Tag: UK

Palletways plans freight revolution

Posted by | Sep 22, 2004 | |

Just as TNT re-wrote the rule book in parcels for the UK and Europe, so Palletways can do the same in the even larger freight market, says new chief executive. Palletways is set to announce significantly improved profit levels as well as rapid growth for 2003/4, new chief executive and shareholder James Wilson revealed last week. He confirmed also that there were several investment companies interested in buying into the firm, apart from Phoenix Equity, which is now the major shareholder, having bought out 3i. The strong financial performance last year will be detailed shortly when results are filed at Companies House and was part of the appeal to its new owners.

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Size pricing unlikely to be introduced in UK before 2006

Posted by | Sep 21, 2004 | |

Size-based pricing is unlikely to be introduced before April 2006, according to postal watchdog Postcomm. Up until now, it was thought that the new pricing system could be introduced as early as September 2005. Speaking at a meeting organised by Royal Mail, Richard Moriarty, Postcomm director of competition and regulation, said Postcomm had received 9,000 responses to its size-based pricing consultation and was undertaking a thorough analysis of all feedback, while continuing to work with Royal Mail on understanding the cost justification for the proposals. At the latest meeting, Lorna Clarkson, Royal Mail’s director of commercial policy and pricing, acknowledged magazines were particularly affected by the size-based pricing proposals. She said the publishing market was an important sector and that Royal Mail was committed to working with PPA to address publishers’ concerns around the introduction of a uniformity measure for magazines.

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UK postal firms warn of risk in rushing to open up the mail

Posted by | Sep 21, 2004 | |

Postal operators warned yesterday that the decision to end Royal Mail’s letters monopoly 15 months earlier than planned could result in a “cowboys’ charter” and damage attempts to introduce more competition into the market. Royal Mail said it welcomed the earlier opening of the market provided the “handcuffs” which prevent it from making an acceptable return on revenues came off. Adam Crozier, its chief executive, also said there had to be careful licensing of new entrants to avoid a “free-for-all with customers left to find their way among potentially dozens of rivals with varying quality of service”. Existing private mail businesses gave the proposals a guarded welcome but also warned that the liberalisation of the market needed to be handled carefully or it could damage consumer confidence and ultimately strengthen Royal Mail’s stranglehold. Britain’s longest-established private mail business, DX Network Services was one of those to express reservations. Guy Buswell, the managing director of UK Mail, was also apprehensive.

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UK Royal Mail wants more scope to set stamp prices

Posted by | Sep 21, 2004 | |

Royal Mail has called for more freedom to set stamp prices, especially for bulk business mail, to enable it to better compete with private sector groups entering the UK postal market. The state-owned group was responding to proposals by regulator Postcomm to liberalise fully the UK postal market by January 2006, more than a year earlier than planned. About 30% of the postal market has been open since April last year, meaning that private sector companies can now offer bulk mail services consisting of more than 4,000 letters. A further 30% of the market was to be opened by April next year, with full liberalisation by April 2007. But Postcomm is now suggesting the middle stage be scrapped and competition brought in to all parts of the postal market by January 2006. Royal Mail said the market should be opened sooner but only if pricing restrictions were removed.

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Competitive Market Review

Posted by | Sep 20, 2004 | |

A detailed assessment of the current competitive situation in the postal market and the barriers to entry.
P:LibraryPostalPostComm Formal DocumentsCompetitive Market Review Sept04.pdf

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