TNT Post to challenge Royal Mail postal service

[TrueBlueTerrier]

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TNT Post, which is part of Dutch post office PostNL, is to roll out an end to end postal delivery service in the UK, following a deal between its parent company and private equity house LDC.

The joint venture will provide the funding and expertise for the phased implementation of the E2E-service, following trials in London and recent extension to Manchester.

The joint venture will encompass all the current TNT Post UK operations, which includes the downstream access activities. The roll-out of the service will be led by TNT Post’s current UK management team

PostNL will have a 40 per cent stake in the joint venture. Funding will come from LDC and RBS.

Marcel Krom, PostNL executive committee member responsible for the international activities commented: “With this joint venture PostNL is able to maintain its strategy to be number two in the European markets in which it operates.

“PostNL is confident that the new combination will contribute to the positive development of a fast changing mail market.”

The transaction is subject to a number of conditions, including approval by the European Commission and is expected to close early 2014.

Yann Souillard, managing director at LDC said: “The business’ E2E strategy is an innovative and dynamic approach to postal delivery which should provide an exceptional platform for both customer requirements and the business growth plans.”

[worktotime]

if tnt thinks it can compete with us r/m , they should turn round and say heres the deal f**k all your down stream mail etc try and deliver it all over the country not just certain areas and see how good you are or how long you last.

[pants123]

royal mail says letters are down and are reducing... but TNT are about to expand on letter delivery...

sounds like the letter business is not as bad as royal mail make out to be, if TNT are making a move on this market..

[TrueBlueTerrier]

LTB 841/13 TNT Post gets funding to rollout end to end Delivery in the UK



No. 841/13
Ref:
Date: 13th December 2013




To: All Branches with Postal Members




Dear Colleagues


TNT POST GETS FUNDING TO ROLLOUT END TO END DELIVERY IN THE UK


The purpose of this LTB is to advise that TNT Post’s parent company PostNL has found an investment partner to help rollout End to End postal delivery in the UK. This follows the trials that TNT has operated in London and more recently in Manchester.


The funding is secured as part of a new Joint Venture between PostNL and Lloyds Bank’s private equity arm (LDC), and will be used for the phased implementation of their End to End delivery service across the UK. We also understand that funding will be provided by RBS upon completion.


The Joint Venture is expected to be set up early next year and will require European Commission approval. PostNL will have a 40% stake and it will be led by the current TNT Post management team. The Joint Venture will encompass all of TNT Post’s operations, including downstream access.


This is an important development and further demonstrates the changing nature of the UK Postal Industry and the significance of our proposed Agenda for Growth Agreement in addressing these issues.


Further information will follow in due course.


Any enquiries on the content of this LTB should be addressed to the DGS (P) Dept.


Yours sincerely



Dave Ward
Deputy General Secretary (P)

[DirtyHarry]

You'd think that TNT would improve on the 3rd rate service it provides in it's own homeland, before trying to put you and me out of a job here in Britain.

[martin the green]

interesting am I right in thinking that Lloyds and rbs are owned by us

[bunkerland]

Why aren't they listening to Moya, the letters market is a declining and unprofitable business, perhaps we could sell the fools all our machines!

[NWpostie]

Letters may be down but direct marketing isn't. This where TNT post will aiming at.

[Lounge Lizard]

"phased implementation of their End to End delivery service across the UK" - but PHASED over how long, two years, twenty years, longer ?

[Brain Fury]

"phased implementation of their End to End delivery service across the UK" - but PHASED over how long, two years, twenty years, longer ?

Their aim is 20,000 delivery staff within 5 years

[Chitchat]

Surely tnt need to comply with the same standards that Royal mail are forced by law to comply with. Delivering letters six days a week, to the whole of the UK. And to meet same performance targets.
The only way tnt can make a profit from delivering letters is to cherry pick highly populated towns and cities. And delivering every other day. So the customers suffer by getting a very poor service to allow tnt to treat a margin of profit thats not otherwise there!

[Brain Fury]

Surely tnt need to comply with the same standards that Royal mail are forced by law to comply with. Delivering letters six days a week, to the whole of the UK. And to meet same performance targets.
The only way tnt can make a profit from delivering letters is to cherry pick highly populated towns and cities. And delivering every other day. So the customers suffer by getting a very poor service to allow tnt to treat a margin of profit thats not otherwise there!

The customers don't suffer, they will have a choice - if they are posting to an urban area of course.

[Chitchat]

The customer doesn't chose which delivery service their banks, hospitals, dentists, insurance companies etc......... Use. The companies decide, so people waiting for hospital appointments have to hope the letter comes before the actual appointment date. RM stance on tnt needs to be (you deliver one letter, you deliver all your letters) no picking and choosing. Its called fair competition. TnT wouldn't enter the market on those terms because there is no money in providing the uso for another operator.

[Lounge Lizard]

"phased implementation of their End to End delivery service across the UK" - but PHASED over how long, two years, twenty years, longer ?

Their aim is 20,000 delivery staff within 5 years

So that's about 4,000 a year taken on, so it will be at least thirty years before their numbers equal Royal Mails.

[Brain Fury]

"phased implementation of their End to End delivery service across the UK" - but PHASED over how long, two years, twenty years, longer ?

Their aim is 20,000 delivery staff within 5 years

So that's about 4,000 a year taken on, so it will be at least thirty years before their numbers equal Royal Mails.

I wouldn't be too complacent. They won't be trying to emulate RM. They are not interested in anything but high density urban deliveries - that's where the money is.