Brazilian postal operator Correios improved its net profit by nearly 50% during the first half of2011 and plans to invest nearly €2 billion in modernisation and branch network expansion over the
next five years.During the first six months of this year, Empresa Brasileira de Correios e Telegrafos (ECT,more generally known as Correios), recorded a net profit of BRL 499.65 (€224 million) which equalsan increase of 48.2% compared to the same period in 2010. Revenues increased by more than 11%,while the volume of express courier shipments increased by 18%.
To boost the company’s growth, Correos plans to invest BRL 4 billion (€1.8 billion) inimproving its services and modernising postal infrastructure. This will include expansion of itsbranch network, its delivery fleet and investments in technology.
Correios’ president Wagner Pinheiro highlighted, among significant achievements, thebeginning of the modernisation process with a national tender to hire 10,000 new workers. Some3,700 young trainees have already been hired as part of the recruitment programme.
The modernisation process of the company was especially boosted through a new law passed bythe Brazilian government in May. Under the new statute, Correios will be able to diversify itsservices, create new subsidiaries and provide more integrated logistics services. It will also beable to establish international partnerships with other players and set up subsidiaries abroad.Moreover, it is allowed to set up its own retail bank and could move into new business areas suchas mobile phone services. To support the expansion of its financial services, the postal operatoralso signed a partnership with Banco do Brasil.
The state-owned company is already an important domestic express and parcels deliveryoperator alongside its core mail activities.
