UNION

POSTALE September 2010

Moving the postal sector forward since 1875

Universal Postal Union, a specialized agency of the United Nations 3

Regional quality takes off Contents

Cover story Asian quality takes off The UPU’s new approach to field support in quality of service is bearing fruit 8

Features Jumpstarting Haiti Post Six months after the earthquake, Haiti postal services pick up pace 12

Did the mail shape globalization? Before the digital revolution, there was a postal one that improved the speed of information flow around the world 15 UNION 1 3 POSTALE September 2010 Moving the postal sector forward since 1875 Union Postale magazine then and now Universal Postal Union, a specialized agency of the United Nations 3 A glimpse at the magazine when it was first published in 1875 18

People Witness to change Teresa Rochas is a letter carrier in Valladolid, Spain 25 2 Regional quality takes off Tête-à-Tête Making merger history Cover: Jared Muralt, Posten Norden celebrates its first birthday and CEO Lars Nordström BlackYard sheds a light on its inner workings 20

The interview Taking a quantum leap 4 Alexander Kisselev, Russia Post’s director-general, looks back on his first year 26

Departments In brief 4 September Editor’s note 5 Who’s who at the UPU 6 Mail Daters Market focus 30 and Mail Roller Dater

1 Mail Daters 2 Ink Pad 3 Dater D28c 4 Mail Roller Dater Editor-in-chief: Faryal Mirza (FM) Type 26 and 242 for Mail Daters with Textplate Type 130 2010 English and French editor: Rhéal LeBlanc (RL) Standard head Type 123 Date in figures, Figure size: 3 mm Contributors: Caitlin Brown (CB), Jérôme Deutschmann (JD), diameters: Plastic case with full year, stylo set. Diameter of Ted O’Callaghan 30 and 35 mm removable cover, Figure size: 3 mm Roller: 26 mm Photographers: Sophia Paris, Alexandre Plattet Figure size: 3 mm 135 mm Ø Textplate Diameter of Illustrator: Jared Muralt, BlackYard Union Postale Union Postale is the Universal Postal Union’s flagship magazine, Translation: Andrew Benson, James Holden, Summer Nesrallah International Bureau Various date of steel: 29 mm Ø postmark: 29 mm max. founded in 1875. It is published quarterly in seven languages and takes Design: Die Gestalter, St. Gallen ­(Switzerland) Universal Postal Union configurations a closer look at UPU activities and features international news and Printer: Gassmann, Biel (Switzerland) P. O. Box developments within the postal sector. The magazine regularly pub- Subscriptions: [email protected] 3000 BERNE 15 lishes well researched articles on topical issues facing the industry, as Advertising: [email protected] SWITZERLAND well as interviews with the sector’s leading individuals. The colour pub- lication is distributed to Posts around the world from our 191 member Printed on FSC Mixed Sources paper using environmentally friendly ­ Phone: +41 31 350 35 95 countries, including thousands of decision-makers, who regard it as an processes and ink. Fax: +41 31 350 37 11 important source of information, as well as postal stakeholders. The opinions expressed in the articles are not necessarily E-mail: those of the UPU. [email protected] Union Postale is also published in French, Arabic, Chinese, German, Material may be reproduced with an acknowledgement: Website: www.reiner.de Russian and ­Spanish. © Union Postale magazine(UPU) www.upu.int

Union Postale · 3 Ernst Reiner GmbH & Co. KG | Baumannstr. 16 | 78120 Furtwangen/Germany | Phone +49(0)7723 657-0 | [email protected] 3/2010 in brief ­ Financial services More Latin American countries to offer Correogiros Editor’s note It’s been 135 years since the first Union Postale went to present and look forward to the future, all the while ­ A second tranche of Posts have Attending the signing, the services. The innovation and coop- print on October 1, 1875. From a black and white news- reporting on the postal sector. One way to ensure our signed an agreement in July in Mad- UPU’s director general, Edouard eration that characterize this project letter in French, German and English to a quarterly col- Posts have a viable future is to improve service levels, as rid, Spain, to improve electronic Dayan, said he was delighted with show a commitment for the future our magazine in seven separate language versions, our cover story on the regional workshops to improve money transfers in the Spain-Latin the role the UPU had played in of public services.” Union Postale has undergone many changes in look, quality of service reveals. America corridor. Argentina, Costa bringing together these Posts Dayan added: “We find here all coverage and outreach. Furthermore, to celebrate, dear readers, not only do Rica, Cuba, Ecuador, Colombia, around a strategic partnership con- the partners, united around an inte- The magazine looks back on a long history, of we have a special cover but also two interviews instead Chile and Dominican Republic have cluded in 2007 with the Spanish grated approach to provide the which it is proud. The recent changes it has undergone of the usual one and a a glimpse of what Bern was like signed up to Correogiros, following government. Spain-Latin American corridor with show that it has firmly positioned itself in the modern when Union Postale came off the presses for the first a successful project launched in “It is in this way that the UPU a new opportunity for facilitating world of communications. To an extent, Union Postale time. That’s all in addition to our regular coverage of 2008 between the Spanish, Chilean must go forward by involving gov- money transfers through a service reflects the organisation of which it is the flagship maga- news and UPU efforts to modernize the global postal and Uruguayan Posts. The express ernments that make strategic that is reliable, accessible to all with- zine. Separately, it plays a crucial role in holding up a network. international service promises to choices for the postal sector and out discrimination, secure and­ mirror to the postal sector, charting its rises and falls, its Special thanks to the readers, who took the time to provide transfers within 15 minutes join us on ambitious and concrete affordable.” triumphs and failures. write in the last few weeks. It is always good to hear at affordable rates. projects,” he said. In 2009, remittances worth an As this issue’s vibrant cover illustrates, we at Union from you and I hope that others will not hesitate to do Participating Posts will use In- Innovation estimated $58.4 billion were sent to Postale are proud of our history but are anchored in the the same. Faryal Mirza, Editor-in-chief ternational Financial System (IFS), an The Spanish minister of devel- Latin America and the Caribbean, application developed by the UPU’s opment, José Blanco, explained: according to World Bank data. More Postal Technology Centre, to join “Posts, far from remaining impass- than one million citizens from the the worldwide financial network ive to the increasing use of elec- nine participating Latin American managed by the UN specialized tronic communication among countries live in Spain. RL agency for postal services. people, are offering new and better Disasters Call to help Pakistan

