Latvia Post Plans EUR 29.7 mln Investment for 2004

Latvijas Pasts postal company plans to carry out long-term investment projects worth 20.164 million lats (EUR 29.7 mln) in 2004, aimed at raising the company’s competitiveness and value, Latvijas Pasts CEO Gints Skodovs said. The bulk of the funds at 7.9 million lats are planned to go into sorting complex construction while 6 million lats will be invested in refurbishment of post offices. The company also plans to invest 3.93 million lats in updating the client service outlets, 802,000 lats into purchase of vehicle, 530,000 lats in reconstruction of the central post office in Riga, 502,000 lats into the finance management system, 500,000 lats into computer hardware and software. Skodovs said this investment plan still should be approved by the company council and voiced a hope there will be no obstacles to carrying out the investment project. The investment project implementation mainly is planned by using the company’s own resources – the accrued profits of previous years, while the sorting complex project will be financed by a bank loan. Latvijas Pasts finance director Talis Linkaitis said the postal company all in all plans to invest at least 30 million lats over five years, of this the bulks is planned over the coming two years. In 2003 Latvijas Pasts had revenues of 25.675 million lats and spending 23.326, as a result the revenue excess over spending was 2.358 million lats. Latvijas Pasts is one of the largest companies in Latvia employing some 7,000 people, of then 3,000 are postmen.