Consignia may cut use of mail trains
Consignia, the state-owned postal services group, is considering drastic changes to its distribution network that could lead to a big reduction in its use of mail trains.
A review of the company’s transport needs is understood to be seeking substantial savings in the cost of distributing 80m letters a day, of which about 20 per cent go by train.
The review is led by Paul Bateson, managing director of logistics, who was formerly an executive at TNT, the road-based logistics group. It is expected to report by Christmas as part of the company’s attempts to cut its Pounds 8bn costs by about Pounds 1.2bn.
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