TNT, the Dutch postal operator, will decide within the next 12 months on launching an end-to-end postal network to rival Royal Mail in the UK.
Chief executive Peter Bakker said his group believed the UK postal market would not get sustainable competition until private sector rivals ran their own delivery networks, rather than relying on Royal Mail for “final mile” delivery.
“Only if competitors like ourselves have their own networks will we get real competition,” Mr Bakker said today.
Under current arrangements private sector rivals collect and sort mail from big customers but then hand it over the Royal Mail to make the actual deliveries under a series of access agreements. Less than one percent of UK mail is delivered without Royal Mail involvement, though about 10% is handled under access agreements between Royal Mail and competitors like TNT.
TNT has been looking at how to provide end-to-end services for some time, including trials in Manchester and Glasgow but has yet to make a decision on rolling out a national network.
“We expect a decision by TNT over the next 12 months on setting up this activity,” Mr Bakker said today.
Mr Bakker said his company’s plans would not involve setting up post boxes across the UK but would be pitched towards big business customers which sent out bulk mail. But it would mean TNT recruiting its own delivery personnel. “If TNT is going to set up an end-to-end network you will see people wearing orange uniforms delivering mail.”
Mr Bakker said the current strike by members of the Communications Workers Union over pay and working practices had underlined the extent to which other mail companies depended on Royal Mail.
“We all rely on Royal Mail. If that network is ill or on strike we are ill as well. That’s not competition.”
Mr Bakker acknowledges that it will be difficult to build a competitive end-to-end network, given the current access price – the amount Royal Mail gets for delivering its rivals’ letters – remains at 13p a letter.
“Royal Mail is complaining that those who get access pay too little money. We are saying the same. If network access is continued to be offered at such a low price it very hard for someone else to build a network that can compete.”
Today TNT reported second-quarter operating profit fell 2.1% against a second quarter in 2006 where results were boosted by a series of one-off factors.
“If you look at profit from continuing operations we had a good quarter,” Mr Bakker said.
TNT is also planning to spend up to €500m (£340m) buying back its own shares.
depending on approval from Chinese authorities, it said in a statement to the Istanbul Stock Exchange.
Arcelik (Beko) has been present in the Chinese market for more than a year by exporting products from Turkey.
“With this investment there will be an increase in our pace of growth in the Chinese market, which has an important place in our growth strategy,” the statement said.
The company said it will continue to sell its products, especially dishwashers, in China via exports from Turkey.
It said the investment was also part of its plans to expand into North America and the Asia-Pacific region.
Arcelik is one of the biggest white goods maker in Europe and also makes various consumer electronics. Its net profit jumped 25 percent to 324 million lira ($250 million) in 2006.