Environment As Pakistan faces the aftermath of member countries informed through more information, contact Keiji Taking stock of postal CO emissions the worst natural disaster in its his- its Emergency Information System Takemoto on +41 31 350 31 10 or 2 tory, the UPU has pledged financial or EmIS. The country is still able to [email protected]. JD/FM help to rebuild its postal structure send and receive international mail. The UPU continues its fight against with electricity consumption in and set up a special fund for dona- climate change by taking stock of buildings and vehicle fleet, the new tions. The Union has already ear- UN family the carbon footprint of its member survey will also determine the marked 100,000 Swiss francs As a United Nations specialized countries with a new questionnaire. amount of carbon dioxide emitted ($98,700) to purchase delivery vans agency, the UPU is part of the UN’s This follows last year’s survey, which by air conditioning, heat, travel, and set up mobile post offices in the network for coordinating aid. The enabled the UPU to publish its first electric vehicles and staff commut- most affected areas to get emerg- World Health Organization (WHO) global inventory of carbon emissions ing. ency aid to victims. “We have to ad- has just requested the UPU’s help in caused by Posts. The UPU report on member dress the most urgent needs since gathering as much information as The latest questionnaire in- countries’ carbon footprint will be we do not yet know the extent of possible on addresses, postcodes cludes a wider range of questions to published at the end of 2010. The the damage,” says Abdel Ilah Bous- and maps. The WHO urgently needs United States Postal Service’s green determine a more detailed carbon previous questionnaire evaluated seta, the UPU’s director of develop- this information to locate the roof in New York footprint of the postal sector. Along emissions generated by postal-ve- ment cooperation. country’s health infrastructure, or- hicle fleets and electricity consumed The August floods in Pakistan ganize humanitarian aid and the in postal facilities. According to its affected an estimated 17 million work of experts on site. results, Posts emitted an estimated people, forcing many to abandon The figure minimum of 26 million tonnes of their homes, with the country’s in- Donate now carbon dioxide in 2008. CB frastructure in tatters in the worst- Member countries may donate to affected areas. According to Pakis- the special fund to assist the­ …participants have taken courses tan Post, over 1,300 postal offices flood-stricken country. Donations on TRAINPOST, the UPU’s online were damaged or destroyed. should be sent to IBAN platform, between 2006 and 2010 The UPU is in daily contact with CH48 0483 5014 3996 6106 0 or (September). Pakistan Post about the country’s CH58 0023 5235 9020 8452 0 and 4,100 postal situation, and is keeping its marked “Assistance Pakistan”. For

4 · Union Postale 3/2010 3/2010 Union Postale · 5 in brief Who’s who at the UPU Technology Technology Moving the mail Postal services need broadband .post spotlight at The mailbox security workshop

Name Liz Phelan When .post eventually goes live, it Position Standards support and administration will be the first top-level domain to Department Standards and Certification utilise Domain Name System Secur- Mauritian emissions Nationality Irish ity Extensions (DNSSEC) from day one to be the secure platform it in- “Nowadays, you need codes to move your mail tends to be. DNSSEC help to prevent fast and efficiently and of course without them phishing and other cyber crimes by › Write to us! Mauritius was mentioned in the 3. A campaign to encourage our you don’t have interconnectivity such as tracking. signing and authenticating legit- We welcome letters Market Focus section of Union Post- staff to reduce energy con- Along with standards, codes guarantee that Posts imate websites. to the editor. Post ale in March 2010, referring to a sumption by switching off a letter by mail, or can carry out their core business of moving the Relevant discussions took place send it by e-mail, to figure of 280 tonnes of carbon- equipment not in use. mail,” says Liz Phelan. at a two-day workshop in July at the [email protected], dioxide emissions generated in 4. Cooperation with authorities to Phelan acts as the secretariat to the UPU Global Cybersecurity Centre, orga- with your name, 2008 by the Post. We would like to improve the environment address, telephone Standards Board (SB) and its related working nised in association with the UPU, number and e-mail point out that the figure for Africa around post offices and groups. The SB develops technical standards and on the benefits of DNSSEC and the address. When as a whole is one million tonnes of throughout the island. electronic data interchange (EDI) message specifi- latest implementation initiatives to necessary, letters CO . Mauritius Post has undertaken 5. Negotiations with a recycling chosen for 2 cations that facilitate the exchange of operational increase the security and reliability to reduce CO emissions and em- company on the collection of publication may be 2 information between Posts. Dayan (middle behind Paul Kagame) with his fellow commissioners (Photo: ITU) of the Internet Domain Name Sys- condensed. brace the concept of “green disposable inkjet cartridges. One of Phelan’s main tasks is maintaining the tem. The Rome-based centre is growth” as advocated by the UPU. We congratulate you on the quality reference databases, which let Posts and airlines At the first meeting of the Broad- and other public services, creating a backed by Poste Italiane. Concrete actions since 2008 of the articles in your magazine. exchange EDI messages. She is the focal point in band Commission for Digital Devel- demand for more effective and effi- Edouard Dayan, UPU director are: M. Peechen Acting operations manager publishing standards in both paper and CD for- opment in July, the UPU said the cient use of these critical services. general, spoke by live video link to 1. The reduction from 22 to 16 in Mauritius Post mat. When the SB or working groups meet for postal network needs broadband to “The global deployment of participants. the number of routes used to their quarterly meetings, Phelan helps to develop facilitate financial and digital inclu- broadband networks will be as transport domestic mail. the agenda and drafts and coordinates many of sion. UPU Director General Edouard powerful a transformational force Crucially secure 2. Intensive training for our the meeting documents. Dayan, one of 44 commissioners, for the 21st century as the progress- Paul Donohoe, the UPU’s electronic drivers, with an emphasis on Phelan likes being in contact with member said that broadband could help pro- ive installation of electricity net- postal services manager, says eco-driving. countries. “I’m involved in operations where tect the security and authenticity of works was in the first decades of DNSSEC is crucial to positioning people require information and advice on codes, people on the Internet via the UPU’s the 20th century,” said ITU Secre- .post as a secure platform. “For us standards publications and help in interpreting .post initiative. tary General Hamadoun Touré. to be able to ensure trust and secur- the information. It’s very satisfying to know that The Commission was launched “Just as connection to the power ity, we need the underlying techni- you can be of help,” she says. CB in May by the International Tele- grid is now seen as a basic element cal infrastructure of the Internet to

Photo: Alexandre Plattet communications Union (ITU) and of social and economic empower- be secure as well.” the United Nations Educational, ment, ubiquitous connectivity to Security is the major challenge Scientific and Cultural Organization. broadband networks will be vital to facing the Internet today. According the ongoing development of every to VISA and other credit card com- Global Universal access nation worldwide.” panies, fraud worth $10 billion is UPU gears up for Nairobi Strategy Conference The commissioners met in Geneva, The Commission discussed its committed online every year. Switzerland to discuss the import- 10-point action plan in develop- Thanks to a longstanding coop- ance of accelerating universal access ment for the deployment of broad- eration between Poste Italiane and From September 22 – 23 in Nai- to broadband networks, define a vi- band. The meeting was co-chaired the UPU, the latter’s member coun- robi, Kenya, up to 500 delegates are sion to achieve this goal and show by President Paul Kagame of Rwan- tries will benefit from the Rome expected to attend the conference. how broadband can help the United da and Carlos Slim Helú, honorary centre’s know-how due to a recent UPU stakeholders will take stock of Nations achieve their Millennium lifetime chairman of Grupo Carso. agreement. progress made in implementing the Development Goals (MDGs). Com- The report will be presented to the The UPU made Internet history The Universal Postal Union will hold current world postal strategy and missioner Angel Gurria, secretary UN secretary general on 19 Septem- in December 2009 when it became its Strategy Conference in Africa for tackle questions such as Posts general of the Organization for ber during the MDGs summit in the first United Nations agency to the first time, where postal leaders remaining competitive and utilising Economic Co-operation and Devel- New York. CB be granted a sponsored top-level will discuss the most important their extensive networks to offer opment, said governments share domain. This is an Internet suffix like challenges facing the industry and new services. FM › For more information, check: the responsibility of implementing .mobi or .aero. CB steer the work of the Union in years broadband as they digitally connect to come. http://www.upu.int/en/the-upu/strategy- post offices, healthcare networks conference/2010-strategy-conference.html

6 · Union Postale 3/2010 3/2010 Union Postale · 7 Cover story Asian quality takes off

The UPU’s new approach to field support in quality of service is bearing fruit. Nine Posts participated in Asia’s quality of service project in 2008 and 2009 and made giant strides in adopting the mechanisms needed to better manage and improve their service performance.

