Mail volumes falling by 9%, but CTT eyes growth in express
Mail volumes in Portugal fell 9.4% in the first quarter of this year, compared to the same quarter last year, according to regulator Anacom. CTT said it is now looking to invest for growth in its express services, which it says has been attracting new customers.
CTT Correios de Portugal’s total mail volume fell to 267.8m pieces in the quarter, with protected letter services accounting for about 79.2% of this, and down 10% year-on-year.
Among the competitive parcel and express side of the postal operator’s business, volumes were down 7.1% year on year, to 55.6m items.
Portugal opened its postal market fully to competition in April. In the final quarter with a reserved area of the CTT portfolio, the universal service provider held a 97% share of the postal market.
For competitive services, CTT held an 85.7% share of the market, including a 93.7% share of non-express competitive services and a 30.3% share of the express market in Portugal during the quarter.
For competitive domestic services, CTT had an 86.5% share of the market, while for international outgoing volumes its share was 74.2%.
Express
CTT said it has been attracting new customers through its CTT Expresso express delivery subsidiary, winning 456 new clients in the past six months, a 7.3% growth on the same period last year.
Last year, the unit attracted 1,072 new customers, a 7.6% increase on 2010, according to CTT, which said the growth was an “essential” part of its strategy. The company said it handled 9.78m items in 2011, almost half a million more than its nearest rival.
The express unit’s turnover last year was EUR 77.2m, a market share by revenue of 21.7% compared to its nearest rival’s 12.2% share, said CTT citing an EPI study.
Providing more customised services for its clients, CTT said it was offering a range of solutions including fulfillment, storage, returns and value added offerings.
CTT clients include companies in the banking, health, publishing and education sectors, including BPI, Santander, Xerox, Bertrand and Porto Editora.
“This year the company will strengthen the area of business logistics with the development of a proposed expansion of the network of operating centres across the county,” CTT said. “The plan includes a 30% increase in the capacity of warehouse logistics.”
