Tag: Middle East

Turkish postal system plagued with problems

As the Turkish postal system tries to implement modern technology and introduce innovative products, notorious delays and lost mail continue to be a major headache to customers, local and foreign alike.

Alternatives to the PTT exist and offer added security. Almost all major international carriers operate in Turkey. DHL, UPS and FedEX are among them. Some national carriers, including MNG, Yurtiçi and Sürat Kargo have a strong presence in local markets, too. They are much more expensive compared to the services offered by the PTT.

Some argue that postal employee morale is very low because the staff is overstretched and is expected to provide a wide variety of services. The PTT, now 168 years old, is tasked with many functions in addition to handling mail, including utility bill payments and ticket sales.

Most customer complaints focus on delayed delivery. At times, packages and letters are lost. Even registered and insured mail is prone to problems in the Turkish postal system. Erdoðan concedes that there may be problems in the system, but denies that this is the fault of the PTT as an enterprise. He says there are some bad apples and blames the problems of lost and damaged mail and parcels on disgruntled and greedy postal workers.

PTT employees are not to blame for all faults, however. Legal regulations forbid sending valuable items via regular post so money or other valuables lost on their way to their destination cannot be refunded or otherwise compensated for.

The PTT is liable to compensate the sender for lost or damaged parcels that were insured beforehand. The PTT administration is responsible for the value declared at the time of mailing. Compensation, up to the insured value and mailing costs, is paid to the sender.

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Emirates Post and China Post sign deal to enhance cooperation in postal and financial services

Emirates Post and China Post have entered into an agreement to boost bilateral relations, with a focus on international electronic remittance, improvement in EMS (Express Mail Service), wider use of Dubai Transit Mail Hub and better marketing of the international postal service. The visit came as a sequel to a visit by a China Post delegation to Emirates Post in April, in which both sides decided to initiate moves to enhance bilateral business ties. According to the details of the agreement, International Electronic Remittance will be provided by both parties through the International Financial System (IFS) of UPU. Both sides will conduct joint promotion and marketing activities of the service that will be launched at the end of October 2008. China Post Group will consider using the Dubai Mail Transit Hub for mail items originating in China and dispatched to Middle East and Europe. Both parties will negotiate with airlines for better rates. In the field of EMS, both parties agreed to raise the weight limit of a single EMS item to 40 kg. Both parties will work together to launch time-specific services between the two countries. Emirates Post and China Post will work jointly to market customer-oriented postal services in both countries. The Emirates Post delegation visited various facilities of China Post, including the world’s largest sorting centre in Shanghai.

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Middle Eastern postal market poised for growth

Postal operations in the Middle East have the potential to generate significant value, but they have limited time before regulatory liberalization and the spread of Internet commerce start to erode their competitive position, according to a new white paper Oliver Wyman, a leading international management consultancy.

• Middle Eastern postal companies today are like their European counterparts during the 1990s in facing abundant growth opportunities.

• The sector has begun to liberalize, slowly opening opportunities for new entrants.

• Immigrants in GCC countries are demanding value-added services.

• Low computer and Internet usage in GCC countries gives postal companies an additional advantage.

Middle Eastern postal companies can take advantage of several trends that Oliver Wyman expects to feed expansion and cross-selling opportunities in the region:

• Large existing post office networks and strong, recognized brands, such as UAE Post

• Large local populations and growing immigrant populations, which require basic services usually available at the local post office

• Regulated markets, which allow Middle Eastern postal companies to set barriers to entry much higher for new entrants as deregulation occurs. Bahrain already has a fully liberalized postal market and Egypt has committed to liberalization by 2009.

• Low penetration of PCs and the Internet at present, heavy reliance on cash transactions, and skepticism about online security

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TNT reaching out in Dubai

TNT has started a new operational facility close to Dubai International Airport.

It will offer more space for sorting and delivery, as well as increase cargo and heavy freight capacity for road and air services, the company said.

The facility also gives TNT more room for future expansion with the ability to service more areas before 9am, 10am and noon, enhanced by the connectivity.

The premises will support handling all Dubai local market collections; and processes upwards of 35,000 shipments per week.

It is to be the main hub for local market road collections outside Jebel Ali and Abu Dhabi and is expected to process hundreds of thousands of kilos per month into TNT’s road and air networks.

“It has been necessary to expand our facilities in order to cater to increased demand and future growth,” Country General Manager Bryan Moulds said.

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