Author: Archive

Sale of KfW's Deutsche Post Stake 'Very Unlikely'

The state-owned Kreditanstalt fuer Wiederaufbau (KfW) bank would be unlikely to sell the appx 30.1 pct stake it holds in Deutsche Post AG to The Children’s Investment Fund (TCI), financial sources close to the matter said.

‘The freeze period on the (sale of) KFW’s stake is due to end soon and this would set up the possibility of a sale of the stake, but the chances KFW would get the go-ahead from the government to do this would be extremely unlikely,’ the source said.

KfW said late last year that it was looking at the possibility of selling some of the shares it holds in Deutsche Post and Deutsche Telekom AG in 2007.
Shares in Deutsche Post had climbed by around 4.8 pct higher by midday, on speculation that TCI was willing to bid 30.25 eur per share to acquire between a 25-30 pct stake in the postal carrier.

A spokesman for Deutsche Post said the speculation is ‘the usual Post rumour’ and added there is nothing new to report from the company on the matter.
‘Business as usual,’ he said.

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Spanish Postal Service Deploys Sybase iAnywhere RFID Technology

Sybase iAnywhere today announced that Correos, the Spanish Postal Service, has deployed its RFID Anywhere(tm) software platform in one of the largest RFID projects in Europe. Using RFID Anywhere, Correos has introduced a radio frequency control system, called Q-RFID, in 16 Automated Processing Centers (APCs) throughout Spain and in four other bulk Admission Centers, enabling the company to ensure quality control and the traceability of postal deliveries.

Correos’ successful implementation of one of the largest RFID projects in Europe highlights the potential of RFID solutions. The state-controlled company required its RFID solution to be integrated into the Correos computer systems, resulting in the purchase of 13,000 passive electronic labels and installation of more than 2,300 permanent antennas and over 331 readers for the 16 APCs and the additional Admission Centers. The RFID Anywhere-powered solution gives Correos the ability to monitor the status and transit time of a letter at each stage of the delivery process, allowing the company to oversee the entire process and adopt corrective measures when a fault is detected in the system. Correos is one of the earliest to use RFID technology to comply with the standards set by the European Union (ETSI EN 302 208-1 and EPC GEN 2) and to be approved at the state level by the Ministry of Industry, Tourism and Trade.

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Mory is launching its new distribution service for pallets

This system, parallel to the one for standard parcels deliveries and completely different from the one for batch services, is built around 15 regional hubs, and around dedicated delivery milkruns, managed by trained and aware staff for this type of freight.

You therefore benefit from a more reliable and faster service, but also from a more interesting offer in terms of costs (through an adapted billing, per pallet).

An ad campaign is currently launched: over 2 000 Mory vehicles will be the communication means of this campaign (posts stuck on the back), covering each day several thousands of kilometres in order to deliver our customers.

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Post Office plans causing concerns

Rural sub-postmasters and their customers in north Wiltshire are fearful and angry about proposed Government cuts, according to new research.

The Government believes the current network of post offices is unsustainable and needs restructuring.

In December 2006, it published a consultation document including proposals to end a special subsidy payment for rural post offices.

The Chippenham-based Citizen’s Advice Bureau surveyed a selection of postmasters and discovered that more than half would be forced to close as a result of the new measures. It says this will have devastating affects on the community.

CAB manager Sheila Venn said: “We know that for many local people, who come to us for advice, the local post office provides an invaluable service, whether it’s to buy groceries or cash pensions.

According to the research, which surveyed 15 sub-post offices in north Wiltshire in January, 63 per cent of sub-postmasters surveyed had worries for their customers and 91 per cent were concerned about the negative affect on the local community.

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Wait for it

Postal staff in Northampton could lose up to GBP 1,000 a year in pay, customers could get their post later – and it’s all being blamed on the European Union.

Royal Mail is consulting workers on a change to start times from 5am to 7.15am, which would also mean the later deliveries for customers.

It is blaming a new European Union directive limiting lorry speeds to 56mph rather than the current 60mph for all trucks weighing 3.5 tonnes or more.

Apparently the new law will mean mail deliveries will take longer to reach depots, meaning staff with an early start could be left with little to do.

One staff member from Royal Mail’s Northampton depot, who preferred to remain anonymous, contacted the Herald & Post outraged at the proposal.

