Tag: Domestic

David J. Bronczek named to National Infrastructure Advisory Council (U.S)

President George W. Bush has announced he intends to nominate David J. Bronczek, President and Chief Executive Officer of FedEx Express, to the National Infrastructure Advisory Council (NIAC).

The NIAC advises the president, through the Secretary of Homeland Security, on the security of critical infrastructures that support sectors of the economy.

“FedEx Express serves 220 countries and territories, and we understand how modern, strong networks — both physical and virtual — are critical in protecting the U.S. and global economies,” Bronczek said. “I look forward to helping improve cooperation between the public and private sectors in order to more fully secure our infrastructures and protect our communities.”

The council is composed of a maximum of 30 members, appointed by the president from private industry, academia, and state and local government.

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GLS Belgian subsidiary ABX re-brands

ABX Belgium Distribution, acquired by GLS in December 2006, has re-branded to GLS Belgium Distribution as part of its integration into the European parcels group and ongoing modernisation.

Since acquiring the parcel and general cargo business ABX Belgium Distribution, GLS has started a five-year investment of EUR 16 million in modernising the company, including new firewall installations, scanners and security and surveillance technology. Two separate parcel sorting and freight handling systems are being installed at the subsidiary’s depots. Four of its nine depots work with the new systems, and the others should be completed by spring 2009.

“The modernisation measures will strengthen the company and increase quality,” Fritze explained. “In the Benelux countries GLS offers cross-border delivery of freight shipments in addition to its national and international logistics service – one address which is now also one brand.”

GLS reportedly spent about EUR 23 million to win a battle with other European CEP players to buy ABX Belgium Distribution from Belgian Railways in 2006 and thus become the largest B2B parcel company in Belgium. ABX Belgium Distribution generated revenues of approximately EUR 90 million in 2005, two-thirds of which came from the parcel business.

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Hybrid Mail to Form Part of UK Postal Market

Recent evidence put forward in a ‘Mail Trends’ document written by Fouad H. Nader (Adrenale Corporation) and Michael Lintell (Pitney Bowes), suggests that those with internet access are actually likely to send and recieve more mail than someone without internet access. Much of the content is given over to U.S. examples but it does underline a growing fall in mail volume just about everywhere. However, competition has also helped ‘ease’ the downturn in profitability of many state-owned postal operators in liberalized markets, even if the ‘face value’ of such mail is less than ordinary stamped mail. This is particularly true of DSA (downsteam access).

It would be fair to say though, that the internet has put pressure on postal operators with all of us making the most of email, but there is also some evidence to suggest that ‘hybrid’ mail is where traditional post, and the internet, can actually work well together. The technology to combine the two is already here, but it does rely, in most cases, on a relay approach to delivery – as we discovered.

At the moment theres a real battle going on for this desktop postal service market and certainly the print industry are keen to grab a slice. If you’re not familiar with ‘hybrid mail’ (and each system is slightly different from the next), essentially you type a letter or prepare a document on your PC and instead of printing it, you send it encrypted, to another company who unencrypt it, print it for you, stick it in an envelope and arrange for it to be posted.

Firstly, its not actually a new idea and it isn’t aimed at the domestic market. The French and the Australian postal services have been offering it as a service for the transit of documents for some time, even Spain has a system – Correo Digital, but now the print industry is moving in on the idea, with additional features to make it more attractive to business. Whether there is actually enough demand to keep them all in business is another matter, but like double-glazing, the sales pitch is awash with references to ‘the environment’ and ‘carbon footprints’ to help sell the idea. With EU pressure now being exerted on large organisations to reduce waste and any enviromental impact, it all falls rather neatly into the laps of creative marketers trying to promote these systems.

What isn’t clear from the sales literature is just how much the ‘carbon footprint’ is being reduced. One could almost say it was vague. For one thing, Royal Mail will still be delivering most of it and hybrid mail is basically fed into RM’s postal network either through third-party, or direct access agreements, and unless each system has print shops in just about every city in the UK, some mail could actually end up travelling further than it would if it were dropped into the nearest post box – it isn’t easy to ascertain. Naturally each player is quick to point out that their infrastructure is superior to everyone else, as indeed they might, but they all tend to hold their cards very close to their chests when pressed on exactly where all this mail will be printed and despatched from. Lets face it, if you’re a new player, scalability is key but you have to start somewhere and it isn’t going to be profitable without good old DSA anyway, unless you’re big enough at the outset to cut a deal with Royal Mail.

There are quite a few around including Viapost, TNTit, I-Mail, Vendigo Hybrid, Printsoft, and PDQit, plus other systems owned by postal operators that have for the most part, sat on the back-burner or are still being developed. All of them seem to be on some kind of ‘pay as you go’ basis too, using ‘free to download’ software. I imagine it will only be matter of time before all these software packages becomes subject to advertising messages through subsequent upgrades too – such is the nature of upgrades. Cynical? Perhaps.

Viapost, which has yet to launch officially, sent out press releases in September last year. It has been fairly quiet si

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UPS & FedEx eye overseas growth

With the U.S. economy waning and its outlook for recovery uncertain, the shipping industry, too, is eyeing overseas growth opportunities to offset tough times at home.

But while bellwethers like UPS Inc. and FedEx Corp. seek to reduce their dependency on the wobbly domestic economy, they still cannot afford to stop focusing on their core U.S. operations, analysts say.

UPS cut its first-quarter earnings forecast because of higher fuel costs, a weakening U.S. economy and reduced domestic package volume.

Last month, reported a 6 percent drop in third-quarter earnings and said a slow economy and high fuel prices are expected to continue cutting into profits. It predicted fourth-quarter earnings would be lower than a year ago and its earnings growth would be limited in the next fiscal year.

The company said that by 2010, it intends to increase to 40 percent the percentage of its operating income that comes from its international and supply chain/freight operations. That compares to 32 percent last year.

In turn, it intends to reduce from 68 percent to 60 percent the percentage of its operating income that comes from U.S. domestic operations. UPS is eyeing China, India and Europe for growth opportunities.

FedEx, meanwhile, said last month that it is depending heavily on its ongoing growth overseas. Sales at the company’s cargo airline saw double-digit growth recently primarily because of growth in international express shipments.

But analysts who follow UPS and FedEx said the shippers will still need to rely on their home market in years to come.

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Business Post Group: Pre-close period trading update

Business Post Group plc issued the following pre-close period trading update for the year ended 31 March 2008.

Group revenues for the financial year increased by 10.1pct on the previous year. Excluding the revenues from the FedEx contract, which terminated on 30 April 2007, underlying Group revenue increased by 16.5pct.

The company continues to see good growth in the B2B parcels business which represents around 80pct of parcels revenues. In B2C, which represents 15pct of the parcels business, the company is seeing an improving trend of performance.

Revenues in our Mail business, UK Mail, increased by some 50pct on the previous year, derived from both new contract wins and substantial further business from existing customers. The company claims to handle some 10pct of all mail collected in the UK.

Revenues in Specialist Services are now recovering with the fourth quarter showing growth.

The courier business, now trading under the UK Mail brand, has recently won a number of new same-day contracts.

The Group has maintained strong revenue growth, both during the fourth quarter and for the year as a whole. The overall performance is in line with the Board’s expectations.
Business Post Group plc will report its preliminary results for the year ended 31 March 2008 on 21 May 2008.

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