Royal Mail a global also-ran, claims rival
Royal Mail has left it too late to become an international business, the chief executive of its main rival said yesterday.
Peter Bakker, head of TNT, the Dutch postal business, said that it would be difficult for Royal Mail to catch up after years of expansion by other operators such as his own company, Fed-Ex and DHL.
Royal Mail has one international business, a European parcels operation, while its rivals are active across large parts of the world.
TNT said yesterday that it would accelerate its moves into developing markets such as China, India and Brazil. The group, which now deals with one billion items of UK mail a year, believes that it can provide infrastructure and mail services as the postal market develops on the back of strong industrial growth. Last year, international businesses contributed 75 per cent of TNT’s EUR10 billion (GBP6.7 billion) revenues.
Royal Mail hit back, saying there was not as much competition in comparable countries as there was in the UK, where the market was fully liberalised.
Mr Bakker also gave warning that TNT could quickly double its UK market share if Royal Mail lost its VAT exemption. The European Commission is investigating whether it is permissible for incumbent mail operators to be exempted from VAT by their governments when rivals have to charge the tax.
Mr Bakker said that TNT would be able to secure more lucrative contracts if it were able to compete on level terms with Royal Mail.
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