Tag: Europe

Draft bill regarding VAT in the German postal market: TNT Post demands improvements

TNT Post in principle welcomes the fact that the German Federal Government is revising the VAT regulation in the postal market. This is a necessary step because the current VAT exemption for Deutsche Post AG is contrary to EU law and impedes competition. However, the present draft bill will not encourage competition in the postal market.
Inexact phrasing that is open to various interpretations enables Deutsche Post AG to maintain its VAT exemption. Through this VAT exemption, the German State has foregone tax revenues of up to EUR 500 million per year. There is no substantive reason for the long transitional period up to 1 January 2010.
Although the draft bill is a step in the right direction, it will not encourage fair competition conditions. TNT Post therefore calls upon the legislature to make improvements to the draft bill.
The current VAT exemption for Deutsche Post AG protects half the total volume of mail in its favour and thus distorts competition. The European Commission already opened an infringement procedure against the German State in early 2006. Together with the excessive minimum wage for postal services (a cost increase of over 20 pct) and the lack of price control (Deutsche Post AG discounts of up to 26 pct), the VAT disadvantage suffered by the new postal service providers (a cost disadvantage of 19 pct) prevents fair competition in the postal market.

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Trans-o-flex opens sorting centre in Austria

trans-o-flex announced the opening of its fourth sorting centre in Austria to broaden its network for temperature-controlled distribution services.

The new sorting centre near Graz is being operated by Scherübl, a subsidiary of the trans-o-flex unit ThermoMed, and is its fourth depot in Austria, thus completing its national distribution network.

Scherübl, which specialises in transporting temperature-controlled shipments for the pharmaceutical and health industries, can now offer next-day delivery across Austria. The connection with the network of ThermoMed enables it to provide temperature-controlled transports to and from Germany.

The building was constructed within 14 weeks and is located in Karlsdorf (Styria), Austria, near Graz airport, where Scherübl can share the outside truck waiting area with a neighbouring postal centre. It lies conveniently at the motorway junction of A2 and A9.

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Co-op reveals strong food sales results

The Co-operative Group (Co-op) has posted record results for the first half of the year, including a 43.5 pct rise in sales to GBP 2.4bn at its grocery business.

It said that like-for-like first half sales jumped by 5 pct, as the market overall saw sales rise by 4.6 pct. Trading profit at its food arm jumped 67.7 pct.

Such success occurred, the Co-op said, thanks to the expansion of its range and improvements to existing outlets.

Chief executive at the retailer Peter Marks remarked that this has been an “exciting” time and the food side of the business is “rejuvenated”.

And he said the company’s position as a community retailer can be consolidated following the agreement to purchase Somerfield.

But Marks added that the remainder of the year is likely to be very competitive as the credit crunch – along with inflation pressures – continue to make the market tough.

Total profit at the Co-op, including its pharmacies, funeral service and travel section, stood at GBP 197.6m (before payments to members).

Various moves have been made by the organisation in recent times, such as the introduction of a Yorkshire range, the creation of mini-banks in stores and a sustainable fish sourcing policy.

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DHL wins Scottish and Southern Energy contract (UK)

DHL Exel Supply Chain’s has won a three-year contract with Scottish and Southern Energy to manage domestic waste metal recycling. The logistics service provider will collect disused boilers, radiators and pipe work from homes in Scotland, before transporting waste items onto recycling centres.

Scottish and Southern Energy provides heating and plumbing services to thousands of homes and the contract ensures that all of that waste is responsibly recycled. As part of the recycling process, engineers will sort the metal into categories at the point of collection, meaning material is only handled once, which helps to reduce costs. Additionally, DHL Exel Supply Chain is using it’s and trace system to maximise fleet efficiencies and ensure that back-hauling is used wherever possible during the collection of waste.

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DHL Ukraine opens cargo terminal in Kiev

DHL Ukraine has opened a cargo terminal for exported and imported goods in Kiev mainly due to the increasing demand for transport services on the Ukrainian market, the Ukrainian News Agency reported.

The EUR 12 million terminal complex consists of a customs warehouse, a cargo handling zone, DHL Ukraine’s main office, and the Kiev Regional Customs department for administering courier services, DHL Ukraine managing director Boris Khruslov said at a press conference.

The terminal has a total area of over 8,000 sqm, including 5,000 sqm operating space with a sorting capacity of about 320,000 tons per month. Moreover, it has enough equipment to process air containers.

In addition, DHL has re-equipped its facilities in Odessa and Donetsk and intends to do the same in Kharkov and Dnepropetrovsk.

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