Tag: Worldwide

TNT plans decision on freight unit shortly

TNT plans to announce a decision shortly on its future strategy for its Freight Management unit, with disinvestment as one of several options under consideration.

The Dutch group announced earlier this year that it was reviewing synergies between its Freight and Express businesses following the decision to sell TNT Logistics and focus on mail and express activities.

Dutch newspaper Het Financieele Dagblad cited TNT CEO Peter Bakker as saying that the company was still reviewing “all options” for TNT Freight Management. A decision was due to be announced by October 30 when TNT will announce its third-quarter financial results.

TNT Freight Management was formerly known as Wilson, the Swedish freight forwarding company acquired by TNT in 2004 for euro 257 million. It was transferred from the Logistics to the Express division as part of TNT’s plan to dispose of its underperforming logistics business.

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Dutch TNT, Japan Post still talk on cooperation

Dutch mail and express deliveries group TNT NV is still talking with Japan Post about a potential cooperation, after previously the companies could not agree on a joint venture, TNT CEO Peter Bakker said on October 10, 2006.

TNT said at the end of June 2006, it could not agree terms with Japan Post about a planned international express deliveries joint venture.

According to Bakker, Japan Post, which is slated for privatisation, did not want to make some long-term commitments required for the deal to go through. Talks between the two companies are now focused on other cooperation opportunities. The CEO could not say when an agreement could be expected.

TNT is advising Japan Post in the course of its ongoing privatisation.

(Editor’s note: Japan accounts for 33 pct of the Asian express deliveries market. Japan Post has a domestic market share of about 10 pct, while with a share of 20.5 pct, TNT is market leader in Europe, according to the Dutch News Digest.)

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Cybit partnership with SPL World Group will use dynamic data to underpin dynamic routing

Cybit, the UK’s leading online Telematics Service Provider (TSP), has partnered with SPL World Group, to combine its Enterprise RealTime Scheduler and Cybit’s leading telematics solution, Fleetstar-MRM. This unique offering will use dynamic, company-specific vehicle data to underpin dynamic scheduling capabilities, so that organisations in the field service and home delivery sectors can achieve unprecedented accuracy in their business planning. The use of actual vehicle and road speeds in the scheduling process ensures that plans are neither over- nor under-stated and this calibration of data in the system will enable businesses to enhance productivity by as much as ten per cent.

The unique proposition moves away from previous approaches that used average road speeds to design schedules, so that businesses can now ensure their plans match reality. Closed loop planning using historic GPS-based travel times ensures accuracy within the schedules so that companies can clearly identify the resources they need and when they need them. These calibrations can be updated at regular intervals to ensure that they match the planned journey times.

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Interview – Aramex aims to be world's number 5 express operator

Aramex, the Middle East-based independent express company, aims to grow into the world’s fifth-largest express operator through selective acquisitions and by expanding its partner network, a senior executive told CEP-Research.

Although the “Big Four” – DHL, FedEx, UPS and TNT – were clearly “in the premier league”, Aramex wanted to head the “second division” of regional players, Adrian Horsley, Vice-President Express Services, said on the sidelines of last week’s Asia Pacific Mail & Express 2006 conference in Singapore.

The Jordan-based and Dubai-listed company expects its 2006 revenues to grow to US$330 million from USD232 million in 2005, largely due to acquisitions of smaller freight companies in the Middle East and Europe over the last year, Horsley said. In 2005, it generated about 55% of revenues from international and domestic express transport, and about 33% from freight forwarding. The company, whose key markets are the Middle East and India, has some 260 offices in 45 countries in total.

“Our mission is to be recognized as the fifth-largest global distribution player by 2008. With the Global Distribution Alliance, Aramex has a true global international express distribution system that is 95% managed and controlled by us,” Horsley declared.

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Postal bill likely to turn courier firms poorer by Rs 670 cr

The Indian express and courier industry could suffer a revenue loss of Rs 670 crore a year, or 30-35per cent reduction in business if proposed changes to the postal regulations go through, says a new survey and research report ‘Express Service Industry in India’ by the Mumbai-based Credit Analysis and Research (CARE) advisory. The proposed amendment to the bill allows India Post total exclusivity over all document shipments weighing less than 300 grams.
The report estimates the size of the Indian express industry at Rs 7,100 crore with 2,500 players, derived from their service tax payment of Rs 630 crore in ’05-06. This makes it bigger than the tea and entertainment industries. CARE’s study shows that over 52per cent of all domestic express volumes are documents, of which 70per cent weigh less than 300gm. Roughly 37per cent of all express documents are for the same-city, and 16per cent are to metro cities.

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