Now faster than a speeding bullet... or close Photo: Malaysia Post

Offering regional support on the ground to improve that the quality of postal services in this region, as in Capacity building good technology, countries were often not using it or quality of service is a novel approach, requiring inter- others, has an overall impact on the efficiency of the Developing expertise and capacity building was a main not using it properly. We decided to look at the entire gration of the entire supply chain. And manager of the worldwide postal network. objective of the project, according to Sinha. And it was mail flow pipeline and we asked Posts to do a complete Asian regional project, Thakur Subhash Sinha, can talk important to help countries adopt the mechanisms and mapping of their mail operations to pinpoint weak- for hours about what it takes to improve quality of ser- Over a series of six regional workshops held from tools to improve service and thus be eligible for per- nesses in the systems. We also reminded them of Article vice. From methodology to practicalities, Sinha is well August 2008 to December 2009, the designated oper- formance bonuses under the UPU programmes for 20 of the UPU Convention, which says member coun- versed in mail operations. He recently returned to India ators of Bhutan, Bangladesh, Indonesia, Malaysia, ­ letter post (terminal dues), parcels (inward land rates) tries must establish and publish delivery standards.” Post after working for five years as a lecturer on inter- Maldives, Mongolia, Laos, Sri Lanka and Thailand made and EMS (pay for performance). This, he felt, would national mail management and quality issues at the excellent progress in structuring and monitoring their inspire confidence in participants’ abilities to improve Sharing best practices Asia-Pacific Postal College, one of the sector’s most quality of service. India was initially part of the project quality of service. “Sri Lanka, for example, was poten- The six main workshops, hosted by the participating important training colleges for postal employees and but pulled out mid-way. tially losing bonuses equivalent to the salaries of 80 countries, covered every aspect of letter-post, parcel managed by the Asia-Pacific Postal Union. staff members for a full year. It did not meet the basic and EMS quality of service, including customs, security Traffic lights criteria, such as using barcodes or EDI messaging and and the use of UPU applications, such as IPS (Inter- For two years, Sinha was also the regional manager for Sinha helped participants with these improvements setting home-delivery standards, to be eligible for national Postal System), to manage mail. An additional Asia’s quality of service project, developed under the using report cards. The report cards tracked achieve­ bonuses from the parcel programme’s inward land series of specialized workshops were held at the Asia- UPU’s new approach to field support. In this capacity, ments in meeting 14 milestones using green, yellow and rates.” Pacific Postal College, bringing together UPU and postal he took nine countries through the motions of learning red colours. Just like the lights of a traffic signal, green experts. how to improve their quality of service domestically and meant the country was “on target”, yellow revealed When Sinha took over the project in 2007, he says there By Rhéal LeBlanc internationally. “partial results attained” and red indicated “improve- was a great variation in quality of service among the An important aspect of the regional project was to get ments necessary”. All countries were at red or yellow at Posts due to structure and economic development. Par- postal experts from the various countries to share The project generated positive results in the nine coun- the beginning of the project, but, after just four work- ticipants also did not understand international mail information and best practices. “There was tremendous tries, whose Posts serve an estimated 500 million shops, designated operators were already meeting rules very well. “There was a total lack of quality-pro- learning from each other,” says Sinha. “Thailand’s people and employ more than 100,000 staff. It’s clear most of the milestones (see box). cess management,” he explains. “Also, despite having quality of service, for example, is very good and its post

8 · Union Postale 3/2010 3/2010 Union Postale · 9 Indonesia Cover story Post goes the extra mile What going ­

regional means

offices are very clean and organized. And Malaysia tries, such as Bangladesh, Bhutan, Sri Lanka and Indone- The regional project on quality of service aims to build

showed how it uses radio frequency identification or sia, are using track and trace for parcels and exchanging up local know-how, so that Posts are less reliant on RFID technology to check clearance of mailboxes.” electronic data to inform other countries about the dis- external expertise. Its success is due to its practicality. patch of items. This is critical to improving quality of As the workshops are already developed, project man- Good students service. Countries better understand the UPU’s parcel agers need only pick and choose the ones relevant to Sorting mail at Maldives Sinha is pleased with the countries’ progress and a firm strategy and realize that it’s not so hard to improve the region in question. “A workshop can be amended Post believer in the UPU’s new approach to improving quality quality of service once you have a system like track and according to a region’s situation. We customize the pro- of service in the field. The approach “turned out to be trace,” she says. ject together with participating Posts,” says one of the a success and many of the apprehensions felt at the consultants behind the concept, Lars Vesterlund. beginning proved to be wrong,” he says. “This has a lot The EMS Unit is also seeing better results among some Designated operators also learn how to plan for to do with the design of the project, which places Asian countries in terms of on-time delivery and trans- potential problems at all stages of the mail chain and emphasis on capacity building and continuous sharing mission of electronic data. These criteria are very how to solve them. “Was it the letter carrier, who didn’t of operational best practices. It was also emphasized important to customers, says Chokri Ellili, the EMS collect the mail in time? Was it the air carrier that that the Post sending the mail, the one handling mail in Unit’s regional coordinator for Asia-Pacific. Between received the dispatch but didn’t have sufficient space on transit and the one receiving it at destination must take December 2008 and June 2010, several countries made the aircraft? Did the expected flight never arrive? Has ownership for the international mail in their leg of the double-digit improvements in on-time delivery. Bhutan, mail been detained at customs? Mail delivery can be journey, thus covering that journey from beginning to for example, raised its performance by 36 per cent to 72 delayed at all of these levels,” says Seydou Konaté, end in a responsible manner.” per cent, Indonesia went to 59 per cent from 43 per manager of the UPU’s letter-post programme. cent, while Malaysia achieved 94 per cent in June, com- After each project is completed, the starting and By project end, all nine countries had implemented pared to 82 per cent at the end of 2008. Malaysia Post end points are compared to evaluate how far a region domestic end-to-end testing of mail delivery, developed also reduced late deliveries to a four-per-cent monthly has come in terms of quality improvement, what prob- and implemented security and quality-of-service pol- average rate in 2009 from 7.2 per cent in 2008 and cur- lems remain to be solved and how the designated oper- 14 milestones icies and implemented measure to better comply with rently has 17 pay-for-performance partner agreements, ators can plan to further improve quality of service. customs requirements. Eight of them were also now which link quality of service to payment. The overall methodology was successfully piloted in 1. Implement continuous testing of letter- using IPS to manage mail at their offices of exchange as West Africa from March 2007 to June 2008. post delivery between major links well as all required EDI messages. No countries remained “This is significant because the more a country feels 2. Test domestic end-to-end letter-post in the report card’s red zone. The regional project also confident about its ability to deliver on quality of ser- Cooperation delivery led to Bhutan setting up a postcode and addressing sys- vice, the more it concludes such agreements with other Often countries in the same region experience similar 3. Adopt a postcode and addressing system tem and Bangladesh joining the EMS Cooperative, EMS partners,” says Ellili. problems. The project conducts on-site studies in these 4. Implement process-management ­ among other things. Eight of the nine participating regions to enable designated operators from different methodology countries also gained UPU quality-of-management cer- In terms of on-time transmission of data, practically all countries to share best practices. 5. Adopt diagnostic testing equipment tification. countries are in the low to high 90%. Three of the nine “It’s easier for them to learn from another col- 6. Use barcodes on items and receptacles for Asian countries that participated in the regional project league in the region than to learn from an external all mail classes Top marks earned EMS performance awards in 2009. Malaysia expert,” says Vesterlund. 7. Adopt IPS to better manage mail at offices Lars Vesterlund, a senior consultant in postal services earned a silver award, while bronze awards went to The project also promotes the use of new technol- of exchange overseeing the various regional projects, says the pro- Mongolia and Thailand. ogies in postal operations. “New technologies are 8. Use EDI messaging ject in Asia was a tremendous success. “The project everywhere and we cannot ignore this in the postal sec- 9. Adopt and use customer service systems manager had the right theoretical and practical back- For Sinha, a key element of the project was to be very tor,” Konaté says. “We encourage participating coun- for EMS, parcels and registered letters ground. He was engaging and used straight-forward honest with countries about their performance. “Some- tries to incorporate information technologies and RFID 10. Use UPU performance reports on EMS, language with the participants,” he said. “The idea of times, we had to be brutal. But everyone understood systems, such as the UPU’s GMS, in their postal facilities parcels and continuous testing results to sharing best practices over several sessions worked very the importance of improving services.” to monitor mail movements more accurately.” CB identify weaknesses and make improve- well. There was a very open and good spirit in the work- ments shops. At the end, it was amazing to see that all mile- A follow-up workshop to evaluate progress since the 11. Implement UPU certification methodol- stones on the report cards were out of the red and most end of the regional project is scheduled for 2011. ogies countries had achieved green,” he added. 12. Develop and adopt a security policy 13. Adopt a quality of service policy The UPU’s International Bureau, which monitors quality 14. Implement measures to better comply with of service globally on letter-post, parcels and EMS ser- customs requirements vice, has also noticed improvements. Christine Betré- mieux manages the parcels programme. “More coun-

