TNT aims to team up with other private mail operators in Germany to create a nationwide deliveryorganisation under the name ‘Mail Alliance’ to compete with Deutsche Post, according to media
reports.The new venture would coordinate the services of TNT Post Germany, Berlin-based PIN Mail (thekey remaining business of the former PIN Group) and regional distribution companies owned by majorGerman media groups including Georg von Holtzbrinck and Madsack.
By combining the different players, a nationwide alternative to Deutsche Post could becreated, according to the weekly business magazine Wirtschaftswoche. The Mail Alliance would focuson delivering mail and packages up to 1,000g in 24-48 hours. The partners would operate through asingle IT system and use four regional sorting centres.
But the Mail Alliance partners would remain independent companies and operate under their ownnames, the magazine said. It is not known how the ownership of the Mail Alliance would bestructured.
TNT Post, with 5,000 delivery workers, 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.
The company already announced earlier this year that it had bought minority stakes in variousHoltzbrinck mail subsidiaries to expand its owned delivery network from 26% to 40% of all Germanhouseholds. It covers about 90% of all households in total through some 130 local partnerships.
According to the German postal regulator Bundesnetzagentur, private mail operators have amarket share of less than 10% despite full market liberalisation at the start of 2008. Private mailoperators claim there is no level playing-field due to Deutsche Post’s VAT exemption, the postalminimum wage and other barriers.
