Tag: Middle East

DHL initiative makes it No. 1 courier in China

Posted by | Oct 21, 2007 | |

Since the 1990s, China’s international courier market has gradually been taken over by the four international giants — DHL, TNT, UPS and FedEx, which have been growing by more than 20 percent to 40 percent per annum. EMS, the courier service by China Post, has been declining by 4 percent year-on-year.

The domestic courier market has a lot of potential. According to World Trade Organization (WTO) requirements, the Chinese courier market had to be fully opened up to competition by the end of 2005. But in most regions, especially central cities such as Beijing and Shanghai, private courier companies command 80 percent of market share.

Today, if one calls the customer-service departments of FedEx, UPS, DHL and TNT to courier documents from Guangzhou or Shanghai to Beijing, UPS would respond that it only serves clients with whom it has contracts; FedEx, DHL and TNT would take the business, but the quote would be more than 100 RMB from FedEx and DHL; TNT emphasizes medium-to-high end clients and would actively persuade the customer to sign a long-term contract.

Furthermore, international giants hope to acquire domestic courier companies to quickly fill the gaps of their domestic coverage. But there are not many candidates for acquisition. Large private courier companies are mostly alliances of small franchisees. The headquarters have limited managerial control over franchisees, which fight for their regional turfs. If international giants acquire these franchisees, they have to inject a lot of capital and energy to remedy this situation.

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Saudi’s postal delivery system being modernised

Posted by | Oct 19, 2007 | |

Saudi Arabia is getting ready for home delivery of mail. The kingdom’s entire postal delivery system is being modernised. Mailboxes have been put up almost throughout Jeddah, and in an effort to make the system smoother, Jeddah Municipality plans to overhaul the city’s street-naming system.

Jeddah’s streets currently have names, districts are numbered and buildings have numbers, though not always displayed. The current system is confusing, and since most people get mail delivered at office addresses or at post offices, so far there has little need for a clearly defined address system.

The plan envisages a more organised numerical system that would fit in with the kingdom’s new postal system.

Husain Al Hijari, head of the municipality’s naming and numbering department, assured that after implementing the new address system, people would find it much easier to identify their way and reach their destination through the clear and organised signs and structure numbers. He said that the numerical address system started more than 29 years ago, but it stopped because people did not understand it.

Al Hijari explained that under the new system, main thoroughfares are called ‘roads’ and smaller routes will be ‘streets’. Some major streets have been renamed. For example, Prince Muhammad bin Abdul Aziz Street (more commonly known as Tahliah Street) is now Prince Muhammad bin Abdul Aziz Road. The same change was made to all major routes, such as Prince Majed Road, Sari Road and Palestine Road.

The city will be divided into four quarters that will meet at the Al Bai’ah roundabout in downtown Jeddah. Each quarter will be divided into four sub-sections. Residences will get a more formal numbering system that will ascend out from the city centre. This will make it easier for residents, especially in apartment buildings, to know their residential mailing address once the new Saudi postal system goes into full swing.

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Emirates Post showcases IT solutions at Post-Expo in Barcelona

Posted by | Oct 9, 2007 | |

Emirates Post highlighted its indigenously developed POS (Point of Sale) system that automates postal, at Post-Expo 2007, the leading exhibition and conference dedicated to postal, courier and mailing industries, held in Barcelona, from October 2 to 4, 2007.

The Emirates Post’s POS system has been customized to deliver postal and non-postal services across the postal network in the United Arab Emirates. It enables counter agents to deliver multiple services, with a real-time link to new partners. This is part of the UAE’s drive towards e-Government.

The Emirates Post stand showcased IT solutions as well as stamps issued over the past few years, highlighting UAE culture and history. The stand was visited by several visitors and VIPs, including Mr. Edouard Dayan, Director General of UPU.

Mr. Abdulla Al Daboos, Director General of Emirates Post, said: ‘Post-Expo is a major platform that brings together postal business leaders and technical industry experts. The participants got an opportunity to showcase our postal technology and gain insights into new developments through interaction with post officials from all over the world.’

Mr. Mana Al Suwaidi, Marketing Director, Emirates Post, who took part in the various programs of the Expo, said: ‘It is crucial for Emirates Post to participate in such programs. Mr. Dayan hailed Emirates Post for successfully hosting the UPU Strategy Conference in Dubai in November 2006, and said the event paved the way for laying a strong foundation for the new Postal Strategy that will be unveiled at the UPU Nairobi Congress in 2008.’

Mr. Suwaidi took part in the World Postal Business Forum and technology workgroups that focused on the experiences of global postal operations in technological innovations, solutions and ideas.

At this year’s Post Expo more than 200 companies took part, and over 50 exhibitors showcased technology solutions and services essential for providing best services for package delivery.

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GCC postal units to set up logistics firm

Posted by | Oct 5, 2007 | |

Postal corporations of the Gulf Cooperation Council (GCC) States are working to set up a regional level logistics company, according to a Q-Post official. An international consulting firm is conducting a feasibility study, he said. The consultant is expected to complete the study shortly.

The official said discussions on the need for such a company would be held at the forthcoming GCC Postal Meet to be held in Jeddah later this month.

The GCC postal forum’s plans to acquire aircraft on lease to carry mail will also figure at the Jeddah talks.

The official said at present only Emirates Post operates courier aircraft to select destinations in Asia and Europe.

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DP World lines up UAE's biggest IPO

Posted by | Oct 4, 2007 | |

Dubai ports operator DP World plans to raise up to USD 3.5 billion by selling shares in the company though what would be the UAE’s biggest initial public offering (IPO), sources have said.

DP World, part of state-owned conglomerate Dubai World, could sell as much as 30% of its stock as early as next month, listing on the Dubai International Financial Exchange (DIFX), newswire Bloomberg reported on Thursday, quoting people with knowledge of the proposal.

The proposal values the company at around USD 10.5 billion.
The listing would be the Middle East’s second-biggest IPO after Saudi Telecom’s USD 4.1 billion IPO in 2003.

Funds raised from the sale would be used to fund expansion and honour USD 3.5 billion of convertible Islamic bonds sold last year through DP World’s parent Ports, Customs and Free Zone (PCFC), the newswire said.

If the plan goes ahead, it will finally end speculation over what has been one of the most talked about listings in Middle East history.

DP World, the world’s third-largest container port operator, has been looking into selling shares through an IPO for some time now, and the company has always said a public listing is something it is considering, but that no decision has yet been made.

Since last year when the ports operator hired Deutsche Bank and Merrill Lynch to advise on a possible IPO, numerous stories have appeared in local and international media speculating about a possible listing.

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