10 · Union Postale 3/2010 3/2010 Union Postale · 11 Dayan (r.) greets postal staff (l.) as Minister Féthière looks on

Work begins…

On July 6, the new mail centre in Port-au-Prince was parcels and Express Mail Service (EMS) items, the Post’s inaugurated in the presence of local and national digni- fastest service. The facility also acts as an office of Jumpstarting taries, including UPU director general, Edouard Dayan, exchange for international mail. All mail coming into and Haitian trade minister, Josseline Colimon Féthière. Haiti and leaving the country goes through the centre, “This building is something tangible. The UPU kept its which houses customs too. word and helped Haiti in its efforts to rebuild. On behalf Haiti Post of the president, the government and the Haitian popu- The new postal facility, which looks like an enormous lation, I thank you from the bottom of my heart,” said tent, is designed to resist winds of up to 225 kilometres Féthière. an hour and Zone 4 seismic activity, where there is a high risk of damage. For added safety, the structure has For his part, Dayan said: “The Post, because of its omni- been solidly anchored at the base. By presence and the services it provides to people and Six months after the earthquake, Haiti Rhéal LeBlanc businesses, must be a priority in the devastated Optimism country’s reconstruction efforts. Within the United For his part, Edvard Despeignes, Haiti Post’s acting picks up pace as its new mail processing Photos: Sophia Paris Nations, we will continue to highlight the importance of director general, is optimistic about the future. “This centre opens in the capital, thanks to the integrating postal services in plans designed to stimu- new mail processing centre is a major step in helping generosity of the UPU and its member late Haiti’s economy. Haiti needed emergency assist- the Haitian Post function more normally,” he said. ance and this help remains necessary. But today we “Since the resumption of international mail services, countries. must look to the future and develop the essential infra- volumes have been increasing. Because the earthquake structure the country needs, including postal services.” had destroyed the Post’s capacity to process mail at its main postal building, it was important and urgent to About 60 employees work at the 600-square-metre create an appropriate space to receive and expedite processing centre, where they handle letter-post items, mail. The Haitian Post is now prepared to return to ­

12 · Union Postale 3/2010 3/2010 Union Postale · 13 Did the mail shape globalization? Moving the mail Post on Haitian government Global commerce would be impossible without the agenda movement of information – contracts, arrangements, plans, blueprints. Before the digital revolution trans- formed many of these things into bits and pixels, there was a postal revolution that improved the speed of information flow around the world.

Haiti’s prime minister said he would make postal ser- vices “a priority for the government” at a July meeting with Edouard Dayan, the UPU’s director general, in Port-au-Prince. Jean-Max Bellerive recognized the postal services’ role in “connecting communities” and helping his government “create the national unity” essential to his country. Dayan, the first UPU director general to visit Haiti, normal mail flows and anticipate an increase of local stressed that the work recently performed to re-estab- When you check on the minute-to-minute activities of forming technology, but it was too expensive for the By and international mail volumes.” lish postal services in Haiti “should not stop now”. He Ted O’Callaghan friends on another continent through a social network- bulk of correspondence. The postal system provided an said that the postal sector should be considered a prior- ing website or read a newspaper report from a distant affordable means of communication for businesses and The centre’s equipment was purchased with donations ity for the country’s development. city, the data travels on fibre-optic cables. Those cables for millions of immigrants, while lucrative postal from UPU member countries and the organization’s Josseline Colimon Féthière, Haiti’s trade minister, run under the oceans on essentially the same routes as contracts helped underwrite the unprecedented capital normal budget. Some countries also donated sorting assured the UPU of her commitment to developing the telegraph lines of an earlier century and the steam- cost of creating new transportation systems. However, cases, work tables, bags, generators and postal vehicles. postal services. She said modernizing the Post would be ship routes that preceded them. The power of feeling the process wasn’t seamless: creating an efficient sys- an important objective. “We have an opportunity to connected to people, who are far away, also follows tem for global mass communication was a new chal- Disaster rebuild and we must rebuild well,” she said. “We must existing patterns. A writer in the 1830s marvelled at the lenge requiring innovative solutions. The January 12 earthquake destroyed Port-au-Prince’s do things differently and we must strive towards mod- impact of a letter: “Time and distance are annihilated. main post office and the building housing the EMS ser- ernization and new offerings for customers.” We are there.” Another was astonished by the speed of History vice. Other post offices in outlying areas were also Féthière added products were needed to speed up the postal system: “The ink is scarcely dry…before we Thousands of years earlier, the Chinese, Egyptians, ­ destroyed or severely damaged. The new postal instal- postal services, improve network interconnectivity and find in our hands…a transcript of our dearest friend’s Persians and Romans had figured out how to communi- lation was built as part of an emergency aid project facilitate money transfers. “Every year, Haiti receives mind.” cate efficiently across the breadth of their territories managed by the UPU and developed with the generous more than $1.8 billion from Haitians living abroad. This through relays of couriers, but these systems were assistance of the UN agency’s member countries. The is a market we must capture and the postal service, as The extent of the globalization that occurred in the reserved for the state. In the Middle Ages, universities latter responded to the UPU’s call for assistance and a function of government, could offer this service 19th and early 20th centuries, ending with World War I, created their own private mail systems, which event- contributed more than $500,000 to a special fund. (money transfers) at a lower cost,” she said. has only been matched in recent years. As the impacts ually crossed much of Europe, in part to ensure that stu- They also offered human and material resources to help Féthière also said she was touched by the postal of the Industrial Revolution spread across the world, dents had a way to request tuition money from home. Haiti and its postal operator resume postal services as community’s solidarity towards Haiti after the earth- communication over significant distance took on new But the free flow of information was troubling to gov- quickly as possible. quake and appreciated the UPU director general’s importance. Steamships and railroads had exploded the ernments. “In Europe, the origins of the modern post attending the inauguration of the new mail processing number of goods being traded around the world and office paralleled the rise of the nation state,” writes › See the photo gallery at: www.flickr.com/universal_postal_union centre. facilitated personal mobility. The telegraph was a trans- postal historian Richard John.

