Tag: Netherlands

TNT Says Fuel, U.S. Economy Haven't Hurt Express Unit

TNT said rising fuel prices and the slowing U.S. economy aren’t hurting its express-delivery division. ‘TNT is coping well with the uncertainty in the economy,’ Marie-Christine Lombard, head of the Hoofddorp, Netherlands-based company’s TNT Express unit, said today at a press briefing in Liege, Belgium. There is ‘so far no impact.’

Jet fuel prices in northwest Europe have risen 42 percent this year, Bloomberg data show. TNT’s Memphis, Tennessee-based competitor FedEx Corp., the second-largest U.S. package-shipping company, posted its first quarterly loss in 11 years yesterday and projected earnings that fall short of analysts’ estimates as fuel costs rise and the country’s slowing economy curbs demand.

TNT is transporting as much as possible by road rather than air, helping to hold back costs as prices for diesel fuel rise more slowly than for jet kerosene. The company’s U.S. business makes up only 2 percent to 3 percent of total express-delivery volumes. TNT isn’t planning to expand its operations within the world’s largest economy, Lombard said today. ‘We’re not a big player intra-U.S.A. and we don’t plan to be one,’ she said.

TNT, which operates a fleet of aircraft for its express-delivery network, is considering forming a partnership with cargo airlines to use their freight space on some routes, Lombard said. Such an alliance would probably be a ‘commercial’ agreement and not involve a capital investment, she added.

Bonn-based competitor Deutsche Post AG’s DHL express-delivery unit and Deutsche Lufthansa AG, Europe’s second-biggest airline, set up the AeroLogic cargo joint venture this year. The business will fly freight and express mail from Germany to Asia and the U.S. starting in 2009, stepping up competition with TNT as well as U.S. rivals United Parcel Service Inc. and FedEx.

TNT will invest in new aircraft in the event that there is sufficient shipment volume that requires additional capacity, according to Lombard.

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Deutsche Post and Selekt Mail file complaint against extension of mail monopoly in the Netherlands

Deutsche Post World Net and Deutsche Post Selekt Mail Nederland C.V. filed a joint complaint with the European Commission today to protest the renewed delay of the opening of the mail market in the Netherlands. Basis for the complaint is the Dutch government’s decision not to end the mail monopoly as planned on July 1, 2008, but to extend it indefinitely, thereby creating a competitive advantage for Post TNT of the Netherlands.

Through their decision, the Netherlands join the group of opponents against a liberalization who refuse the uniform opening of postal markets in Europe and continue to count on market foreclosure instead of competition.

Under the European law, a member state may reserve the national postal market exclusively for one provider only if this approach plays an essential role in financing the universal service. However, the statements of the Dutch government clearly show that the renewed delay only serves the interests of TNT. The Dutch government’s activities are, therefore, a clear violation of European legislation.

The allegation of an insufficient competition in the neighbor countries, especially in Germany, is just an excuse. The German postal market has been completely open since January 1, 2008. An indefinite delay protects the home market of the Dutch TNT that has been acting in Germany for years and that has unlimited business opportunities since the fall of the mail monopoly there.

In anticipation of liberalization, DP Selekt Mail, like other TNT competitors, has already made extensive investments. For this reason, Deutsche Post and DP Selekt Mail are calling on the Commission to act promptly and to eliminate the unacceptable distortion of competition contrary to European law in the Dutch postal market as soon as possible.

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Dutch government to liberalise postal market from Jan 1, 2009

Dutch Economic Affairs State Secretary Frank Heemskerk promised the Dutch coalition government parties on Tuesday that he will work towards liberalising the Dutch postal market from January 1, 2009, Dutch media reported.

In May, the Dutch government decided against opening up the postal market to competition on July 1, 2008, stressing there are too many uncertainties to allow for full liberalisation.

But Heemskerk was confronted with a parliamentary motion backed by the coalition parties Christian Democrat CDA, Labour PvdA and the Christian Union on Tuesday in which January 1, 2009, was suggested as a new targeted date for liberalisation, Dutch media reported.

Heemskerk said he will maximise efforts to meet the targeted date, but added that liberalisation will still be subject to two conditions, namely a level playing field in Europe and good workplace conditions for postal deliverers, the reports added.

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Dutch minister sees no post liberalisation until fair competition in Germany and UK

Dutch Economic Affairs State Secretary Frank Heemskerk said Wednesday he won’t take the decision to liberalise the Dutch postal market until fair competition exists in the German and UK markets, and postal workers are given a satisfactory employment contract.

The statement came after Deutsche Post World Net AG. filed a complaint with the European Commission to protest against the renewed delay of the opening of the mail market in the Netherlands.

The Dutch government on Tuesday decided not to end the mail monopoly as planned on July 1 2008 but to extend it indefinitely.

Both the Dutch government and national carrier TNT NV are unhappy about the German government’s introduction of a sector-wide minimum wage of up to 9.80 euros, saying it prevents fair competition within the German market.

TNT says that, unlike its rivals, Deutsche Post enjoys an unfair advantage through a VAT exemption on 40 pct of its operations in Germany.

A Berlin court ruled in March that a German law imposing a minimum wage at all companies in the letter-carrier industry is illegal.

The German government appealed the decision, with a higher court expected to rule in September, a TNT spokesman said.

Heemskerk said he will update parliament on the situation by October 1

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GLS reports positive results (NL)

General Logistics Systems B.V. (GLS), Amsterdam, reported its 2007/08 results with strong sales and volume increases and profits in line with expectations.
GLS increased its sales to 1.75 billion euros – an increase of 9.2 per cent. The number of parcels handled totalled 335 million, representing a new record. EBITA at 172 million euros was in line with expectations.
GLS invested approximately 47 million euros in capital expenditure in 2007/08. In addition to France and Romania, new hubs and depots were opened in Austria and Poland; and additional franchise depots were acquired in Italy. The integration of GLS Belgium Distribution (formerly ABX BELGIUM Distribution) into the GLS system is also progressing as planned.
In 2008/09, GLS is planning network investments totalling 94 million euros – with significant investments in Germany, Poland, the Netherlands and France. The focus will be on rolling out industrial parcel production processes throughout the network as well as implementing new solutions for the “last mile” in B2C business. Other priorities will be the expansion of the GLS national and international express product offering, and GLS will continue to pursue global partnerships such as the recent cooperation agreement with Gati Ltd. in India.
GLS is expecting the European CEP market to grow at a moderate rate of ca. 3.5 per cent. In its international business, GLS Group is planning double-digit growth rates.

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