Tag: UK

Royal Mail privatisation likely (UK)

The Communication Workers Union says that Royal Mail should be a public service first and a business second, is not keen on the idea of privatisation and has accused the government of allowing the service to be run down to push through privatisation plans. The postal regulator, Postcomm, denies this, saying that it has been a greater than expected take-up of electronic communications such as email that has eroded Royal Mail’s business and that without private capital, Royal Mail’s future is grim. Adam Crozier, Chief Executive at Royal Mail, said that Royal Mail was not against the idea of partnerships that would introduce private capital.

It is unclear in what form private investment would be, but it would require a splitting up of Royal Mail to encourage investors, with Parcelforce probably the most lucrative part of Royal Mail. Postcomm is keen to see an arrangement that would provide a sustainable source of funding for the USO rather than leaving the country to pick up the cost.

The EU says that each country can effectively make its own arrangements for the USO providing it complies with EU rules. If Royal Mail were privatised but the pension deficit offloaded to the entire country as well as the funding for the USO, deregulation would be a complete disaster, so Postcomm will be keen to see that any investment will underpin the USO.

In all probability, large chunks of Royal Mail’s business will be privatised over the next ten years and with no one really certain as to just how low the decline in mail business is likely to drop, private capital is unlikely to be worth as much to Royal Mail as it is now. A report into the state of the UK’s postal service expected in October will almost certainly underline the urgency of a sell-off.

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DX Group acquires the In-night and PX worldwide licensing operations of Business Direct (UK)

DX Group Ltd announced its acquisition of the trade and assets of the following operations from Business Direct Limited and Business Direct Group plc:

In-Night – a national infrastructure to provide secure parcel logistics, primarily supporting field based engineers, through:
– The Parcel Exchange (“PX”) – a nationwide “virtual depot” network of over 4,000 fully automated intelligent drop boxes
– In-Boot – collection and deliveries direct to a field engineer’s vehicle
– PUDO – Pick Up Drop Off, the collection and return of spare parts via manned third party locations

PX Worldwide Licensing – the licensing of the PX technology to interested parties.

For DX, the acquisition of these operations represents the opportunity to:
– become a leading player in the adjacent service management market
– develop the services available to In-Night customers from the integration of aspects of the these operations with existing DX operations
– use the secure PX network to extend the services we offer to existing DX Group customers
– market the PX concept internationally via licensing arrangements
– develop the emerging potential for extending the PX concept to service the rapidly expanding B2C market

Terms of the acquisition have not been disclosed.

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Empost Cargo and Logistics expects 20 pct growth this year

On February 2007 Empost – UAE’s national courier company – diversified to create a subsidiary division for cargo and logistics in order to offer integrated transport and logistics services covering more than 200 destinations.

The new entity, Empost Cargo and Logistics, has specialised infrastructure and operates out of dedicated locations, with its hub at one of the most important locations for the logistics sector – the Dubai Airport Free Zone (Dafza) Dubai Airport Free Zone (Dafza).

Sultan Al Midfa, CEO of Empost, spoke to Emirates Business about the performance of the company’s logistics division.

How has the performance of Empost Cargo and Logistics been since its establishment last year? Have you managed to meet your expectations?
Yes, we have met all expectations – our own and those of the market. Initially, we were known as a courier company. Since we established the cargo division, we have emerged as the leading express courier, cargo and logistics company in the UAE and the region. We have become a ‘one-stop shop’ in the local market.

What services did you start with, and which ones have you added so far?
To cater to the booming logistics and supply chain industry in the Middle East, Empost launched its cargo and logistics services in 2007. We started with freight forwarding (air and sea), land transportation, warehousing and packing services. Then we added wooden packing services to our list, providing value-added services to our clients.

We plan to open new offices at the Logistics City, and in Jebel Ali and Sharjah, as well as other countries.

Our total investment last year was 24 per cent of our capital and for this year, investment expectation is 12 per cent of our capital.

According to your 2007 financial report, Empost Cargo and Logistics achieved a 31-per cent growth over 2006. What are the reasons for this? Did you expect it?
We have achieved more than we expected. The cargo and logistics sector in the UAE is booming, because of various development projects that have attracted numerous local as well as foreign investors.

What kind of business model are you following? Is it any different from that of the other 3PL companies in the region?
We have our own growth strategy, which is constantly reviewed and enhanced to help us tap further opportunities. We have a simple, straightforward strategy to help us maintain our position as the market leader and offer quality service at a reasonable price.
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How big is your footprint in the region and globally? How do you see this increasing in the next two years?
Empost has been in the market for more than 10 years, and we have excellent alliances with well-known regional and global companies that are known for quality service.

Over the next two years there will be a lot of new projects implemented to help us serve various communities, especially, the UAE, India, Philippines and Indonesia.
Empost has tied up with major government institutions, banks and corporations. Currently we are working on plans of extending our services into new destinations and assessing new products and services that are targeted at niche markets.

How do you leverage the services and facilities of your parent company, Emirates Post , to effectively run the business?

Emirate Post has a well-established network of its own, and because we come under the same group, we are able to tap into some of the resources of Emirates Post to help us deliver high quality service to our customers. As a one-stop shop, we offer our customers a variety of services, which include cargo, courier or any other service.

How much growth is Empost Cargo and Logistics expecting this year and in the coming year, in terms of revenue and operation size?

We are expecting about 20 per cent growth this year. However, the division will continue to greatly contribute in the overall performance of Empost. Currently, the cargo and logistics division contributes about 30 per cen

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CWU breaks new ground by launching its own TV channel (UK)

The CWU (Communication Workers Union) sets a precedent in trade union communications on Sunday 31st August, with the broadcast of its own channel entitled CWU TV on Sky Digital channel 167 and Freesat channel 406.

The 30 minute programmes, presented by Emma Howard, ex-BBC news
presenter, cover a range of news, features and opinion in fresh and
fast magazine style. The first programme focuses on pensions, the
liberalisation of the postal service and the union’s youth movement.
Billy Hayes, general secretary, is also interviewed in-depth and offers
the CWU’s perspectives on the importance of trade unionism in a
changing world and less certain economic climate.

With CWU TV the union is putting TV at the heart of an integrated
communications strategy that informs and engages the membership and
encourages them to give their feedback and get involved. Information TV
allows the CWU to broadcast unmediated public service content on the
trusted, regulated medium of television.

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Postcomm publishes observations on Royal Mail's letter (UK)

Postcomm published an observations document on Royal Mail’s industry letter, published on 13th August 2008, “Proposed Changes to RMW Access Contracts (Zonal and Access).

Postcomm welcomes Royal Mail’s consultation and hopes that Royal Mail and the wider industry will be able to work together to put in place appropriate terms for both zonally and nationally priced access to the Royal Mail network.

If agreed, these new arrangements could help to secure the provision of a strong and self-financed universal service in parallel with the development and sustainability of both access and end-to-end competition.

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