Tag: Europe

Does a liberalized postal market need a sector specific regulator?

Posted by | Apr 22, 2008 | |

For different reasons, most actors in liberalized postal markets call for sector specific regulatory bodies. However those should disappear over time along with an increasingly market-oriented definition of universal services.

Sector specific regulation in the postal sector has rarely been questioned so far. However, with the total opening of the European market now foreseen between 2011 and 2013, and in some countries already in place, we should think again.

To recall the context, specific regulation in the postal sector is an invention of the European Community back in 1997. The regulation was a copy of what at that time had already been set up for the telecommunications sector. Indeed the Postal Directive (97/67/EC) required every member country to set up a postal regulator. The regulator’s main functions were: firstly to make sure the Universal Service Obligation (USO) and corresponding quality criteria are fulfilled; and secondly to watch on possible cross-subsidies resulting from the monopoly, which in turn was designed as a means to finance the USO.

Abolition of postal monopoly

With the new Postal Directive of the European Community (2008/6/EC), the monopoly will be abolished in 2011 with exceptions granted to some member countries in 2013. Finland, Germany, Sweden and the United Kingdom have already abolished (at least de jure) their monopoly protection, while the Netherlands delayed full market opening because of continuing barriers to entry in Germany. Outside the European Union, Switzerland might open its postal market completely to competition by 2012, while Canada thinks on deregulating outbound mail.

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Royal Mail Chairman moves to Canada role

Posted by | Apr 22, 2008 | |

Royal Mail Chairman Allan Leighton has been named President of Canada’s biggest supermarkets chain, the troubled Loblaw.

Leighton is already Deputy Chairman of Loblaw, which is locked in battle with US rival Wal-Mart for market share.

He replaces Mark Foote, who is leaving along with Chief Financial Officer William Wells.

Leighton was Chief Executive of Asda before being recruited by Loblaw in 2006.

He takes the reins at a difficult time for Loblaw, whose bottom line has suffered from the price war with Wal-Mart.

The company said the executive changes come at a ‘crucial juncture’ but added that they will bring ‘more focus and clarity in our leadership structure’.

The chain’s profit has been stagnant at best for more than two years.

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TNT Post makes promotions after regional growth

Posted by | Apr 22, 2008 | |

TNT Post has appointed Charles Neilson as Divisional Managing Director of its regional business and promoted Mark Davies to Neilson’s former role of Managing Director of TNT Post Doordrop Media.
In his new role, Neilson will be responsible for growing the number of business customers in the regions. He has worked at TNT for 14 years and is particularly experienced in strategic planning and technology.
According to TNT, its regional business has experienced impressive growth in the last 12 months: to date, TNT serves more than 1,000 SME customers and last year grew its volumes by more than 100m items.
Neilson said: “The development of the regional businesses is a tremendous success story for TNT Post and offers further expansion opportunity, particularly in the end-to-end market.
“By growing this part of the business, more and more local businesses and SMEs will be able to benefit from high quality, innovative and cost effective services for the first time ever.”
Davies will take over Neilson’s responsibilities for growing TNT’s Doordrop division, which was formerly known as Circular Distributors, in a promotion from his role as the division’s new Business Director.

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Latvian express market grows 70pct in 2007

Posted by | Apr 22, 2008 | |

Latvia’s express parcel volumes increased by 70pct to 6.3 million shipments in 2007 compared to 3.7 million shipments in the previous year, according to the Latvian Public Utilities Commission’s (PUC) annual review of the country’s express delivery market, the Baltic Business Daily reported.

“Both domestic and international deliveries showed large growth. The incoming international express deliveries rose by 128pct, international outgoing deliveries by 35pct, and domestic express deliveries increased by 45pct,” the commission’s representative Zanete Luse was cited as saying.

In the domestic sector, DPD Latvija had the largest market share with 43pct in 2007 ahead of state-run postal operator Latvijas Pasts with 27pct, according to the regulator’s data. Other leading domestic players include Velokurjers, City Express, Autopasts Terminals and V-Sports.

The international sector was led by Itella Logistics with a 53pct market share followed by DPD Latvija with 19pct. Other leading international players include UPS partner EKL/LS, DHL, TNT and Autopasts Terminals.

The number of registered express companies in Latvia grew by eight to a total of 30 last year, according to the PUC. The PUC is an independent state institution responsible for regulating various sectors, including the postal market.

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Strategic Review of Canada Post Announced

Posted by | Apr 22, 2008 | |

Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and Minister responsible for Canada Post, today announced that the Government of Canada will conduct a strategic review of the Canada Post Corporation that will be guided by established terms of reference. “We are conducting a strategic review of Canada Post to make sure this public institution has the right tools and means to fulfil its mandate in the future,” said Minister Cannon. “This review is being conducted with the full understanding that Canada Post will remain a Crown corporation. In the changing business context and with new challenges ahead, we want to act now to make sure it continues to fulfil its mandate: delivering essential, universal services every day to Canadians, while remaining financially self-sustaining.” The review will focus on four major areas: market and competition; public policy objectives and responsibilities; commercial activities; and financial and performance targets. A review of Canada Post has not been conducted since 1995. The review will be led by an external, independent advisory panel composed of three members. “I am very pleased that Dr. Robert Campbell has agreed to chair the panel and that Mrs. Nicole Beaudoin and Mr. Daniel H. Bader will support him as panel members on this important review,” said Minister Cannon. “I look forward to their report and recommendations, which are due to me in December 2008.”

The panel will be guided by the following four principles:
– Canada Post will not be privatized and will remain a Crown corporation;
– Canada Post must maintain a universal, effective and economically viable postal service;
– Canada Post will continue to act as an instrument of public policy through the provision of postal services to Canadians; and
– Canada Post will continue to operate in a commercial environment and is expected to attain a realistic rate of return on equity.

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