Czech Post presented its detailed transformation plan at a press conference

"The implementation plan contains specific steps that will transform Česká pošta into a point of contact between the state and its citizens. At the end of the journey, we will have a modern postal service with branches offering people new public administration services, and the state-owned joint-stock company Balíkovna, ready for the fierce competition that prevails in the logistics services market. We have a detailed plan on the table with a clear vision of how to turn the post office into a modern enterprise serving the people. Now it is up to the management of the Czech Post to meet these goals," said Interior Minister Vít Rakušan.

"We appreciate the government's support and will do our utmost to successfully implement the transformation plan over the next 14 months and prepare Česká pošta for 2025, when we should start operating under a new postal license. The updated financial plan for the transformation shows that the transformation contribution from the state will be used exclusively for investments in the transformation and development of Česká pošta and Balíkovna. Taxpayers' money will therefore not be used to subsidize the day-to-day operations of the postal service," said Miroslav Štěpán, acting CEO of Česká pošta.

As part of its financial transformation plan, Česká pošta has precisely calculated the costs of individual transformation measures and their financial benefits. Česká pošta has estimated the benefits for 2024 to 2026 at CZK 4 billion and the costs at CZK 3.3 billion. The implementation of these transformation measures will ensure that, from 2026, the Czech Post's operating results will be profitable and will not require further transformation support from the state.

Thanks to consistent crisis management, ČP has further reduced its estimate of this year's loss from CZK 1.5 billion in June to the current CZK 0.9 billion (the February estimate was CZK 3.5 billion).  ČP's financial and operational performance is thus slowly stabilizing and, contrary to original assumptions, it will not need any funds from public budgets to cover its operating expenses during the coming year. These funds will be used exclusively to finance transformation activities that will ensure the stability of ČP's financial performance and improve the quality of its services in the long term.

An example of strengthening the role of Česká pošta as a point of contact between citizens and the state is the planned cooperation with the Czech Labor Office, which will increase the availability of its services at Česká pošta branches throughout the Czech Republic.

"We are the largest aid organization in the Czech Republic. Our goal is to be as close to people as possible, both physically and digitally. Based on several crisis situations in the past that affected the whole of society, we are learning from these experiences. We want and must be prepared to radically increase our capacity at any time if necessary and if our society needs it. We will achieve this thanks to the digitization of the Czech Labor Office's agenda and also thanks to cooperation with the Czech Post," says Daniel Krištof, Director General of the Czech Labor Office, adding: "We will first test the planned cooperation together in a pilot operation in pre-selected locations. Based on analysis and thorough evaluation, we will then set up the final model of cooperation."

Three parts of the plan

The implementation plan for the transformation is divided into three parts. The first part presents the transformation program, i.e., the necessary steps, deadlines, and conditions required to achieve the key strategic goal – spinning off parcel logistics into Balíkovna. The program also includes the financial framework for the transformation and the need to enact a transformation law or a law on postal services. The program also emphasizes IT and assets.

The second part addresses the functioning of Česká pošta and its branch network and defines areas suitable for savings and further development. The plan does not envisage further reduction of the branch network; the priority is the further development of the Pošta partner project. The branch network should soon provide not only basic postal services, but also new public administration services as well as commercial services. Particularly in the case of public services, some of the new activities of the Czech Post should also be provided by the network of postal delivery personnel.

The third part focuses on Balíkovna, a planned state-owned joint-stock company that not only wants to maintain the largest market share in the parcel delivery market, but also gradually achieve significantly profitable operations. The plan includes an analysis and proposal for a comprehensive future business solution, product portfolio, technologies, and operating systems.

Source: www.mvcr.cz

Download: Transformation of the Czech Post