Restructuring of Polish Post impossible without new legislation

Full restructuring of Poczta Polska (PP), the national post office, will not be finished before Poland’s EU entry, leaving the giant vulnerable to competition. A new Post Act is needed to transform the company into a holding providing a range of postal, logistic, financial and Internet services. After EU entry, PP will lose exclusivity rights for delivery of parcels with weight in the range of 350-2000g and the market will be fully liberalised in 2009. Fearing competition from foreign postal firms, which are already present on the Polish market through subsidiaries offering courier services, PP wants to diversify and more rationally manage its assets. The share of income from post services will shrink from the current 65% to 35-40% of total sales.