Tag: TNT

Scottish cities first for deliveries by Royal Mail rival

Posted by | Sep 23, 2007 | |

Sources at Postcomm, the postal services regulator, say TNT Post is building up its capacity in the two cities so that it can trial a full “end to end” service for Scottish business.

A number of private companies have moved into delivering postal services in the UK since the introduction of full competition to the market on January 1 last year. While some companies offer competitive rates to pick up mail or deliver it to its final destination, all still rely on the Royal Mail network for at least one part of the delivery process. In most cases, Royal Mail is used for what has been termed the ‘final mile’.

But TNT Post UK, the British branch of the Dutch postal group, aims to start offering a full service where post is picked up from businesses by TNT postmen, sorted at its own offices and then distributed by TNT’s delivery staff.

TNT Post has emerged as the main competitor to the Royal Mail since the market was opened up. It handles over 1.2 billion items of mail a year and has recently won several high profile deals, including a three-year contract to deliver the Phone Book to 3.2 million homes.

In Scotland, the company has targeted the small business market in particular. Its ‘PremierSort Flex’ service is aimed at local businesses that send a maximum of 250 letters and parcels a day. At the moment, the service uses the Royal Mail network for the ‘final mile’.

However, industry observers say that Britain is a long way from a fully privatised postal service. Statistics from Postcomm show that the Royal Mail delivers more than 99 pct of the UK’s mail to people’s doorsteps.

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TNT Express opens largest German branch in Hamburg

Posted by | Sep 21, 2007 | |

TNT Express opened its EUR 19 million new Hamburg branch which is its largest location in Germany and designed as a “reference model” for the whole company.

The depot was officially opened on Friday, September 21 by Thomas Kraus, managing director TNT Express Germany, and Senator Axel Gedaschko, from Hamburg city council’s development authority. Some 400 customers and guests attended the event.

Constructed in just six months, the new building at Hamburg-Allermöhe comprises a 5,184 sqm sorting hall and 2,970 sqm of office space, and lies on a 26,000 sqm plot of land. It has 99 truck docking doors. Some 200 employees including sales staff work at the site which is strategically located close to the A1/A25 motorway junction south of Hamburg.

The U-shaped building can easily be extended by adding 1,200 sqm to each of the two side-arms and covering over the interior courtyard. Environmental aspects were taken into account, with the roof covered with plants to generate a good micro-climate and maximize use of rainwater.

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UK Royal Mail faces further strikes in October

Posted by | Sep 20, 2007 | |

Britain’s state-run postal service, Royal Mail, is facing two further strikes after the Communication Workers Union (CWU) announced dates for industrial action in a dispute over pay and working conditions.

“The Communication Workers Union is announcing today that there will be further strike action in response to Royal Mail’s draconian and destructive proposals on pay and business changes,” the union said in a statement.

The CWU said in June its members had voted in favor of industrial action due to Royal Mail’s “below inflation pay offer” and its plans to reduce the workforce by around 40,000, or about 27 percent, by automating mail-sorting processes.

Royal Mail said it remained willing to talk to the union but needs to modernize to prevent the business from failing and that the only way it could improve pay, protect pensions and deliver customer service was by modernizing.

“It is clear from our discussions that the CWU leadership does not begin to understand the challenges facing Royal Mail and the very serious consequences for the business if we do not push ahead and modernize,” Royal Mail said. The company is fighting private competition from Business Post, Dutch mail company TNT NV and others after losing its 350-year monopoly on postal services last year. The growth of email, text messages and the purchase of vehicle tax discs and television licenses online have also dented profits. The union said it would hold 48 hour strikes on Oct. 5 and 6 and Oct. 8 and 9.

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TNT restructures express services

Posted by | Sep 17, 2007 | |

TNT claimed its emphasis on morning deliveries, which it is backing with an international communications campaign under the “Good Morning!” theme, was unique in the market.

The key to TNT’s restructuring is close integration between its road and air networks. Nigel Barton, strategic operations director, said TNT was the only integrator with fully merged road and air operations in Europe, operating 3,700 linehauls a week.

The company has an intraregional focus rather than the intercontinental focus of its main express rivals.

Marie-Christine Lombard, group MD for TNT Express, said the company would operate only on selected long haul routes, but was seeking to replicate its European regional road/air model in markets such as Brazil, India and China, where it has acquired large domestic players in the last two years.

TNT has calculated its share of Europe’s GBP 21bn (USD 26.8 bn) express market at 17 pct , ahead of DHL on 16 pct. Lombard said it was a great opportunity that “others” outside the main integrators and post offices still accounted for 48 pct of the market, since so many smaller players were “destination specialists” offering just one or two countries.

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India’s blue dart seeks continued 100 pct FDI in express couriers

Posted by | Sep 17, 2007 | |

Courier major Blue Dart Express has sought continuation of the 100 per cent foreign direct investment for the industry even as the Centre plans to introduce the Post Office Act (Amendment) Bill in the winter session of Parliament.

At present, 100 per cent foreign equity is allowed in domestic express companies. The bill proposes to bring down the ceiling to 49 per cent, raising concerns for the industry.

Foreign companies such as DHL (which holds 81 per cent in Blue Dart), FedEx and new entrants such as TNT have substantial interest in the growing Indian market.

“The bill in the current form is retrograde. On one hand, the government wants more FDI by opening up the economy and on the other, you take a step backward. If there was no FDI allowed in the sector from the beginning, then any limit, be it 49 per cent or more can be considered. But if there is already 100 per cent FDI allowed, why go back? People have invested huge amount of money in the sector under this policy,” Blue Dart MD Anil Khanna said.

Postal department officials said the bill could be introduced in the winter session of the Parliament. It is preparing to move Cabinet for approval.

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