Year: 2005

Bain seeks to end pain at Royal Mail

Posted by | Aug 5, 2005 | |

In his new role as chief Government adviser on Royal Mail, Sir George Bain has broad industry support. But he has his work cut out as critics of pricing in proportion keep up the pressure. Two weeks ago, Alan Johnson, Secretary of State for the Department of Trade & Industry (DTI), raised a few eyebrows by announcing that Canadian-born Sir George Bain would assist ministers with key postal issues. He had been expected to call an independent review of Postcomm’s proposal to open up the market to competition ahead of the rest of Europe.
This week, however, Bain appears to be riding a wave of overwhelming support from the postal sector. A Communication Workers Union spokesman comments: “The Government has clearly recognised that there needs to be a more honest appraisal of Postcomm’s proposals.” It is a sentiment echoed by Institute of Practitioners in Advertising head of direct marketing David Payne: “Postcomm’s actions are significant, and, while Postwatch is doing a great job, there is a need for the Government to oversee key decisions.

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US Overnite investors accept UPS offer

Posted by | Aug 5, 2005 | |

Shareholders of trucking company Overnite Corp. on Thursday overwhelmingly approved a proposed USD1.25 billion acquisition by UPS Inc., the world’s largest package delivery company.

The cash transaction, which values Overnite shares at USD43.25, is scheduled to close Friday. The buyout already has been approved by the Federal Trade Commission.

The combination will expand UPS’ ground transportation in North America. As a result, Atlanta-based UPS will become a top motor freight carrier and will better compete against rivals such as FedEx Corp.

Both UPS and Overnite agreed to the deal on May 15.

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Air India seeks private partnership in cargo business

Posted by | Aug 5, 2005 | |

With plans of roping in a strategic partner, flag carrier Air-India (A-I) is set to begin discussions with air cargo majors, like Federal Express, DHL and UPS. This is apart from the cargo arms of international carriers, like British Airways, Lufthansa and Air France.

The carrier would be looking at two possible options, where it could either float a JV company with equal public-private equity partnership or sell 50 percent stake after hiving-off its Rs 600-crore cargo business into a separate subsidiary.

Confirming the move, the union minister for civil aviation, Praful Patel said to ToI, “A-I’s cargo business can be turned into a big time revenue earning stream. Along with the growth in passenger traffic, primarily driven by economic growth, the air cargo business is turning out to be a lucrative business proposition.”

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UK Royal Mail Offers GBP400 Bonuses

Posted by | Aug 4, 2005 | |

The Royal Mail is to pay postal workers a pounds 400 bonus if profits reach pounds 600m in the current financial year. The “share in success” scheme will include all 195,000 delivery, sorting office and counter staff. Employees were given details of the proposed bonus yesterday, although the Royal Mail warned it faced a “challenging” year as it gears up for full-blown competition. The organization made an operating profit of pounds 537m in the last financial year.

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DHL sees Asia-Pacific surge

Posted by | Aug 4, 2005 | |

DHL’s Asia Pacific revenues grew 19 percent to 1.9 billion euros in the January-June period from a year ago, and the company predicted they would remain strong. DHL, a unit of Germany’s Deutsche Post, has invested 1.4 billion dollars in the region since 2000 to boost its infrastructure and plans to spend more if needed, company officials said in a media briefing. Asia-Pacific is DHL’s fastest-growing region. DHL said the region’s transport market is now worth 700 billion dollars and is expected to top 1.3 trillion dollars by 2020. DHL has regional hubs in Bangkok, Hong Kong, Seoul, Singapore, Sydney and Tokyo. Revenues from Asia-Pacific totaled more than 4.2 billion dollars in 2004. The company also said it has no plans to increase its 5 percent stake in Sinotrans, China’ state-owned forwarder. A 50-year partnership between DHL and Sinotrans’ parent, Sinotrans Group, still has more than 30 years to run.

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Japanese prime minister brings privatisation battle to a head

Posted by | Aug 4, 2005 | |

Postal reform sounds like an unlikely issue to stake a government on, but Japanese Prime Minister Junichiro Koizumi is doing just that.

Now Koizumi’s privatisation campaign is coming to a final showdown, with the future of his government hanging in the balance.

In a bold challenge to opponents in his Liberal Democratic Party, Koizumi wants a quick vote in the upper house of Parliament, likely within days, that could finally settle the battle over privatisation, or force him to call general elections.

Koizumi suggested that a failure of the package could lead him to dissolve the powerful lower house of Parliament.

“If the bill is passed, then the house won’t have to be dissolved, so I’d like everyone to try their best,” he told reporters on Thursday.

Just how high the stakes are in this battle has become apparent in recent weeks.

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UK Royal Mail pledges profits bonus

Posted by | Aug 4, 2005 | |

The Royal Mail has agreed to pay postal workers a GBP400 bonus each if its profits reach GBP600m in the current financial year, its employees were told. The scheme, which will involve all 195,000 staff, follows the GBP1,074 bonus given to each worker earlier this year to reward performance over the three years from 2002-03 to 2004-05.

Announcing details of the bonus, Royal Mail warned it faced a “challenging” year as it gears up for full blown competition in the postal market from January 1. The organisation made a record profit of GBP537m in the last financial year. The government has announced an internal review, starting in September, into the future of the state-owned company, and ministers have signalled support for Royal Mail’s proposals to give an equity stake to employees.

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