Amtrak Express Parcels looks to a bright future under new ownership
Amtrak Express Parcels looks to a bright future under new ownership
Read MoreTag: Amtrak Express Parcels
British CEP market consolidates further
The fragmented British courier, express and parcels market looks set for a new wave of consolidation following this week’s GBP 210 million acquisition of independent parcels carrier Target Express by Rentokil Initial, parent holding of leading player City Link. The deal makes City Link into a top competitor to DHL, TNT and UPS in the domestic next-day parcels market.
Growth in Europe’s second-largest express and parcels market has slowed over the last year, especially in the domestic sector. The market is forecast to grow only moderately at about 3% over the next few years. At the same time, the traditionally fierce price-based competition in Britain and higher operating costs, especially fuel costs, have combined to put pressure on profit margins. These factors have hit smaller, domestically-focused companies in particular, and opened up new opportunities for mergers and acquisitions.
There have already been several important transactions in the UK in recent years. UPS improved its domestic market position with the acquisition of Lynx Express last year, while Amtrak Express Parcels broadened its portfolio through the takeover of Nightspeed. DHL had earlier jumped to become market leader with the acquisition of the Securicor Omega Express business, while GeoPost had acquired Parceline and Interlink Express.
Read MoreAmtrak's Government Mail Partnership Takes Off
Amtrak Express Parcels is set to deliver millions of packages for the government following the launch of a new mail service aimed at the thousands of Government departments and offices around the country.
Government Mail is the result of a partnership between Amtrak and The Government Car and Despatch Agency (GCDA). The new nationwide service gives Government direct access to a network of 100 delivery centres and 2000 vehicles providing next day delivery of documents and parcels.
Government Mail builds on a distribution service first established during the Second World War to carry mail between Government departments. Government Mail offers a true one-stop-shop solution to meet all of the varied collection and delivery requirements of Government and the wider public sector.
Part of the Department for Transport (DfT) Government Mail will be providing next day delivery to destinations nationwide. Through the partnership with Amtrak, Government can now single-source all mail and parcel requirements, reduce costs and improve efficiency.
Read MoreAmtrak secures government parcel distribution deal
Amtrak Express Parcels, the franchised overnight parcels network, has formed a partnership with Government to deliver mail and parcels nationwide on behalf of government departments, agencies and associates. Part of a five-year contract with the Government Car and Despatch Agency (GCDA), Amtrak will be providing a full range of next day services.
The GCDA’s InterDespatch Service (IDS) already provides distribution and mail related services for government and the wider public sector; mainly carrying mail between different government agencies and departments. The Amtrak partnership will allow IDS to expand its services to meet all of the nationwide delivery requirements of government as part of a new one-stop-shop service.
UK Amtrak Boosts Turnover to the GBP100 Million Mark With Nightspeed Integration
Amtrak Express Parcels has completed the integration of Nightspeed, the overnight parcel carrier that it acquired in 2005. With the amalgamation of all of Nightspeed’s depots into an expanded Amtrak network, it is the first time in the UK that two parcel networks have been integrated. The move has seen Amtrak increase its turnover to GBP100 million, add 8500 customer accounts and secure jobs within the industry.
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