Tag: Domestic

UPS constructs hub in Shanghai

UPS recently held a formal groundbreaking ceremony to celebrate the start of construction work on its forthcoming airfreight centre at Pudong International Airport.

The ambitious facility, which is located at the southern end of the airport’s West Cargo Terminal, will make Shanghai a stopover for flights connecting China to other locations in the UPS international network, with services to the United States, Europe and Asia.

Scheduled to become operational from next year, the centre will provide UPS with a sorting capacity of 17,000 pieces per hour.

“The opening of this hub will ensure we are well-positioned to support the explosive growth in Asia’s regional trade,” said UPS chairman and CEO Mike Eskew, who attended the event.

“Export volume growth in China and throughout Asia has been robust and the outlook remains bright. We are extremely proud to be the first US airline to open an international air hub in China under the 2004 US-China air services agreement,” he added.

Over the past five years, UPS has invested approximately USD 600 million in China, including its transition to become the first wholly owned foreign express carrier in the country.

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Cargus (Romania) considers strategic partnership or floatation

Cargus is considering selling a stake and also floatation.

Several companies on the market, including Curiero and TCE Logistica, are planning to sell a stake in 2008 or 2009.

The decision comes as companies attempt to maintain their market share amid rising competition and massive investments.

According to some market sources, Cargus is in talks to sell a stake to Deutsche Post World Net, the company that owns DHL 100 pct, however, the representatives of the two companies deny this information.

Cargus in the first six months of this year generated turnover worth 12.5 million euros from domestic delivery services, up 43 pct in terms of volume. “Another 6m euros were registered by the other companies of the group,” specifies Plesea.

Company representatives expect to derive turnover in excess of 30 million euros this year from domestic delivery services and reach around 40 million euros for the entire group.

Although the company’s turnover is rising, its profit margin is shrinking, and reached 5 pct in the first half of this year, from around 9 pct last year, according to Cargus’ manager.

Under the circumstances, the company’s representatives are mulling over the possibility of a shipping rate increase.

Cargus this year invested around 2m euros in the acquisition of 8 high-tonnage trucks, 100 vans and over 20 3-tonne vehicles, in addition to 40,000 euros in communication systems.

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Postal Service Replies to Postal Regulatory Commission's Proposed Pricing and Product Rules

The U.S. Postal Service today filed its comments with the Postal Regulatory Commission (PRC) on the PRC’s proposed new pricing and product rules as part of the Postal Accountability and Enhancement Act (Postal Act of 2006). The Postal Service also submitted its initial mail classification schedule to the PRC today, which would replace the existing Domestic Mail Classification Schedule and categorize Postal Service products as market-dominant or competitive.

The Postal Service comments are available at www.prc.gov (in Daily Listing section).

The PRC established Sept. 24 and Oct. 9, 2007, respectively, as the deadlines for the Postal Service and other parties to file comments and reply comments. After reviewing those comments, the Commission will issue its final rules.

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Switzerland plans full postal liberalization in two stages

Swiss Post Swiss authorities have released plans to fully liberalize the country’s postal market in two stages over the coming decade, and change Swiss Post’s legal status. The move means Switzerland will lag behind most EU countries in fully opening up the domestic mail market to competition.

The federal government plans to publish a postal reform bill for consultation at the start of 2008. It is expected to propose reducing Swiss Post’s monopoly on domestic mail from 100g to 50g in 2011. “After a period of two to five years, Parliament would pass a law on full-scale liberalization that would be liable to public referendum,” the Swiss ministry for environment, transport, energy and communications announced on Friday.

Swiss authorities noted that they had already started to reform the postal sector and were following developments in the EU, where the postal market is due to be fully liberalized in 2011. The ministry will also conduct a study into the financial implications of the market liberalization and publish the results by the end of this year.

The draft law would specify “industry-typical” working conditions for all postal operators (Swiss Post and private competitors). Swiss Post would be required to negotiate a collective tariff agreement but it would be up to companies and unions to agree on an industry-wide pay deal. Financing of the universal service obligation would if necessary be secured through a fund or state payments, the ministry stated.

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Scottish cities first for deliveries by Royal Mail rival

Sources at Postcomm, the postal services regulator, say TNT Post is building up its capacity in the two cities so that it can trial a full “end to end” service for Scottish business.

A number of private companies have moved into delivering postal services in the UK since the introduction of full competition to the market on January 1 last year. While some companies offer competitive rates to pick up mail or deliver it to its final destination, all still rely on the Royal Mail network for at least one part of the delivery process. In most cases, Royal Mail is used for what has been termed the ‘final mile’.

But TNT Post UK, the British branch of the Dutch postal group, aims to start offering a full service where post is picked up from businesses by TNT postmen, sorted at its own offices and then distributed by TNT’s delivery staff.

TNT Post has emerged as the main competitor to the Royal Mail since the market was opened up. It handles over 1.2 billion items of mail a year and has recently won several high profile deals, including a three-year contract to deliver the Phone Book to 3.2 million homes.

In Scotland, the company has targeted the small business market in particular. Its ‘PremierSort Flex’ service is aimed at local businesses that send a maximum of 250 letters and parcels a day. At the moment, the service uses the Royal Mail network for the ‘final mile’.

However, industry observers say that Britain is a long way from a fully privatised postal service. Statistics from Postcomm show that the Royal Mail delivers more than 99 pct of the UK’s mail to people’s doorsteps.

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