Tuesday, September 27, 2022

Correos immediately diversifies its activity and compensates for the ‘ballast’ of postal mail

There is no time to lose. Post Office This week the latest warning signal was received about the postal sector, to which it devotes a large part of its efforts. a company dependent on the holding of public companies of LA SEPIwhich has initiated activities in recent months that have been seen to pivot to new business channels, such as logistics or internationalization How the downward trend of the traditional mail section in Spain continued whose number of shipments is now less than half of what it was in 2013.

This is data collected by National Markets and Competition Commission (CNMC) In the latest report on the messaging sector in the national market. The traditional postal section, which includes sending letters and postcards and certified letters and notifications—is operated by nine different operators (Acropost and Ara Wink, among others). But there are already warning signs because in the last three years the scope of action of his rivals has increased at his expense.

all other important indicators Reveal another year that postal activity continues to decline And without any signs of recovery for the next few years, so the company’s goal in recent years has been limited to “preserving” this business. Shipment levels have dropped by 7.6% since CNMC’s last analysis and are now less than half of what they were about a decade ago. and at the level of income, Business revealed that the division was unable to return to pre-pandemic levels when about 2,000 million euros were made in this way.

All this prompts the public company to accelerate its diversification, especially since a pandemic accelerating phenomenon like digitization. In an interview this year, its president, John Manuel Serranorecognized the change that was set in motion and that by 2025 40% of his income was to come from logisticsthanks to activities such as commercial customs, air cargo or fulfillersT, i.e. reception, packaging and shipment of goods. “In the future, logistics will probably be the central pillar of the company, obviously,” he said.

do not forget The collapse of the postal business is a world milestone, Canada decided to stop sending home letters in 2019 and the United Kingdom went a long way in privatizing the royal public message With your IPO. Michael Hewson, An analyst at CMC Markets told a few days ago that the problem of British Post It is “as it always has been” that the “postage share is meager”. Business growth is similar to that in Germany, where german postal service Sending letters and packages fell sharply over 30% year-on-year last week.

Internationalization and Air Cargo

To date, the largest company in the group of SEPI has activated several levers to break away from its traditional business, One of them has embarked on a cargo business adventure by tying up with Iberojet airline (Barcelo Group), with routes from Madrid to Hong Kong. And stop for refueling in Dubai. This mode of transport has taken off with the coronavirus crisis, where the transportation of goods by air has become an alternative business of passenger transport for airlines.

Another option has been to focus on foreign trade. Correos has launched two joint ventures, KCG You K Parcel Company Limited) to enter the Chinese market and take advantage of the new parcel flow around the world. He has also turned his attention to Portugal, where he has made Chorios Express Portugal (CEP) After acquiring a majority stake in Rangel Expresso. This assistant is mainly dedicated to the immediate transportation of documents and small business parcels, Income from outside Spain continues to play a testimonial role even today.

Nation World News Desk
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