Key facts from UK Mail presentation in Amsterdam by Guy Buswell
Paul Jacksons summary of Guy Buswell presentation at IEA European Postal Services conference Mch 03 Amsterdam
Read MoreTag: UK Mail
UK Mail MD talks of transforming the market place
At the recent IEA postal conference, Guy Buswell of Business Post reported that UK Mail was positioning its business class service between first and second class. They will sort to the 120 mail centres or the 1400 delivery centres, collect between 1600 and 1930 and deliver to the centres between 0830 and 12 noon next day. There will be some interesting new joint marketing initiatives with Royal Mail and there will be penalty clauses in the contract relationship with Royal Mail. On the parcels side he reported a 50% increase in home delivery and that Business Post carries out 50% of FedEx’ collection and deliveries in the UK.
Read MoreUK Mail deal opens door to delivery network
Royal Mail is in preliminary talks with the Dutch and German postal services, TPG and Deutsche Post, about allowing them access to its delivery network
after reaching a ground-breaking deal with a British rival yesterday. The deal is the first of its kind in Europe and was concluded after two years of talks. It in effect freezes regulator PostComm out of the process of enabling access to Royal Mail’s network of 73 mail centres and 1,450 delivery offices. It is understood that negotiations on a similar deal have already begun with TPG, which has a full licence, and with Deutsche Post, which is holding talks with PostComm on a winning a full licence to compete in Britain. Other groups waiting in the wings are Hays and Express Dairies.
UK mail deal sets precedent for market liberalisation
A significant hurdle to the liberalisation of the postal market was cleared yesterday after Royal Mail agreed for the first time to deliver letters collected and sorted by a private company. The terms of the agreement are likely to set a precedent for deals between the state-owned mail group and companies such as Deutsche Post of Germany and TPG of the Netherlands, who have tried to break into the UK market for several years.
From April, Royal Mail will deliver post that is collected and sorted by Business Post, its private sector rival. Rather than emptying post boxes on the street, Business Post, through its subsidiary UK Mail, will collect mail from businesses such as phone companies and utilities that send letters in bulk.
Postcomm welcome Royal Mail/UK Mail agreement
Postcomm have welcomed the agreement that will enable Royal Mail postmen to carry post on behalf of rival operator, UK Mail, for “the last mile.”
The agreement marks an important step forward for competition in postal services. Under the arrangements, UK Mail will hand over pre-sorted mail to Royal Mail at inward mail centres, from where they will be processed for eventual delivery by Royal Mail postmen. Royal Mail will charge UK Mail a fee for each letter, ranging from 13p for mail weighing less than 60 grams to GBP 3.75 for items weighing 2Kg.
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