Year: 2005

UPS stays committed to its networks

US global integrator will not be following TNT’s example in quitting logistics.
Announcing its decision largely to withdraw from logistics next year, TNT said earlier this month it had concluded the group’s strength lay in ‘designing, implementing and running delivery network businesses’. The implication was that the majority of TNT’s logistics activities were not ‘network’ operations. In contrast, rival global integrator UPS apparently remains committed to developing its worldwide logistics business as very much a network-based activity. That certainly was the picture painted by Ian Chong, European director of strategy for the US company’s UPS Supply Chain Solutions division when he outlined his organisation’s thinking on that issue after the TNT announcement. ‘In our world, logistics is a network service,’ he said. ‘That is the main focus for us now and has been from day one.’ By that, he confirmed, he meant that a large percentage of the product handled by UPS SCS was routed through the parent company’s package and freight networks.

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New Non-Executive Director for UK Royal Mail Board

Helen Weir, Group Finance Director of Lloyds TSB, is to be appointed a non-executive member of Royal Mail’s board, it was announced today. The move was warmly welcomed by Royal Mail’s Chairman, Allan Leighton, who said: “I am delighted Helen is joining us. Her breadth of senior financial and operational experience will strengthen Royal Mail’s board and be an asset to the company as it tackles the challenges of competing in a market opening to full competition on January 1.”

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EU to approve creation of French postal bank

The European Commission will approve on Wednesday the creation of a new entity which will regroup the banking activities of France’s La Poste, said a source close to the case. The commission, which has been examining the case for several months, will only give its ‘partial’ approval, the source said, as Brussels can only give a general green light, but leave other issues untouched, such as the ‘Livret A’ savings account distribution monopoly which La Poste has with the Caisses d’Epargne.

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TNT appoints van Dalen as CFO

TNT, the Dutch post group that is selling under-performing logistics operations and is shadowed by a tax probe, announced yesterday that it had hired a chemicals industry veteran as chief financial officer. The mail group named Henk van Dalen, managing board member responsible for finance at DSM, the speciality chemicals and life science company, to succeed Jan Haars, who leaves TNT on March 31. Mr van Dalen has spent his entire 29-year career with DSM, which started life as a state-owned mining company. He joins TNT at a time of unusual turbulence for the post and parcel group.

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Royal Mail faces setback on staff share ownership

Royal Mail’s hopes of persuading ministers to back its plans for employee share ownership will suffer a setback next week when a committee of MPs declares it is unconvinced by the scheme. The Commons trade and industry committee, which publishes on Tuesday the findings of a long inquiry into postal market liberalisation, is expected to be dismissive of the chairman Allan Leighton’s proposal. The state-owned postal operator, which faces full market liberalisation from January 1, wants to offer employees tradeable shares in the business, but has encountered fierce opposition to the plan from trade unionists and Labour MPs.

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SNAS/DHL signs with top Saudi bank to extend express and logistics network

SNAS/DHL and the National Commercial Bank (NCB) recently held an official opening for the new state-of-the-art mailroom located in the Bank’s headquarters. Under the terms of the agreement SNAS/DHL’s express and logistics services will support the operations of the bank’s branches, ensuring the network operates seamlessly throughout the Kingdom and that customers receive the same quality of service regardless of their location. A tie-up has existed between SNAS/DHL and NCB for more than 25 years but the latest deal puts the seal on a multi-phased agreement to extend the partnership. The initiative to incorporate NCB’s branches into the agreement marks the final phase of a project that began in 1980 to utilise SNAS/DHL’s expertise to transform the scope of the bank’s services.

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Dutch TNT and Pirelli Tyres Australia sign contract

TNT NV has won a three-year contract from tyre maker Pirelli Tyres Australia (PTA) for the provision of logistics services to Pirelli Tyres, TNT said on December 16, 2005. No financial details of the deal were provided. Under the contract, TNT’s unit TNT Logistics will provide services to Pirelli Tyres’ Australian customers from a central warehouse in Sydney and regional distribution centres in Melbourne, Adelaide and Brisbane.

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Correos de Chile back on its feet

Between 1998 and 2003, the situation of the state postal group Correos de Chile was a precarious one as private postal services started up and robbed it of market share. However, Correos de Chile appears to have turned the corner: according to general director Jose Luis Mardones, last year the group managed to stabilise business and then push on to a 10% rise in sales (30% in its packages segment) aided by the national economic climate. In 2005, Correos Chile’s turnover should be around US$115mil. The packages segment was worth 7% of business a few years ago but has now doubled; the firm expects it to do just that all over again by 2009 to reach 30%.

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