FedEx has announced the opening of Nanjing subsidiary aimed to further strengthen the presence in Eastern China. The new company, located in Jiangning Development Zone in Nanjing City, covers a plot of land as large as 2,340 square meters. Its operating station is composed of professional import & export sorting and picking system, storage area, and operation sector and it is able to handle nearly 1,000 parcels every hour at the fastest speed.
Read MoreEven as the department of posts is trying to take shelter of a constitutional amendment to ward-off competition and stay afloat, its foreign counterparts in countries such as Japan, United States, UK, Canada, Germany, Australia, and New Zealand, are multi-billion dollar corporations that give a run for their money to private players such as Fedex, UPS and TNT in their markets. In contrast, DoP managed less than a billion dollar (Rs 4,500 crore) in revenue during ’04-’05 and its losses are mounting every year. Worse, DoP revenues are stagnating, while its private competitors such as Blue Dart, First Flight and Overnite Express are growing in leaps and bounds. So what’s ailing DoP? The biggest issue seems to be that of financial accountability.
Read MoreChina’s post and telecommunications sector posted 169.2 billion yuan (21.1 billion U.S. dollars) in revenue growth in the first quarter, up 11.8 percent year on year.
A Ministry of Information Industry statement said postal revenues totaled 15.83 billion yuan (1.98 billion U.S. dollars) for the quarter, up 13.7 percent, while telecommunications revenues stood at 153.43 billion yuan (19.18 billion U.S. dollars), up 11.6 percent.
Read MoreDHL announced its China Priority strategy in Beijing, a move coming as the country, with a growth rate of 50-60% in 2004, has become the fastest-growing market among DHL’s global networks. Deutsche Post World Net (DPWN), parent company of DHL, will further elevate DHL’s capacity in China through heavier investments, revealed DPWN chairman Dr. Klaus Zumwinkel. Under the strategy, DHL-Sinotrans, its China joint venture, will inject up to USD 24 million in constructing the DHL-Sinotrans building as one of several big steps, bringing DHL’s total investment in the Greater China region to more than USD 900 million.
Read MoreThe government is contemplating action against private courier companies for bringing international post in the country illegally and delivering them as domestic post, depriving the Department of Post of terminal dues. According to senior officials in the Department of Posts, the courier companies have been routing international posts illegally as domestic ones, creating a similar situation to one existing in telecom sector in the internal call segment. Although DoP officials declined to give any estimates of illegal posts entering the country, informed sources said it could run between Rs 10 billion (USD221 million) to Rs 15 billion.
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