14 · Union Postale 3/2010 3/2010 Union Postale · 15 sent along the fastest route possible. The unique fees for each leg of the route, negotiated by the bilateral agreements, were eliminated; transit fees were regular- ized and countries were compensated based on the vol- ume of mail they moved. Many of the benefits of the organization only manifested with time, the result of ongoing interaction and incremental changes. The UPU began with 21 initial signatories and grew to include nearly all independent countries by 1914.

For all the change the UPU facilitated, a key distinction between the globalization of recent decades and that of the 19th century was reflected in the limits of the organization. The UPU oversaw what was effectively an inter-imperial world. The organization replaced many bilateral agreements with a single multilateral frame- work, but it only improved the connections among the existing domestic hub-and-spoke systems. Into the 20th century, mail between British West Africa and French West Africa had to pass through Paris and Lon- don.

Global blueprint British staff sorting letters in 1840 at a general post office, the time the Nevertheless, the international cooperation inherent in penny post was introduced. Illustration: Hulton Archive the UPU created a blueprint for some of the institutions that form the bulwark of the global system today. Craig “Just as the central ­government gradually acquired a weight rather than the number of sheets of paper and ounces, grams, and in some cases zolloths, then look up Murphy, a political scientist at Wellesley College, says: monopoly over the legitimate use of force, so it sought to move away from variable charges based on the dis- the fee for each leg along the route. Because there were “These first intergovernmental organizations were a to monopolize the means of communication.” At times, tance that a letter travelled – almost all costs, Hill real- often numerous possible routes, and each leg of each place where ideas about how to govern the world find private enterprises were encouraged, but the most suc- ized, are incurred at the beginning and end of a letter’s route had a separately negotiated tariff, the cost of the many of their first seeds.” Many civil servants, particu- cessful were generally absorbed or quashed by govern- journey. Many of these changes were quickly copied in letter and the time of delivery varied dramatically larly in Europe, saw postal, telegraph, rail and sanitation ment postal systems. Some were seen as threats to rev- countries around the world. depending on which combination the clerk happened systems as keys to a future of health, prosperity, and enue. Others were feared as means of conveying secrets to put together. Rates from the US to Australia along peace, not just for their own countries but for all. They to enemies. By the mid–1800s, the system for inter- The postal system’s value to everyday people was enor- the six possible routes were $.05, $.33, $.45, $.55, believed in the idea of efficient systems managed for national mail was based on a tangle of bilateral agree- mous. Nancy Pope, the historian at the Smithsonian’s $.60, or $1.02 per half ounce, according to a report by public good. ments between nations. postal museum, describes a letter from a Norwegian the US Postmaster General. woman who immigrated to the United States: “She uses For a time there was talk of turning the postal banks Public service phrases like ‘I know I will never see you again in this life.’ Standardization found in many countries into a currency exchange sys- Meanwhile, the idea of the postal system as a public Families have, through immigration, split, never to see When an international congress convened in Paris to tem that would facilitate international finance. “When good, affordable to all, advanced in Britain in the 1840s, each other again. And the mail is the link. It’s the one resolve the mess in 1863, the only existing example of John Maynard Keynes the economist was sitting at Bre- when Rowland Hill, a social reformer, examined the thing that keeps you knowing that that other person is an international governmental organization was a com- ton Woods (in 1944) coming up with the International domestic mail system and proposed a series of changes still here on this planet.” People cherished letters but mission that had been established in 1815, at the end of Monetary Fund, the first vision of that had come from that made it more efficient and accessible. Letters had sending mail internationally remained expensive and the Napoleonic Wars, to ensure safe navigation on the within the UPU. There were a lot of people, who had previously been paid for by the recipient, necessitating complicated, so many countries faced significant press- Rhine. The Universal Postal Union was formed in 1874. highly visionary ideas about how the world economy a carrier to find that person and collect money. Hill ure from the public to improve. was going to develop and become interconnected,” introduced adhesive stamps, which allowed the cost to The UPU standardized the process for sending mail adds Murphy. be paid up front, with rates that started at a penny. At To send a letter abroad in the early 19th century internationally by simplifying accounting and adminis- This article was first published in Qn, a magazine from the Yale School Hill’s urging, the postal service began to charge by required that a postal clerk calculate its weight in trative procedures. It required that international mail be of Management.

16 · Union Postale 3/2010 3/2010 Union Postale · 17 the director feared that even this run would not be The magazine today enough to assuage the demand. Union Postale 135 years later is printed quarterly in seven separate language versions and remains a small However, Borel’s overall feelings towards this new jour- operation, managed by the IB’s communication pro- nal seemed to have been mixed. “ …aside from the edi- gramme. Just as Posts have seen their sector rapidly torial services, this publication requires a considerable evolve since 1875, so too has the magazine adapted to amount of work from our staff and we thought it only the ever-changing media landscape and information fair to pay our translator his entire annual wage (for four needs of its readers in form and content. Union Postale months on the payroll),” he wrote. magazine then Fruit market in Bern, 1875 and now

Bern, old town, 1875

On July 1, 1875, the Treaty of the General Postal Union In 1875, a secretariat for the General Postal came into force for 22 signatory states. Its new secre- tariat, known as the International Bureau (IB), was set Union – the Universal Postal Union’s pre- up in Bern, the Swiss capital, and seat of the organiz- decessor – opened for business. One of its ation’s founding. On the ground floor of Bundesgasse 14 on what was described as the city’s “high street”, first tasks was to publish a “special journal work began on September 15, 1875. The building had in French, English and German”. a noble neighbour opposite – the Swiss parliament building. At that time, about 40,000 people were living in Bern and nearly 10 per cent were manual workers employed mostly in the textile industry.