Communication Workers Union regional secretary Lee Barron said his organisation had not yet been involved in discussions.

A Royal Mail spokesman said management had discussed the issue with staff at Northampton’s St James Mill depot on Tuesday.

He said staff wages had three-year protection so workers affected would not feel an immediate pinch.

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Post Office closure angers staff and clients

Market traders and customers of Woking’s main post office in Market Square have been angered by plans to close the branch and move its services into WH Smith.

Customers say the proposals, announced this week as part of a nationwide scheme, would be inconvenient and difficult for older people and traders say it would detract further from an already sparse trading environment.

Relocation would also mean the loss of jobs at the Post Office — staff would be invited to re-apply for their jobs with WH Smith but not all would be successful. Royal Mail said the plan could leave some staff redundant.

A statement from Royal Mail said: “There will be opportunities for existing Post Office Ltd people at relocated branches to be re-employed by WH Smith in the new branches.

“Some people are expected to take up alternative roles within the Royal Mail group or take voluntary redundancy, should they wish to leave the business.”

Staff at Woking Post Office were told of the plans last Thursday. WH Smith confirmed that not all staff would necessarily be taken on from the closing branches. A spokesman said: “Staff at the existing Post Offices will have the opportunity to apply for jobs and then have a chance of becoming WH Smith employees.

The new nationwide blueprint for Royal Mail branches will see the company retain control of 373 key outlets, with 70 moving into WH Smith stores and a handful facing an uncertain future.

During trials for the new scheme, customers at the new WH Smith-based branches reported faster service and shorter queues. “In many cases our stores are more modern than Post Office branches, which will benefit customers,” said a spokesman. The two brands sell many of the same item ranges and would create a “one-stop-shop” for stationery and gifts.

The fate of the vacant building if the Post Office is relocated is unclear.

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Royal Mail's postcode database reveals its profitable side

Tucked away at the end of an 83-page report by Postcomm, the regulator which oversees postal services in the UK, is an annexe that contains some very important figures: the profit and loss account for the Royal Mail’s operation of its Postcode Address File.

PAF, as it is known, contains the details for 27m addresses in the UK. It is a very valuable file, for as it underpins a huge part of the economy: not just the delivery of more than 80m postal items per day (which underpins Royal Mail’s annual GBP 9bn revenue), but also third-party businesses that rely on postcodes. Direct marketing is one, but there is a burgeoning market too for postcodes in vehicle satellite navigation systems, location-aware devices and a panoply of distance and search sites.

So how much does it cost Royal Mail to run and update PAF, and how profitable is it? The figures acquired by Postcomm show that for 2005-06, the PAF unit within Royal Mail had an income of GBP 18.4m and costs of GBP 16.8m, more than half of the latter coming from maintaining it. The result: a profit of GBP 1.6m, or 8.6% of revenues. That, Postcomm says, is about the right level for PAF profitability, which it suggests should be between 8% and 10% of revenues.

The Free Our Data campaign has a solution: make PAF free online and remove the copyright restrictions on reselling it. The revenue impact on Royal Mail would be minimal; yet as well as engendering a lot of goodwill inside the public sector, doing so could encourage new private sector businesses presently put off by the cost. It’s government-owned data; we should all get its benefit.

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Strike threat at Royal Mail

Union leaders raised the threat of industrial action among tens of thousands of postal workers in a row over pay.

Talks will be held over the next two days between the Royal Mail and the Communication Workers Union in a bid to avert a dispute.

According to the union, Royal Mail is proposing a freeze on basic pay and officials warned that unless there was a “dramatic change” in the Royal Mail’s attitude there was no prospect of a deal being made.

In a letter to its members, the union warned that a “major dispute” was inevitable unless a better offer was made in the next few days.

According to the union, Royal Mail has offered lump sums ranging between GBP 250 and GBP 550 but conditional on the union agreeing new working practices and GBP 350m worth of cuts.

Engineering administration workers are being offered nothing on basic pay or in lump sums according to the union.

The union accused Royal Mail of “abandoning” an agreed approach on growing the business and accused the organisation of being panicked into a “cost cutting frenzy” in every workplace.

A spokesman for the Royal Mail said: “We are continuing to talk privately to the unions about how to achieve a sensible, fair and affordable deal for our people at a time when we need to pay GBP 730m into our pension fund every year and when our rivals are already handling one mail item in every eight.

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