Tag: Royal Mail

DTI sets up review of UK Royal Mail’s future in the free market

Posted by | Jun 12, 2005 | |

Alan Johnson, the Secretary of state for Trade and Industry, is to appoint a special committee to review Royal Mail’s future. Mr Johnson is considering potential candidates to chair the committee, and an official announcement is expected within a fortnight. The committee would consider the impact of competition, Royal Mail’s plans to improve profitability and the future of the Post Office network, a well-placed source said. The review, promised in the Labour manifesto, is a prelude to the postal market being fully opened to competition in 2006.

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Postwatch chairman Carr turns up heat on UK Royal Mail

Posted by | Jun 10, 2005 | |

Postwatch chairman Peter Carr has waded into the row over Postcomm’s pricing proposals, tongue-lashing Royal Mail for claiming the price- freeze would starve the company of cash. The watchdog maintains that the plans allow a minimum capital expenditure of GBP750m up until 2010. It claims, in fact, that Royal Mail will spend GBP40m less than its budget under the current deal. A Postwatch spokesman says: “Royal Mail is making an issue out of nothing. It is not being starved of investment. Quite the contrary, it has the freedom and the money.”

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TNT/Royal Mail: GLS sale would suit both sides

Posted by | Jun 10, 2005 | |

TNT has expressed interest in acquiring Royal Mail’s European parcel unit GLS Holding, among other global targets, to expand its express delivery network and increase market share. Although Royal Mail has yet to make a comment, a possible sell-off could work well with the group’s plans for semi-privatization.

According to the German magazine WirtschaftsWoche, TNT may be planning a series of acquisitions, one of which could be Royal Mail’s subsidiary General Logistics Systems (GLS), CEO Peter Bakker said in an interview.

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UK PPA warns lifting of postal controls will hit B2B sector

Posted by | Jun 9, 2005 | |

Business-to-business magazines that depend on doorstep distribution could suffer under plans to end price controls on press postage, the Periodical Publishers’ Association (PPA) has warned. The current Presstream system, which forces Royal Mail to keep prices low for subscription-based magazines, will be unregulated from April 2006 under proposals from the postal services regulator, Postcomm. Postcomm said it believed publishers would be protected from soaring prices because there was sufficient competition in the market to keep charges low.

But Ian Locks, PPA chief executive, said: “The competitive playing field for the Presstream service is set within the context of the postal delivery of magazines.

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Business Post Chief Executive predicts UK Royal Mail will have 80% market share

Posted by | Jun 8, 2005 | |

Paul Carvell, Chief Executive of Business Post Group plc, has predicted that, following liberalisation of the postal market, Royal Mail will retain a profitable 80% share of the UK market. Mr Carvell said that the 20% which the Royal Mail would lose would fall into two categories. Some 15% would probably be shared by four competitors which would provide a nationwide service, and a further 5% would go to city centre specialist deliverers. Speaking today at The Logistics Event conference on the subject of “Competing for the Post”, he said that the UK domestic mail market was worth GBP5.8 billion per year, while the international market was worth a further GBP0.8 billion. Since Business Post had moved its first letter in May 2004, the company had now moved more than one hundred million letters.

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