Tag: La Poste

EU probes La Poste

European Union regulators on Tuesday began an investigation into the French government’s unlimited guarantee for La Poste, that allows the state-run postal service to borrow money on better terms than privately held rivals.

If it uncovers evidence that France is unfairly subsidizing La Poste in a way that would damage rivals, it can order Paris to end the guarantee under threat of court action and daily fines.

La Poste’s special status as a publicly owned company means it is exempt from ordinary bankruptcy and insolvency procedures and the state could ultimately be held liable for its debts.

“Because its competitors do not enjoy the same advantage, the guarantee is likely to distort competition … at a time when the postal sector is being liberalized,” the European Commission said.

France failed to obey an EU order last year to end the guarantee, regulators said. Follow-up negotiations failed to convince the EU executive that France would terminate the guarantee, they said.

La Poste’s guarantee has limits on duration or amount and is provided free of charge. It covers the basic mail delivery La Poste provides in the public interest and – with state payment – the commercial business La Poste is supposed to run without government help.

The Commission said it was not calling into question La Poste’s position governed by public law or its public ownership.

After a similar EU demand, France withdrew an unlimited guarantee in December 2003 that had been granted to Electricite de France SA.

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Transport strike brings France to a halt

The French walked, used bikes, shared cars, or took the day off yesterday for the biggest national public transport strike since 1995. Unions said the strike will continue today.
Service on most trains on the national network, metros in Paris, and buses in major cities ground to a halt after public workers went on strike to oppose a government plan to roll back their pension privileges. About 319,000 people at railroads, power and gas utilities, schools, and the postal service failed to turn up at work. The special pensions cost the state about USD 7.1 billion a year.
The stoppage marks the first union challenge to President Sarkozy, elected in May on a platform of cutting taxes, reducing the cost of pensions, and liberalizing labor. The pension changes require employees to work 40 years instead of 37 1/2 years to earn a full pension. Pensions will also be linked to the national statistics institute’s price index. Mr. Sarkozy wants the plan completed by 2012.

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IPC leads environmental sustainability initiative

The International Post Corporation (IPC) announced today at its bi-annual Board meeting in New York City, its plans to develop a three-tier program to address environmental sustainability among its member posts. The program will focus on developing common sector-wide definitions and measurement systems; conducting stakeholder research and communicating sector-wide advances in environmental sustainability throughout the postal industry.

“Climate change is no longer an issue of debate,” said Jean-Paul Bailly, chairman and CEO of Groupe La Poste in France and chairman of the IPC Board. “Two prominent areas for concern to postal operators and our industry stakeholders are the operation of extensive road and air transport networks and issues related to direct mail, a strategically critical business for posts.”

Mr. Bailly added, “Because of the sector-wide urgency of the issue, the IPC Board will devote its annual conference this May to develop a common environmental sustainability initiative and map the way forward for the postal industry.” The conference, Leadership through Sustainable Development: Postal Industry Challenges and Opportunities will take place on 29 and 30 May, 2008 in La Chapelle en Serval, France. CEOs representing 24 member postal organizations and several selected CEOs from both inside and outside the industry are expected to attend.

Last month, IPC conducted a members’ forum on the subject of environmental sustainability, where it was decided that IPC should take a leadership role in providing the platforms for members to come together to define the way forward for the sector.

IPC has been a leader in providing postal delivery measurement systems for nearly 20 years, we are the natural partner for the postal industry and it makes sense that we are the organization to develop a common system for environmental measurement and research among the posts,” said Herbert-Michael Zapf, CEO and president, IPC.

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Seur to invest EUR 40.5 million in new facilities in Barcelona

Seur invests in Barcelona Spanish express company Seur, partly owned by France’s GeoPost (La Poste), is to invest EUR 40.5 million in new facilities in Barcelona to further upgrade its infrastructure.

The new 16,400 sqm facility, which is one of the ten hubs of the Seur network in the Iberian Peninsula, is divided into a 8,400 sqm cross docking bay and the 8,000 sqm Seur franchise Barcino.

The new loading platform incorporates the latest technologies which include a double conveyor worth EUR 6 million with a capacity to sort up to 14,000 parcels per hour.
Furthermore, the goods are controlled by means of a barcode reading system which transfers real-time information according to the position of each parcel.

The Seur franchise Barcino is located next to the hub and is one of the 85 franchises of the Seur network, which has invested EUR 11.5 million of the total EUR 40.5 million in its new facilities. With an extension of 7,994 qm the franchise Barcino employs a workforce of 290 professionals to ensure the best service possible. Barcino has generated a turnover of EUR 32 million in 2006.

Manuell Valle, Seur CEO, pointed out during the inauguration the importance of the new facility for the company. “The new platform is a reference of modernity and is well situated in terms of land, sea and air. These conditions are suitable to enhance the service quality for thousands of customers and follow the path of continuous improvement after the inaugurations of the Seur franchise in Sevilla and the franchise and hub of Lisbon.”

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Belgian Post to merge parcel, express subsidiaries

Belgian Post announced yesterday it will merge its two subsidiaries Taxipost and Kilopost into a new merged division to be called “Parcels & Express” to cut costs and enhance its services. The future business will operate under the Taxipost brand.

The express unit Taxipost has succeeded in increasing volumes and revenues but has not achieved a financial breakeven in a tough competitive environment, the postal group said in a statement.

Belgian Post said it has therefore decided to merge Taxipost with the parcels unit Kilopost into a new merged division to be called “Parcels & Express” under the management of Eric Piers.

The Taxipost depots will be integrated into the Belgian Post mail division during the first half of 2008 and its contracts will be transferred to the parent group. The mail division will be responsible for handling and delivering all parcels. Belgian Post aims to complete the restructuring by mid-2008.

Belgian Post managing director Johnny Thijs said the restructuring was designed to enable the postal group to achieve its “major ambitions” in the parcels sector, to increase its market share and to reduce cost levels.

The two units had combined volumes of 25 million parcels in 2006. Taxipost increased its express volumes by 22 pct in the first half of 2007.

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