Year: 2006

TNT UK aims for final-delivery business

Orange-clad postal workers are expected to hit the streets next year, putting the state-owned Royal Mail under pressure.
TNT, a subsidiary of the privatised Dutch postal group, says it wants to send postmen and women wearing orange uniforms – TNT’s corporate colour – out to deliver mail to homes and workplaces in selected cities.
The company already handles more than 5 per cent of UK mail, through contracts with business customers to collect and sort their post before handing it overfor delivery by Royal Mail under so-called “downstream access” arrangements.
Nick Wells, chief executive, said the company had adopted a dual strategy of using downstream access while developing its own collection and delivery service.

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Opening up the UK market appears to have been positive for all concerned

One year after the introduction of full competition in the UK’s postal market, everyone appears to be a winner.

Customers are benefiting from record levels of service and big business mailers are enjoying substantial savings in costs.

Eighteen new postal operators have been licensed and have seized a bigger share of the market than the regulator expected, handling more than 10 per cent of the mail.

Royal Mail remains the dominant force in the industry despite losing its monopoly. Its competitors hand over most of the mail to the state-owned operator for final delivery, leaving it with 97 per cent of postal revenues.

Postcomm, the postal regulator, declares itself pleased with the progress made so far. “Royal Mail has really raised its game, especially on quality of service,” says Richard Moriarty, deputy chief executive. “And the competition has brought a range of new business models, with operators offering different ways of doing things, such as later collection times and guaranteed delivery.”

The state-owned operator is on course to meet all 12 of its performance targets for the first time in the 2006-07 year – these require it to deliver 93 per cent of first-class mail on the next working day and 98.5 per cent of second class mail by the third working day. Two years ago, only four of the targets were hit.

The greatest benefits have accrued to the biggest mail users, which include banks, utilities, local councils and charities. Businesses account for 87 per cent of the more than 20bn items sent each year, with 500 companies providing half of all mail volumes.

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Norway Post too slow

A test of Norway’s postal service Posten revealed that their service falls far short of requirements.

Posten’s license conditions demand that they deliver 85 percent of all post by the day after a letter is sent. A recent test of 342 letters showed that the company only manages to get half of letters sent to their destination on time, newspaper Nationen reports.

The newspaper’s test found that one of the letters went missing, one took a week to arrive, and only half made it to their target in Norway the next day.

The Posten’s information chief Robert Morberg had no excuses to offer.

“We apologize. This is not how it is supposed to be,” Morberg said.

Morberg said that the results were due to problems with changes resulting from the company having gone over to using their own freight planes, and that ongoing measures were steadily improving results.

Nationen carried out the test using 19 persons, a combination of mayors and associates of the newspaper, sending 19 letters to each other. Northern counties Finnmark and Nordland had the worst delivery record, with Askim and Oslo posting the best results.

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Postcomm issues new licence to DHL Global Mail (UK) Limited

Postcomm has today issued a new licence to DHL Global Mail (UK) Limited, to come into effect on 1 January 2007. DHL Global is the new name for Mercury International Limited, with the change also taking effect from 1 January 2007.

The licence takes into account the requirements of the new licensing framework that came into force on 1 January 2006.

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DHL continues strong growth performance in Russia

DHL Express Russia continues its strong performance with YTD revenue growth nearly 50% in 2006, with shipment volumes increasing by 30% in the same period.

Our Russia business continues to go from strength to strength; our strategic initiatives are successfully supporting the continued expansion of our business and increasing our market leading position said Mark Jordan, Commercial Manager DHL Express Russia.

DHL Russia reports an expected increase in shipment volumes of more than 30% in 2006, compared to the same period in 2005 and this continues the high growth trend of its business.

DHL Russia continues to expand its domestic road network, connecting key economic and fast growing centres of the country, to provide customers with fast and reliable, door-to-door delivery and supply chain solutions. This also includes direct road linkages with major European countries and cities.

Six new Service Points have been opened in 2006, in Moscow, St. Petersburg and Yekaterinburg. In 2007 we plan to open over 20 new Service Points in Russia’s largest cities, and further invest in excess of EUR 15 million into developing our Service Point network over the next 3 years.

The DHL Express business has shown double-digit growth both in domestic and international business and DHL in Russia expects this strong growth performance to continue.

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