Thursday, January 14, 2010

TNT Austrian Subsidiary Cuts Mail Delivery Service

Redmail to Concentrate on Newspaper Delivery
Shipping News Feature

AUSTRIA – In a move to ‘create value’ the Dutch TNT Group’s Austrian subsidiary, Redmail, has terminated its addressed mail delivery business activities in Austria due to what it describes as ‘limits [on] real competition in Austria’ in that particular market.

Redmail, a joint venture between the Styria Media Group AG and TNT Post, will instead focus on its newspaper logistic services.

In an issued statement TNT says that: “The recently introduced Postal Act, which limits real competition in Austria for addressed mail, has contributed to this decision.

“This Postal Act introduces a mandatory license system for postal services with regard to all mail items up to 50g. Furthermore, access to Austrian mailboxes is difficult. Around 30% of all households have mailboxes that can only be opened with a key and Österreichische Post is the only postal operator with these keys.

“This makes it impossible for other postal companies to deliver addressed mail to these households.”

TNT has been highly vocal on its wishes to compete against the UK’s Royal Mail on an equal footing. The company has considered publically the option of introducing a ‘last-mile’ (i.e. a postman) delivery service in Britain.

With this latest withdrawal for their postal division it now remains to be seen whether TNT will continue to press their case in the UK or await further developments.