TNT Presentation in Bear Stearns Global Transportation Conference
TNT Presentation in Bear Stearns Global Transportation Conference
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DPD plans more parcel shops in Germany
DPD plans to build up a network of parcel shops across Germany to develop its currently small B2C business and take on DHL and Hermes. The move is part of a new strategy to broaden its product portfolio both in Germany and internationally.
“We have adopted a clear growth strategy,” DPD joint CEO Hans Fluri told German newspaper Die Welt in an interview. The German B2B market leader, with annual revenues of about EUR 1 billion, increased parcel volumes about 5.5% and turnover by 7% last year, the newspaper said. In the B2C market, however, DPD with 35 million shipments lags well behind DHL and Hermes (200 million parcels).
To expand its consumer parcels business, the La Poste subsidiary aims to build up its small network of DPD Shops. “Today we have about 500 DPD Shops. By the end of 2007 we want 2,500 outlets. By 2010 we are aiming for 5,000 shops,” Fluri said.
Although Hermes, with 13,000 outlets, and GLS (4,000) are much larger, DPD sees potential for a third network, he added. “Customer behaviour in terms of parcel shops is not yet fixed and will change. We are convinced that as a well-known firm we have a good chance,” Fluri stated.
Meanwhile, DPD now offers its international parcel distribution by air express to more than 220 countries through a network of cooperation partners, Die Welt reported. Prices are about 40% lower than normal air express rates, and transit times are 1-2 days longer. DPD recently enhanced its express service within Germany with new service options.
Read MoreIntense changes in the Chinese express delivery market
China’s express delivery market is facing a time of unprecedented change. Four major foreign players, China Post, private local firms and State-owned companies are all busy adjusting their strategies, and the government is poised to revise business policies.
After UPS broke from its local partner – Sinotrans, Fedex spent $400 million to acquire the remaining stake of its joint venture with the Chinese firm DTW Group. It also bought all of DTW’s assets in the domestic and international express delivery markets.
And while foreign giants are expanding in China, the State-owned giant, China Post, is attempting to gain the upper hand with a possiblly favorable postal law, sparking cries of foul play from foreign and local private firms.
Fedex’s buyout of its local partner signifies the acceleration of foreign express delivery firms’ expansion in China.
DTW’s domestic express delivery business suffered losses of 60 million yuan in its first 11 months in 2004, but Fedex still spent USD 400 million for DTW, which highlights Fedex’s desire for DTW’s network.
Industry sources say Fedex is trying to catch up with its competitors. DHL announced its entry into the domestic express delivery market in 2004, TNT has already begun domestic parcel delivery and UPS has the rights to international express delivery business in tier-one cities.
The joint venture agreement with DTW was originally expected to expire in 2009, but Fedex bought out the Chinese firm because it wanted immediate exposure to the domestic market.
Read MoreExperts Chart Path for Postal Sector Reform
The postal communications sector has made a significant stride in its quest for affordable, reliable, quality and universal basic postal services that will meet the needs of an increasingly sophisticated end user.
Significant, no doubt because on April 4,2007, key stakeholders discussed the issues, challenges and prospects of the postal sector in Nigeria and suggested input into the formulation of a Postal Sector Policy/Strategy and Postal Reform Bill. The forum also secured the buy-in of all stakeholders and created awareness among potential investors, service providers and consumers on investment prospects.
About 150 experts attended the forum from 43 different institutions, including Nigerian Postal Services, Nigerian Communications Commission, Central Bank, Ministry of Communications and Information, World Bank, Universal Postal Union, Association of National Courier Operators, and National Information Technology Development Agency.
In all, 10 papers were presented on diverse topics.
Read MoreTNT stamp price regulation workable
A proposal before the Dutch parliament to regulate mail company TNT’s stamp prices as part of market liberalisation is workable, the Dutch post and telecoms regulator OPTA said on Wednesday.
Analysts have said the proposal by the Christian Democrats and the Labour party, both part of the ruling Dutch coalition, could knock up to 10 percent off TNT’s valuation.
The proposal would set stamp prices for part of TNT’s mail business based on costs and a “reasonable return” initially, followed by increases in line with inflation in the following years.
The proposed amendment to the country’s new postal law would affect the “universal service”, which includes delivery of letters and parcels and represents a significant portion of TNT’s mail revenue.
A TNT spokesman said amendments to the law could still be changed and that the company would react only to the final proposals.
The economy ministry is working on its reponse to the various amendments and will send a letter to parliament soon, probably next week, a spokesman said.
Last month, the Dutch parliament again delayed a vote on the postal law, which is meant to end TNT’s remaining monopoly, as the economy ministry requested more time to study amendments.
TNT still has a monopoly on letters weighing up to 50 grams, representing about half of the 2 billion euro Dutch mail market. The government wants to open the market from January 2008.
Read MoreDoors open on 100 new jobs and GBP 7m TNT investment in the UK
TNT UK has invested GBP 7 million and created more than 100 new jobs in the Leyland and Preston area as part of its drive to consolidate its market-leading position.
The 10-acre site at Aston Way, Moss Side Park, is the latest addition to TNT’s nationwide network of more than 60 depots. Handling tens of thousands of business parcels and packages every week, the depot provides a critical strategic link for businesses throughout the North-West and up into Scotland.
Employing a total of 145 staff, the depot is the largest TNT depot in the UK and with 67-loading bays.
The depot, which became fully operational last autumn, is at the leading edge of innovation for TNT. New high-tech scanning devises for warehouse staff, ‘in-cab’ mobile worker units for drivers and the latest sortation machine technology were all trialled at Preston before being rolled out to other TNT depots around the UK.
Read MoreThe Post Offices sets up new service
The Post Office has set up a service allowing companies to distribute incentive payments more cheaply than by cheque. The service sends out a barcode by text, email or post, which can then be exchanged for cash at any Post Office
Read MoreE-commerce to 2020
E-commerce will be replaced by 3D virtual shopping malls and personalised advertising that will be made possible by resilient hosted online environments, according to a report commissioned by Rackspace Managed Hosting into the Web in 2020. The report also predicts that whilst virtual shopping will replace e-commerce, visiting stores as a social experience will remain popular.
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