Six staff members were appointed to run the IB. The first director, Eugène Borel, came from the Swiss Post, What Union Postale readers say today and had an annual salary of 16,000 francs. He was joined by the French-speaking Arsène Morel as first sec- Comments ­ “Union Postale provides serious, educational, and achievements of retary, previously from the Belgian Post, and a second collected from secretary, Hermann Galle, from Germany. Joining them the magazine’s information on the wide instructive and postal operators, and dis- were a translator and two administrators. most recent readership range of problems faced by informative articles on the cusses operators’ activities survey Birth of a journal Posts. That information is activities of the postal sec- and key projects. It is doubtful whether the secretariat was overjoyed at not found in other postal tor as a whole. Emphasis is the prospect of producing a journal alongside all their other duties. According to the IB’s first management publications, which is why placed on the latest news. “Union Postale deals with report, this “obligation” to provide a review in three Union Postale has its place.” The articles are accurate, postal life better than any languages was “difficult”. The first dilemma to resolve was whether to produce one trilingual review or three concise, clear and easy to other source of separate language versions of the same journal. The tril- “The UPU’s magazine has understand.” information.” ingual approach won and the decision taken to produce 16 pages monthly. an appealing look,

By enhanced by the high “A magazine that regularly “I read the magazine on Faryal Mirza The first Union Postale, published on October 1, 1875, and focusing on the minutiae of setting up an IB, was a paper quality, cover and reports on specific areas of the train when travelling hit with its readers. The first run of 2,000 copies was attractive images. It’s a the postal sector, summar- to work!” exhausted quickly, leaving the IB to issue a second edi- tion. The second month, 4,000 copies were printed but quarterly publication with izes the main difficulties

18 · Union Postale 3/2010 3/2010 Union Postale · 19 Tête-à-tête

Making merger history

In 2009, the Posts of Sweden and Denmark announced their merger as a market first. Posten Norden, the resulting entity, has just celebrated its first birthday and its CEO, Lars Nordström, offers a look behind the scene.

Union Postale: Why did this merger they have for decades but trends geography and climate. In Sweden, By Faryal Mirza have to happen? like declining volumes call for a it’s more complicated and you Lars Nordström: In order to get combination of e-communication need support from airlines to meet Photo: necessary advantages in the mar- and more traditional postal busi- your obligations. The infrastructure Posten Norden ket, you have to go cross-border. ness. It is a cost game, facilitated in both countries is highly devel- This is true in every industry. There by creating bigger units. oped. are economies of size, scope and I would not be surprised if we scale to be had. There are possibil- see more mergers in five years from How is the Post regarded in ities to lower unit costs and the now or more government sub- Sweden and Denmark? prospect of a stronger capital base. sidies. If mail volumes are only 50 Posten Norden has a reliable repu- The challenge here is to find one per cent of their current levels in tation and access and service levels model for two cultures, which is five years’ time, the only option to are perceived to be high. Ten years very interesting. subsidize a loss-making machine is ago if you weren’t at home, you to let the taxpayer pay. would get a slip telling you to pick Has the merger started a trend? up your parcel at the post office. Big companies naturally go cross- How is Posten Norden dealing with Now you get an SMS and our border in any industry. Ours has its universal service obligations? agents at grocery stores and petrol been an exception to the rule so far It’s not easy explaining to politi- stations help maintain access to but things are changing. Some cians that they can’t take the no- postal services. Posts might say that they are tion of all services being provided The traditional Post brand has special and, if they turn into an in- everywhere for granted. The main a great advantage as people recog- ternational business, this jeopard- challenge is to have the necessary nise it. We considered abandoning ises the universal service obli- profitability level in ordinary busi- the brand as it had an ­ gation. They might say that history ness-to-business areas to help us old-fashioned flavour since deregu- says such mergers can’t be done keep up. lation in these markets. However, but this is wrong in my opinion. In Denmark, the service level is we decided to stick to it as it distin- The gap is increasing between high. Letters are delivered six days guishes us from the competition. what is happening in the market a week and parcels on five. It’s ­ and the views of politicians. The easier to provide this service there latter expect things to go on as than in Sweden because of its

20 · Union Postale 3/2010 How can one entity straddle two What advantages has the merger countries? brought so far? The Danish and Swedish Posts op- In the first wave, there have been erate in different markets under the traditional advantages, such as Isn’t it time different licences, supervisory auth- streamlining the procurement and orities and service levels. human resource departments and In Sweden, deregulation hap- IT systems. Here, we can save up to pened 17 years ago. If you and I one billion Swedish kronor wanted to start a postal operation ($0.1 billion). Around a year after there, we could. I wouldn’t recom- the merger, we are on track, ­ you subscribed? mend it because of profitability ­ harvesting IT and procurement ­ issues but it would be possible. In synergies and implementing ­ Denmark, the market will be lib- cost-cutting at the traditional head eralized next year. offices. The two separate operating Since 1875, Union Postale has been reporting news from licences continue to allow both What about job cuts? the international postal sector for the benefit of Denmark and Sweden to be repre- We have about 47,000 employees, sented at the UPU. of whom about 500 were directly stakeholders across the industry. These include regulators, affected by the merger. However, a chief executives, operational experts, post-office How has the economic crisis dam- general decline in mail volumes pened the business in the Nordic would have led to decreasing the employees, strategic thinkers, suppliers, academics, philatelists region? workforce in any case. and anyone else with a keen interest in Posts. There has been a profound effect Interestingly, employee satis- on mail volumes. It has speeded up faction is at an all time high. Our electronic substitution. For staff understand our new business Help Union Postale celebrate its 135th birthday example, many banks now provide model. They know times are tough UNION statements on the web. E-com- but they are still motivated. This by joining the ranks of thousands of satisfied ­ POSTALE Moving the postal sector f

September 2010 munication is very developed in proves that we have been ­ readers. Sign up now for four issues a year of this orward since 1875 Universal Postal Union, a specialized agency of the United Nations Denmark and Sweden, the former successful in communicating. full-colour, high-quality magazine in one of seven 3 more so than the latter. In ­ languages. Denmark, we are still delivering Turning now to you: how did a 11 million mail items a day and in former banker end up spearhead- Private subscribers anywhere in the world can Sweden 20 million. ing an entity born from the historic Postal operations across the merger of two national Posts? subscribe for CHF50 a year. Special discount rates Regional quality takes off globe are too slow on the e-com- I was chief executive of Nordea apply to Posts from UPU member countries. munication front. We are a com- Bank, which was the result of a munication business, so we should banking merger that created the Fax us your order now on +41 31 350 37 11 be in e-communication. We are biggest Nordic bank. This all or email us at [email protected] with the well positioned and can solve cus- started more than 10 years ago; following details: tomers’ problems. two years later, I was CEO and Posten Norden is active in spent five years developing the mixed communications. Many bank business. So, I know some of the Name Language version desired: customers, for example, still want tricks. traditional written statements once I was actually retired but was Position English a year and copies of their import- approached by the board – ­ ant transactions on paper. We have supported by the Swedish govern- Organization/Operator French a special business responding to ment – as it was important to them such needs called Informationlog- to hire someone with experience of Full postal address Arabic istics. This is a mixture of e-com- cross-border mergers. munication and traditional com- Chinese munication and the biggest cus- Why did you take the job? tomers are banks, telecom oper- Someone calls you and says you are German ators and clothing chains. the best person for the job – I was In logistics, we are number one flattered. E-mail address Russian in the Nordic region. Our superior distribution network with agents Telephone Spanish and local representatives covers Nordic areas in a way other market Fax players cannot.

