail’s Pricing in Proportion (PiP) system, almost a year after it was first introduced, according to a study.

The survey, published by financial and business advisor Grant Thornton, reveals that many companies may be losing out by not taking PiP into consideration.

The changes were introduced in August of last year, yet of the 80 per cent who were aware of the changes, only 60 per cent have assessed the cost implications to their business.

Daniel Smith, print industry expert at Grant Thornton, says: “As Royal Mail’s price changes are fully digested there will be plenty of corporates looking at ways to cut their overall postage costs.”

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Appointments – latest CEP managerial changes

A number of senior managerial changes have been announced by leading international express and parcel operators during May.

Jan Engels (47) has been appointed managing director marketing & sales at DHL Express Benelux as of June 1.

Ben Gordon has been named Express Logistics Operations and Implementations Manager for UAE.

Jean-Sébastien Leridon (32) has been named Commercial and Marketing director for DHL Global Mail in France. Thomas Sonnenschein (37) is the new secretary general of DHL Global Mail in France, responsible for administration and finances.

Jürgen Seifert has been named to the management board of TNT Express in Germany, with responsibility for Human Resources & General Services.

Andrew Watson has been appointed National Operations Manager in Bahrain with responsibility for country operations and the local road and air hubs.

Davide Rosetti has been named commercial director for Southern Europe, with responsibility for sales and commercial development.

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Gilles Hilscher joins the Ciblex Group as Chief Executive Officer of Ciblex France.

Within just a few years, Ciblex has become a major player in the field of value-added
Express Distribution. The creation of the Chief Executive Officer position at Ciblex
France aims to speed up the development process that Ciblex is set to undergo during the coming years, both in France and abroad.

Gilles Hilscher was appointed Chief Executive Officer of Ciblex France at the beginning of May. Reporting to Teddy Mégarbane, the Group’s Chairman, he will be in charge of commercial operations, customer service, quality and safety. He is a member of the Group’s Executive Committee.

Gilles Hilscher worked previously at GLS as Chief Executive Officer. Over more than 15 years, he has devoted most of his career to the Express Distribution business. He held successive management positions at FEDEX and TAT before becoming CEO of TNT Express.

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Business Post's UK postal arm overtaking Parcels

Business Post predicts its UK Mail postal arm will overtake its parcels business in the next three to five years. Chief executive Guy Buswell says that UK Mail generates 27% of the revenue for the company and this fits in line with Business Post’s growth strategy to become “the leading integrated postal operator”.

Business Post’s preliminary results for the year to March 2007 show the company now has a cash balance GBP 12m, up from a GBP 0.4 overdraft in 2006. Group revenue grew by 17% to GBP 326m, from GBP 278m in 2006. Pre-tax profit nudged up to GBP 11.5m in 2007 from GBP 11.4m, while operating profit grew to GBP 12.1m.

But revenue for the company’s parcel business slipped by 1.2% to GBP 194m, while UK Mail’s revenue soared by 124% to GBP 90.3m.

Buswell says the company has “done an awful lot within a year”, referring specifically to the take-back of 11 franchise operations into corporate ownership. “The key thing for us was to take those businesses and turn them around to at least break-even, and we’ve done that,” he says. Business Post has 16 remaining franchise operations, but these are all profitable businesses.

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