Tag: Courier/Express/Parcels

Liberalisation, privatisation and regulation in the German postal services sector

Posted by | Nov 1, 2006 | |

The public monopoly in the German postal sector had already been called into question
in the public debate in the 1980s. In 1985 the German government, which at that time
was composed of a coalition of the Christian Democratic Party (CDU) and the Liberal
Party (FDP), established a government committee that dealt with possible forms and
steps of privatisation and liberalisation concerning the postal and telecommunications
sector (Wehner 2005: 5, 6). The official start for the privatisation and liberalisation of
the German Post (Deutsche Bundespost) was in 1989. Through the first postal reform
(Poststrukturgesetz/Postreform I) the German Post was divided into three sectors: postal
service, postal banking and telecommunications. The political functions (regulation of
the monopolies) were separated from the entrepreneurial ones. In the course of the
second postal reform (Postreform II), which came into force at the beginning of 1995,
the three postal corporations were transformed into incorporated companies. In the first
instance the German Federal Government retained all shares of the German Post which
was renamed the Deutsche Post AG (DPAG). These two steps were affected by the
(partial) privatisation and the preparation of further liberalisation measures. The process
of liberalisation reached its preliminary climax in 1998 when a new Postal Act
(Postgesetz) came into force. Via this Act the postal market was gradually opened to
competition by successively restraining the exclusive license of the DPAG; the end of
the exclusive license was originally planned to be in 2002 but was lengthened until the
end of 2007. Moreover, the rules for licensing were laid down and the terms for the
access to the market were defined.
In November 2000 the material privatisation of the DPAG began with its initial public
offer (IPO). In the course of the IPO the DPAG was renamed as the Deutsche Post
World Net (DPWN). In order to prepare for the imminent end of its monopoly the
DPWN made several acquisitions abroad.

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TNT chief prefers to work within regions

Posted by | Oct 31, 2006 | |

In an industry over-staffed with apostles of globalisation, Peter Bakker, chief executive of TNT, the Dutch express delivery group, is a heretic. While competitors evangelise about how global networks are transforming the world of commerce, Mr Bakker enjoys debunking their myths.

“Only 5 per cent of volumes being shipped in express delivery networks move between continents,” he said. “Our belief is this is mainly a regional game.”

TNT is the smallest of the “big four” express delivery groups, behind UPS, FedEx and DHL, and the only one without a significant presence in the US. Instead of seeking to match its rivals’ geographic breadth, the group has focused on a patchwork of domestic markets in Europe and Asia.

The strategy rests on Mr Bakker’s argument that, even in an era of globalisation, what matters most is local and regional strength.

More than 80 per cent of TNT’s business is in Europe, where it vies for market leadership with German-owned DHL.

Because most of its volume stays within Europe, Mr Bakker says TNT can be selective about which other markets it enters. In the US, for example, he says the cost of challenging UPS and FedEx on home soil would outweigh the returns.

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Third quarter operating income up 8.9% on last year (TNT)

Posted by | Oct 30, 2006 | |

CEO Peter Bakker:
“TNT’s Board of Management is pleased with the results of the third quarter. Operating income grew by 8.9% fueled by new records in Express both in terms of revenue growth and the Q3 margin level. The Mail operating margin was in line with the outlook but Mail Netherlands saw ‘above trend’ volume decreases in this quarter. We confirm the full-year outlook for TNT.

The completion of the sale of our Logistics division – for which all approvals have now been obtained – is still expected before the year end. Part of the earlier-indicated costs related to the sale of Logistics was booked in the third quarter results. Good strategic progress has been achieved with the acquisition of a road express operator in India and further accelerated growth of EMN. To further focus our business on operating networks, we announce today our intention to exit Freight Management.

All-in-all, we are satisfied with the strategic progress and the structural improvements in our operating performance made so far this year.”

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Austrian Post acquires majority in German specialty logistics service company trans-o-flex

Posted by | Oct 30, 2006 | |

Österreichische Post AG (”Austrian Post”) announces the acquisition of a majority stake in trans-o-flex GmbH and its affiliated companies („trans-o-flex”) from private equity funds managed by Odewald & Compagnie (”Odewald & Cie.“) and Alpha Group („Alpha“). Odewald & Cie. and Alpha will retain a stake of 25.1%. The management and supervisory board of Austrian Post have already approved the transaction. The transaction still requires approval by the relevant antitrust authority.

trans-o-flex is one of Germany’s leading specialized logistics service providers for express delivery in the business-to-business segment with a focus on the life science, consumer electronics/home entertainment and lifestyle/cosmetics industries. By assuming corporate leadership at trans-o-flex, Austrian Post is taking control over one of only a few Germany-wide logistics networks with 39 delivery centres. In 2005, trans-o-flex handled approx. 49 million shipments and employed approx. 890 employees. The range of services offered by trans-o-flex also includes specialized services such as transportation of hazardous goods and temperature controlled products. To handle its international freight traffic activities, trans-o-flex operates the European logistics network EURODIS, a combination of European logistics companies that is currently being built up.

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