TPG Post UK signs agreement with Royal Mail
TPG Post UK has signed an agreement with Royal Mail that will give it access to Royal Mail's 73 mail centres and delivery network in the UK.
For letters under 60g in weight, the access charge to Royal Mail's 73 inward mail centres for TPG Post UK for 2004/05 has been agreed at 13.0p (for letters already sorted to each of Royal Mail's 1,450 delivery offices) and 13.375p (for letters already sorted to each of Royal Mail's 121 postcode areas).
TPG Post UK will trade under the name of TNT Mail, so that the full range of mail, express and logistics services will be offered under the TNT brand. The TNT mail business will use the existing TNT infrastructure in the UK in combination with Royal Mail's delivery network to offer business customers a two-day business mail service. This can enable TNT Mail to reach all 27 million households in the UK.
The mail services of TNT can leverage the size, scale and resources of TNT's express and logistics businesses in the UK. With 18,000 employees nationwide, TNT in the UK has established market leading express and logistics operations.
Furthermore, TNT Mail will benefit from TPG Post's expertise as the world's most efficient postal operator. Being part of a leading mail company, TNT Mail can utilise a wide range of innovative, customer focused mail services.
By securing the access agreement as part of a multifaceted approach to the UK mail market, TNT Mail will be well positioned to establish its strategic ambition of achieving a number two position in the UK and being the main challenger to Royal Mail.
The TNT Mail service will be available to UK businesses from the summer and will benefit those who currently send out large quantities of mail to both existing and potential customers, including banks, credit card companies and large retailers.
The agreement follows the first phase of liberalisation of the UK postal market by Postcomm in 2003, granting rival companies licenses to enter the UK market. TPG Post UK was in the first group to be granted its seven-year license to provide bulk mail and consolidation services in the UK in 2003.
Commenting on the announcement, Nick Wells, TNT Mail's UK CEO, said:
"TNT Mail brings to the UK market TPG's track record as the most efficient postal service in the world and aims to become the major competitor to Royal Mail. TNT will benefit from being part of the market leading express and logistics business with 18,000 employees in the UK. This will position TNT's mail operations to become the number one challenger in the addressed mail distribution market and the industry leader in both quality and customer oriented services. The TNT Mail business unit will be a success because businesses want choice and we will deliver that."
