Year: 2005

An Post defends day-late distribution from Dublin

Half of all post sent in Dublin for national and international delivery does not leave the An Post sorting office the same day, according to the company’s internal figures, writes Olivia Kelly.

Daily records for the Dublin mail centre from September 15th to October 5th, seen by The Irish Times, show that the proportion of post leaving the sorting office the same day regularly slips under 50 per cent.

The Communications Workers’ Union (CWU), which represents postal workers, said the company’s customer service department was receiving up to 1,600 calls each day, and 1,200 of these related to letter delivery.

On September 15th some 1,611,105 items were received in the Dublin mail centre; 835,395 or 52 per cent remained in the mail centre at the end of the day. On Thursday last week, 2,272,040 items were received, with 1,429,765 or 62 per cent still in the sorting office at the end of the day.

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La Poste reveals staff figures for banking arm

La Poste has revealed that its new banking subsidiary Banque Postale will employ around 900 people currently working for the group. Another hundred or so will be drafted from other La Poste subsidiaries and will occupy legal roles. The 900 or so workers coming from La Poste itself will be divided between commercial and management activities. Banque Postale is due to become operational on 1 January 2006.

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Trans-o-Flex gets the go-ahead for TT acquisition

The German CEP service provider Trans-o-Flex Schnell-Lieferdienst GmbH is now definitely in the ownership of TT Tour-Trans. The German cartel authorities recently gave their approval for the takeover. The companies agreed not to disclose the purchase price.

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Broker delivers another setback to Business Post

Business Post was the biggest faller among second-liners yesterday, dropping 10percent and adding to the misery of shareholders who have seen the value of their investment almost halve this year.

Brokers took a knife to expectations after Business Post said profits would come in “substantially lower” than last year. It blamed weakening economic conditions which meant its customers were cutting back, leading to a sharp deterioration in its core businessto-business parcel service.

Daily volumes of its Express delivery side during August dropped below those of the previous year. The company had also had to make a provision of Pounds 3.2 million to cover outstanding payments from franchisees relating to previous years. The group has almost 60 depots, of which 34 are run by franchisees.

Broker Altium was one of those behind yesterday’s fall after slashing its target from 450p to 400p and telling clients it was becoming increasingly concerned that trading and operational issues are likely to get worse.

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Japanese parliament approves postal reform bills

Japan’s parliament approved the privatisation of the country’s postal service Friday, setting in motion the creation of the world’s largest private bank and delivering a crucial victory for Prime Minister Junichiro Koizumi’s reform program.

The package was passed 134 to 100 by the upper house. The vote paved the way for the enactment of the closely watched legislation, since the package was passed overwhelmingly by the powerful lower house on Tuesday.

The bills would split up and sell off Japan Post’s delivery, savings deposit and insurance services by 2017. The system controls some 330 trillion yen (USD2.9 trillion; euro2.42 billion) in savings and insurance deposits.

Koizumi has argued the change, which is the centerpiece of his reform platform, is needed to put the system’s massive deposits at the disposal of private investors. Those deposits had long been used by the ruling party as a fund for wasteful but politically useful public works projects.

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UK Business Post experiences more suffering as trading fears persist

Fears that trading at Business Post Group may have deteriorated since last month’s shock profits warning pulled the FTSE 250 mail operator down a further 5 per cent. At the time of last month’s alert, the company said the rate of decline in volumes in its UK parcel delivery service had slowed from August’s trough. However, Altium Securities remains cautious, suggesting that continued gloom from the retail and technology sectors indicates that the key Christmas period may be poor. Further, Andrew Nussey, analyst, believes there is a risk that selective price rises in delivery charges will not stick as business customers become more cost conscious.

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Dempsey threatens to remove Irish An Post’s monopoly

The Government is threatening to remove the final part of An Post’s letter post monopoly if the Communications Workers’ Union (CWU) goes ahead with industrial action at the troubled State company.

With a ballot already underway for strike action that is likely to disrupt the mail in the busy pre-Christmas period, Government sources said that the Minister for Communications Noel Dempsey was minded to remove the monopoly immediately instead of waiting until an EU directive takes force in 2009.

Such an action would cause severe commercial difficulties for An Post in the long run, as it would free the hand of rival private sector companies to introduce their own mail services in big urban areas.

Despite the difficulties that such action would prompt for An Post, Government sources said the Minister believes that no alternative course is open to him as any intervention in the company’s industrial relations process would be in breach of social partnership.

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UPS set to report higher results, despite fuel costs

Fighting high fuel costs in the air and on the ground, UPS Inc. is still expected to report higher earnings next week when the shipper turns in its third-quarter results.

Analysts expect UPS to earn 86 cents a share, according to a consensus estimate from Thomson First Call. Revenue is forecast at USD10.369 billion. Last year, the company earned 70 cents a share, according to First Call.

Against the backdrop of high fuel prices, competition is not relenting on any front. When rival FedEx Corp. reported its first-quarter results in late September, the company raised its outlook for the fiscal year even though fuel remains volatile.

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