Tag: Canada

TNT Logistics North America to operate distribution centres for Michelin in United States and Canada

Michelin North America has signed a six-year, multi-million dollar agreement with TNT Logistics North America under which TNT will operate Michelin’s network of tire distribution centers in the United States and Canada. The agreement builds on a successful relationship that began in 1995 with TNT Logistics delivering value-added logistics services to Michelin Group’s operations in the United Kingdom.
TNT is expected to begin operation during the week of Aug. 5, 2002, of Michelin North America’s network of approximately 7-million sq. ft. of distribution centers in 18 locations in the United States and Canada. Michelin North America’s distribution in Mexico is already outsourced to different providers.

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Purolator Courier (Canada) Eyes U.S. Market

Purolator Courier Ltd., the dominant Canadian overnight courier company, is setting its sights on becoming a much bigger player in the United States, says president and chief executive officer Robert Johnson. Purolator, almost entirely owned by Canada Post, is in the process of plotting a growth strategy that would carry it far beyond its current $50-million in annual U.S. revenue, Mr. Johnson says. By pursuing niche businesses in the U.S. market, it will avoid butting heads directly with archrivals United Parcel Service of America Inc. and FedEx Corp., which have often complained about the role of Canada Post, a Crown corporation, in the courier business in Canada.

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Canada Post not subsidising courier

Contrary to UPS’s assertion in your July 8 article “UPS browned off with Canada Post,” the decision in Europe requiring Deutsche Post to repay some $840 million to the German government for using monopoly profits and state aid to subsidize its commercial courier operation is interesting but has no “significant adverse implications for Canada Post.”

Simply stated, Canada Post does not use its letter-mail network to subsidize its courier business. In fact, the Competition Bureau of Canada has twice thoroughly reviewed the issue and found no evidence to indicate that Canada Post engaged in cross-subsidization, and this is also certified every year by independent auditors.

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Canada Post next for United Parcel

United Parcel Service Canada Ltd. has delivered a new shot at Canada Post, emboldened by a European Commission decision forcing Deutsche Post to repay about $840 million to the German government for using monopoly profits and state aid to subsidize its commercial courier operation.

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Canada Post Corporation and CGI establish new IT services company

Canada Post Corporation and CGI Group Inc.
(NYSE: GIB; TSE: GIB.A) (CGI) today announced the signing of a shareholders’
agreement which finalized the terms and conditions of a new jointly-owned
information technology (IT) services company, with Canada Post Corporation as
the majority owner with 51% and CGI owning 49%. The company, plans for which
were announced in September 2001, will provide all IT services, including e-
business solutions to The Canada Post Group as well as to other postal
organizations worldwide.

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