German express courier GO could target government-to-government mail in Hungary next year
German express courier GO could target the government-to-government (G2G) postal market in Hungary next year, Client Manager Peter Pesztericz told Interfax on Thursday.
“This [the G2G] postal market is a difficult niche to get into because of the heightened security requirements, but it is a market we could look at towards the middle of next year,” said Pesztericz.
G2G mail in Hungary is currently organized through a combination of government couriers and the regular postal service, Pesztericz said, adding that the former is expensive while the latter can be inefficient and is sometimes unreliable.
The G2G postal market in Hungary is relatively small, accounting for about 1 per cent of the total but can be lucrative given the special requirements that pertain in this sector, GO’s International Director Wolf-Rudiger May said.
GO is starting in the G2G market in Austria and Germany and already ships restricted documents for the EU from Brussels to Strasbourg along closed routes, according to May.
GO has recently entered the Hungarian market as a test launch into the CEE region, where it may develop a regional hub, the location of which will depend on the logistics flows that emerge within the region.
GO’s Hungarian operation is counting on revenues of about EUR 450,000 mln in 2007 on daily traffic of around 111 mail items by the end of the year. The company expects revenues to grow to EUR 3 mln by 2009 on daily traffic of 500 items, as demand for premium postal services increases in the region due in part to the EU’s eastward expansion.
GO was established in Germany in 1984. The company has daily traffic of about 10,000 items and recorded revenues of more than EUR 200 mln in 2005. The company has a policy of expanding through building up partner networks rather that by acquisitions.
