Russian Post upgrades inspire growth in postal volumes

Russian Post is seeing its efforts to upgrade the postal infrastructure paying off with a 4% increase in letter volumes, 11% increase in parcel volumes and 32% hike in express shipments, according to executives. While the government considers the possibility of bringing in private investment and other reforms to help fend off the challenges of internet communications, the Post’s deputy director general Igor Mandrykin said modernisation efforts are already helping to overcome the shortcomings from outdated infrastructure inherited from the soviet postal service.

He said the Post has managed to stimulate growth in traditional postal services as well as in express services thanks to the coverage of the post office network and the full range of services offered.

Revenue from postal services at Russian Post is expected to increase 21% this year, compared to 2010, with a particular boom in first class services. Postal services account for about 42% of total revenue.

Mandrykin now wants to see a focus in coming years on “significantly” improving quality of customer service, particularly for business customers.

He said: “The main priority of commercial activity in the medium term is the widespread introduction of integrated customer service. Only by developing competitive products and increasing the level of service can we ensure the stable growth continues and create favourable conditions for the sustainable development of the business.”

Technology

Russian Post is currently working to introduce more automated services and technology-based services within its existing range, while medium-term plans are to improve the convenience of package delivery services.

The Post recently introduced a new text message alert option for its package delivery services, and plans to introduce new doorstep parcel delivery services in the medium term.

“Additional options for the convenience of customers are the most effective way to attract and increase the demand for basic package services,” said Denis Vasilevsky, head of the commercial operations directorate.

Russian Post is also working to boost its financial services at the moment, which provide 39% of revenue, building on its network of 40,000 post offices across the country. So far, around 31,000 of its branches are connected to the Internet, with another 5,400 set to be connected by early next year.