Bidding opens for 818 post office franchises in Brazil

Brazil’s Post and Telegraph Company (ECT) has launched an auction of 818 potential franchises to operate post offices throughout Brazil. From today, those interested in running a franchise have 45 days to send in bids, with each company allowed to bid for up to two franchises each.

Candidates must prove they have owned or rented property available, with a floor space of between 48 and 205 square metres, to run their postal franchise. Eligibility requirements also include use of standard furniture and that opening hours can run until 6pm.

Bidders will also be expected to have minimum investment available, between R$89,549.66 (a little under $50,000 USD) and R$219,191.30 (just over $116,000 USD) depending on the model of post office being operated.

New franchise contracts will span 10-year periods, with the possibility of a 10-year extension. Successful candidates will be expected to begin operations within a year, offering services ranging from letter posting, telegrams and international shipments to express mail (SEDEX) and direct marketing services.

ECT said it expected to complete its bidding process for the new franchises within the first half of 2012, with all new postal retail facilities to be up and running in the first half of 2013.

The Brazilian Post already has 1,372 franchise outlets operating across the country, 61 new franchises since revised rules were put in place earlier this year.

The operator said it has also revised its bidding process in the light of discussions with staff and franchisees.

Gloria Guimaraes, vice president of network and customer relationships, said: “We listened to suggestions and made adjustments in the text, all based on dialogue and transparancy, because the ultimate goal is to strengthen the country’s postal service.”

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