Hongkong Post will pursue measures to generate revenue, control costs and increase productivity after recording an operating loss for two years since 2011.
Secretary for Commerce & Economic Development Gregory So told lawmakers today Hongkong Post’s major operating costs, including staff and air conveyance costs and terminal dues, have been increasing, but most postal fees have not been adjusted for years.
The operating revenue generated by an increase in mail traffic cannot offset the escalating operating costs.
To generate revenue, Hongkong Post has introduced new services targeting Internet traders and international express services, enhanced direct mail services, and let out space for banks to install automatic teller machines.
On cost control, it has reviewed the specifications in its tenders for air conveyance services to encourage competition, and negotiated bilateral agreements with other postal administrations to reduce terminal dues payments.
It has also engaged in automation, streamlining work procedures and improving manpower deployment to enhance productivity, Mr So added.
In 2012-13, 31 out of 128 post offices operated at a surplus while 97 operated at a deficit.
He said Hongkong Post will monitor the operating situation of individual post offices, and ensure resources are efficiently used to provide quality and reliable services at affordable prices.
It will also review the need to adjust postage rates having regard to factors like economic conditions, the business environment, and affordability.
