Year: 2006

Bush expected to sign postal reform bill tomorrow

Posted by | Dec 19, 2006 | |

President Bush is expected to sign the postal reform bill tomorrow.
Marketers can now look forward to smaller postage rate increases from the U.S. Postal Service in the coming years.
Unlike past years when some mail categories saw 25%-30% rate hikes, the new law links postage rate increases to the Consumer Price Index.
Because of this, marketers might want to plan for smaller postage increases in the 4%-5% range every year, similar to FedEx and UPS.
It’s expected that the higher rates will take effect May 6, 2007.
Postal officials will be able to set new postage rates much faster once the law is in place. The law transfers responsibility of pension benefits earned by postal employees when they were in the military to the U.S. Treasury Department. This will free up USD27 billion that the Postal Service would have had to fund. After 10 years, the Postal Regulatory Commission will be allowed to modify the price cap or adopt an alternative rate system if deemed necessary.
The PRC gains the power to subpoena Postal Service records to ensure that the agency is in compliance with the law and that the interests of the mailing public are being protected.

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FedEx acquires UK Express Company ANC

Posted by | Dec 19, 2006 | |

Strategic Purchase Offers Customers Broader, More Seamless Range of Services.

FedEx Corporation today announced it has acquired ANC Holdings Limited, a United Kingdom domestic express transportation company for GBP120 million. This transaction will allow FedEx Express, an operating unit of FedEx Corp., to directly serve the entire UK domestic market, providing a broader range of shipping options and enhanced service under the trusted FedEx brand.
ANC offers a comprehensive range of distribution and logistics services with an established pick-up and delivery network across the UK. Founded in 1981, ANC has annual revenues of more than GBP145 million and is known for its strong customer-service philosophy, its advanced, reliable delivery network and commitment to its employees. ANC currently operates with a network of approximately 4,500 people and a fleet of 2,200 vehicles from 80 locations.
“The addition of ANC significantly expands our service portfolio in the important UK market and underscores our continuing commitment to grow the FedEx international business,” said Michael L. Ducker, president, International, FedEx Express. “This strategic investment enhances FedEx in the global express industry and will deliver additional value to our customers, employees and shareowners.”

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FedEx acquires UK express company ANC

Posted by | Dec 18, 2006 | |

FedEx Corporation today announced it has acquired ANC Holdings Limited, a United Kingdom domestic express transportation company for GBP120 million. This transaction will allow FedEx Express, an operating unit of FedEx Corp., to directly serve the entire UK domestic market, providing a broader range of shipping options and enhanced service under the trusted FedEx brand.

ANC offers a comprehensive range of distribution and logistics services with an established pick-up and delivery network across the UK. Founded in 1981, ANC has annual revenues of more than GBP145 million and is known for its strong customer-service philosophy, its advanced, reliable delivery network and commitment to its employees. ANC currently operates with a network of approximately 4,500 people and a fleet of 2,200 vehicles from 80 locations.

UK businesses increasingly demand bundled transportation offerings in order to take advantage of global economic trends, such as the increasing percentage of high-tech, high-value manufactured goods, the growth of global trade, faster supply chains and logistics and the growth of the internet and e-commerce.

ANC management will remain in place and report directly to Elliott. As part of the transaction, ANC shareholder LDC – the private equity division of Lloyds TSB Group plc – will exit its investment.

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ErgoGroup buys SYSteam

Posted by | Dec 18, 2006 | |

Norway Post-owned ErgoGroup has today signed a contract to buy more than 90% of the shares in SYSteam’s operations in Sweden, Norway, Finland and Denmark. The remaining shareholders will receive an offer to sell their shares in the company to ErgoGroup. The total purchase price will be MSEK 1,100
SYSteam is the biggest IT company in Sweden’s SME market and the combined SYSteam/ErgoGroup will be a clear market leader as an IT service provider to the Nordic SME market.

SYSteam is owned by Bure Equity AS, which holds 46.2% of the shares, and by three founders (Arne Nilsson, Claes Rosengren and Stig-Olof Simonsson) who hold a total of 43.8% of the shares. The approximately 350 employees own the remaining 10%. Following negotiations with SYSteam’s main shareholders, ErgoGroup has bought more than 90% of the shares and hereby announces that it will make the mandatory offer to buy the remaining shares in the company. ErgoGroup thus wishes to acquire all of SYSteam’s operations in Sweden, Norway, Finland and Denmark with effect from 1 January 2007. The value of this transaction is MSEK 1,100.

