Year: 2003

Dutch Logistics group TPG intensifies restructure

Dutch mail and parcels firm TPG, the world’s second-largest logistics group, delivered second-quarter results yesterday that were better than expected and stepped up efforts to restructure its logistics operations.

The group, which owns Atherstone parcels carrier TNT, employs over 160,000 people in 62 countries and serves over 200 countries. During 2002 the company reported sales of GBP8.2 billion, an increase of 5% over the previous year.

Chief executive Peter Bakker hailed the performance of the mail and express businesses but said: ‘Logistics continues to produce disappointing results but I am confident that major improvements will be made in the future.’

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Sagawa Express sets up nationwide delivery joint venture in China

Japan’s parcel delivery company Sagawa Express Co Ltd said it has set up the first nationwide distribution firm in China with local partner China Poly Group Corp. Poly-Sagawa Logistics Co Ltd, a 50-50 joint venture, was established in Shenzhen in June with USD10.8 million in capital and aims to start operations in September, having already received government approval, the companies said.

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Estonian Post to try replacing postal stamps with bar codes

Eesti Post (Estonian Post) will launch a pilot project this fall whereby it will introduce bar codes on letters instead of postal stamps. The project will cost 876,000 kroons (EUR 56,000) and involve some 50 Estonian companies, the daily Eesti Paevaleht reported. “The two-dimensional bar code doesn’t look like the bar code used on goods in stores, it’s rather like a square of approximately 1.5 centimeters in size filled with dots,” Eesti Post CEO Alo Streimann told the newspaper.

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Coalition working to get Iraq's postal service up and running

The US-led Coalition Provisional Authority (CPA) is working to get Iraq’s postal service fully up and running, hoping that the reopening of Baghdad airport will boost the current slow delivery process. “1,400 postal bags of mail were collected last week at the border with Jordan, and they’ve been processed,” said Sergeant Kent Chicosky, CPA spokesman for postal operations. Some 45 of Iraq’s 69 post offices that reopened at end-April are currently operational.

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UK postal union vows to fight redundancies

Royal Mail has warned that its plan to turn around the loss-making postal service could collapse after it emerged that union leaders were now resisting a key aspect of reform. The Communication Workers Union plans to ballot members on strike action next week after rejecting a 14.5 per cent pay deal tied to shift changes and productivity targets. But a statement confirming the ballot plan yesterday also revealed that the union would not accept wider proposals to reduce the 200,000-strong workforce with 30,000 voluntary redundancies. “We will not do this,” said Dave Ward, the union’s postal deputy general secretary. “It would be signing the death warrant for the entire postal service.”

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GeoPost UK tanking ahead of the rest

Parceline and Interlink Express’ parent company GeoPost UK is investing over £300 000 in upgrading and replacing its fuel tank facilities, in order to meet specifications stipulated in the Control of Pollution (Oil Storage) (England) Regulations 2001 legislation, prior to the September 2005 deadline.

The legislation requires that ‘companies/persons in control of oil ensure that storage tanks are designed to certain specifications and, precautions are taken in preventing pollution of any waters’. GeoPost UK is half way through its three-year plan upgrading all fuel tanks located across its owned depot network

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Deutsche Post's CEO confirms continued intention to crack the US

Deutsche Post’s freshly reiterated expansion plans in the US are encountering fierce resistance from the dominant players in the North American parcel delivery market, UPS and FedEx. But US market forces could present a larger and more difficult hurdle than anything that UPS and FedEx can throw at Deutsche Post in court.

Deutsche Post World Net, the German postal and logistics provider, has pledged to prevent its US competitors from derailing its expansion plans in the US package delivery market. Speaking at a press conference announcing the company’s first-half earnings, Deutsche Post’s chief executive Klaus Zumwinkel said business remained strong despite continued economic weakness in Germany. He also reiterated plans to expand into the US delivery market, in what could be viewed as a message for rivals UPS and FedEx.

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