Posta sought to cash in on the faster SGR transportation route for delivery of parcels. FILE PHOTO | NMG
The Postal Corporation of Kenya (PCK) has shelved plans to move
its parcels and mails through the standard gauge railway (SGR), sticking
to its Sh80,000 per day road freight service between Mombasa and
Nairobi.
PCK general manager for mail Eliud Lell,
Wednesday said they had pushed back plans to venture into the parcels
business via the SGR until it streamlines its operations on cargo
business.
The ailing corporation announced last
November it would be venturing into the parcels and mails business via
the SGR starting January to reduce by half its daily freight cost
between the two cities. “We had discussions with Kenya Railways but they
told us to give them time to streamline operations on the cargo
business. Until this is sorted out, I cannot be able to give an
indication as to when we will venture into this business,” said Mr Lell.
Posta
sought to cash in on the faster SGR transportation route for delivery
of parcels in hope of growing sales in a market that has lost interest
in sending letters due to the growth of the Internet.
Posta’s
business is being hurt by new technology. The number of letters posted
locally during the three months to March 2018 reduced marginally to 16
million from 16.03 million letters recorded in the previous quarter.
Kenyans
have also been less eager to send money orders and inland parcels.
Posta reported a Sh1.5 billion loss in the financial year ended June
2017.
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