Tag: TNT

Blow to Royal Mail as BT and British Gas defect

Posted by | Jan 16, 2007 | |

Royal Mail suffered a twin blow yesterday after UK companies BT and British Gas switched postal contracts worth around GBP150m to its rival operator, TNT.

BT is the largest bulk mailer in the country, and the contract won yesterday by TNT, part of the Dutch post office, is the biggest since deregulation of the UK postal market in 2004. The BT contract is worth GBP90m over three years, and will involve TNT handling 170 million items a year – mainly bills and statements. No announcement has been made of the British Gas deal, but the contract is thought to worth GBP60m. TNT declined to comment.

The loss of the two huge utilities is a further setback for Royal Mail following the decision by the Department for Work and Pensions to switch a GBP12m contract to another of its privately owned rivals, Business Post, two weeks ago.

The BT contract involves a so-called access agreement, whereby TNT collects the post and trunks it to Royal Mail sorting offices for final delivery. However, TNT is planning to launch its own end-to-end postal service, and is in the final stages of selecting a number of UK cities to conduct trials. It has already signed up a host of blue-chip clients including Virgin Mobile, Sky, Next, Sainsbury’s. HBOS, Lloyds TSB, npow-er and Thames Water.

Nick Wells, chief executive of TNT Post UK, said he aimed to win more business from BT.

Business Post’s letters division, UK Mail, has also picked up contracts from Royal Bank of Scotland, Vodafone and Powergen while DHL, owned by Deustche Post, counts Tesco, John Lewis and Debenhams among its customers.

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TNT Post confirms Centrica contract win

Posted by | Jan 16, 2007 | |

TNT Post confirms earlier reports that it has been awarded a contract to handle around 170 million items mail for Centrica, the leading supplier of energy in the United Kingdom. The 2 year contract estimated to be worth over euro 35 million (GBP23 million) annually is another significant milestone for the postal industry.
TNT Post will be handling around 120 million transactional mail items a year and around 50 million direct marketing items. Centrica’s transactional mail is generated at their print and mail centres in Northampton and Manchester. Centrica will predominantly be benefiting from TNT Post’s Premier Service, a two day time definite service for pre-sorted mail with Royal Mail continuing to carry out the final mile delivery to customers’ homes nationwide. The service offers valuable benefits to both Centrica and its customers such as: flexible pick up times, use of tracking systems that enable improved visibility and management and fast and reliable 2 day service.

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Foreign Capital swarmed into China Logistics

Posted by | Jan 15, 2007 | |

Many foreign companies made investments in China’s logistics last year because of the opening up in 2005.

The competition in logistics mainly focuses on cargo transportation and express services. FedEx, the world’s largest express company, offers services to more than 220 Chinese cities. The number will increase by 100 in the following four or five years.

UPS, a leading global provider of specialized transportation and logistics services in the US, operates six direct flights to Beijing and Shanghai and has set up offices in over 20 cities, including Shenzhen, Qingdao, and Xiamen.

TNT, a world leading provider of express delivery services, logistics supply chain solutions and mail services, has had more than 2,000 service networks in China.

Meanwhile, foreign capital also focuses on auto logistics, energy transportation and port logistics.

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Royal Mail loses British Telecom contract

Posted by | Jan 15, 2007 | |

Royal Mail has lost the contract to handle mail for BT, Britain’s largest telecommunications business, as bulk mailers continue to switch to the private sector in search of savings and better service.
TNT Post, UK subsidiary of the privatised Dutch mail operator, will take over the collection and sorting of the 170m bills and statements BT sends out each year. It will hand them over to Royal Mail’s 69 sorting centres for final delivery to its 25m customers within two days of pick-up.
The contract, worth GBP90m over three years, is thought to be the largest since the postal market was opened fully to competition at the start of last year.
BT said it was attracted by TNT Post’s greater flexibility in pick-up times, two-day delivery service and tracking systems that would allow it to monitor its mail. It also expected to make cost-savings of up to GBP3m a year.
TNT Post handles mail for other telecoms companies, including T-Mobile and Virgin Mobile, and has large contracts with NPower, Thames Water, Lloyds TSB and BSkyB.
The continuing loss of bulk mail contracts comes as Royal Mail and the government are finalising a deal to allow the state-owned former monopoly to invest GBP2bn in modernisation to fend off the new competitors.
The deal now looks likely to fall short of management’s demand that staff be given 20 per cent of the shares in the business, but will involve substantial incentives to encourage staff to accept large-scale restructuring.

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Indian express industry set for sizzling growth

Posted by | Jan 15, 2007 | |

India’s express industry is expected to register a growth of at least 20 per cent per annum during the next five years and more than double its size by 2012, according to a study by rating agency Credit Analysis & Research (CARE). Opening of banking, insurance, retail, aviation and telecom sectors and their penetration to smaller cities would be the major growth driver.

According to CARE, the size of India’s courier industry currently stands at around Rs 7,100 crore and is estimated to have grown at a CAGR of around 33 per cent over the past decade. At its current estimated size, the courier industry is larger than the tea industry and close to the size of paper and shipping industries in India.
The industry is highly fragmented with more than 2500 express players and a few large sized players account more than half of the industry revenues.

The industry contributes more than Rs 1000 crore to the government revenues by way of service tax, income tax and other levies and it offers employment opportunity to about a million people.

Amongst domestic players Blue Dart, DTDC, First Flight and Overnite Express are leading express services companies in India while UPS, FedEx, DHL and TNT are leading international players presence in the country. According to the CARE survey, the industry players earn about 52 per cent of its revenues from document parcels.

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