Tag: Royal Mail

EWS may sue over Royal Mail contract

Posted by | Jun 16, 2003 | |

Royal Mail’s decision to stop using rail from next March could land the company in court. UK rail freight operator EWS provides train services to Royal Mail under a 10-year contract that runs to September 2006. EWS planning director Graham Smith told IFW that although the company did not want to go down the legal route, Royal Mail had “a genuine commitment to honour this agreement”. EWS operates 49 trains a day for Royal Mail across the UK rail network, hauling 20m items, including 25% of all firstclass mail. The traffic represents 10% of EWS’s business.

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Postcomm issues long term licence to UK Mail

Posted by | Jun 12, 2003 | |

Postcomm today issued its fourth long term licence to UK Mail Ltd. The licence, for a minimum period of seven years, will enable the company to provide consolidation services for business customers. UK Mail Ltd currently holds an interim postal licence for similar services. This will be revoked by consent.

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Royal Mail partner denies competition claim

Posted by | Jun 11, 2003 | |

The Royal Mail’s claim that it is suffering from the introduction of competition has been undermined by Pitney Bowes, one of the mail operator’s main commercial partners. Pitney Bowes, the company that invented the franking machine and handles 20 per cent of UK mail sent each day, says Royal Mail’s position is unlikely to be affected by competition. It said the operator was unlikely to lose much market share to rivals in the next three years and might even benefit from the introduction of competition in mail markets. The comments undermine complaints by Allan Leighton, chairman of Royal Mail, that the postal regulator has jeopardised Royal Mail’s three-year restructuring plan by introducing too much competition too fast.

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Royal Mail moves ahead with new integrated road and air network

Posted by | Jun 6, 2003 | |

Royal Mail today revealed its plans to have a more efficient and flexible UK-wide distribution network, integrating air and road, in place by the end of the financial year. Original plans to include rail in the new network have now been dropped after Royal Mail failed to reach agreement with its rail freight supplier because the cost was too high. As part of a complete review of its road, rail and air network, Royal Mail announced last year that it intended to stop using rail for the distribution of First Class mail due to poor reliability, but would continue using rail for less time critical items. However, following the failure of protracted negotiations with rail freight supplier EWS over the transfer of existing services to the new network, Royal Mail has concluded that it has no alternative but to move forward with a restructure based on a road and air network only.

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