Jamaica Post must be profitable by 2006

Western Bureau — Buoyed by the Postal Corporation of Jamaica’s $128 million jump in revenue last year, commerce, science and technology minister, Phillip Paulwell, has urged the corporation’s board to ensure that the island’s postal service is profitable by 2006.

“The new board has been mandated to bring the postal service to a break-even position within two years, and thereafter into profitability,” Paulwell said.

He was speaking at a ceremony staged by the Jamaican Georgian Society, Falmouth Chapter, in collaboration with the Postal Corporation of Jamaica, to mark the completion of the $1.6 million restoration of the Falmouth Post Office.

Although the Corporation now has a deficit of about $300 million per year, the minister suggested that the profitability target is achievable, with the organisation’s new thrust to bring revenue-enhancing services on stream — a move which he said is gathering momentum.

In recent years, the government-owned entity has been on a campaign to provide more modern facilities, not only for regular postal services, but for increased access to technology.

“Our landmark initiative has been the joint venture arrangement for the Liguanea Post Office property to provide 48,000 square feet of commercial space, including a state-of-the-art post office,” Paulwell told the gathering.

In addition, he said, more modern facilities are now being installed in Santa Cruz.

“At the same time, expressions of interest have been invited for the development of five properties in Constant Spring, St Ann’s Bay, Negril, Bluefields and Savanna-la-mar,” Paulwell noted.

According to the minister, 14 new commercial services are now being offered over post office counters as a result of collaborative efforts with private sector companies.

“A prime example of the benefit of private sector partnership is the commitment made by Paymaster Jamaica Limited to invest up to $25 million in computerisation of post office counters,” the minister pointed out.

Under that initiative, the island’s 320 post offices are to be brought online by March 2004, and thereafter will become full-fledged payment centres outfitted with internet kiosks.

This, and other initiatives, Paulwell stressed, are expected to provide increased revenue for the Postal Corporation of Jamaica.

However postmaster general, Dr Blossom O’Meally-Nelson was cautiously optimistic when asked if her organisation would be able to achieve profitability by 2006.

“We have to be (optimistic), although it is going to be very challenging,” she told the Observer shortly after Paulwell’s presentation.

“But what we are doing now is building the business, we are bringing in new income-earning revenue projects on board through the commercial services and we are looking at cutting costs,” she added.

Already the Postal Corporation of Jamaica has made a change in its shift system, which has resulted in savings of over $7.2 million per year.

The postmaster general stressed, however, that a cut in the organisation’s 2,300 workers is not being considered at this time.