IPBC Delivers on Post PNG

Monday June 30, 2014 – The Independent Public Business Corporation of Papua New Guinea (IPBC) has injected PGK 40 million into Post PNG for the purpose of securing its future as the state owned entity restructures its operations.

Post PNG, like many postal operations around the world is struggling as the traditional business model is affected by digitalisation and globalisation.  Letter volumes in particular are in decline due to the use of technological innovations such as email (work and private), mobile phones, internet telephony (Skype) and fax machines.

The decline in addressed letter volumes has resulted in an urgent need to restructure the Post PNG business model in Papua New Guinea. The future is likely to be in the expansion of its Logistics business. Post PNG Logistics services include courier, parcels, container movement, customs clearance and nationwide distribution contracts such as the delivery of school books and health kits.

According to the Minister for Public Enterprises and State Investments, Hon. Ben Micah the restructuring and refinancing of Post PNG is part of a global trend to ensure the future provision of mail services to the people of Papua New Guinea.

“We need to regroup and refocus the direction of Post PNG. Case studies around the world show that in markets such as Australia, England, Sweden and New Zealand postal services have gone from making sizable losses to big profits, within the space a few years,” the Minister said. “They have done so by providing a parcel service additional to their traditional letter service.”

“A prime example is Australia Post. In 2013 their profit after tax was 20.8% higher than their 2010 profit. For the first time in the 204 year history of Australia Post they are no longer a mail service and are predominantly a parcels business. To protect that side of the business they have just recently split their mail service operation and parcel operation. It is a classic case of management responding to the changing market and realizing a niche.”

“There is one thing the internet, email and Facebook cannot deliver and that is tangible goods. The small parcel business is in fact growing off the back of the internet. People can now purchase goods on line. They need them delivered quickly and efficiently. This is where the future lies for Post PNG.”

The Minister also acknowledged the Board and Management of both Post PNG and the IPBC for working towards securing the future of Post PNG and further thanked BSP and ANZ Banks for facilitating the transaction.

“The way forward will be challenging, however we expect to see Post PNG improve its operations and profitability in the coming years,” the Minister added.

POST NOTE:

Post PNG Limited was corporatized and is the designated postal provider for Papua New Guinea as a result of the enactment of the Postal Services Act of 1996. Prior to the creation of Post PNG, the Postal Service was a division of the former Post and Telecommunication Corporation (PTC) established by the Government in 1982.

Post PNG is a government-owned and controlled company with its Headquarters in Port Moresby. Its policy-making body is the Board of Directors composed of six members including the Managing Director, who at the same time serves as Chief Executive Officer of the company.

The current Board Chairman of Post PNG is Reuben Aila and the Chief Executive Officer is Mr Greyling Park.

The company’s structure is made up of four revenue generating departments being Operations (Logistics and Retail), Financial Services, Property and Philatelic. These departments are supported by a Corporate Services department.

Post PNG has a total workforce of over 400 employees and offers a wide range of products and services to meet customers’ needs. Its nationwide network consisting of 39 Post Offices and 4 Agency Post Offices.

ENDS

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