Business news from Ukraine

Ukrposhta’s investments in development will amount to UAH 1.3 bln – Smelyansky

Ukrposhta JSC’s investments in development in 2024 will amount to about UAH 1.3 billion of its own funds, the company’s CEO Igor Smelyansky said at the Forbes Ukraine Business Breakfast on Wednesday.

According to him, the investments will be directed to the organization of container exchange with the transportation of goods by large-sized transport, due to the growth of parcel shipments. Investments in the creation of container exchange capabilities on the basis of one branch amount to UAH 100 thousand, Smelyansky said.

In addition, in 2024, Ukrposhta plans to buy a letter sorting machine. The machine will sort up to 50 thousand letters per hour using the QR code of an electronic stamp. The unit will be purchased with credit funds, the company’s CEO said.

“Ukrposhta plans to open another 300 post offices in Ukraine “to make the coverage as we want it to be.”

The branches will be opened in Kyiv, Odesa, and Dnipro, Smelyansky said.

According to him, Ukrposhta will open 18 new sorting facilities in the next four months, and a sorting center in Lviv will start operating in two weeks.

At the same time, Ukrposhta will not develop the oversized cargo business due to the high costs of further delivery of goods related to taxes.

Ukrposhta’s CEO emphasized that the company has not abandoned the idea of acquiring the bank. According to him, the effect of the transfer of PINbank to the company will amount to UAH 5 billion over three years.

“We will reduce budget expenditures on pension delivery by UAH 5 billion over three years,” Smelyansky said.

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“Ukrposhta” has increased number of shipments by 40%

In 2023, Ukrposhta increased the number of shipments by 40% and transported 15 million parcels with Ukrzaliznytsia, Deputy Prime Minister for Recovery and Minister of Community, Territorial and Infrastructure Development Oleksandr Kubrakov said on Facebook on Friday.

“The company is showing steady results. In 2023, Ukrposhta increased the number of shipments by 40%. It delivered 63.6 million units of humanitarian aid. In cooperation with Ukrzaliznytsia, it transported 15 million parcels,” the statement said.

According to the Vice Prime Minister, thanks to the established air service with the United States, more than 1 million Ukrainian goods shipped through Ukrposhta are successfully sold on American marketplaces.

By 2024, the company plans to automate the parcel sorting process and process 100% of shipments using robotic sorting lines, Kubrakov said.

“Ukrposhta has 27 thousand branches in Ukraine, 1.8 thousand mobile branches. The company employs 40 thousand people.


“Ukrposhta” announces tender for driver insurance

The Ukrainian state postal service enterprise Ukrposhta (Kyiv) announced a tender for compulsory insurance of drivers against transport accidents on January 31, according to the ProZorro electronic public procurement system.

According to the system, the expected cost of the services is UAH 771.375 thousand.

The deadline for submitting bids is February 8.

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“Guardian” will insure vehicles “Ukrposhta”

On January 25, the Ukrainian State Postal Communications Enterprise (USPCE) Ukrposhta (Kiev) announced its intention to conclude a contract with IC Guardian for the services of compulsory insurance of civil liability of owners of motor vehicles (OSAGO).

As reported in the system of electronic public procurement “Prozorro”, with the expected cost of the purchase of services of UAH 1.399 million price offer of IC “Guardian” was UAH 557.611 thousand,

IC “Krajina” – UAH 620 th, IC “Arsenal Insurance” – UAH 628,2 th, “Inter-Policy” – UAH 690 th, “European Insurance Alliance” – UAH 697,9 th, “Euroins-Ukraine” – UAH 706,4 th participated in the tender.

IC “Guardian” has been working in the insurance market since 2007. It is a member of the presidium of the League of Insurance Organizations of Ukraine. Since January 2020 it has received the status of a full member of the Motor (Transport) Insurance Bureau of Ukraine (MTSBU), has the right to sell “Green Card” policies.


“Ukrposhta” to create network of 41 cargo offices

“Ukrposhta is creating its own network of cargo offices, with 41 bulky cargo acceptance points planned to open in regional centers in 2024, the company said on Thursday.

“Analyzing the requests of customers and partners and the demand for services, the company is implementing a project of cargo offices specializing in receiving and delivering shipments. This will help to avoid queues at branches that also accept payments for bills, including utility bills and pensions,” Ukrposhta said.

It is noted that Ukrposhta’s cargo offices will be able to ship international and domestic parcels weighing up to 30 kg with a maximum side of 200 cm. Cash on delivery and the purchase of packaging will also be available.

In addition, the cargo offices will have a front line for receiving small shipments and a ramp with the ability to drive five- and ten-ton trucks.

In the future, Ukrposhta is considering raising the weight criteria or working without weight restrictions.

The project has already reformatted 13 branches in Kharkiv, Odesa, Khmelnytsky and Chernivtsi. In addition, a new branch has been opened in Kharkiv at 118 Heroiv Kharkivu Avenue. In the future, Ukrposhta will focus on key cities in the country with a population of 80,000 or more when opening new freight branches, the company said.

Among other things, closed-type cargo offices will be located on the territory of corporate clients, in particular, ROZETKA, Yves Rocher and Epicenter.

“Customers want to receive high-quality service, so the market directs us where to move despite all the difficulties of wartime. “Ukrposhta is launching cargo offices that are maximally adapted to receive and deliver large volumes of shipments. Container exchange is envisaged to significantly accelerate logistics processes,” the statement quoted Yosyp Bornak, Ukrposhta’s deputy director general for network development, as saying.

“Ukrposhta provides postal financial and other services in stationary and mobile offices in more than 27 thousand settlements of Ukraine. Thanks to Ukrposhta’s cooperation with postal operators in other countries, Ukrainians have access to about 660 thousand offices abroad.


“Ukrposhta” increased revenues by 19% in 2023

In 2023, Ukrposhta JSC increased its revenues by UAH 1.9 billion to UAH 11.9 billion, exceeding the previous record level of UAH 11.1 billion in 2021, according to a report on the website of the Ministry of Economic Development and Trade, citing the company’s CEO Ihor Smelyansky.

“In 2023, the number of parcels sent increased by 40%. It is also worth mentioning the 15 million parcels that Ukrposhta and Ukrzaliznytsia transported together – this is a convenient and effective collaboration between two state-owned companies,” Smelyansky said.

It is also noted that the number of money transfers has increased by 40%.

In 2022, Ukrposhta delivered 41.5 million parcels and paid out 9.3 million transfers.

Among other achievements of the past year, Smelyansky mentioned the establishment of air service with the United States. “This is important for our entrepreneurs. After all, even during a full-scale war, more than 1 million Ukrainian goods are successfully sold on American marketplaces,” he explained.

Separately, the Ukrposhta CEO emphasized the importance of loan agreements with the European Bank for Reconstruction and Development worth EUR 63 million and the European Investment Bank worth EUR 30 million.

According to the data presented, the company has increased the number of mobile branches to 1864 with 200 locations.

Smelyansky named digitalization as one of the main areas of work for 2024. According to him, the company plans to cover 100% of Ukrainian cities and villages with digital services, as well as increase the level of automatic parcel sorting to 100% through the introduction of 18 new sorting centers.

It is also indicated that, if permits are obtained, Ukrposhta intends to cover 100% of towns and villages with banking and drug delivery services.