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India Post gets tech savvy to take on competition

John Samuel, general manager, business development & marketing directorate, Department of Post (DoP), believes that the time has come for India Post to take the DHLs, Blue Darts and DTDCs of the express mail industry head on. And he banks on technology investments to turn the tables in India Post’s favour in this battle. The postal department is investing Rs 1,400 crore in technologies such as RFID, web-based customer response systems, and even mobile phones for the postman.

The department has put forward the proposal to the Planning commission recently for consideration in the 11th Five-Year Plan. The plan document highlights the need for India Post to invest in technology so as to provide its customers with high quality services. India Post believes that this will give it an edge over its competitors and help increase its customer base.

The investment for the technological upgradation will be allocated out of the ‘planned fund’. Says Mr Samuel: “World over, leading post offices such as United States Postal Service (USPS), Royal Mail and Deutsche Post have reformed themselves by investing hugely in cutting edge technology. And so are we.”

The DoP has also identified three core services for heavy investment in the years to come — parcels, financial services and logistics.

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DHL to invest USD 35 million in Hong Kong

DHL announced a USD 35 million investment program in Hong Kong to capitalize on the continued growth of the region’s trade. The program comprises the opening of a new facility in South Kowloon which will enhance DHL Express’ ground handling capacity by about 20%, as well as a large-scale office relocation plan to further strengthen operational synergy.
Scott Price, Chief Executive Officer – Asia Pacific, DHL Express, said: “We are very pleased to celebrate the beginning of 2007 with this exciting expansion plan. DHL Express Hong Kong ended 2006 with double-digit growth, clearly benefiting from the strength of China’s growth and the dynamism of other economies in the region. This is the 5th consecutive year that DHL has recorded double-digit growth in Hong Kong. The investment program brings us close to USD 1 billion in our commitment to the Greater China area to position us for the opportunities which abound in this region.”
This investment program lifts DHL’s total investment in Hong Kong to USD645 million, which includes the USD 210 million Central Asia SuperHub, investment in Air Hong Kong, service centers and office facilities. Hong Kong’s position as the centerpiece of DHL’s hub-and-spoke network has been further cemented by the Company’s USD 400 million investment in Air Hong Kong, a joint venture with Cathay Pacific, which feeds cargo from around Asia Pacific into Hong Kong for consolidation and transit purposes.

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New pallet network set for business

Global Pallet System is set to open its doors for business on Febmary 12, despite widespread doubts that there is room for another pallet network operator.

GPS boss and founder Mike Chamberlain, a former member of The Pallet Network, is confident of the networks success and potential. He says 61 companies have signed up as members, including Streamline Shipping in Glasgow, Lancaster-based Hempsey Transport, City Couriers in Cardiff and Aberdeen’s JGB Transport.

GPS should handle more than 2,000 pallets on its first night of operation at its Midlands- based site, says Chamberlain.

He is particularly excited about its ability to service Scotland. ‘We are going to have terrific coverage in Scotland. In fact, I would say that we will probably have the best coverage,” he tells Motor Transport.

Other pallet networks, including Pallefforce, believe there is no room for another network and that the market has reached saturation point (MT, November 16, 2006). Currently nine pallet networks operate in the UK.

But Leeds-based Macfarlane Transport, which explored the possibffityofjoining GPS, believes the market can sustain another network and that GPS will do well.
“There is still a demand there. I think there is room for another operator,” says Macfarlane director, Robert Cooke.

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Ghana Post to go high tech

The management of Ghana Post is to begin a counter computerization programme to make the company more competitive.

This is part of a programme by the management to reposition the company to respond to the demands for efficient postal services and to provide customers with what they want.

The plan was contained in a statement issued in Accra by the company to mark the Pan African Post Day which fell on January 18.

The Day was set aside by the Pan African Postal Union to create awareness in the minds of the public on the important role the Post plays in the development of countries.

This year’s theme was: “The Post at the heart of competition”.

The statement said when the counter computerization had been done; Ghana Post would integrate internet cafes into its core business nationwide.

The statement said in Africa and more especially Ghana, where liberalization had been total, public postal operations ought to show tenacity and initiative to be able to face the competitive environment to remain in business.

This meant that public postal operations had to adopt strategic re-orientation of activities for survival and prosperity for their companies.

The postal market in Ghana had seen a progressive competition and the statement acknowledged there was competition from all angles, the statement said.

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FedEx Jet flying with anti-missile system

An anti-missile system is being tested aboard a FedEx MD-10 during its regular cargo flights, Northrop Grumman said this week. The airplane launched on Tuesday from Los Angeles International Airport with the Guardian system installed, starting the operational test and evaluation portion of the program, which is sponsored by the U.S. Department of Homeland Security (DHS). The tests will continue through March 2008. The Guardian system uses proven military technology to defend against shoulder-fired anti-aircraft missiles, Northrop Grumman said. The system detects an approaching missile and directs a non-visible, eye-safe laser toward it to disrupt its guidance signals.

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Slow growth for French CEP market

The French domestic express and parcels market is growing only moderately with e-commerce as the main growth driver, according to a report from the French postal regulator ARCEP. The liberalised mail sector is growing faster than the large monopoly sector, it also revealed.

The ARCEP annual report, based on a number of market surveys and external sources, provided figures for 2005 in comparison to 2004.

The French domestic express segment, covering light parcels up to 30kg, grew by 4.7% to revenues of EUR 1.4 billion and just under 200 million items in 2005, the report stated. Referring to other previous surveys, ARCEP said that the total French express market segment, including international shipments, had a value of EUR 3 billion in 2004.

In the parcels segment, covering single items weighing up to 30 kg, the domestic market grew by 2.6% to revenues of EUR 1.43 billion in 2005 while volumes rose by 2.8% to 355 million items, ARCEP said. The B2C segment was the largest part of the parcel market, but C2C volumes were likely to grow as consumers sold more goods through e-commerce websites, it noted. Parcel shipping generated by online orders grew by 40% between December 2004 and December 2005, the regulator said.

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USPS International Rates and Standards

Lawrence J. Chaido presentation

USPS statistics

USPS International Rates and Standards

USPS Proposed Rates and Standards

Timeline and Important Dates

Domestic & International Rates and Standards Revised

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TNT says it won 70 million pound contract with Britain's Centrica

Dutch postal group TNT NV said Tuesday that it won a two-year contract to handle mail for British gas supplier Centrica PLC, a day after announcing a three-year contract with BT Group PLC.

The Centrica agreement is worth about 70 million pounds (USD137.4 million; euro106.2 million). TNT will handle about 170 million items of mail a year under the contract, TNT said in a statement.

Centrica’s transactional mail, such as bills and statements, is generated at their print and mail centers in Northampton and Manchester.

Royal Mail will continue to carry out the final sorting and delivery to customers’ homes.

“The utility market is fiercely competitive and Centrica is looking to put itself ahead of the game by choosing a postal supplier that will bring tangible benefits both to its business and its customers,” said Nick Wells, chief executive of TNT Post U.K.

TNT Post said Monday it won a three-year, euro134 million (USD173.2 million) contract with BT Group PLC.

Shares in TNT dipped 0.5 percent to euro34.97 (USD45.24) on Euronext.

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