Tag: Europe

Fortec announces five million investment programme

Rugby based Fortec Pallet Distribution Network has today announced a £5 million investment programme in a new 140,000 sq foot central hub, IT systems and equipment that will accommodate the organisation’s expansion plans for at least the next five years.

– move to new Central Hub at Easter – new facility three times size of present hub – record turnover and profits in 2006

The multi-million-pound investment, unprecedented in the 10 year history of Fortec, has been approved by French parent company Geodis following Fortec’s record financial turnover and profits for the fifth year running in 2006.

Fortec, currently based on the Europark Estate near Rugby will move to a 140,000 sq. ft. building eight miles south of its existing location. The new building which is nearly three times the size of the current hub is located on a 9.25 acre site and provides excellent motorway access.

Extensive refurbishment of the new hub site at Watford Gap is currently underway and this work is scheduled to be completed by late March in readiness for the relocation of Fortec staff and facilities to the new central hub after Easter.

Rod Abrahams, Managing Director of the Fortec Pallet Distribution Network commented: “This multi-million pound investment in a new central hub, systems and facilities is without doubt a quantum leap for the business.

“The new site represents a huge step forward in the future development of Fortec and will enable the network to handle the forecast volume growth which is anticipated over the next few years.

“The facility enables Fortec to continue to focus on the quality end of the pallet distribution market – providing our licensees with the right infrastructure to send their customers goods through a safe and secure environment with the full benefits of extensive IT support.

“This is a milestone for Fortec and will help shape the future success of the company for many years to come,” he added.

The new Fortec Pallet Distribution Network Hub is an enabler through which the company can facilitate its expansion plans:
a) It will enable the network to increase from 61 to 75 licensees.
b) It will enable the network to launch new products for licensees and their customers.
c) It will enable Fortec to develop extensive ground-breaking IT enhancements.
d) It will enable Fortec to build upon its reputation as a quality provider.

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UK direct mail volumes drop 2.1% in 2006

The volume of direct mail sent last year declined by 2.1% to 5.03bn items, according to Royal Mail.

Expenditure also dropped 2.1% from GBP2.37bn in 2005 to GBP2.32bn in 2006. The figures measure the whole direct mail market and not just those items handled by Royal Mail.

The overall volume figure includes mail addressed to consumers and mail addressed to businesses. Consumer direct mail volume dropped 1.6% to 3.94bn items, while business direct mail dropped 3.6% to 1.09bn.

Providing more detail about the consumer direct mail market, Royal Mail identified which six market sectors that grew in volume: Education grew the most by 10.4%; followed by charity, up 9.5%; leisure and entertainment, up 3.7%; health, up 2.8%; home shopping and mail order, up 1.3%; and “other financial”, up 0.2%.

The number of items sent to 55- to 64-year-olds increased by 11.5% and the number sent to recipients in social class AB climbed 1.1%.

The volume of direct mail sent in the fourth quarter of 2006 was 1.18bn, down 4.6% on the corresponding quarter last

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Norway Post to buy Sweden’s Transflex Group

Norway Post has entered into a contract to buy all the shares in Transflex, a Swedish transport and logistics group. This acquisition will strengthen the position of Norway Post and Nor-Cargo in the Nordic region and within the field of international land transport.

The purchase of Transflex is part of the Norway Post Group’s strategy of expanding within the Nordic region. This transaction emphasizes Norway Post’s ambition of getting a foothold in Sweden and becoming one of the four largest logistics companies in the Nordic region.

Transflex was established in 1998 and has operations in Halmstad, Gothenburg, Stockholm, Jönköping and Linköping. It has 75 employees and achieved revenue of SEK 417 million in 2006. Transflex has grown dramatically since its formation and is one of this industry’s most profitable and well-run players.

The Transflex Group will become a part of Norway Post’s logistics network in Sweden together with refrigerated-transport company Frigoscandia, courier and express delivery company Box and Nor-Cargo’s Swedish operations. The acquisition of Transflex will strengthen Norway Post’s and Nor-Cargo’s
opportunities to establish a strong international network based in Southern Sweden.

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DPD defends Austrian B2B parcel market leadership

DPD has successfully defended its leadership of the Austrian B2B parcels market despite the efforts of expanding Austrian Post to win a sizeable chunk of the market.

DPD Austria has announced that it increased turnover by 6.4% to EUR 132.2 million in 2006, which kept it at the head of the B2B parcels market. DPD carried 34.2 million parcels in Austria last year, which was an increase of 8.2%. About 70% of these volumes were domestic, and 30% were international.

Key success factors were the carrier’s strong regional presence with 13 depots and performance quality of 98% for transit time reliability. “Our regional expertise makes us into a strong partner for our customers,” said managing director Georg Karoh.

For 2007, DPD Austria is targeting turnover growth of 2.5% and a volume increase of 4.5%. The carrier will be putting a special focus on neighbouring Eastern European countries as well as the new EU members Romania and Bulgaria. The carrier has 1,400 employees and 900 vehicles.

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GeoPost strengthens its presence in Spain with the acquisition of SEUR-SANTANDER

GeoPost has just acquired the SEUR-Santander franchise (Province of Cantabria).

This operation was made possible through the joint-venture SEUR GeoPost (60% held by GeoPost SA and 40% by SEUR SA), which has a turnover for a full 12 months in excess of euro230 million.

Located in the Cantabria region, Northern Spain, the Santander franchise, employs around 80 people, and has a turnover of almost euro7 million per year.

“This acquisition strengthens SEUR GeoPost’s position in Northern Spain” explains Yves Delmas, CEO of SEUR GeoPost. Following the acquisition of a series of franchises since 2004, SEUR GeoPost now manages eight franchises in Spain: Madrid, Bilbao, Zaragoza, Soria, Gerona, Baix de Llobregat, Granollers and, recently, Santander. With the acquisition of the Santander franchise GeoPost raises its stake to 19.6%.in its partner’s capital, SEUR
Spain therefore asserts its position as one of key players of the GeoPost group’s development in Southern Europe.

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