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Cambodia Post revenues dropped 46 percent in 2020
Revenue at state-owned enterprise Cambodia Post (CP) fell around 46 percent in 2020, reaching only $6.5 million because of the impact of the COVID-19 pandemic, said its senior official.
During a memorandum of understanding (MoU) signing ceremony between Cambodia Post, Logistic Business Association (LOBA) and Super Apps Technology yesterday, Cambodia Post Director-General Ork Bora said the postal service’s revenue dropped to $6.5 million in 2020 from the $13 million generated in 2019.
He noted that from March to July of 2020, parcel and mail services to the international market were completely closed by flights having been halted because of Coronavirus. Cambodia Post relies on commercial carriers for international deliveries.
He added that CP’s revenue will continue to be hit as long as the pandemic continues to pose problems, noting that some countries remain in lockdown and that travel restrictions are still largely in place for both air and land transport.
“So far we do not have a national flag carrier to support and facilitate transportation related to the postal and parcel service compared with other countries,” Bora added.
“CP handles around 1.5 million outgoing postal packages each year to the international market and 95 percent depend on the international airlines. Therefore, when flights are halted, our services are dead,” Bora added. He said that in order to strengthen revenues, CP will target the domestic parcel delivery sector.
CP has distribution partners in 192 countries and offers a range of postal services, including express delivery and package tracking. Despite its wide range of distribution partners, CP alone will not be able to support or bolster Cambodia’s logistics sector or make it advance. To that end, the importance of partnership with the private sector in the Kingdom is significant, said Bora.
“Ordering products online or from e-commerce platforms in the Kingdom is increasing year-on-year. Therefore, to boost the e-commerce sector, we must strengthen the logistics sector, ICT (information and communications technology) and payments infrastructures as well as our regulations and legal framework,” Bora said.
He noted that the MoU with LOBA and Super Apps Technology will prove crucial in strengthening the logistics system locally and strategically in the support of the e-commerce sector.
Bora added that the partnership will help boost the Kingdom’s logistics sector to the international market and support small and medium-sized enterprises getting products to the global market.
Chandara Chea, president of LOBA, said that through the MoU, the association can encourage members in the express mail service (EMS) sector, which includes delivery and transport companies, to become agents of CP as well as interest the general public in using postal delivery services.
“LOBA will support the promotion of EMS and logistics companies to register with the Ministry of Posts and Telecommunications at the General Department of Posts in order to conduct their business legally and ensure quality of service to consumers,” he added.
According to the MoU, Cambodia Post will improve the provision of good and affordable services with quality and efficiency, both nationally and internationally so LOBA members can take advantage of CP’s prices and services and mobilise members to become Cambodia Post Agents.
Source: https://www.khmertimeskh.com/50805650/cambodia-post-revenues-dropped-46-percent-in-2020/