Tag: Germany

trans-o-flex has extended its Eurodis network with the addition of a new partner in Hungary.

Posted by | Aug 30, 2007 | |

Since 13th August, Road Parcel Logistics Services Kft., a Hungarian logistics company, has taken over the nationwide delivery of all trans-o-flex shipments in Hungary, including parcels with a weight of up to 40 kilogram as well as pallets. Special services, such as express deliveries or c.o.d. consignments, complete the company’s service range. Road Parcel operates a hub in Budapest and 10 additional depots.

In May 2007, Austrian Post, the majority shareholder of trans-o-flex, acquired 100 % of the shares in Road Parcel Logistics Kft and Merland Expressz Logistics Services Kft, a special service provider for general cargo and pallets. This year, both companies together will deliver more than 1 million shipments, generating sales amounting to EUR 7.5 million.

“Among the Hungarian KEP service providers, Road Parcel holds a top position and, given its expertise in the combi-freight business and transportation of hazardous goods as well as the application of the shipment concept and its high EDP competence, presents itself as an optimal partner to join our Eurodis network,” commented Klaus J. Heinz, Spokesman of the Management Board of trans-o-flex.

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German cartel office slams regulator approval of Deutsche Post rates

Posted by | Aug 29, 2007 | |

The German cartel office said that regulators’ lenient calculations allow Deutsche Post World Net AG to keep its postal rates unchanged, Frankfurter Allgemeine Zeitung reported, quoting a spokeswoman of the office.

The Bundesnetzagentur, Germany’s regulatory authority for postal services, yesterday said it will continue to base its calculations for postal rate approval on the difference between productivity gains and inflation rates.

The regulator sees productivity increasing at a rate of 1.8 pct a year.

The cartel office argued a productivity factor of 1.8 pct is too low, adding Deutsche Post is reducing its costs at a faster pace, according to the newspaper.

It also criticized Deutsche Post’s social payments and wage levels as being unusual in the industry, and urged regulators to include in their calculations foreign postal markets, some of which have significantly lower postal rates.

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DHL in talks with India Post

Posted by | Aug 29, 2007 | |

DHL is talking to the state-owned India Post about a strategic partnership with the Indian postal system.

According to The Economic Times of India any deal would give DHL access to India Post’s distribution network across the sub-continent, with nearly 15,000 post offices to give DHL a ‘last mile’ delivery capability outside its current urban footprint. The reciprocal benefit for India Post will be DHL’s superior technical expertise in handling logistics operations.

The final structure of the relationship, though, is yet to be finalised. “The idea is to identify some common synergies and work towards creating a relationship, which might take shape in the form of either a strategic partnership, a JV or a memorandum of understanding,” commented an official from the Department of Post (DoP).

According to the transport industry analysts TI, many of the major logistics integrators have their sights set on the fast growing Indian market, though its regulatory regime and relative immaturity presents risks. The Indian government is looking at regulating all courier and express operators and imposing a double-tax on them to fund the Universal Service Obligation (USO) of the Department of Posts. Such a move would be disastrous for the industry (as well as the Indian economy), says TI, though it thinks it unlikely in the light of international opposition that these plans will come to anything.

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Deutsche Post cut to 'sell' at Goldman Sachs

Posted by | Aug 28, 2007 | |

Goldman Sachs has cut its rating on Deutsche Post to ‘sell’ from ‘buy’ and its target price to 18 eur from 24 eur, according to dealers, saying any delay in German mail liberalization seems unlikely, implying volume loss and margin erosion for the company.

In a note this morning, Goldman said a delay to German mail liberalization – scheduled for 2008 – now seems unlikely.

The broker said a cost-cutting program at Deutsche Post is unlikely to compensate for revenue declines. Liberalization threatens the company’s free cash flow generation and, as such, activist/private equity investors may shy away, reducing pressure for internal change, said Goldman.

Goldman has added Deutsche Post to its ‘conviction sell’ List.

Since it was upgraded to ‘buy’ on January 24, 2006, noted Goldman, the stock has declined 1.1 pct vs. a 19.1 pct increase in the FTSE World Europe.

The German coalition government has agreed to continue with plans to liberalize the market for mail weighing less than 50 grams for January 2008, assuming agreement can be reached on minimum wage legislation, noted Goldman.

It expects this to drive poor share price performance for Deutsche Post.

The broker has reduced its EBIT estimates by 9.5 pct for 2008 and 13.7 pct for 2009.

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Deutsche Post rated second class

Posted by | Aug 28, 2007 | |

German mail operator Deutsche Post is not going to have a very happy new year in 2008 when the German postal sector is liberalized, say the analysts that downgraded the stock on Tuesday.

Although there have been efforts to delay the liberalization of Europe’s 88 billion euro (USD119.9 billion) mail market, which was pushed back to 2011 from 2009 in July, Germany is still on target to open up its national postal sector to competition at the start of next year.

“A delay to German mail liberalization (scheduled for 2008) now seems unlikely,” said Matthew Lloyd, analyst with Goldman Sachs. He told clients that Deutsche Post faced volume loss and margin erosion from increased competition, and downgraded the stock to “Sell” from “Buy.”

Shares in Deutsche Post fell 67 eurocents (91 cents), or 3.1 pct, to 20.82 euros (USD28.37) in Frankfurt. The stock finished bottom of the DAX index, which slid 28.52 points, or 0.4 pct , to 7,457.47.

Although Deutsche Post currently has over 90 pct market share in Germany, the threat to its business from outside competition has seen the company forecast a drop in earnings between 10 pct -20 pct in 2009.

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