The week that was: 9 July 2010
USPS seeks a price rise, Magyar Posta installs new chairman and CEO, and Canada Post to issue up to $1bn in long-term debt… A warm (and rather sweaty) welcome to this week’s glorious news round-up. Let’s crack on…
USPS revealed its latest plan to cut huge losses this week after the company filed proposed price changes with the Postal Regulatory Commission (PRC) – including raising the cost of a First-Class Stamp to 46 cents. First-Class Mail postcard prices would increase 2 cents to 30 cents, whilst periodicals would receive an 8% increase. USPS has recommended an increase of 5.1% for catalogs, and Standard Mail parcels would increase about 23%. If approved as proposed, the new prices would take effect in January 2011 – almost two years since the Postal Service last raised rates. “This proposal is moderate and reasonable and carefully evaluated for its effect on our customers,” said Maura Robinson, vice president, Pricing. “Increasing prices will help overcome some of the financial challenges faced by the Postal Service. We will continue to work with Congress and other stakeholders to implement long-term solutions.” The proposed price changes would generate $2.3bn for the last three quarters of the 2011 Fiscal Year (January to September) and an estimated $3bn for the full 12 months of Fiscal Year 2012. The move has been met by opposition – including from the DMA.
Over the border, Canada Post Corporation announced this week its intention to issue up to $1bn in long-term debt, consisting of two series of bonds with terms up to and including 30 years. Net proceeds of the offering will be used primarily to finance the company’s “Postal Transformation” modernisation programme. “This multi-year investment in new facilities, equipment and systems will enable Canada Post to protect and enhance service to Canadians, increase its competitiveness, improve working conditions and safety for employees and improve the financial sustainability of the company. The modernisation plan is expected to generate $250m in annual cost savings by 2017,” said a company statement. The Government of Canada recently increased Canada Post’s external borrowing limit to $2.5bn from $300m in order to facilitate financing of Postal Transformation.
In Hungary, Magyar Posta has appointed István Kalmár as chairman and Pál Schmidt as CEO. The Board of Directors of the Hungarian State Holding Company finalised the appointments on 24 June.
And finally…
Post&Parcel was happy to read six months after the earthquake, Haiti Post has seen its new mail processing centre open in the capital city, Port-au-Prince. “The new postal installation was built as part of an emergency aid project managed by the UPU and developed with the generous assistance of the United Nations agency’s member countries. About 60 employees work at the 600-square metre mail processing centre, where they handle letter-post items, parcels and EMS items (Express Mail Service), the Post’s fastest service,” said the UPU.
Great work!
