Russian Post is considering developing logistics services as part of its business expansionfollowing its successful reunification, director general Igor Syrtsov said at the Post-Expo trade
fair in Paris. Outlining the company’s strategy, Syrtsov told the World Postal Business Forum thatother priorities were better mail quality, infrastructure modernisation and broader financialservices.Russian Post completed the integration of 89 regional postal companies in July this year,reversing the break-up of the former state monopoly in the early 1990s. The two-year-old company’sfocus now, Syrtsov said, was to become a business-minded organisation that was trusted by customersand was attractive to investors in the highly liberalised Russian market.
Looking ahead, Syrtsov described the creation of “a full logistics operator for mail and cargo”as part of the future strategy, but did not provide further details. In the mail business,priorities were to automate production, build a network of 59 new sorting centres and to improvedelivery quality through new rail- and air-based transportation services. New domestic andinternational express services were in planning. Russian Post also aimed to increase the proportionof business customers from 50 per cent to 80 per cent.
After a small profit in 2003, Russian Post made a profit of 26 million euros in 2004 and wastargeting a 35 per cent profit rise this year, Syrtsov said. It plans investment of about $3billion to modernise and develop its business. A new Russian postal law was due for discussionlater this year, while a partial flotation of Russian Post to raise capital for investment was apossibility in 2006, he added.
