Tag: Deutsche Post

Germany struggles to open up its mail delivery market

Posted by | Apr 25, 2007 | |

The German government agreed to end the letter delivery monopoly of Deutsche Post as planned, but the issue is still a thorn in the eyes of the grand coalition.

Christian Democrats (CDU) and their Social Democratic (SPD) coalition partners agreed to liberalize Germany’s mail delivery market as part of European Union moves to deregulate postal services across the 27-member bloc.

Starting Jan 1, 2008, letters weighing up to 50 grams (1.8 ounces) will no longer be the monopoly of Deutsche Post, the world’s biggest post and logistics group.

According to government sources, Chancellor Angela Merkel and head of Social Democrats (SPD) Kurt Beck reached an agreement on Tuesday evening.

The SPD had previously sought to extend the monopoly beyond the deadline, partly because other EU member states will have to open up their mail service markets in 2009.

A spokesperson for the ministry of finance said late on Tuesday evening that the Social Democrats remained convinced that the deregulation of the post service in Germany ought to take place only in concert with other European countries to make sure Deutsche Post doesn’t suffer unfair competition.

With the countdown underway to the end of its letter monopoly, Deutsche Post has been moving to diversify away from its dependence on its German operations and is hoping that its international businesses will help to offset the pressure on earnings in its domestic market.

Deutsche Post chief Klaus Zumwinkel, however, warned last week that the opening up of the letter delivery service could endanger up to 32,000 jobs.

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Postbank not in merger talks, parent Deutsche Post not selling shares

Posted by | Apr 22, 2007 | |

Deutsche Postbank AG is not in merger talks with Deutsche Bank AG, Postbank chief executive Wulf von Schimmelmann told weekly Wirtschaftswoche when asked about ongoing takeover speculation.

There are no signals whatsoever that majority shareholder Deutsche Post AG is planning to reduce its stake in Postbank, he said.

‘I am certain that Postbank can increase its value more effectively if it remains independent,’ said von Schimmelmann, who is to be succeeded as CEO by current management board member Wolfgang Klein in July.

Deutsche Post currently holds 50 pct plus one share in Postbank.

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Deutsche Post monopoly may be extended beyond this year

Posted by | Apr 18, 2007 | |

The German government is showing signs of ‘relative openness’ to the possible extension of Deutsche Post World Net AG’s incumbent mail delivery monopoly beyond December, daily Handelsblatt wrote, citing a government representative.

The liberalisation, which was initially planned for Jan 1 2008, may be delayed if Germany cannot convince the other EU member states to open their mail markets as well, the report added.

Deutsche Post’s virtual monopoly on letter delivery for letters up to 50 grams is earmarked to expire at the start of 2008, with the EU seeking a continent-wide liberalisation of the market in 2009.

Thus far, eleven member states are questioning whether they will liberalise their markets even in 2009, the newspaper said.

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Berlin may delay postal reform

Posted by | Apr 18, 2007 | |

The German government may extend the monopoly of Deutsche Post, the postal company, over delivery of letters beyond December 2007 as postal service liberalisation is less advanced in other European Union countries. The Social Democrats, coalition partner of Angela Merkel, chancellor, favour a postponement of the plan to open the market on January 1 2008, as France in particular intends to open its market at a later date. Ms Merkel’s Christian Democrats, traditionally in favour of early reform, have signalled support for the SPD.

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Indian courier services could become dearer

Posted by | Apr 18, 2007 | |

Sending packets through private courier companies could get expensive, with the Government proposing to stipulate higher tariffs for mails less than 150 g

The draft Postal Bill, which is expected to be tabled in the ongoing Budget session, has proposed to impose a tariff on mails carried by courier companies that is fives times the charge taken by the Postal Department

So, while a 20 g mail is charged Rs 5 by the post offices, the same will cost Rs 25 if you send it through a private courier. The rationale for the differential tariff is that the Government is giving up its monopoly on low-weight mails

While the earlier draft of Postal Bill had completely barred private courier companies from carrying packets weighing more than 300 g, the revised proposal removes this ban but on the other hand imposes a higher tariff rate for packets that weigh less than 150 g

This means that consumers could cough up as much as Rs 200 for sending a packet weighing 140-150 g through private courier companies even as the post office will charge only Rs 40

Currently, charges taken by courier companies are not regulated

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