Year: 2005

World Mail & Express Americas Conference & Exhibition in Miami addresses future strategies

Two hundred delegates from all sides of the industry met in Miami this week at Triangle’s 3rd World Mail & Express Americas Conference and Exhibition. The overriding conclusion from the event is that there will undoubtedly be more cooperation in the Americas between the public and private sectors in mail as well as in express. Customers’ presentations stressed the need to encourage more innovation from the post offices.

Gabriel Mateescu, Chairman of the Council of Administration of the UPU, discussed the development of the UPU Consultative Committee as several delegates felt that this should be regionalised.

The presentation from Guatemala Post Office highlighted the new business model of government outsourcing the management of a post office. Correos de Chile talked of its successful partnership with TNT.

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UK Mail volumes

The annualized figure of 250m items (quoted in a press release Nov 05) was the rate reported in our 04/05 Accounts. UK Mail has continued to grow considerably since then and the daily figure of 4m items is the current peak volume.

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Telefonica, Moviles win 74.3 mln eur contract from Spain’s Correos

Telefonica SA and Telefonica Moviles SA have won a contract worth 74.3 mln eur from Spain’s state-owned postal operator Correos y Telegrafos to modernize and manage the company’s telephone and internet system, El Pais reported, without citing a source.

The two companies will take 8 months to install the new system which they will manage for four years, the newspaper said.

Of the total investment, 60.4 mln eur will be earmarked for data, voice and internet services while the rest will be for the mobile telephony contract.

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TNT feels heat as ‘break-up’ camp grows

TNT will today come under pressure to make clear its intentions for its struggling logistics division, as analysts ponder the potential sale of the unit or the break-up of the business as a whole. Anticipation has been heightened by TNT’s decision to schedule a press conference this morning, ahead of a briefing for analysts. The company would not comment on either event, but in October promised it would discuss logistics strategy with analysts. Bert van Hoogenhuyze, at Theodoor Gilissen in the Netherlands, said: “Analysts will look for answers on the future of its logistics business. There is so much competition and the unit has not been achieving the returns of five years ago.”
Dresdner Kleinwort Wasserstein said in a recent note on TNT: “The pressure is definitely on. The ‘break-up’ camp is growing.”

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USPS ends year in black and debt free

The US Postal Service reported today it concluded fiscal 2005 with a net income of USD1.4 billion on record revenues of USD70 billion and record volume of 212 billion pieces of mail. “Financially, we are in the best position we’ve been since the 1970s,” said Postmaster General John E. Potter at the December meeting of the Board of Governors. “Despite the strong financial and productivity records of recent years, we are facing a modest increase in postage rates in January.” The January 8, 2006 rate increase was compelled by legislation enacted in 2003 requiring the Postal Service to put aside over USD3 billion each year into escrow beginning in 2006.

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FedEx urges Tokyo to strip Japan Post of operating advantages

FedEx Corp has asked the Japanese government to remove Japan Post’s operating advantages ahead of April when it is scheduled to enter the international distribution market, the Financial Times reported.

In its online edition, the newspaper cited David Cunningham, president of FedEx Asia, as saying all players should compete on an equal and transparent basis.

Japan’s international distribution market has been dominated by the ‘big four’ — FedEx, United Parcel Service (UPS), DHL and TNT – with an estimated 70-80 pct market share.

‘Japan Post currently enjoys many regulatory advantages that inhibit fair competition,’ Cunningham was cited as saying.

Japan Post does not have to pay the fees associated with declaring packages’ contents to customs which private companies must pay, he said.

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UK postal watchdog in Royal Mail legal challenge

Postwatch, the consumer body for postal services, has mounted a legal challenge in London’s High Court over a refusal by Postcomm, the postal regulator, to force Royal Mail to pay millions of pounds of compensation to business customers. The case is being brought as a judicial review challenge, with Postwatch arguing that the regulator’s interpretation of a clause in the statutory compensation scheme has allowed Royal Mail to undercompensate users of bulk mail services by up to Pounds 35m. “There is no doubt that in the financial year 2003-4, the first year for which the scheme applies, Royal Mail failed to meet any of the quality of service targets under their licence,” David Pannick QC, representing Postwatch, said yesterday. “We estimate that what would otherwise be compensation of Pounds 70m for the aggrieved customers of the inadequate service has been reduced to compensation of Pounds 35m by reason of the disputed interpretation adopted by Postcomm.”

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French post changes its image

La Poste, the French post office, has decided to update its image with what it calls a more dynamic and contemporary logo. According to the organisation’s Marketing Director, Vincent Relave, the new logo better reflects La Poste’s position and ambitions in society. It has cost La Poste EUR 70,000, plus EUR 10m for an advertising campaign which begins at the end of the month.

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