Tag: Europe

Mandelson fuels Royal Mail speculation

Posted by | Oct 22, 2008 | |

A crucial review on the future of Royal Mail is set to be delayed, Lord Mandelson suggested on Tuesday (21st October), as he fuelled speculation that the loss-making postal operator would be privatised.
The Financial Times’ revelation earlier this week that the business secretary supported in principle the partial privatisation of Royal Mail caused a furore among unions and Labour MPs, who see public ownership of the company as a totemic manifesto commitment.
He refused to set any deadline for publishing a government-commissioned review of the postal services sector by Richard Hooper, the former telecoms regulator.
The Hooper review, which will set the context for government decisions on Royal Mail’s future, was expected to report to ministers earlier this month.
The business secretary admitted that the Hooper review’s initial findings earlier this year “paint a rather stark picture of the huge challenges facing Royal Mail”.
But he appeared sceptical in response to calls from Labour MPs to apply tougher pricing controls to Royal Mail’s rivals.
The two principal problems facing the state-owned operator – a reduction in the overall volumes of letters being sent and a huge pensions deficit – “are not down to regulation”, said Lord Mandelson.

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Logistics and ICT ensure growth in Norway Post

Posted by | Oct 22, 2008 | |

Acquisitions and an increase in volume in the Logistics and ICT segments led to the operating revenues for the first three quarters of 2008 increasing by 7 percent compared to the same period in 2007. The total operating revenues came to NOK 20.8 billion.

The combined operating revenues increased by NOK 1.4 billion, of which acquired companies contributed MNOK 721 (53 percent) while the Group’s organic growth contributed MNOK 679 (47 percent).

The Group’s earnings before non-recurring items and impairment losses (EBITE) as at 30 September 2008 came to MNOK 345, a reduction from the MNOK 414 on the same date in 2007. This reduction is mainly due to lower volumes of mail advertising and banking transactions, a change in the mix of letter products, increased personnel and transport costs and the investment in the new brand. The EBIT from logistics and ICT operations increased.

”The Group’s ICT and Logistics segments have grown and their earnings have increased, while the Post segment is affected by a decline in volume and increased personnel and transport costs which cannot be compensated for by corresponding increases in the revenues,” says Group CEO Dag Mejdell.

1 USD = 7.17428 NOK

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Direct mail industry supports Royal Mail privatisation plans (UK)

Posted by | Oct 22, 2008 | |

The UK direct mail industry has thrown its weight behind Lord Mandelson’s call for the partial privatisation of the Royal Mail, expecting it to be a positive move for the industry.
The call from the business secretary comes weeks before the government’s review of the postal service.

Gurdev Singh, Managing Director of direct mail printer Howitt, said: “Partial privatisation? I think it should be fully privatised. There needs to be drastic changes.”

He added: “At the moment, it seems that Royal Mail is fighting with one arm stuck behind its back and I agree that maintaining the status quo is imply not an option.”

Alex Walsh, Head of Postal Affairs at the DMA, echoed his thoughts saying the association “would like to see an efficient, profitable Royal Mail and it has been questioned before whether this can happen in its current structure”.

The postal regulator Postcomm earlier this year put its weight behind the partial privatisation of Royal Mail. It argued that access to private capital coupled with a stronger set of incentives were necessary to help it restructure and become more profitable.

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Bahrain's logistics industry boosted by new port development

Posted by | Oct 21, 2008 | |

Bahrain is set to cement its position as the transport hub of the Gulf as the new Khalifa Bin Salman Port nears completion and is set to open for business in December 2008. The newly developed port – which has been dredged to a depth of 15 meters to accommodate any container ship currently in service – will have a capacity of 2.5 million Twenty Foot Equivalent Units (TEUs), two thirds the capacity of Great Britain’s Felixstowe.
The logistic industry in Bahrain is already thriving, the Kingdom boasts the impressive Bahrain Logistics Zone (BLZ) located adjacent to the port and 13 km from the airport – offering the shortest logistics transfer time to/from sea and air in the Gulf. In July, CEVA Logistics announced their intention to build a 10,000 square metre warehouse in the BLZ with the potential for expansion.
Bahrain’s geographical position – just 40 km’s away from Saudi Arabia and with excellent links to Qatar and the rest of the Gulf – offers companies that supply oil and gas related equipment excellent market access. The Causeway between Qatar and Bahrain – construction of which will begin in January 2009 – will further enhance Bahrain’s connections to the world’s third largest gas reserves.
Shaikh Mohammed bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board commented:
“… I believe the infrastructure available in Bahrain will enable companies – like DHL and CEVA Logistics – to compete more effectively in the regional and global market.”

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FedEx eyes growth markets and new products

Posted by | Oct 21, 2008 | |

FedEx Express will continue to invest in growth markets in Europe and in broadening its portfolio of services, and has no plans to scale back in the region due to the worldwide economic situation.
While FedEx already had a strong position in the intercontinental market, it had also started to move into domestic markets such as in the UK and India, Robert Elliott, FedEx Express President, Europe, Middle East, Africa and Indian subcontinent, said. In addition, the US group had made acquisitions in the Czech Republic, Poland and Hungary in recent years. “We expect more customers to be looking towards the east,” he commented. FedEx would also look more closely at emerging markets such as Turkey and the Middle East, he added.

Michael Mühlberger, FedEx Express Vice President Operations Central and Eastern Europe, said FedEx was seeing growth in Central and Eastern Europe countries as they generated more imports and exports, while it also aimed to expand its cooperation with its agent in Russia.

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