Tag: Courier/Express/Parcels

Postal dept's FDI move fails to deter foreign investors

Posted by | Nov 6, 2006 | |

The postal department’s proposal to cap foreign direct investment (FDI) in courier services and make small parcels and letters the monopoly of India Post has failed to deter the interest of foreign investors in this booming sector.

While the Overseas Courier Services Company of Japan has firmed up plans to invest here, existing foreign players like Fedex and DHL are also pumping in additional investments.

Overseas Courier Services of Japan recently won the Foreign Investment Promotion Board (FIPB) nod to invest in the country on condition that the clearance would be subject to government’s policy decisions on the sector.

Fedex is now pumping USD30m more through an acquisition to beef up its business here while DHL is planning significant investments in the next couple of years. It is expected that other international players would also take interest since the current signal from the government is that there is no going back on liberalising this sector. Confusion had arisen over FDI in courier services after the postal department proposed that foreign investment ceiling in the sector should be brought down to 49% from the existing level of 100%.

Citing India Post’s universal service obligation (USO), the postal department had called for an amendment to the Indian Post Office Act to give exclusive rights to the government-owned service for carriage and delivery of letters all across India.

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TNT completes sale of logistics division

Posted by | Nov 4, 2006 | |

TNT N.V. announces that it has completed the sale of the logistics division to affiliates of Apollo Management, L.P., a leading private equity firm with offices in New York, London and Los Angeles. With the completion of this transaction, Dave Kulik will become CEO of the new Company and therefore resigned from the TNT Board of Management. The now completed sale to Apollo was announced on 23 August 2006. On 29 September 2006 the shareholders’ meeting approved the transaction and on 24 October 2006 the European Commission granted clearance under the EU Merger Regulation. The total transaction value is euro 1,480 million on a cash and debt free basis, of which approximately euro 15 million has been received in the form of a 5% equity stake in the new company.

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FedEx Express to increase net average shipping rates 3.5 percent in 2007

Posted by | Nov 3, 2006 | |

FedEx Corp. will increase the net average shipping rate for FedEx Express by 3.5 percent, which is composed of a 5.5 percent average increase in standard list rates, offset by a 2.0 percentage point reduction in its fuel surcharge. The new rates will be effective Jan. 1, 2007 and apply to U.S. domestic and U.S. export express package and freight shipments.

The fuel surcharge also now will be levied on some transportation-based surcharges such as Residential and Delivery Area surcharge for all domestic shipments and for those U.S. export and U.S. import FedEx Express shipments paid by U.S. payers.

Additional changes will be made to other FedEx Express surcharges effective Jan. 1, 2007. The details of these surcharges will be available on fedex.com by Nov. 10, 2006.

FedEx also will add a new dimensional weight system for oversized, large FedEx Ground shipments. If the dimensional weight is greater than the actual weight, dimensional weight will apply to FedEx Ground shipments that are three cubic feet (5,184 cubic inches) or greater. A FedEx Ground dimensional weight customer aid will be available on fedex.com to assist customers. This will be effective Feb. 5, 2007.

FedEx Ground rates also will increase for 2007. These changes will be announced later this year.

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UPS Trade Direct comes to Japan

Posted by | Nov 3, 2006 | |

United Parcel Service Inc. has begun its first inbound Trade Direct service in Asia.
The Atlanta-based package shipper has debuted its UPS Trade Direct service inbound to Japan, making the service available from 50 origin countries in North America, Europe and Asia. The Japan service is the first Trade Direct inbound lane to be opened in Asia by UPS.

UPS Trade Direct is an international freight service that combines air or ocean freight transportation and customs clearance with package and less-than-truckload service for final delivery. UPS said the service offers faster transit and the ability to bypass traditional warehouses and distribution centers because shipments can go directly from airplane or ship into the local UPS delivery network. UPS introduced the service in 2002.

Trade Direct Air will serve the inbound Japanese market through Osaka and Tokyo, where UPS has daily flights from Anchorage, Alaska; Shanghai, and the UPS Asia Pacific air hub in the Philippines. Trade Direct Ocean will flow through the ports of Kobe and Tokyo. Within Asia, Trade Direct Air will be available from 25 air gateways across 12 countries and Trade Direct Ocean will be available from 27 ocean ports in 11 countries.

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FedEx buys out local franchisee for USD30 mn

Posted by | Nov 3, 2006 | |

This marks the direct entry of the USD33 billion FedEx, which has nearly 275,000 employees and 670 aircraft worldwide.Mumbai-based Prakash Air Freight Pvt Ltd, a privately held company, is one of the largest domestic companies in the industry with 384 offices serving nearly 4,400 destinations.

The two key promoters of Prakash Air Freight Pvt Ltd, Rajan K Manchanda and Vijay Narang, could not be reached for comments on their decision to cash out.FedEx applied to the Foreign Investment Promotion Board about two weeks ago for permission to undertake the acquisition.

After 22 years of operating in India through a franchisee, FedEx Corporation, the world’s largest express transportation company, has decided to acquire Prakash Air Freight Pvt Ltd, its sole franchisee in the country, for USD30 million in cash.

Sources said the deal, subject to the usual mandatory approvals, could be concluded in two weeks.

This acquisition comes close on the heels of TNT NV acquiring the Secunderabad-based road express company Speedage Express Cargo Services from Associated Road Carriers India for an undisclosed amount in September. Speedage posted a turnover of Ï17 million in 2005-06 (nearly Rs 100 crore).

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