Belgian Post to merge parcel, express subsidiaries

Belgian Post announced yesterday it will merge its two subsidiaries Taxipost and Kilopost into a new merged division to be called “Parcels & Express” to cut costs and enhance its services. The future business will operate under the Taxipost brand.

The express unit Taxipost has succeeded in increasing volumes and revenues but has not achieved a financial breakeven in a tough competitive environment, the postal group said in a statement.

Belgian Post said it has therefore decided to merge Taxipost with the parcels unit Kilopost into a new merged division to be called “Parcels & Express” under the management of Eric Piers.

The Taxipost depots will be integrated into the Belgian Post mail division during the first half of 2008 and its contracts will be transferred to the parent group. The mail division will be responsible for handling and delivering all parcels. Belgian Post aims to complete the restructuring by mid-2008.

Belgian Post managing director Johnny Thijs said the restructuring was designed to enable the postal group to achieve its “major ambitions” in the parcels sector, to increase its market share and to reduce cost levels.

The two units had combined volumes of 25 million parcels in 2006. Taxipost increased its express volumes by 22 pct in the first half of 2007.