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The Postal Industry in Europe

International Postal Conference ‘POSTINFO 2014’

Banja Luka

05.06.2014

Botond Szebeny

Secretary General

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52 European Public Postal

Operators

Linking 800m people daily

Retail services – 175,000

counters

Employing 2.1m people

Restricted Union of the UPU

Focus on European Union

affairs, UPU & Restricted

Union affairs, Operational,

Market and CSR activities

PostEurop in Summary

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Over 20 Years - An Established Network

European Mail Industry Platform

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Challenges in the postal sector

E-substitution High legacy cost + USO

Postal service

providers

Declining mail market

Increasing competition

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EU Postal Regulation – 3rd

Postal Directive

1992 Green paper on the development of the

single market

1993 Full liberalization (FMO) in Sweden and

in Finland

1997 97/67/EC – First Postal Directive

• Reserved area – up to 350 grams

• Quality targets for Intra-Community

cross border mail (J+3: 85%, J+5:

97%)

2002 2002/39/EC – Second Postal Directive

2003 Reserved area – up to 100 grams

2006 Full Market Opening (FMO) in the

United Kingdom

Reserved area – up to 50 grams

2008 FMO in Germany

2008/6/EC – Third Postal

Directive: FMO in 2011/13

2009 FMO in The Netherlands and

Estonia

2011 FMO for 16 Member States

2013 FMO in the remaining EU Members

Steps in 2011 and 2013

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Other Regulatory Developments

Data Protection Union Customs Code

Cyber Security

E-commerce

VAT

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E-commerce market trends in Europe

The share of the European e-Commerce in the EU’s GDP estimated at 3.5%

a percentage that is set to double by 2016 and to triple by 2020

The number of jobs created directly and indirectly by the B2C e-Commerce sector

estimated at 2 million; the number of B2C websites have grown to 550,000 at the

end of 2012, growing at a pace of 15-20% per year

The annual number of B2C parcels sent to customers domestically or across border

to other (European) countries is estimated at 3.5 billion

Source: EC, www.ecommerce-europe.eu

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Key Market Figures

TOP 10 E-COMMERCE COUNTRIES IN TURNOVER

(in million Euros)

Country e-Sales 2012

1 UK 96.193

2 Germany 50.000

3 France 45.000

4 Spain 12.969

5 Russia 10.302

6 Austria 9.800

7 Netherlands 9.800

8 Italy 9.582

9 Switzerland 9.100

10 Norway 7.900

TOP 10 EMERGING COUNTRIES IN % GROWTH

Country e-Sales 2012

1 Turkey 75%

2 Greece 61%

3 Ukraine 41%

4 Hungary 35%

5 Russia 33%

6 Estonia 33%

7 Romania 33%

8 Malta 33%

9 Poland 23%

10 Bulgaria 22%

Source: www.ecommerce-europe.eu

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Cross-border market opportunity

Postal operators are not “Mail companies” any more

Source: IPC

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E-Commerce Developments in the European Union

November 2012: the European Commission (EC) launched a consultation on the

Green Paper “An integrated parcel delivery market for the growth of e-

Commerce in the EU”

February 2013: PostEurop Members responded unanimously to the EC with a

position paper

September 2013: PostEurop CEO Forum

– the industry commitment presented to Commissioner Barnier by more than 40

top executives

- he welcomed the initiative and made a commitment for no further legislation in

so far the industry delivers its commitments

December 2013: the EC issued a “Roadmap for

completing the Single Market for parcel

delivery”

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IPC e-Commerce Interconnect Program (eCIP)

Main objective of the programme: set the foundations for a seamless cross-border e-Commerce

network

Key features:

Flexible delivery options

Easy and seamless return solutions

Enhanced lightweight product including track and trace

Improved customer service

Harmonized labelling concept

Predictable and day-certain transit times

PostEurop:

• communicates the industry initiative towards the European Commission and the European

Parliament

• supports & facilitates the so-called Wave 3 Postal Operators’ accession to eCIP

“Wave 3” Onboarding phase:

• 11 Postal Operators (BG, CZ, EE, HR, LT, LV, MT, SI, SK, PL, RO)

• Programme of Delivery called ‘100 Days plan’ (1 February – 9 May)

• On 9 May, 10 out of 11 Operators expressed their willingness to join the deployment phase

of eCIP

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Process Reviews – Where and When

2011 Tajik Post

2012 Kyrgyz Post

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PostEurop Neighbourhood Programme (PNP)

What: Wider concept of ACCORD II

Who: South and Eastern Europe (SEE) - Bosnia and Herzegovina; Eastern Europe &

Europe Neighbour Countries with potential interest from PE Members (Pilot Projects)

How: Bi- and multilateral projects between groups

Beneficiary: PostEurop Members

International Organisations potentially involved in PNP

Universal Postal Union (UPU)

European Union (EU)

PostEurop

RCC

Other UPU Restricted Unions

IPC

Other Potential Stakeholders (World Bank; EBRD and so on)

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Regional Development Plan (RDP) for Europe and CIS Countries

2010-2012

Strategic Regional UPU-PostEurop QoS improvement Project for South and Eastern European

countries: among others 3 operators from Bosnia and Herzegovina (Poste Srpske, Hrvatska pošta

Mostar and BH Pošta) actively participated

1st Workshop: Istanbul, Turkey (5-8 October 2010)

2nd Workshop: Sofia, Bulgaria (15-17 February 2011)

3rd Workshop: Durres, Albania (24-27 May 2011)

4th Workshop: Belgrade, Serbia (15-17 November 2011)

5th final workshop: Zagreb, Croatia (20-22 March 2012) - UPU certificate awarding Ceremony to the Country Project

Managers/Deputy Country Project Managers

UPU – PostEurop Project 2010-2012 : Improvement of Quality of Service- an Integrated Regional

Approach “PostEurop Methodology”: Process Reviews and Process Assessment

Process Assessment mission to Banja Luka (Bosnia and Herzegovina): 13 – 17 June 2011

Process Assessment mission to Sarajevo (Bosnia and Herzegovina): 28 March – 1 April 2011

Process Assessment mission to Mostar (Bosnia and Herzegovina): 09 – 14 September 2012

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Regional Development Plan (RDP) for Europe and CIS Countries

2013-2016

Project 1: PostEurop, UPU and RCC Joint Declaration for the development of e-

Commerce at the International Forum Exhibition Pochtovaya Troika (St. Petersburg, 25-26

June 2013)

Cooperation on the implementation of the UPU Regional Strategic Project 2014-2016

for the development of e-Commerce and the export of goods

Project 2: Quality of service and supply chain improvement in Europe and the CIS:

• Start up Quality of service improvement workshop at UPU Headquarters (Berne,

Switzerland, 16-17 June 2014)

• Participation of Poste Srpske, Hrvatska pošta Mostar and BH Pošta from Bosnia and

Herzegovina is foreseen and is of high importance

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Conclusions

Postal services market is changing in Europe, challenging the Operators to

adapt their services in order to meet customers’ needs

The main growth area is parcels and e-Commerce

Central and Eastern Europe is the fastest growing e-commerce region in Europe

The EU initiative on e-Commerce single market is a special driving force

The European Postal Industry is ready to take up the market challenges and is

committed to respond also to the EU’s expectations

A structured development approach is followed both domestically and on

international level - significant investments are needed

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Association of European Public Postal Operators AISBL

Association des Opérateurs Postaux Publics Européens AISBL

www.posteurop.org