Tag: Europe

Royal Mail seeks new price deal to compete with TNT

The UK postal regulator is expected to meet Royal Mail executives in the coming weeks to discuss ways of easing the group’s financial troubles, The Observer reported.

Royal Mail’s interim profits have slumped to 22 mln stg from over 100 mln stg.

The Observer said PostComm officials will examine whether arrangements that allow rival distributors such as TNT and DHL to compete for bulk mail business should be altered to give Royal Mail more pricing flexibility.

Licensed operators that carry bulk mail from companies such as banks, utilities and government are allowed to use Royal Mail’s local delivery network for a charge of 13 pence an item currently, the report said.

PostComm figures show that in the first two years of competition from 2004, the Royal Mail’s market share fell by 3 pct, The Observer said. However, Royal Mail claims the figure has risen to more than 10 pct in the past year.

The report said the group wants to be allowed to lower prices to compete. It can do this, but it must also maintain the margin available to competitors.

Royal Mail told The Observer this allows rivals to continue to undercut its prices as their costs fall.

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Electric vans for French post office

In late 2005, France’s state-run postal service began a trial of eight experimental Cleanova electric vans in an effort to meet a government requirement to reduce pollution.

Not only did the vans work well and prove cheaper to operate than gasoline-powered ones, but the mailmen who drove them reported higher job satisfaction. Now, La Poste is working on a five-year plan to replace the bulk of its 48,000-vehicle fleet with electric cars.

The cars La Poste used were developed by Société de Véhicules Électriques (SVE), and were outfitted with a specially designed lithium-ion battery developed by a joint venture of Milwaukee car-parts maker Johnson Controls Inc. and French battery company Saft Groupe.

SVE has yet to settle on a price for its electric car, and it isn’t clear how much La Poste will have to pay to increase its fleet. But the car will be significantly more expensive than a traditional gasoline-powered vehicle because of the high cost of the lithium-ion battery, which La Poste says would account for about 60% of the unit price. The mail company says it will save on operating expenses because charging the electric car with electricity costs about one-sixth what it would spend to fill up the tank with gasoline.

SVE plans to make only a few cars at first. The French company expects to begin volume production toward year end with the assembly of 1,000 vehicles and, from 2009, gradually ramp up production to about 20,000 a year. That would be a fraction of the two million vehicles sold in France every year, though still more than all the other electric cars ever produced.

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Royal Mail management review on hold

The Royal Mail, which last week called for a 6p hike in stamp prices, has shelved a controversial management shake-up.
Insiders had said the state-controlled group was looking to introduce new pay scales and positions, meaning staff would have been forced to reapply for their own jobs. The Amicus union was known to be concerned, and told The Independent on Sunday last autumn that it was seeking meetings with senior management over the issue.
However, Royal Mail, which is striving to reduce costs in the face of stiffer competition, has decided to shelve the review while it focuses on investing fresh funds in the business. The Government has pledged to provide more than GBP 2bn, a large portion of which will be used to modernise sorting machinery.

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ARCEP and French Postal Operators Form Association

All postal service operators on the French market and holders of licences from France’s telecommunications and postal regulator Arcep formed a postal operators’ association, Syndicat des operateurs postaux (SOP), on December 1. This comes in reaction to deregulation plans by the EU authorities. Members of the new association include the French postal service provider La Poste, DHL-Global Mail France (a subsidiary of the German group Deutsche Telekom), Swiss Post International France (the French subsidiary of the Swiss postal service) as well as Adrexo, Althus, IMX Spring and Stamper’s.

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