Austrias Post AG wants to break into E. Europe
The parcel, express and courier service provider has good news for its competitors, the Austrian freight forwarders. [Austrian Post is not a freight forwarder and has no intention of turning into one], Join Kaniak, director of Austrian Post’s logistics and distribution department, explained in an interview with the ITJ in Vienna. Quite on the contrary:
as plans to systematically outsource its logistics services to external partners in the medium term. Kaniak has potential partners in mind who are willing to contribute capital
and know-how to satisfy the special logistics needs of Austrian Post.
«We deliver for you», is the slogan which the Post fox, the company logo, presents across the country.
Austrian Post still handles 95% of its letter and parcel logistics by itself. The weight per parcel is restricted to a maximum of 31.5 kg. The company also stated that it covers almost 100% of the Austrian market in the business-to-consumer (B2C) and consumer-to-consumer (C2C) sectors. Austrian Post is the market leader in the business-to-business (B2B) segment, which it covers in cooperation with its partner DPD Direct Parcel Distribution Austria. DPD is
backed by the Austrian forwarding companies Schachinger, Gebruder Weiss and Lagermax.
Growth market B2C
Kaniak estimates that Austria’s parcel, express and courier market which has a volume of 114 million parcels of which Austrian Post and DPD control nearly 60%. Transporting this volume
generates a turnover of EUR 181 million this year, with ‘Austrian Post taking a EUR 138 million share. According to Austrian Post’s business report for 2000, this is 2% less than the year before.
Last year Austrian Post was hit by competition on the parcel, express and courier market. The number of parcels it carried dropped by 4.3%, while parcels transported abroad increased by 1.5% during the same period. Kaniak feels that the B2C market will grow steadily over the next few years. The logistics sector is being streamlined to save costs and increase efficiency.
By focusing on the logistics facilities in Vienna, Salzburg, Graz, Linz, Villach and Inns-
bruck/Hall, the company hopes to save EUR 50 million per year. First, however, more than FUR 254 million have to be invested.
