Tag: Germany

Deutsche Post may face legal action from GLS

General Logistics Systems (GLS), the German parcel forwarding subsidiary of UK postal group Royal Mail, is threatening legal action against German postal operator Deutsche Post. GLS, formerly named German Parcel, is demanding access to the delivery service of Deutsche Post as part of a plan to expand into letter deliveries. It argues that the discounts allowed by the postal service operator to rivals for the consignment of pre-sorted letters are insufficient at a maximum of 20 per cent. GLS is planning to collect letters from customers, carry out sorting and transfer the mail to the distribution network of Deutsche Post, but this plan has been rejected by Deutsche Post so far.

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New challengers set to blow European road express apart

New players are set to seriously challenge the big global integrators in the fast-growing European international road express market. They will include national parcel operators and freight forwarders.

That was one of the arguments put forward at this month’s World Mail ‘ Express Europe conference in Brussels. However, industry observers questioned that suggestion, asking where the new market entrants would come. They also pointed out that both groups of potential additional competitors had tried in the past to move into that sector without success.

Opening the debate, German express, parcel and transport industry journalist and consultant Ludwig-Michael Cremer argued that the European international express market was set to see further segmentation between air and road-based operations. TNT already had fully separate pan-European air and road networks, he said, and DHL and UPS were set to follow. FedEx was currently focused on air express and might need to find a partner to develop the equivalent of its FedEx Ground operation in the US.

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Calls for repeat of Deutsche Post AGM

German postal services provider Deutsche Post has been called on by representatives of the local authorities in the German federal state of Lower Saxony to reconvene the AGM. Wulf Haack, managing director of the association of local authorities, explained the demand by saying that the supervisory board had made a formal error at Wednesday’s AGM when it omitted to hold a vote on an application to save smaller franchises in Lower Saxony from closure.

Deutsche Post came under fire from local authorities across Germany at the AGM for its decision to close branches in Lower Saxony. Mr Haack said that this strategy was unjustifiable, particularly as Deutsche Post had emphasised in its annual report how a widespread presence was a major factor in achieving success. He also accused Deutsche Post of losing all sense of its public duty following its privatisation and of not listening to the many issues raised by customers and its franchise operators.

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German Leipzig/Halle airport set to be DP/DHL main hub

The Leipzig/Halle airport’s 290 mln eur expansion can go ahead, according to a ruling by the federal administrative court here that paves the way for Deutsche Post AG’s DHL unit to make the airport its main European hub.

The German court said the expected level of aircraft noise at night resulting from the expansion — which includes a new runway and 24-hour service — is acceptable.

DHL said in November last year it will shift operations to Leipzig from Brussels in 2008 after the Belgian government insisted the company invest in quieter aircraft for night flights, a demand DHL was unwilling to meet.

The unit plans to employ about 3,500 staff in Leipzig by 2012.

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Swedish NCC Signs Logistics Services Agreement with DHL

Swedish construction and real estate management group NCC has signed an agreement with German express mail delivery group DHL, a subsidiary of postal operator Deutsche Post, on the provision of logistics services, it was reported on May 18, 2005.

The value of the deal was not disclosed. The agreement includes the transportation of construction materials as well as express delivery of documents.

The agreement will help NCC further reduce construction costs. Sweden is considered a country with high construction costs and the advantages of the contract with DHL will help NCC work against that trend, Kent Eriksson at NCC said.

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