18 Dec 2017 16:09

Russian Post may start work on infrastructure development project in Q1

MOSCOW. Dec 18 (Interfax) - Russian Post is finishing off configuration for its infrastructure project aimed at updating logistics; implementation of the project could start in Q1 2018.

"We hope that we will start concrete implementation in Q1," company chief Nikolai Podguzov told journalists. He didn't give details for the projects or the regions where the updates will be principally made.

The infrastructure update is necessary due to the annual increase in post dispatches. In 9M 2017, Russian Post handled 208 million international postage dispatches containing goods, a 43% increase on 9M 2016, and revenue from the parcel business demonstrated the biggest growth - by 13% to 31.8 billion rubles.

Podguzov said that the number of parcels rose 20%-30% this year.

Russian Post is developing a program to update infrastructure, including sorting and organizing "last mile" deliveries. The company is planning to build five logistics centers, adding to the current two at Vnukovo airport and in Kazan. Russian Post is also planning to set up "up to the post-bag" sorting by equipping postmen with tablets. Podguzov had earlier cited estimates that Russian Post will need around 50 billion rubles to update infrastructure.

Russian Post is also updating its vehicle fleet. The company replaced 15% in 2017.

The company is also planning to modernize post offices across Russia in 2018. "This is the repair, rebuilding and opening of new formats for several hundred post office branches," Podguzov said.