TPG licence puts more pressure on Consignia

LONDON - Competition in the UK postal delivery market is increasing with the news that Postcomm has granted TPG Post UK, a division of the Dutch postal operator TPG, a short-term delivery licence to pilot a bulk mail delivery service.

The news comes as logistics company TNT has its licence modified to allow it to offer mail delivery services to two financial companies.

The licences mean that Consignia has two more competitors in the postal delivery market as the postal watchdog moves to begin opening up the industry ahead of deregulation in 2007.

It brings the number of licences granted to providers other than Consignia to 12. Other companies that are allowed to deliver some form of mail include Express Dairies, London Underground and Deutsche Post.

The licence given to TNT allows the company to deliver up to 40.5m items a year. TPG Post is allowed to deliver up to 20m items a year.

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