Ameeratul Layl
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Saudi Postal Development Lauded by Universal Postal Union
JEDDAH, 2 December 2005 — The regional adviser to the Universal Postal Union, which is based in Bern, Switzerland, has praised the Kingdom’s efforts to privatize and improve postal services in the country. Negib Boulares spoke to Arab News at the launch of the Saudi Postal Corporation’s “Wasel” postal distribution system in Jeddah at a press conference held at the Hilton Hotel here yesterday.
The new delivery system, which was launched earlier this year in Riyadh, will enable subscribers who pay an annual fee to receive mail at their doorstep using mailboxes in front of their homes. “After the implementation of this system every person in Saudi Arabia will be able to receive their mail as the system covers every point in the entire Kingdom,” said Boulares.
The president of SPC, Mohammed Saleh Benton, and the company’s deputy chief for information technology, Ousama Mohammed Altaf, both attended the press conference.
The SPC is hoping that the launch of the “Wasel” project will help restore people’s confidence in the postal system. In Riyadh it has already delivered one million mail “Wasel” boxes to customers, at a rate of 3,000 mail boxes per day. The SPC sweeps Saudi cities addresses to ensure their accuracy. After that SPC installs the electronic mail boxes, which have an embedded microchip that allows mailmen to easily find their location.
Boulares said that the postal sector in Saudi Arabia and SPC are facing many challenges after the long stagnation period that the sector experienced. The first major challenge is that of privatization and cooperation amongst the private and public sector on postal services.
This is vital to reform and restructure the Saudi postal sector, according to Boulares. He explained that there must be a separation between the operation and the management of the postal service in Saudi Arabia. He acknowledged that the SPC is now outsourcing most of its operations and it is forming good relations with the private sector; however, the organization of the company has to be restructured. “This is part of the Bucharest Postal Strategy which the Kingdom is trying to implement,” said Boulares.
SPC will face fierce competition after the accession of the Kingdom into the WTO due to the increase in foreign competitors, and it will be difficult for the company to continue providing services unless it improves most of its operations. The second challenge for the SPC is the introduction of new financial services in the Saudi postal system.
“Financial services (like money transfers) make up 46 percent of the international postal earnings, thus it is essential for the SPC to introduce these service to generate more profits,” the adviser said. The postal system in the Kingdom has been relying for so many years on governmental support, and the introduction of reforms will allow the SPC to become financially more independent. This step is part of the reformation and the restructuring strategies that the Kingdom should apply to its postal system.
In addition, Boulares revealed that the Kingdom is trying to implement an electronic mail tracking system that would enable the residents of Saudi Arabia to keep track of all the incoming and the outgoing mail starting from its origin until it reaches it destination.
“This is part of the universal standards that the country is trying to apply domestically,” said Boulares.
The electronic mail tracking system allows the sender to track the status of their parcels electronically through the company’s website or by phone.