Tag: Deutsche Post

Private German mail operators PIN, Xanto link up

Posted by | Apr 17, 2007 | |

Two leading private mail operators, PIN Group and Xanto, have announced a strategic cooperation to strengthen their operational networks. PIN Group aims to establish itself as the leading competitor to Deutsche Post while Xanto plans to create an independent network for local mail operators.

In a joint statement, the companies said that Xanto would take over nationwide linehaul transportation for PIN with immediate effect. This covered the linehaul services from local PIN mail depots to regional hubs where regional and national shipments are interchanged as well as onward transportation to the two PIN central hubs in Würzburg and Hanover, and traffic between the two central hubs.

At present, PIN Group transports about one million domestic shipments per day on these routes within one working day. The company, owned by leading German media groups, has 7,000 employees, annual volumes of over 1.2 billion shipments and turnover of some EUR 350 million.

Xanto was founded in spring 2006 by five German logistics companies to develop a nationwide mail transportation network. Until now, its strategy was to sign up as many as 100 local and regional mail operators as partners and create an alternative nationwide distribution network. Last October it announced that night express operator Night Star Express would provide the physical long-haul transportation services.

Günter Thiel, PIN Group CEO, declared: “The competence of Xanto in freight forwarding ideally complements our nationwide logistics network.” Xanto managing partner Christian Holland-Moritz added: “As the largest competitor to Deutsche Post, PIN Group with its nationwide delivery network and growing shipment volumes is a central partner for us.”

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Federal Network Agency dismisses allegations directed at downstream access

Posted by | Apr 12, 2007 | |

Following a review lasting several months, the Federal Network Agency has declared the existing agreements between Deutsche Post In Haus GmbH and various ministries of the state of Bavaria for provision of downstream postal access as legal and not objectionable. In response to complaints of Deutsche Post competitors in the spring of 2006, the authorities had initiated an abuse proceedings against Deutsche Post and its subsidiary, Deutsche Post In Haus Service GmbH. Competitors had accused Deutsche Post of itself engaging in activities through its subsidiary in the so-called shipment consolidation area and of not covering costs in its pricing, thereby obstructing the development of competitors.

After the authorities did a check of the necessary calculation documents, the accusation of offering dumping prices was revealed as unfounded. The same was true for the argument that the subsidiary makes use of the infrastructure and sales organization of Deutsche Post. Here, upon carrying out local inspections at four DP In Haus Service GmbH service centers, the Federal Network Agency was unable to find any evidence. Not only does the company have its own infrastructure and automation, but it draws upon its own sales organization as well.

This marks the failure of yet another attempt by Deutsche Post competitors to use the Federal Network Agency as a competitive tool against the leading provider of postal services in Germany. Not too long ago, in November 2006, a parcel service likewise failed in its effort to lodge complaints with the Federal Network Agency accusing Deutsche Post of anti-competitive behavior in adjusting its parcel prices.

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Deutsche Post, Metro, GS1 joint venture cleared by EU

Posted by | Apr 11, 2007 | |

The European Commission said it has cleared Deutsche Post AG, Metro AG and GS1 Germany GmbH’s proposed acquisition of shares for joint control of European EPC Competence Centre.

The transaction was examined under the EU’s ‘simplified’ merger review procedure; cases which the commission believes do not pose competition concerns.

No financial details were disclosed.

Deutsche Post has postal, logistics and financial services. Metro is a supermarket group, while GS1 deals with data and goods traffic optimisation systems.

The European EPC Competence Centre runs tests on electronic transmitters provided with goods.

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TNT Post to freeze wages and cut up to 7,000 jobs

Posted by | Apr 3, 2007 | |

TNT will seek to freeze wages and cut up to 7,000 jobs to help lower costs by 300 million euros (USD 400 million) as its remaining monopoly is opened to competition next year.

The dominant Dutch mail company, whose business is already under attack from rivals Sandd and Deutsche Post’s Selekt Mail, did not rule out forced redundancies on Tuesday.

Dutch mail unit TNT Post, one of the country’s biggest employers with 59,000 people, has steadily lost mail volume to competitors and as a result of the popularity of email, online banking and government initiatives such as electronic tax filing.

“Less post means less work,” Harry Koorstra, TNT board member responsible for the mail business, told Dutch news radio BNR, adding the company expected to lose another 30 percent of Dutch mail volume in coming years.

TNT said in December that it aimed to cut costs in its mail division by 300 million euros by 2015. It did not specify what provisions it will take in implementing the cost savings.

The company is also seeking to compensate for shrinking mail volumes at home by growing abroad and expects to benefit from the liberalisation of the European mail market, due by 2009 according to European Commission plans.

TNT still has a monpoly on mail weighing up to 50 grammes, representing about half of the overall mail market, which the Dutch government plans to scrap from 2008.

“Some 65 percent of the cost of delivering post consists of labor, and precisely the factor labor is no longer in step with the market,” Koorstra said, adding competitors paid 7 euros-to-9 euros an hour while a mailman cost 22 euros-to-24 euros.

TNT said it would also seek to change other employment terms, such as making employees pay pension contributions, which currently was not the case.

Without changes to employment terms, some 11,000 employees would have to lose their jobs between 2007 and 2010, TNT said.

Due to a large number of part-time workers in mail delivery, the expected 6,500 to 7,000 job cuts are equivalent to about 4,500 full-time jobs, Koorstra said.

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PIN Group buys southern German mail firm

Posted by | Apr 2, 2007 | |

Privately-owned mail company PIN Group, one of the leading competitors to Deutsche Post, has strengthened its presence in southern Germany with the acquisition of Briefnetz Süd (BNS) for an undisclosed sum.

BNS was created in 2005 through the merger of the delivery units of three large southern German newspaper groups, and currently delivers about 800,000 pieces of mail per day.

BNS will in future operate as the PIN Group’s regional distribution company in southern Germany. PIN Group already has branches in several cities in the region.

“The acquisition of Briefnetz Süd is an importance milestone in the completion of our full regional delivery network in southern and south-western Germany,” said PIN Group CEO Günter Thiel.

The PIN Group, which is majority-owned by three leading German publishing groups, has 7,000 employees, annual mail volumes of one billion pieces and turnover of EUR 350 million.

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