Why Poczta Polska withdrew from the Orlen Package project
In early February, Orlen informed of the joint decision of both companies to retreat from the agreement, which assumed that the Polish Post could get up to 100 percent of shares in Orlen Paczka. According to the president of the Polish Post Office for PAP, the financing of investments was a key problem.
– We have analysed very thoroughly all the conditions of this project. For respective months, teams of both companies worked intensively to see if we were able to implement this task in a manner beneficial to both parties and in due time. After many analyses and talks, we have come to the joint conclusion that in current marketplace realities we are incapable to close this cooperation on terms that would be good for both Polish Post and Orlen. The most crucial reason for this decision was that the Post Office is incapable to finance specified a crucial investment at the moment said Sebastian Mikosz.
For the e-commerce marketplace is crucial information. It shows that even with a large scale of infrastructure, acquisition alone does not solve operational and technological problems in the KEP segment.
KEP marketplace under force from competition and costs
According to Sebastian Mikosz, the courier marketplace is changing very rapidly and is highly competitive. An additional regulation remains the position of the State Treasury, which does not exempt from financial liability.
– We request to make decisions that are safe for the company and make sense in the long term. Sometimes liable management besides means the ability to halt the task if it cannot be decently implemented said Mikosh.
From the position of online retailers, this means maintaining the current arrangement of forces in logistics. Private operators will further find the pace of investment in packaging machines, IT and last mile solutions, while the Polish Post Office will gotta make up for technological delays.
According to data provided by Orlen, Orlen Paczka has over 14,000 reception points, including about 7,000 parcel vending machines. In turn, Poczta Polska has more than 20 1000 reception points, covering post offices, parcel machines and partner networks.
New strategy of Polish Post towards e-commerce
The Management Board of the Polish Post Office announces that in the coming weeks it will present possible directions to the Supervisory Board and the owner in the area of KEP. The company declares its focus on modernization, digitization and investments in IT. – We focus on investments in technologies, infrastructure, fresh products and solutions that will improve not only the company's profitability, but besides the comfort of work and the way customers perceive the Post Office – concluded the president of the operator.
This direction is besides confirmed by the Minister of State Assets Wojciech Balczun, who indicated in an interview with PAP that the Orlen Paczka task would not solve the key problems of the Polish Post Office. In his opinion, the company should focus on core business, IT and modern technological solutions.
Read also: Minister clearly about the future of Polish Post
FAQ. Polish Post and the courier market
- Is Poczta Polska inactive active in the KEP market?
Yeah. Poczta Polska announces further presence in the courier segment, express, parcel, but in a different model than taking over Orlen Paczka. - Why didn't the Polish Post take over Orlen Package?
The main reason was the inability to finance specified a large investment and the deficiency of conditions guaranteeing the cost-effectiveness of the task for both parties. - What does it substance to e-shops?
The decision reduces short-term changes in marketplace structure, but confirms that present technology, automation and quality of service builds a competitive advantage alternatively than the scale of the point network itself. - What is the financial situation of the Polish Post Office?
In 2024 the company recorded PLN 213 million net loss, which means an improvement of PLN 408 million compared to 2023. EBITDA amounted to PLN 42 million against a negative consequence the year before. Data comes from PAP information.
