Year: 2007

FedEx contract update

Business Post Group plc announces that, further to its statement on 18 December 2006 regarding FedEx Corporation’s intention to terminate the Group’s contract as its Global Service Participant in the UK, the terms of that termination have been satisfactorily agreed. The contract will now terminate on 30 April 2007 with the people and dedicated assets related to the contract and associated costs being transferred to FedEx. This early termination avoids the potential for an increasingly unprofitable run-down of the contract over the full term of the original notice period.
In the year to 31 March 2007 the FedEx contract will generate revenue of approximately GBP19m, and a profit contribution of some GBP2m. Business Post will incur an exceptional cost in the current financial year of some GBP1m relating to contract exit costs.
Guy Buswell, Chief Executive of Business Post, said:
“We are pleased to have reached an agreement with FedEx. We wanted this early termination to allow us to focus our resources immediately on the development of the new, longer term opportunities now open to the group,”

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Kris Pawelus has become the new director of business development at Fiege Polska

He possesses over 15 years of experience in contract logistics. Pawelus graduated from Antwerp University in German philology. His professional career began in TNT Worldwide Express in Belgium in 1990, where he took the position of customer-service specialist. From 1995 he joined the team of Danzas Eurocargo and after moving to Poland, he was involved in establishing Danzas on the Polish market. After the merger of Deutche Post World Net with DHL, Pawelus became a senior business development manager and coordinated the company’s development strategy within the CEE region

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CR-UK to encourage public to join forces

Cancer Research UK (CR-UK) is launching an integrated campaign, including nearly 18 million door drops, to support its ‘Lives Back’ campaign.

A total of 17,848,916 door drops will be sent out as part of the campaign in a series of five deliveries, the biggest of which (7.6 million packs) takes place on 12 February. Postal sector rankings have been used to identify the most responsive sectors and radio spots will contain a ‘Look out for your mailpack’ call to action.

Anthony Newman, direct marketing director at CR-UK, said the ‘Lives Back’ campaign “marks a new direction for the charity’s marketing activity. We hope that it will motivate people to help beat cancer together”.

Cancer Research UK launched in 2002 after the merger of The Cancer Research Campaign with Imperial Cancer Research Fund. It now has more than half a million regular UK donors and in 2005-06 spent GBP 257m on scientific research into the disease.

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UPS Chairman to chair Hands on Network Corporate Service Council

Michael Eskew, Chairman and CEO of UPS, will succeed Bob Nardelli, former chairman, president and CEO of The Home Depot, as the next chairman of the Hands On Network Corporate Service Council, an alliance of more than 65 CEOs from leading corporations and civic organizations who are changing the face of corporate volunteerism in America. Nardelli has served as chairman of the Corporate Service Council since its launch in early 2005.

“UPS has long been a leader and change agent in support of effective engagement of volunteers, and we are thrilled to elevate our already established relationship with UPS by engaging Mike Eskew to lead the Council through its next phase of growth and impact,” said Michelle Nunn, co-founder and CEO of Hands On Network. “We would like to express our heartfelt thanks to Bob Nardelli for his tremendous leadership of the Council and his ongoing support of Hands On Network. Bob has been a truly amazing personal champion of service and an incredible advisor to us, setting a high bar in terms of his commitment and willingness to contribute his own “sweat equity.”

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New DHL Logistics location in Ludwigsau

DHL Exel Supply Chain is constructing a new distribution centre for mail-order customers in Ludwigsau near Bad Hersfeld (Germany). The centre will deliver to customers in Germany and Europe starting summer 2007. Construction is expected to start at the beginning of February this year.

The new distribution center will be operated by DHL subsidiary GPL a mail-order logistics company handling bulky and transport-sensitive goods. GPL has belonged to the contract logistics division of DHL since 2005 and has been under the umbrella brand of DHL Exel Supply Chain since the beginning of the year.

The logistics center will replace the previous property, located in nearby Bad Hersfeld. Its lease contract will end in summer. The business in Bad Hersfeld as well as the employees will be transferred to Ludwigsau.

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Singapore Post ups profits prior to liberalisation

Singapore Post has unveiled higher profits for the third quarter and the first nine months of its 2006/07 business year. The profitable company faces full competition in its lucrative domestic market within the next few months.

The Asian postal operator announced that its Q3 net profit increased 3.9% to USD34.2 million (euro17.2 million). Its operating profit improved by 6% to USD43.3 million on revenues up 3.5% to USD111.8 million.

Over the first nine months ending December 31, 2006, SingPost improved its net profit by 9.4% to USD101.6 million. The operating profit rose by 11.8% to USD127 million, while revenues were up 5.1% to USD323.4 million.

SingPost said that its mail business increased both operating profit and revenue in the third quarter, while logistics revenues benefits from higher contributions from Speedpost, the international express services operated in a joint venture with DHL Express. Cost reductions measures also generated profit growth.

Lau Boon Tuan, Group CEO of SingPost, commented: “In the third quarter, we further leveraged our retail network for growth, collaborating with our business partners to offer more value-added services and products including PostREALTY service and unit trusts.

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Singapore to liberalize market for basic mail services

Singapore will fully liberalize the city-state’s postal sector by opening the market for basic mail services, the government said Monday.

Singapore Post Ltd. will no longer have exclusive access to the segment — which includes the collection and delivery of letters and postcards within, into, and out of the country — when its license expires in March, Minister of Communications, Information, and the Arts Lee Boon Yang told reporters.

“We have had expressions from various postal service providers that they are interested in entering this sector,” Lee said. “At what level they are keen on entering or interested in participating we cannot say for sure at this instance.”

The market for express mail, printed matter and parcels is already liberalized.

Basic mail services make up about a fifth of the annual revenue generated by Singapore’s postal services sector — which was about 1 billion Singapore dollars (USD650 million; euro 503 million) in 2004, Lee said.

Total mail volume has grown at about 2 percent a year since the 1990s, he said.

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Postal Service again honored as most trusted government agency

For the third year in a row, Americans have rated the U.S. Postal Service as the number one agency they trust to protect their privacy. Not only did the Postal Service retain the top spot, customer satisfaction and trust scores increased from the previous year, a national study shows.

Ponemon Institute LLC published its “2007 Privacy Trust Study of the United States Government” during National Consumer Protection Week. The study sought to understand the level of confidence Americans have in the many government agencies that routinely collect and use the public’s personal information.

The Postal Service retained the top spot with a privacy trust score of 83 percent. It also is one of the few federal agencies able to increase its customer satisfaction and trust scores. The average trust score among the 60 agencies surveyed was 47 percent.

“For more than two centuries, the Postal Service has honored its fundamental commitment to protect the privacy and security of customers’ personal information,” said Delores Killette, Postal Service vice president and consumer advocate. “We have built a strong tradition of trust with our customers regarding how we handle mail and personal information.”

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