22 · Union Postale 3/2010 Delivering the future of postal technology People complicated. What bothers me more is the weather because I feel the cold. I’m also afraid of snow Witness to change after my car went off the road twice last year.

You have been with this office for three years now. Was it difficult Teresa Rochas is a letter carrier in Tordesillas, near when you started? Valladolid, Spain. Over the past 21 years, she has seen A little, yes. You’re expected to know from the start what people the steady exodus of customers, leaving many build- live in which houses because there ings on her route empty. are villages where some of the streets have no names or numbers. That means you have to learn them How did you become a letter car- office for a while to deal with the by heart. By Itziar Marañon rier? registered post that has been ­ Two of my brothers applied for the delivered or not, as the case may With 20 years’ experience, you Photo: job at the same time I did. They be. must have seen some changes? Juan Miguel thought that, as I was married with I notice the ageing population in París Urcaregui two children, I wouldn’t be ­ What do you like least about the the villages. There are no children accepted. Anyway, I went along job? in Pedrosa and hardly any in San and applied and – she laughs – I wasn’t so keen on working in Román. It’s very sad. In Pedrosa, that’s how it all started. I found I town. I only did it once and it for example, I walk a lot without enjoyed the job very much because wasn’t for me. I’ll always be a delivering many letters as there are I like working with people. country person. You deal with so many derelict buildings. people on a more personal level How does your day start? there, they appreciate you and are Do you think you’ll be doing this It begins at 7.30 am, but I like to friendly. The old women even ask job for another 20 years? arrive a bit earlier to get the news- me to read them their letters. They No, mainly because of my eyesight. papers ready. Next, we sort the tell me about their problems and Also, it’s hard to walk around for letters by village and by street and how their day is going. so long carrying a heavy load. I stick on the labels. Lastly, we take would like to continue but I don’t the registered post and parcels, What is the most complicated ­ think it will happen. The world’s leading event for the international load them up and set off on our aspect of your work? rounds. It all ends around 1.45 pm The registered items because they Are you sometimes frightened? postal, express and mailing industry! but then we have to stay in the ­ take time but they’re not really Only when it comes to animals.

But don’t they get to know you POST-EXPO will be the forum where the future of the industry will be facts & figures too? discussed, questions asked and answers found. I don’t think they ever get to know Spain the letter carrier. In fact, they can’t Organised in association with the UPU, the World Postal Business Forum Capital city Madrid is where industry leaders highlight and discuss major strategic issues that Official languages Spanish, Basque, Catalan/Valencian, stand us. I suppose it’s because Galician and Aranese (Occitan) they see us going up to the letter- Country population 46,951,532 the postal sector must confront in order to succeed in the years ahead. box. Once, an enormous Alsatian Area 504,645 km2 The hugely popular operations conference explores the key issues GDP per capita US$ 35,116 dog jumped on me. It was awful. Currency Euro And my sister-in-law, who’s a letter across the different operating areas in postal and express companies. Main industries Tourism, services, construction, carrier in Madrid, was also attacked metals and metal products, textiles and clothing (including footwear), by a dog when she was delivering a Visit www.postexpo.com for the latest updates. food and drink products, chemicals, registered letter. electronic goods, shipbuilding, motor vehicles, machinery What do you do in your spare Buying basics time? Milk 0.90 Euro (1.14 USD) I’m very fond of dancing. We often Bread 1.00 Euro (1.26 USD) go dancing on a Saturday. It’s my Coca-Cola 0.51 Euro (0.64 USD) Minced beef 6.25 Euro/kg (7.90 USD) way of recharging my batteries. Fish 14.90 Euro/kg (18.84 USD) When I’m a bit down, my boyfriend Carrots 0.64 Euro (0.81 USD) always tells me that I should go out Bananas 2.20 Euro (2.78 USD) Potatoes 0.39 Euro (0.49 USD) dancing. I can dance until five in In association with 6, 7, 8 October 2010 Beer (12 cans) 5.37 Euro (6.79 USD) the morning.

Bella Center, Copenhagen, Denmark 3/2010 Union Postale · 25 The interview

Making a ­ quantum leap

Being in charge of any Post comes with a multitude of challenges but imagine those that come with heading up operations in the world’s largest country. ­ Alexander Kisselev, Russia Post’s director-general, looks back on his first year.

Has the financial crisis had an a number of addressees undergo By Faryal Mirza impact on Russia Post? customs clearance as ordinary post- Alexander Kisselev: The ­ al items. Previously, such parcels Photo: disruption of markets had an ad- were treated as consignment Alexandre verse effect on business. Losses in- goods and customs clearance of Plattet cluded a decrease in mail volumes these imported goods might have of about 10 per cent. Nonetheless, required the presence of an author- the Russian­ Post is seeking new op- ized representative of a sending portunities. We have observed that company. companies are cutting spending on express delivery and looking for What can Russia Post look forward less expensive solutions. Under to? these circumstances, we are in a First, the Russian Post will place strong position as our services offer emphasis on its efficiency and com- good value for money. Our Express prehensive modernization of its in- Mail Service (EMS) and first-class frastructure and for that we count express delivery are good alter- on the state’s support. To increase natives to the expensive services financial stability and find resources offered by our competitors. Rev- to subsidize loss-making yet im- enue from these services in 2009 is portant social services offered at a good indicator with an increase marginal prices, we are looking to of one-third. diversify our activities and develop At the end of 2009, positive profitable services. modifications were made to the We have started to work jointly existing Russian customs legis- with the state-owned corporation lation. No doubt this change will Vnesheconombank towards a new give a new stimulus to distance- federal postal bank. This decision selling from abroad. Now parcels by the Russian government has two containing goods from foreign goals: to make the Post technologi- mail-order companies destined for cally modern and secure financial

26 · Union Postale 3/2010 “We are optimistic about our future.”

