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German Mail Alliance to start operations in January next year

TNT Post Germany

Mail Alliance, the new German delivery organisation created by TNT Post, will start operating fromJanuary 2010 with an E+2 product for business customers to compete with Deutsche Post, German

transport magazine VerkehrsRundschau reported.

With TNT Post as the driving force, the new venture will coordinate the services of TNT PostGermany, Berlin-based PIN Mail (the key remaining business of the former PIN Group) and regionaldistribution companies owned by major German media groups including Georg von Holtzbrinck andMadsack.

In addition, TNT has reportedly been in talks with other well-know postal operators such asthe mail network “P2 – the second post“, among others, to join the new venture. The company’s 25shareholders include predominantly mail subsidiaries of publishing companies.

The Mail Alliance would focus on delivering mail and packages up to 1,000g in 24-48 hours.The partners would operate through a single IT system and use four regional sorting centres whileremaining independent companies and operating under their own names.

According to TNT Post board member Lars M. Tisken, Michael Kunter will become the managingdirector of Mail Alliance. Until now, Kunter has been the managing director of the logisticsdivision within the Holtzbrinck mail subsidiary Main Post and the online postal portal Ecomail.

TNT Post has been planning the Mail Allince since January 2009 to provide a nationwide postalnetwork as a direct competitor to Deutsche Post on the German mail market. In a first step, thecompany bought minority stakes in various mail subsidiaries of the German publishing groupHoltzbrinck to expand its owned delivery network from 26% to 40% of all German households.

With 5,000 delivery workers, TNT Post is currently the leading competitor to Deutsche Postwith 2008 revenues of about €250 million and an estimated 3% market share. But it remainsloss-making and does not have full nationwide coverage.

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