Euro mergers in FedEx wake
Page 13
If you've noticed an error in this article please click here to report it so we can fix it.
• Pan-European hauliers are likely to merge as a result of falling volumes, following the trend set by air-freight companies.
This prediction comes from James Wilson, TNT's regional manager for northern Europe, who was speaking in the wake of the decision by Federal Express to withdraw from the European parcels market.
TNT Express Worldwide intends to bid for FedEx business in nine European countries, including Ireland, and has been endorsed by the departing US giant. However, it does not expect to win the business easily: "It will not be a dogfight, but we will have to compete with everyone else," says TNT's general manager, group sales Mel Ewell.
TNT has also announced the conclusion of lengthy negotiations over international postal operations. It has agreed to form a joint venture company to carry express mail with the Post Of fices of Canada, Sweden, France, Germany and the Netherlands.
GD Express Worldwide succeeds GD Net, in which TNT operated a partnership with the same postal networks. Wilson says TNT saves money through the venture by not having to deliver into greenfield sites: "The Post Offices go easily to every single hamlet at a very low cost structure."