Deutsche Post World Net unit DHL said it will spend about 24 mln usd to set up a flagship headquarters for the express operations of its joint venture with China’s Sinotrans. DHL said in a statement that the investment in the new Beijing headquarters, to open in 2007, will push the commitment it has made to Greater China operations in recent years to over 900 mln usd.
Read MoreTNT is expected to complete acquisition of HOAU Logistics Group by the end of this year. TNT is buying HOAU Logistics, the biggest freight & parcels operator in mainland China, for USD 135 million, which is much higher than estimated CNY 900 million. The acquisition price was disclosed by Tian Yu, director general of the Jiamusi Municipal Merchants Bureau, at Heilongjiang Provincial Merchants Promotion Conference. However, TNT says any detail shouldn’t be disclosed now that it is in the process of acquisition at present. Ken McCall, CEO of TNT China, told journalists that TNT will increase its Chinese employees to 12,000-14,000 from existing 4,000-5,000 upon the completion of the acquisition.
Read MoreThe largest postal network in the world, with over 1.55 lakh post offices, will soon reinvent itself if the Department of Posts (DoP) has its way. In a major reform in the postal services, the DoP is considering a proposal to extend postal facilities through a franchising scheme. Under the Universal Service Obligation, the department has to ensure that rural and far-flung areas are not denied access to postal services. DoP has over 89% of its offices in the rural areas. Post offices in the rural areas are incurring losses more than the permissible levels. In the urban areas, where a minimum of 5% profit is required as per norms, over 50% of the single and double-handed offices are incurring losses. To reduce deficit, the department plans to increase access to postal services. It wants to do this by franchising out its postal outlets. It will begin with a pilot project to assess the impact, sources said.
Read MoreThe archaic Indian post office is in for a major image makeover. The boring distribution counters selling postal stamps; inland letters will soon be transformed into financial service hubs. At the core of what’s going to be known as postal financial marts will be a full-fledged bank, that will exploit India Posts’ Rs 4 lakh crore worth public savings.
Read MoreA government panel on privatization of Japan Post approved Wednesday the postal entity’s plan to invest in an air cargo joint venture to be set up by All Nippon Airways Co., Nippon Express Co. and Mitsui O.S.K. Lines Ltd., panel members said. This will pave the way for the joint venture, ANA & JP Express Co., to begin logistical operations in August between Japan and China after the Ministry of Internal Affairs and Communications will endorse the approval as early as later this month. Japan Post, which is due to be privatized over a 10-year period starting in October 2007, is seeking to make international logistics services as one of its main revenue sources, considering its weak earning power in conventional postal services.
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