Tag: Europe

Express Delivery under Pressure to Add More Value as Parcel Service Closes the Gap

Posted by | Oct 31, 2007 | |

Europe’s parcel and express delivery business is expected to continue to grow at a higher rate than in previous years due to an increase in business-to-consumer (B2C) traffic and strong international demand, according to new research by market analyst Datamonitor.

However, the research, “European Express Market Map 2008,” which covers 12 major European markets, says that although currently exhibiting a higher growth rate than parcel services, express services are going to have to demonstrate extra value as customer demand is shifting to using cheaper yet reliable parcel services in key growth areas of international and business-to-consumer (B2C) delivery services.

“Over the next five years, the B2C and C2C (consumer-to-consumer) sectors will experience faster growth than B2B (business-to-business), due to increased e-commerce activity, especially in less mature home delivery markets such as Italy and Spain,” said Erik van Baaren, Datamonitor express analyst and author of the study.

International services are also growing at a higher rate primarily due to the enlargement of the European Union and the trend to centralize operations to fewer countries and outsource manufacturing to low-cost countries, according to van Baaren.

Read More

Minister for Transport inaugurates DHL's state-of-the-art hub

Posted by | Oct 31, 2007 | |

DHL Express officially opened its new purpose-built hub today near Dublin Airport. Minister for Transport, Mr. Noel Dempsey T.D., officiated at the opening of the premises in Dublin Airport Logistics Park. The new hub is central to DHL’s strategic development plan for its business in Ireland. The facility will be the focal point for all DHL’s international air express, road express and domestic delivery services.

The purpose-built hub, which is located on a 13 acre site, utilises the latest state-of-the-art technology including a highly sophisticated automated sortation system which contains over 700 meters of conveyors and is capable of handling up to 7,000 parcels per hour. The system automatically routes national and international shipments to one of 118 pick-up and delivery doors, 24 cross-dock doors and 30 line-haul doors for distribution via the DHL national and international networks. Shipments for delivery to more than 220 countries serviced by DHL are consolidated on airline containers to connect with DHL’s A300 airbus cargo aircraft nightly service from Dublin airport.

Bernard McCarthy, Director & General Manager of DHL Express in Ireland, said at today’s official opening, “The completion of the new hub is a significant milestone for DHL Express in Ireland and reinforces our commitment to invest in our infrastructure and to further improve the services we offer to Irish businesses. The new facility is the centrepiece of our operational network in Ireland and will ensure that we are well positioned to meet the growing needs of our customers throughout the country.”

Read More

Changes to Swiss Post Executive Management

Posted by | Oct 31, 2007 | |

At its meeting on 29 October 2007, the Board of Directors of Swiss Post appointed Markus Zenhäusern as Head of Finance and as a member of Executive Management effective 1 June 2008. He replaces Hans-Peter Strodel, who will retire on that date.

In appointing Markus Zenhäusern, 45, the Board of Directors has selected a distinguished financial specialist with a broad range of experience in controlling, international finance and accounting, as well as in transfer price systems and the integration of companies in the context of mergers and acquisitions. After graduating from the University of St. Gallen with a degree in business administration, Markus Zenhäusern took a PhD at the University of Fribourg.

Hans-Peter Strodel left the private sector in 1995 to join what was then Switzerland’s PTT administration as Director of Finance and Controlling and was appointed Swiss Post’s Head of Finance in 1996. In this capacity he served as a member of the Executive Management from 1 January 1998 onward. As Head of Finance, he was responsible for the establishment of modern accounting and management information systems as well as insurance and risk management as the basis for the new Group financial management. The strategic reorientation of Swiss Post’s real estate operations formed a further focal point of his work.

During this period, Swiss Post Group saw its sales grow from CHF 5.6 billion to nearly CHF 9 billion, while Group profit increased from CHF 239 to more than CHF 800 million and Swiss Post’s scope of consolidation expanded from just over a dozen to nearly 100 companies in 19 countries.

Read More

Royal Mail hit by pension costs

Posted by | Oct 31, 2007 | |

The group posted earnings of GBP 233m, but said that but for a £75m government loan, this figure would have fallen to GBP 158m – half the GBP 355m made last year.

Pressures from rising pension costs, falling mail volumes and increased competition were blamed.

The figures do not cover the period over the summer when Royal Mail was hit by a series of strikes.

Declining volumes of post, competition in the mail market and the rising use of electronic communication, such as e-mail, continued to eat into Royal Mail’s letters business, with revenues down GBP 78m during the first five trading months of 2007-08 on the previous year.

The revenue fall came despite a rise in postage prices in April.

We anticipate that the company’s current level of contributions to the pension plan will reduce to 22 pct in five years’ time from the existing level of 30 pct.

Royal Mail

These factors, in addition to the “huge investment” that the group is about to make to update its business practices, mean that Royal Mail will make no profit this year or in its 2008-09 period.

And it said that without the contribution from its unregulated European parcel delivery service, General Logistics Systems, one of the few areas of growth for the Royal Mail last year, the group would become loss-making.

There was no indication of the cost to its business from the strikes organised by the main postal union, the Communication Workers Union, between June and October.

Industry observers estimated that about GBP 260m was knocked off profits during this period as a bitter dispute over the firm’s modernisation plans, including unpopular reforms to its pension scheme and radical changes to working practices, led to a series of walkouts.

Read More

Royal Mail Chief pockets GBP 1.1m as profits dive

Posted by | Oct 31, 2007 | |

Royal Mail’s Chief Executive, Adam Crozier, has been awarded GBP 1.12 million in pay and bonuses as the strike-ridden UK postal service reported a 34.3 per cent fall in profits as a result of increasing pension costs.

The group also revealed today it only expects to break even in the current financial year because of funding its company pension plan, increased investment and falling postal volumes.

Mr Crozier, who was criticised during the recent postal crisis for allegedly failing to attend talks with unions, was paid a basic GBP 633,000 as well as a GBP 469,000 performance-related bonus, some of which has been deferred into a long-term incentive scheme. With GBP 18,000 in benefits, Mr Crozier was rewarded a total £1.12 million.

Allan Leighton, Non-Executive Chairman at Royal Mail, who recruited Mr Crozier in 2003, was paid a performance-related bonus of GBP 200,000 on top of GBP 20,000 in basic pay.

The group admitted that the same competition and volume factors had impacted current trading, with profits down by GBP 78 million in the first five months of the financial year.

Royal Mail said today: “Key issues for the company as we move forward are the continuing high cost of funding the pension scheme, the continuing decline in volumes as customers move to other forms of communication and the beginning of the huge investment we will now make in the modernisation of the company.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest