Jersey Post to face competition from two new operators
Jersey Post will face competition from two new companies for certain mail deliveries. The Jersey Competition Regulatory Authority (JRCA) today announced that Citipost and Hub Europe have been given licences to provide postal services to the island.
The licences will allow both companies to provide postal services to the fulfilment sector, starting with the packet market next month and large letters from January 2012.
John Curran, executive director at the JCRA: “This decision will ensure that postal customers will continue to receive a high quality postal service but it also ensures an important part of Jersey’s economy – the fulfilment industry – can remain competitive by having access to the most competitive postal charges.
“By phasing the market opening, Jersey Post now has a very real incentive to make the type of changes to its business that is needed given the changes in the postal market.”
The decision to grant the licences follows a consultation on the proposals earlier this year and a review of Jersey Post’s efficiency.
“With falling mail volumes in the traditional postal market, the need to look at how postal services are provided is paramount. In our work with Jersey Post we have been impressed with the degree to which the company, in partnership with its unions, is facing up to this challenge. However it is critically important that Jersey Post continues to focus on cost control to ensure it actually achieves its planned savings,” said Curran.
“Consumers are using the postal service in very different ways now and the challenge from alternative communications means, such as email and social networking sites, means Jersey Post needs to be proactive in tailoring the postal service to meet the needs of customers.”
Both licences are subject to a Minimum Volume Requirement restriction, which for Large Letters is a minimum of 50 items in any one mailing, and for Packets is 25 items in any one mailing.
Bob Jones, managing director of Citipost DSA (Jersey) Limited, said: “Initially, the application for a postal licence was submitted by Citipost in December 2008, so we are very pleased to now have that licence confirmed.
“The original proposal from the JCRA in March 2010 was for a licence that would include large letters as well as packets. However, we acknowledge that the JCRA had a difficult task to meet the demands of all stakeholders in the licensing process.
“We believe that the inclusion of large letters in the Citipost licence from January 2012 is a fair compromise for all parties. Citipost looks forward to being involved in the Jersey postal market and believes that it has much to contribute in terms of price, innovation and quality of service.”
Jersey Post recently embarked on a multi-million cost-cutting plan. In July, the company announced 90 jobs were to be cut, as a part of an overall programme to save almost £4.9m by the end of next year.