The operations that are now being taken over by ErgoGroup comprise a portfolio of around 3,800 customers, are expected to achieve revenues of MSEK 1,400 in 2006 and have around 1,030 employees in around 50 offices in the Nordic region.

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John Beystehner to Retire as UPS’s Chief Operating Officer

Posted by | Dec 18, 2006 | |

UPS today announced the retirement of John J. Beystehner, the company’s chief operating officer, president of UPS Airlines and a member of the UPS Board of Directors.
The company also announced the election of Chief Financial Officer Scott Davis to the additional position of vice chairman, effective immediately. Davis currently is responsible for all activities related to accounting, auditing, finance, financial planning, taxes and treasury. He was elected to the UPS Board of Directors in February.
Beystehner, UPS’s chief operating officer since 2004 and one of three active employees on the company’s Board of Directors, will step down from both positions on Jan. 2, 2007. A successor to Beystehner as COO will be named at a later date.
Davis, 55, joined the company in 1986 when UPS acquired II Morrow, an Oregon technology firm that Davis served as CFO and then CEO. Beginning in 1991, Davis held positions of increasing responsibility as accounting manager and treasury manager. In 2000 he was named vice president of finance and then joined the UPS Management Committee when he assumed his current position in 2001.

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UK TNT expansion programme continues apace

Posted by | Dec 18, 2006 | |

TNT is continuing to drive through an expansion programme designed to strengthen its strategic infrastructure and enhance its customer service levels across the UK and Ireland.

The programme, spanning an 18-month period stretching into the first half of 2007, has already seen TNT Express Services open a National Customer Contact Centre, three new depots, a fashion clothing distribution centre and a state-of-the-art archiving facility, creating in excess of 700 new jobs.

It began when the company bucked the trend for transferring customer call centres overseas when it delivered 240 new jobs in the North East by opening a sophisticated customer help centre at Team Valley, near Gateshead.

New operational depots in the North West of England and Scotland, namely Preston, Glasgow and Liverpool are, and will be, providing an additional 300 new roles in the fast moving, time sensitive world of express delivery.

In the Midlands, TNT opened a 700,000 square feet warehouse as part of a long-term agreement with high street clothing retailer, Primark. The new and extended clothing distribution centre is expected to create up to 250 new jobs.

The second phase of the programme will see new and upgraded depots established in South Wales and Northern Ireland during 2007.

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Lockheed Martin delivers last automated package processing system to the US Postal service

Posted by | Dec 18, 2006 | |

Lockheed Martin has completed the deployment of 74 Automated Package Processing Systems (APPS) to the U.S. Postal Service under a more than USD300 million contract awarded in 2002.

APPS provides the Postal Service with a fully integrated, end-to-end system capable of automatically sorting high volumes of First-Class packaged mail, Priority Mail envelopes and parcels, and bundled mail, such as magazines or catalogs, with greater efficiency and higher accuracy. The system is capable of processing more than 9,500 packages an hour while automatically reading machine printed or handwritten addresses.

“Our system offers a modular and scalable solution, and is customizable for each site’s needs, which maximizes the return on investment for the program,” said Brian Tanton, vice president and general manager of Lockheed Martin Distribution Technologies.

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Deutsche Post's Appel sees service division saving 400-500 mln eur by 2009

Posted by | Dec 18, 2006 | |

Deutsche Post AG’s new service division will bring about savings of around 100 mln eur this year and 400-500 mln eur per year by 2009, management board member Frank Appel told Frankfurter Allgemeine Zeitung.

‘By 2009 this division will cut the company’s costs by 400-500 mln eur annually,’ Appel said.

Meanwhile, ver.di secretary Wolfgang Abel told daily Hamburger Abendblatt that the trade union expects Deutsche Post’s planned consolidation of its parcel and mail operations will result in 800-1,000 job cuts.

He added that the cuts will mostly effect administrative and executive positions.

Deutsche Post did not confirm the trade union’s figures, however a spokesman said that there will be job cuts, the newspaper reported.

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