good transportation possibilities. To improve management effi- country’s territory, to bring the We are their partners when they ciency, we considered different motor-vehicle fleet up to date, have have to deliver to distantly located ways to modernize the Russian a considerable part of its produc- places, which are hard to reach, postal network. We came to the tion processes automated and to even for us. This is when they ­ conclusion that the most optimal develop its IT infrastructure. This appeal to Russia Post and we do model was to retain the existing quantum leap in the development the shipping but, of course, not to branch network, to establish one of the Russian Post will require a the standard transit time of DHL, more management link nominally further optimization of the busi- resources for infrastructure mod- into operation in December 2009. access to Internet, which is offered for example. called interregional centres, which ness processes and management ernization. The second is to provide at the public access points of the The Russian EMS service has will be assigned some part of the procedures. Nevertheless, we have the Russian population with equal How are you dealing with the uni- postal offices within the country. been part of Russia Post for five administrative functions, as well as set clear goals and know how to access to up-to-date financial prod- versal service obligation (USO)? For this, the Post is compensated years with its own technology and to create business units, each of achieve them. We are optimistic ucts via the postal network. The USO with respect to domestic by the universal service fund. This business planning. We have seri- which will be responsible for a ­ about our future. mail is still an obligation and a real makes it possible to avoid serious ously improved the quality of ex- certain business line. What major challenges do you face problem for us because tradition- losses. press delivery services, adding up in making this bank a reality? ally the cost of its provision is Overall, we have to cross-subsi- to three per cent market share Is there anywhere in your business, One problem is training the staff. neither adequately paid nor com- dize all the losses made by the USO every year, and growth currently which you look at and think “we There is a lack of educated banking pensated by the regulator from the and obligatory social services with exceeds 35 per cent annually. are doing really well here and don’t personnel in some areas of the federal budget. More than 50 per profits from commercially viable need to do anything”? Russian Federation. However, we cent of our revenues are generated services we are developing, among How do you manage a Post in the Unfortunately, I am not ready to Beating the ­global are introducing a distance-learning by mandatory social services, such which are catalogue and Internet world’s largest country? mention any specific division within network, which will help train our as pension delivery, which are more sales. Russia Post provides a We have a huge, decentralised ­ Russia Post where I can say for sure financial crisis,­ personnel to provide banking ser- or less regulated by the govern- number of popular financial ser- organisation and it is unfortunately that, yes, we are great here and vices. The level of motivation of ment. vices. These include money difficult to manage. At present, we working with maximum effective- these people must be much higher Unfortunately, compensation is transfers and credit repayments. have 81 regional branches of the ness. There are objective reasons Russian style than what it is now. decreasing for all the socially im- For the latter, the Post works on Post, each of which is managing its for this, for instance, the serious portant but unprofitable services the basis of agency agreements own networks in its region, cover- underinvestment in the Russian Have there been any recent devel- we have to provide and they are with the banks. For distant trading, ing the last mile to the last village. postal industry over the last two opments in mail processing? money-losing services at the end of we pick up orders, deliver goods Of course, it is very difficult to ef- decades. In turn, the shortage of ­ Russia Post is looking into optimiz- the day. We are now in discussions and collect payment from custom- fectively manage all the branches. financial resources does not allow – strengthening its position on ing international postal traffic by with the Russian government to try ers. We have also rapidly devel- Some of them are quite big and the Post to upgrade its infrastruc- competitive markets as a result of establishing new offices of inter- to get just reimbursement of our oped EMS and now have about 16 operating within the territories that ture by itself at the required level. other players seeing their positions national exchange and expanding expenses for the provision of the per cent of the domestic express- are as large as several countries put The effect is a kind of a vicious weaken (express delivery, accep- the existing ones by developing a socially important regulated ­ service market. together within Europe. For circle. It is necessary to escape and tance of payments); logistics system for incoming flows. services. example, one of the regions is as we are deeply involved in this. – making use of new market oppor- The use of metal cages is envisaged Why do your competitors in ex- large as eight Frances. The regions tunities from the crisis (distance for optimum redirection of mail How are you financing the USO? press services have more market have their own features, specific What is the future looking like? selling); and for improving safety and relia- What concerns the USO with re- share than you? climates, such as minus 55 degrees A government programme to mod- – maintaining a stable position on bility of its transportation under spect to domestic mail, Russia Post Our competitors are global leaders Celsius in winter, and have differ- ernize the postal infrastructure traditional markets (postal ser- customs control. practically provides it at its own and have their own hubs and fleets ent logistical problems associated worth 101 billion roubles vices, subscription services, deli- We have also taken an import- cost. We recover losses only in the in Europe, as well as quite different with the regions geographic posi- ($3.3 billion) is being discussed, very of pensions); ant step towards reducing the regions of the Far North. Some- standards. The world-leading ­ tion. co-financed by the Post on a parity – using and strengthening the Post’s share of manual labour. The first what better is the recovery of the couriers mainly operate nationally, ­ basis. With this, the Russian Post image as a reliable postal operator, automated sorting centre in Russia, Post’s expenses for providing the collecting in the Moscow and plans to modernize its logistics sys- stable provider of a wide range of processing items for the central ­ universal communication service in ­St Petersburg hubs, and they tem, to create a network of auto- postal, financial and other ser- regions of the country, was put respect of data transmission and mostly deliver to the big cities with mated sorting centres all over the vices.

28 · Union Postale 3/2010 3/2010 Union Postale · 29 Market focus Because your satisfaction is our satisfaction, 1 000 thank yous ! Digest

Belgium letter. More details can be found at: had cleared parcels from Germany at this La Poste/De Post has been rebranded bpost www.postacertificata.gov.it plant before channelling them through its before the national market is liberalized in Ja- parcel network. nuary 2011. One rationale behind the decision India was to have a single name for the Post in two India Post has become the country’s first Russian Federation languages. government organisation to be on Twitter. Russia Post has entered the mobile phone The operator has been tweeting regularly business according to local media reports. In Canada since April and has more than 5,000 fol- a pilot project, it is selling mobiles from 1,000 Canada Post has opened its first new mail lowers. As well as responding to comments post offices in three regions. processing centre in 20 years in Winnipeg. about lost parcels, the tweets also inform its Costing 100 million Canadian dollars user base about India Post products and ser- United States ($0.9 million), the facility will employ 400 vices. More at: http://twitter.com/postoffice- The United States Postal (USPS) and the staff when fully operational. The investment india country’s commerce ministry have teamed up is part of a programme to modernise postal to help small and medium-sized local busi- operations by 2017. Ireland nesses to boost exports. The initiative will An Post has launched a new mobile virtual simplify access to a network of trade and Germany network operator on home ground, called shipping experts specialising in international Deutsche Post DHL has introduced the e- postfone. In conjunction with mobile pro- markets. postbrief, which it says combines the speed vider, Vodafone, the Post has invested more of email with the reliability of traditional post. than two million euros ($2.6 million) in the The USPS has ended the third quarter of its - Photo credit: Jean-Charles Vaillant - Traditional fi lm photo taken at Bourg-Lès-Valence, SOLYSTIC’s production site. production SOLYSTIC’s at Bourg-Lès-Valence, taken lm photo fi - Traditional Vaillant Jean-Charles credit: - Photo Customers have been invited to sign up for venture. The latter is hoping to garner up to fiscal year with a net loss of $3.5 billion. ­ their personal email address with the suffix @ five per-cent share of the pre-pay market. During April 1 to June 30, mail volume was epost.de to exchange e-letters securely and 40.9 ­billion pieces, a decrease of 1.7 per cent confidentially with other users. Deutsche Post Switzerland or 700 million pieces. April 2010 - DHL is also offering to print out and deliver Deutsche Post DHL’s decision to have its an e-postbrief like a normal letter. logistics arm and not Swiss Post deliver its Great Britain parcels in Switzerland has led to job cuts at TNT Post UK says it will increase its local Italy the latter. Seventy jobs will be lost at the workforce by a fifth in 2010. Poste Italiane says that its Postacertificat Basel exchange office as 4,600 of the 6,300 service, an email-based messaging service, parcels processed daily at this facility will no has the same legal validity as a registered ­ longer pass through its portals. Swiss Post

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