PO plans could rescue NFC
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HE POST OFFICE is seeking Government authority to break into the heavier parcel market which is now the preserve of private sector companies.
It is awaiting the Department of Trade and Industry's authority to go ahead with a project codenamed Halcon (Heavy and light consignments) to carry parcels heavier than the 25kg maximum accepted on its normal services.
The plans — about which the Post Office is reluctant to say anything — are also understood to involve the movement of palletised loads.
To go ahead, the Post Office will need additional resources including depots, and it is known to have had some discussions with the National Freight Consortium's property group, from whom it bought a site in Preston about two years ago to redevelop as a general sorting office.
While Halcon is viewed by some companies in the parcels business as an unnecessary State-owned interference with an already crowded market, it could be seen as a lifeline for NFC.
Its parcels group management was beginning talks with trades unions this week to discuss the future staffing of its "unacceptably" lossmaking Roadlinc and National Carriers Parcels subsidiaries.
The full extent of NFC's parcels losses will not be made known until January.