TPG to trade as TNT as Royal Mail deal confirmed

LONDON - TPG Post UK has confirmed that it has signed an access agreement with Royal Mail and will trade as TNT Mail, as the Dutch company sets to become the main challenger in the postal market.

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 27m households in the UK.

Yesterday, Brand Republic reported that Royal Mail was poised to sign its third business-to-business contract with Dutch postal operator TPG; just days after German delivery firm Deutsche Post also agreed to use the network.

Nick Wells, TNT Mail's UK CEO, said: "TPG has a track record as the most efficient postal service in the world and aims to become the major competitor to Royal Mail." Postcomm has also welcomed the move.

The terms of the deal are to be the same as those agreed with Deutsche Post and UK Mail, where TNT will pay 13p for every letter sorted by Royal Mail.

In January UK Mail, a subsidiary of Business Post, became the first private company to gain access to Royal Mail's delivery network, breaking its 300-year postal monopoly and heralding competition in the UK postal market.

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