Tag: Europe

TNT expects to clinch logistics deal soon

Dutch mail firm TNT (TNT.AS: Quote, Profile, Research) said on Wednesday it should reach a deal soon on the sale of its underperforming logistics business, which it expects to be bought for more than 1 billion euros (USD 1.3 billion).

Private equity firms Apollo Management and PAI were shortlisted and were competing to clinch a deal, sources familiar with the matter have told Reuters.

“TNT NV expects to reach an agreement shortly about the sale of the Logistics division,” the company said in a statement, without giving a timeframe.

“Further announcements will follow, if and when appropriate,” TNT said.

TNT shares rose around 1 percent to 29.49 euros in early trade on Amsterdam’s Euronext exchange.

TNT (TP.N: Quote, Profile, Research) announced its intention to sell its underperforming logistics activities to concentrate on mail and express delivery — which represent about a quarter of group revenue — in December.

TNT’s logistics business has a book value of about 1.15 billion euros (USD 1.5 billion), according to TNT’s 2005 annual report, and the company has said it expects to make a profit on the sale and close it in the second half of the year.

Rabo Securities analyst Thijs Berkelder said he expected TNT to book proceeds from the sale of 1.5 billion euros, based on a selling price of 1.8 billion euros.

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A confusing countdown to Christmas

THE attitude in Londonderry to yesterday’s newly-introduced mail pricing system was a mixture of confusion and frustrating countdown.

While some customers outside the main Post Office in Custom House Street and the Carlisle Road Post Office predicted confusion, others said it would take a few months ” possibly during the run-up to Christmas ” to feel the full impact of the biggest shake-up the postal system has seen in 165 years.
Janice Tracey, CEO of Londonderry Chamber of Commerce, claimed yesterday it is possible to minimise the impact of the new postage pricing system for all business and residential post.

“From now, businesses will have to pay more attention to the size and shape of post than to the weight in order to avoid being penalised by the changes,’ she said.

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UK Royal Mail is addressing the wrong problem

Next time you buy a birthday card, ask yourself: is it more than 240 mm long, 165 mm wide or 5 mm thick? If so, then forget about dispatching it with a simple first-class stamp. You will need a “large letter” version. For, as of yesterday, the Royal Mail is categorising post by size as well as weight, in order to “rebalance its prices in line with costs”.

The new arrangement is “fairer and simpler”, says the Royal Mail. Simpler? In that case, we dread to think what a more complicated system would look like.

As for fairer, that also stretches credulity. Pricing in Proportion (PiP), as it is officially known, is likely to prove irritating and expensive for small businesses and associations, which may now have to choose between paying more for very light A4 letters and laboriously folding them.

These fears are groundless, says the Royal Mail: far from being a bizarre innovation, PiP is already used by the Japanese, German and Singaporean post offices – where, unsurprisingly, it runs with formidable efficiency.
And then there is the effect on post offices themselves. In rural areas, struggling sub-post offices usually provide a friendly and helpful service. Their urban equivalents, in contrast, are often appalling places, with their stained carpets, faded 1980s interior design – and, above all, insufferable snaking queues, which are so long that advertisers station video screens for shuffling customers.

For years, it has taken Stakhanovite determination to enter a city centre post office; one look at the ratio of staffed to unstaffed booths is enough to make the heart sink. Just imagine how protracted your visit could become now that letters have to be measured as well as weighed. Thank God for e-mail.

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Mail charges 'confusing'

Confused customers say changes to the cost of sending letters and parcels will cause long delays in post offices.

Royal Mail has changed the first and second class system and replaced it with 29 pricing categories.

Under the changes, introduced yesterday, it will cost no more to send most letters.

However, it will be more expensive to send some larger items, regardless of how heavy they are.

Customers said the system was too complicated, while experts said not enough warning had been given to allow people to prepare for the price rises.

Small businesses leaders have warned firms could resort to passing the extra mailing costs on to consumers.

Royal Mail said the overhaul was necessary because it was more expensive to sort and deliver bulkier items and a multi-million pound advertising campaign had made the system easy to understand.

A spokeswoman from the post office in High Street, Great Easton, Harborough, said: “The rate bands have increased – so, if you send a first class item, you can make it up to 100g when it used to be 60g.

“We had a man with a letter who sent it for 90p when it would have cost GBP 1.90 before.

“Most of our regular users will save money.”

However, many customers at Leicester’s main post office, in Bishop Street, said the system was confusing and would cause longer delays.

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German forwarders form mail network to take on Deutsche Post

Five German freight forwarding and logistics groups have linked up to form a private mail carrier “ Xanto” to compete with Deutsche Post. The companies are all ex-founder members of parcel carriers DPD and German Parcel (now GLS).

The founders of “Xanto – the LetNet System” are Diehl Spedition, M&M Militzer & Münch, Honold Logistik Gruppe, G.L. Kayser and Cretschmar Cargo along with the management consultant Christian Holland-Moritz who will also act as managing director. Xanto will function as a cooperation network in which up to 100 local and regional mail carriers work together to provide a nationwide coverage while retaining their identity and independent status.

“Xanto is a network which has been created by logistics service companies that are used to cooperating and which will operate independently of publishing houses and large corporations,” declared Holland-Moritz. “With the end of the letter monopoly at the start of 2008, as a private competitor we will be able to offer a nationwide mail delivery service that will lie below the price level of Deutsche Post.”

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