Russian Post’s express business boomed last year despite the severe economic crisis in the country,increasing revenues by 31% thanks to a 33% rise in domestic shipments, and aims to increase its
market share again this year. The group is meanwhile hiking parcel and mail prices by 12% thismonth.EMS Russian Post, the express subsidiary of Russian Post, increased revenues by 31% to RUB1.8 billion (€43.2 million) in 2009 compared to 2008, according to Igor Mandrykin, Deputy GeneralDirector of Russian Post. Express revenues accounted for only 2% of Russian Post’s overall revenuesbut EMS Russian Post is the group’s the most profitable unit, he added.
Alexander Timofeev, managing director of EMS Russian Post, commented: “Express shipmentvolumes handled by EMS Russian Post in 2009 amounted to 3.4 million items with domestic andinternational shipments making up 80% and 20% respectively. According to the financial results for2009, domestic shipments grew 33% while international parcel volumes fell 2%.”
Russian Post said its express division increased its share of the Russian express market to16% in 2009 compared to 7% in 2005. This year, EMS Russian Post expects to increase its marketshare to 20%.
During 2010, EMS Russian Post plans to expand its fleet from 393 to 600 vehicles and toconstruct a sorting hub at Moscow’s Sheremetyevo Airport which is expected to reduce delivery timesof shipments.
EMS Russian Post said it is one of the five leading express operators in the country alongwith SPSR, Pony Express, DHL and DPD. In addition to the four integrators, around 100 Russiancompanies operate on the domestic express market, providing regional and urban deliveries.
Russian Post started providing express delivery services as part of the international ExpressMail Service (EMS) network in 2004. Since August 2005, the company has been operating through theseparate express subsidiary EMS Russian Post. EMS shipments are accepted at 5,500 of the 42,000post offices in Russia as well as at the subsidiary’s branch offices in 24 cities.
Meanwhile, Russian Post has announced that it will increase prices for mail and parcels by12% on average from 16 February onwards, according to the new pricing scheme set up by the FederalTariff Service. However, prices for registered cards and letters weighing up to 20g as well asregistered parcels weighing up to 100 g will remain at last year’s level.
Despite the increase, the prices for the universal postal services are below the net cost ofthe service. The price adjustments will only partly reduce the losses from socially importantservices for domestic mail delivery. According to the forecast for 2010, the losses from providinguniversal public postal service will amount to RUB 3.3 billion (€79.16 million).
At the overall group level, Russian Post expects a net profit of over RUB 200 million (€4.8million) for the first time.
It is a big improvement against a net loss of RUB 1.5 billion in 2008 (€35.98 million), thenews agency AK&M reported. According to preliminary forecasts, the company’s operating revenueswill amount to about RUB 96 billion (€2.3 billion) which is 10% more than in 2008, it added.
The financial results for 2009 are due to be released in the end of February.
