Year: 2005

Business Post Chief Executive predicts UK Royal Mail will have 80% market share

Paul Carvell, Chief Executive of Business Post Group plc, has predicted that, following liberalisation of the postal market, Royal Mail will retain a profitable 80% share of the UK market. Mr Carvell said that the 20% which the Royal Mail would lose would fall into two categories. Some 15% would probably be shared by four competitors which would provide a nationwide service, and a further 5% would go to city centre specialist deliverers. Speaking today at The Logistics Event conference on the subject of “Competing for the Post”, he said that the UK domestic mail market was worth GBP5.8 billion per year, while the international market was worth a further GBP0.8 billion. Since Business Post had moved its first letter in May 2004, the company had now moved more than one hundred million letters.

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Irish postal unions reject offer to lift freeze on wage increase

An Post has agreed to lift a pay freeze and pay part of the national wage deal to its workers – but the four postal unions have rejected the proposed compromise. After 18 months of growing bitterness, union chiefs cannot persuade their members and post office pensioners to settle for a partial increase.
Both sides were at the Labour Relations Commission (LRC) yesterday to give their responses to a suggestion by two independent assessors that the company, which had pleaded inability to pay, increase wages by 5pc. The full Sustaining Progress pay deal is worth over 13pc cumulative and the 8.1pc balance would be subject to “cost off-setting measures”. As their report is not binding, the issue can now be referred on to the Labour Court. The assessors had recommended the 5pc payment but only back-dated to last January.

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Palletline enters alliance with Hazchem Network

Palletline has entered into a strategic alliance with the Hazchem Network. This will enable its members to remain at the forefront of the industry by joining the first system dedicated exclusively to the distribution of palletised ADR.

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Malaysia’s Khazanah buys 6.3 pct of Pos Malaysia

State owned investment arm Khazanah Nasional Bhd has bought a 6.3 pct stake in Pos Malaysia & Services Holdings Bhd for an undisclosed price, emerging as a new substantial shareholder in the postal company. In a filing to the Exchange, Khazanah said it bought 31.92 mln shares from the open market on June 3. No other details were given.

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Nightspeed wins national industry award for sixth year in a row

For the sixth year in a row, a West Midlands parcel distribution company has won a top security award from the national body that represents the transport management sector.

Tipton based Nightspeed Secure Worldwide Express has won the ‘Secure Parcel Carrier 2005’ accreditation awarded by the Institute of Transport Management. Independent research has shown that loss and damage figures for parcels delivered by Nightspeed Secure Worldwide Express are the lowest in the industry.

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SPECIAL REPORT – FULFILMENT: Receiving end

The tenet that the customer is always right does not seem to have permeated the home delivery sphere, with many packages turning up at unspecified, inconvenient times. But with new entrants raising standards, the old school may be forced to mend its ways. Home shopping may be big business, but it is no longer the sole domain of big businesses, with everyone from Amazon to the local corner shop now offering an online or catalogue shopping experience. But while the rest of the retail world has been moving speedily towards home shopping solutions, it would seem that most delivery companies have been standing still. Home shopping exists to cater for consumers who are too busy to visit the high street, so it should come as no surprise that they may not be able to wait at home all day to receive a package.

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Deutsche Post likely to maintain number of outlets after 2008

German postal services company Deutsche Post AG is likely to keep its current number of outlets throughout the country after the German letter delivery sector liberalisation in 2008, Deutsche Post’s CEO Klaus Zumwinkel said on June 6, 2005.

Currently, Deutsche Post maintains a network of nearly 12,500 outlets in Germany. Zumwinkel expressed confidence that the current collective labour agreement, which expires in 2008, will be renegotiated. He added that the company has so far managed to avoid layoffs, and will stick to the strategy in the future.

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