Postal Services in the EU 21/01/2020 Martina Facino and Mindaugas - - PowerPoint PPT Presentation

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Postal Services in the EU 21/01/2020 Martina Facino and Mindaugas - - PowerPoint PPT Presentation

Nov 21, 2023 311 likes •482 views

Research for the TRAN Committee Postal Services in the EU 21/01/2020 Martina Facino and Mindaugas Cerpickis Copenhagen Economics 21/01/2020 Presentation for the Committee on Transport and Tourism 1 Structure of the Presentation 1 Main

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Research for the TRAN Committee

Postal Services in the EU

21/01/2020 Martina Facino and Mindaugas Cerpickis Copenhagen Economics

21/01/2020 Presentation for the Committee on Transport and Tourism 1

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Presentation for the Committee on Transport and Tourism 2

Main developments in the EU postal sector

1

Challenges, opportunities and policy responses

2

Recommendations for EU postal policy makers

3

Structure of the Presentation

21/01/2020

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  • 1. Main developments in

the EU postal sector

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Presentation for the Committee on Transport and Tourism 4

Evolution of EU postal regulatory framework

21/01/2020 1992 1997 1999 2002 2003 2008 2006 2010 2012 2018

Green Paper on the development

  • f the single

market for postal services (COM/91/476) Postal Services Directive (97/67/EC) First reduction of the "reserved area” Postal Services Directive (2002/39/EC) Second reduction of the "reserved area” Third reduction

  • f the "reserved

area” Postal Services Directive (2008/06/EC) Full market

  • pening for 16

Member States Full market

  • pening for

remaining Member States Regulation on cross-border parcel delivery services (EU) 2018/644

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Presentation for the Committee on Transport and Tourism 5

The postal and delivery sector is significant to the EU economy

21/01/2020

EUR 80 bil 1.7 mil people 2.4%

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Presentation for the Committee on Transport and Tourism 6

50 100 150 200 2019 2013 Letter post Parcel and express

Digital communication is transforming the postal industry

Development of domestic volumes, % 21/01/2020

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The competitive landscape is evolving

Presentation for the Committee on Transport and Tourism 7

HU FI 100 FR 90 100 100 66 MT 85 100 90 UKBE PT LV 81 IT PL EL SI IE 93 100 SKBG ES DE SE NLRO 100 78 CY 100 99 97 95 91 89 85 85 81

Universal service providers’ share of domestic addressed letter deliveries, % 21/01/2020

Digital deliveries? (email, e-banking,..)

70 60 60 56 53 45 32 32 32 29 28 25 25 25 22 20 18 13 10 5 4 2 2 PL PT MT NL LV SI FI ES HU CZ FR PT HR BE IE RO SK EE IT BGELCYLT 100

Universal service providers’ share of domestic parcel & express deliveries, %

Letters Parcel & express

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Presentation for the Committee on Transport and Tourism 8

2015 2013 4.7% 2014 2017 2016 5.3% 4.6% 5.0% 3.5%

  • 7%

Financial performance of the incumbent postal

  • perators has been decreasing

Development of universal service providers’ profitability in the EU 21/01/2020

Average EBIT (earnings before interest and taxes) margin

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Presentation for the Committee on Transport and Tourism 9

More attention is paid to the impact on the environment

21/01/2020

  • Changes in the product

mix have important implications for postal

  • perators’ direct

environmental footprint

  • The true net-effect of the

postal and e-commerce delivery sector on the environment has not been appraised

36 436 Parcel Letter x12

Grams CO2 per item, 2016

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  • 2. Challenges,
  • pportunities and policy

responses

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Presentation for the Committee on Transport and Tourism 11 21/01/2020

Changing user needs lead to lower volumes (at different pace in different countries) Sustainability of postal operators is under pressure Challenge to sustain basic postal service for vulnerable users Challenge to relocate postal workers Pressure from other regulation (e.g. environmental regulation for inner city delivery)

Challenges

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Presentation for the Committee on Transport and Tourism 12 21/01/2020

Growing e-commerce Universal service providers’ network and brand value that can be leveraged to provide SGEIs New operational technologies

Opportunities

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Presentation for the Committee on Transport and Tourism 13

Allowing universal service providers to improve efficiency through higher

  • perational flexibility

Allowing universal service providers to price more flexibly Putting the sustainability of the universal service

  • bligation in front of
  • ther policy
  • bjectives
  • Compensation
  • Consolidation
  • Price increases
  • Price differentiation
  • Delivery speed &

frequency

  • Network density
  • Quality targets

Policy debates and responses to ensure a sustainable universal service obligation

21/01/2020

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  • 3. Recommendations for

EU postal policy makers

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Adjust to ensure sustainability Flexibility for MS and universal service providers Tame monopoly Focus on market failures (if any)

Presentation for the Committee on Transport and Tourism 15

Provide flexibility to ensure that Member States can deal with different issues they are facing

21/01/2020

Subsidise State Aid rules 1 3 2

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Q&A

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