Posta Romana fights for market share
Compania Nationala Posta Romana (Romanian Post Office Company) estimates it will employ more than 35,500 people by the end of this year, 400 more than last year, despite the gradual elimination of 2,650 jobs.
“We will outsource valuable parcel shipping activities to Group 4 Securicor, and 1,100 employees will most likely be taken over by this firm in a year’s time. We’ll also automate mail-processing centres and outsource maintenance and cleaning activities. Overall, we’ll slash 2,650 jobs,” said Mihai Toader, manager of Posta Romana.
However, Toader stated most employees would be moved to other positions, with the number of employees expected to increase constantly in the coming years against turnover growth.
Posta Romana ended last year with turnover worth 1bn RON (312m euros) and forecasts 40 pct turnover growth for this year. First quarter figures confirm this projection, after turnover derived in the first three months increased 47 pct on 2007, and reached 94m euros.
The local election campaign will also encourage the company’s turnover growth.
In particular, Posta Romana redevelopment is being aided by contracts with private firms, and company representatives want to cut the share of contracts sealed with the state in turnover.
Practically, the entire delivery and postal services market has followed an upward trend in recent years.
Compania Nationala Posta Romana (Romanian Post Office Company) estimates it will employ more than 35,500 people by the end of this year, 400 more than last year, despite the gradual elimination of 2,650 jobs.
“We will outsource valuable parcel shipping activities to Group 4 Securicor, and 1,100 employees will most likely be taken over by this firm in a year’s time. We’ll also automate mail-processing centres and outsource maintenance and cleaning activities. Overall, we’ll slash 2,650 jobs,” said Mihai Toader, manager of Posta Romana.
However, Toader stated most employees would be moved to other positions, with the number of employees expected to increase constantly in the coming years against turnover growth.
Posta Romana ended last year with turnover worth 1bn RON (312m euros) and forecasts 40 pct turnover growth for this year. First quarter figures confirm this projection, after turnover derived in the first three months increased 47 pct on 2007, and reached 94m euros.
The local election campaign will also encourage the company’s turnover growth.
In particular, Posta Romana redevelopment is being aided by contracts with private firms, and company representatives want to cut the share of contracts sealed with the state in turnover.
Practically, the entire delivery and postal services market has followed an upward trend in recent years.
The heightened competitive presence of domestic couriers has eroded the company’s market share on the delivery services segment, but Posta Romana still leads on the mail delivery segment. Practically, regular postal deliveries provide the biggest contribution to turnover – around 30 pct, while express deliveries account for 5 pct, and parcel deliveries just 3 pct. Financial services also contribute significantly – above 7 pct.
As a result, the company will invest to change its vehicle fleet and has also been granted credit from the EBRD for a sorting centre in Bucharest and for upgrading one in Cluj. Investments are expected to hit 50m euros. Given that the fleet will be leased, the company’s operating expenses are forecast to rise, which mean Posta Romana does not expect to register a high profit margin this year.
