Tag: Domestic

Appel states DHL has to shut down Ohio facility

Posted by | Aug 12, 2008 | |

Deutsche Post World Net CEO Frank Appel has rejected growing US political criticism of DHL’s plans to close its air hub at Wilmington, Ohio, with the likely loss of some 8,000 jobs, and to switch airlift operations to rival UPS.
The plans have drawn criticism from US presidential candidates Barack Obama and John McCain, the region’s members of Congress and local politicians. The US Congress plans two hearings on the proposed DHL-UPS deal in September.
DHL Express had to shut the hub as part of its restructuring programme in order to reduce its heavy US losses, Appel told German newspaper Frankfurter Allgemeine Zeitung in an interview, echoing his similar comments at the company’s recent half-year financial press conference.
The DPWN chief again stressed that UPS would remain a competitor to DHL despite supplying a service, and pointed out that a similar deal between the USPS and FedEx had been approved, despite being much larger in volume.
Appel added that the company was ready to set up a support programme for affected employees and the region to help people find new jobs, but he had no plans to travel to the USA, as Republican candidate John McCain had proposed.

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UPS spends USD 1.3M lobbying

Posted by | Aug 12, 2008 | |

UPS Inc. spent more than USD1.3 million in the second quarter to lobby on issues including its plan to carry air packages in North America for DHL, according to a recent disclosure form.

The Atlanta-based company also lobbied on the reauthorization of the Federal Aviation Administration, appropriations for the departments of Transportation and Housing and Urban Development, as well as legislation dealing with patent reform, data security and health care policy.

UPS also lobbied on aviation safety issues and technology, as well as UPS’ “proposed airlift agreement with DHL,” according to the form posted online July 16 by the House clerk’s office.

The second quarter runs from April through June. On May 28, UPS announced it was seeking to work out a contract with DHL that would involve UPS providing the air transport of DHL packages between airports in North America, but not the pickup or delivery of DHL packages to customers.

UPS asserts the federal government does not have authority over the vendor relationship.

Besides Congress, UPS lobbied the departments of Transportation, Homeland Security, labor and other agencies in the April through June period.

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First class plan (UK)

Posted by | Aug 12, 2008 | |

Royal Mail wants to build a new bulk mail distribution centre as part of a GBP 51 million investment programme in the north west.

As a result of the plans Liverpool Mail Centre, in Copperas Hill, and Crewe Mail Centre would both be relocated to the current regional bulk distribution centre, which is based in Warrington.

The move comes after a six-month consultation period with the Communication Workers’ Unions and Unite and it will see mail centres in Stockport, Oldham and Bolton closed.

Steve Cameron, Royal Mail territory director, said: “It is essential that we have the most suitable postal network to enable us to compete effectively in the years ahead. We need to invest to defend our market share and to retain existing business and win new customers.

“That means reshaping our network in a way that increases efficiency, makes the best of our investment in technology and allows us to improve our service to customers. We are also determined to provide a more modern working environment for our people.”

The changes are part of a GBP 1.2 billion programme to bring new technology and sorting equipment and will not take place until 2009.

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UPS looks to China for M&A

Posted by | Aug 12, 2008 | |

United Parcel Service hopes to buy a firm in China and boost staff there in coming years.

UPS, a bellwether of the U.S. economy along with rival FedEx Corp, last month posted earnings in line with expectations but hit by rising fuel costs and a weak economy.

Trying to drive growth beyond a U.S. market that accounts for more than half its revenue, UPS will be opening two USD 180 million transport hubs in China and wants to nearly quadruple its staffing there in the next few years, hoping to serve growing demand for delivery services within a relatively untapped market.

“U.S. consumers are not buying, but I think the great opportunity for us internationally is business that never touches U.S. shores,” Dan Brutto, the president of the company’s international business, told Reuters in an interview on Monday.

UPS has doubled its headcount in China over the past 18 months to around 5,300, but expects that number to increase by at least 1,000 annually over the next 3-4 years, said Brutto.

It’s now looking for acquisitions within the world’s fourth largest economy, despite fears that Chinese growth will taper off over 2008 and 2009.

“You could say UPS China should really have 25,000 employees. The business is out there,” Brutto said.

(USD=6.85 yuan)

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Deutsche Post to expand automatic parcel delivery in deal with Aldi

Posted by | Aug 11, 2008 | |

Deutsche Post World Net AG. is planning to hike the number of its automatic parcel delivery stations in Germany to 2,500 from a current 1,000 by the end of 2009, also using stores of retailer Aldi, Focus reported in an article to be published tomorrow, citing no sources.

The total investment is seen at 20 million to 30 million euros, Focus added, with several hundred stations to be installed in Aldi stores.

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