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PHLPost entering logistics business with fleet additions

Wednesday, January 30th, 2013

PHLPost – the postal service of the Philippines – is getting into the logistics business, it said yesterday.

The state-owned corporation, which rebranded last year from PhilPost as part of a transformation programme under Postmaster General Josefina Dela Cruz, said it has just acquired 12 new vehicles to underpin new cargo delivery and forwarding services.

The 12 new vehicles acquired through a public tender process include nine six-wheeler canter trucks and four 10-wheeler trucks, and are now based at the Central Mail Exchange Center in Pasay City.

The Corporation was granted the powers to provide forwarding services for parcels and freight as far back as 1992, under the legislation signed by then-President Corazon C. Aquino that created the current form of the Philippines Postal Corporation. The powers allow PHLPost to provide cargo forwarding services in partnership with foreign postal administrations and the local transport industry.

But PHLPost said yesterday that with its new delivery fleet in place, it is finally ready to perform such a function. In particular, the postal service will be aiming to provide low-cost supply chain services for businesses.

It is seeking prospective clients particularly among government agencies, where PHLPost can take advantage of legislation mandating government-to-government contracts.

The Postmaster General is aiming for PHLPost to “eventually” emerge as a major player in cargo delivery.

She said: “We are determined to deliver products from various clients to their customers’ doorsteps at the most cost-efficient, reliable and secured way possible.”

Regaining confidence

PHLPost is in the middle of a three-year fleet upgrade programme

The new logistics service is part of overall improvements that Postmaster General Dela Cruz is making to the PHLPost organisation that aim to “regain the respect and confidence of the public”.

The “lucrative but demanding” service also seeks to bring in new sources of revenue as mail volumes decline because of competition from Internet communications.

PHLPost has already provided logistics services for two public-sector agencies, the elections watchdog Commission on Elections (COMELEC) and the Professional Regulation Commission. The Post believes it could also provide logistics services for some of its existing institutional customers, including bulk mailers and SME mailers.

The Post has its eye on the international market, with research suggesting that its capabilities and capacity could be strengthened with partnerships with other internationally branded service providers. The e-commerce market also offers potential for the PHLPost logistics service, helping Filipino entrepreneurs to penetrate markets overseas.

PHLPost is currently in the middle of a three-year fleet upgrade programme, under which the new logistics vehicles have been acquired.

The company issued another tender, for 80 small delivery vans, earlier this month.

Source: Post&Parcel/PHLPost

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