Tag: Royal Mail

First group extends Royal Mail contract to move mail by rail until 2010

FirstGroup-owned rail freight company FirstGBRf said it has extended its contract with Royal Mail to transport post until 2010.

The deal will see the freight haulier move more than 1 million items a day on two return services between Willesden in London, Warrington and Wishaw in Scotland.

FirstGBRf started carrying post for Royal Mail at the end of 2004, marking a return to the railways for the postal service following the end of its contract with previous postal train operator English, Welsh & Scottish Railway due to a disagreement over costs.

FirstGBRf did not disclose the value of the contract.

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Royal Mail trials electric vehicles

Smith Electric Vehicles has won its first order from the Royal Mail – one of each of the Edison and Newton delivery vehicles. The vehicles will be trialled in London, in parcel and post distribution operations.

Edison is a sub-3.5t electric van, built using the Ford Transit shell. Newton is sold in 7.5t and 9t configurations. Both vehicles have restricted top speeds of up to 50mph and are capable of covering 150 miles on one battery charge.

Royal Mail has a fleet of more than 33,000 delivery vehicles operating across the UK, including approximately 10,700 3.5t vans and 2,500 7.5 tonners.

The manufacturer is installing extra electric vehicle production capacity at Vigo Centre, its 250,000sq ft assembly facility in Tyne & Wear, UK.

Darren Kell, chief executive of Smith’s parent company Tanfield, said: “The adoption of the Low Emission Zone in London and expected road pricing in 10 other urban conurbations across the UK will significantly increase the addressable market for electric vehicles.”

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Royal Mail commenting on the statement from the CWU

On 6 March, the CWU wrote to Royal Mail setting out a series of demands which included an increase in basic pay from £323 a week to £395 in 2007, and a reduction in the working week. The demands in aggregate were equivalent to a cost to the company of just over £1 billion, equivalent to a 27% increase in basic pay.

Royal Mail today set out its position in a letter to MPs and peers, a copy of which is available in the Royal Mail Website.

Commenting on the statement from the CWU, a Royal Mail spokesman said:
“The company’s position is very simple – Royal Mail has absolutely no option but to change and modernise the business, urgently. That involves a £1.2 billion investment in the business – the opposite of the ’cost-cutting frenzy’ the union talks about and it is designed to ensure Royal Mail can compete successfully in an increasingly tough market. “We wrote to the union last week after the ballot result was announced offering to meet at any time to explain the company’s position – and we remain very willing to meet the union at any time to do so.”

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Tanfield Group wins contract from Royal Mail for zero emission vehicles

Electric vehicle developer Tanfield Group PLC said it has won a contract of undisclosed value from UK state-owned postal group Royal Mail for its next generation zero emission vehicles.

Tanfield said Royal Mail has placed an order with its Smith Electric Vehicles division for one of each of its Edison and Newton delivery vehicles for trials. The vehicles will be used in London in parcel and postal distribution operations.

Chief executive Darren Kell said: ‘The adoption of the Low Emission Zone in London and expected road pricing in 10 other urban conurbations across the UK will significantly increase the addressable market for electric vehicles.

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