Australia Post CEO: Two-speed mail service from 2015

FAST-PACED WORLD: Australia Post is changing its business model and wants to know what you think.
FAST-PACED WORLD: Australia Post is changing its business model and wants to know what you think. AUSTRALIA POST

AUSTRALIA Post has announced a two-speed mail system for regional Queensland.

The changes are outlined in a letter from managing director and chief executive Ahmed Fahour:


THE rise of the internet and digital economy is changing Australia Post.

Australia Post recently announced an overall loss for the second half of the 2014 financial year, marking the first time our business has made a half-year loss since being corporatised in 1989.

And while I am confident we will sustain Australia Post's role in the local community, we have now reached a turning point where we must address the growing financial losses in our heavily regulated letters services as the result of declining mail volumes.

Since the peak six years ago, the number of letters delivered per letterbox has fallen by a third, as Australians have embraced digital communications.

So if six years ago you received, on average, three letters a day, today you will receive two.

This decline in volume has resulted in about $1 billion of accumulated losses in our letters business.

So the challenge for us is to manage the decline of letters, while also capitalising on our opportunities to serve our customers in new ways.

At the forefront of our mind is maintaining our network of more than 4400 post offices that place us at the heart of Australian communities.

This includes more than 520 post offices in regional and rural areas of Queensland, where sometimes we are the only service provider in town.

Strengthening and modernising the post office network will help us continue to be a trusted and useful service provider.

And we've already started this process. We're expanding our footprint of superstores, a modern-day GPO, to have 50 in regional and rural centres by the end of the decade including Cairns and Toowoomba.

These stores will feature a range of new technologies and services designed to cater for our customers' changing needs.

From this November, we will also open our corporate post offices on Saturdays and extend the existing network of Express Post letter and parcel deliveries to six days a week.

And from next year we want to introduce a two-speed letters service, providing customers with a choice over how they send letters.

This includes a "priority" service delivered five days a week and a cheaper "regular" service delivered to a slower timetable at a lower price.

Doing this allows Australia Post to reduce the losses we make on our mail delivery, primarily used by government and business customers, who send more than 95% of all mail.

The alternative is the taxpayer subsidises senders - a notion we do not support.

Ensuring the sustainability of more than 470 independently owned small businesses operating as licensed post offices and community postal agencies in regional Queensland is a key focus.

These post offices are facing the same challenges of declining letter volumes and retail foot traffic as the rest of our network and we are reliant on them to ensure all Australians are able to access our services.

Over the past 12 months we have increased the payments we make to them, but more importantly we are ensuring they have the right technology to be able to offer the services their local communities need.

For 26 post offices in Queensland that are using manual processes, we're offering an electronic point of sale connection to Australia Post's systems, which will change both what they can offer to their customers and the efficiency of how they manage their businesses.

This modernisation process will take time but it's a change we must make. Simply continuing to do what we have done in the past will not ensure our future, so we are changing today.

Whatever changes are introduced, our posties will continue to deliver five days a week to your street, while there is still demand for this service from senders.

You will continue to see our post offices across the country serving the community on a range of important trusted services. This won't change.

I encourage you to jump online at to tell us how Australia Post can remain relevant to you and your local community.

Topics:  australia post editors picks post

Cancer 'doesn't have to be a death sentence': video diary

WONDER WOMAN: Kim Pointon (centre) with daughters Ainsley (left) and Sammi-Jo, at Kims Kafe in Monto, which she continues to operate as well as doing a daily school bus run while she undergoes treatment for breast cancer.

Kim Pointon wants to help other women face their situation

Coral reef fin fish off the menu from Friday

NO GO: Coral reef fin fish species including red emperor will be off-limits for five days starting on Friday.

Annual closure to protect species during spawning

Drugs seized in car roll-over accident

STASH: The 536g of cannabis seized in car roll-over near Childers.

Police located a quantity of cannabis inside a cooler bag.

Local Partners

Watch out for river work if you are on the Burnett

BOATIES using the reaches of the Burnett River near Strathdee's boat ramp may notice a barge undertaking work

Men's Shed to open soon

MEN'S SHED: Rob Miller and Col Driver at the new Gayndah Men's Shed.

The Gayndah Men's Shed is ready to open

Community garden set for Palmwoods

Kay Nixon at the Palmwoods Community Gardens will be hosting a launch day and inviting the ecommunity to come along and sign up.

Parcel of land to supply sustainable gardening for community

Former Split Enz front man Tim Finn finds new niche

Singer Tim Finn has written the music for theatre production Ladies in Black.

Musician finds his way to theatre

Why this actress wasn't embarrassed by nude photo leak

Leslie Jones source Bang

'If you wanna see Leslie Jones naked, just ask,' she said

Dad's Army comic genius Jim Perry dies

Jimmy Perry, the creator of Dad's Army.

Dad's Army series captured all that British people savour

Check out some fashions from the Coast festival

FASHION: Ocean Zen range.

Images from the Sunshine Coast Fashion Festival show what's hot

Australian Survivor's magician Matt out of tricks

Australian Survivor contestant Matt Tarrant.

SHOW'S power couple looks unstoppable in race to the finish.

Ruby Mills misses out on spot in Mel B's underdog team

Bundaberg singer Ruby Mills pictured during the three-seat challenge on The X Factor.

BUNDABERG singer officially out of contention for singing show.

Top floor teams take out The Block's terrace week

Kim and Chris pictured on their winning outdoor terrace in a scene from The Block.

RIVALS Kim and Chris and Julia and Sasha tie in final week of work.

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals

Cherrabah's mega resort plans axed

PLANS for a massive development at Cherrabah have been scrapped.

What our mayor thinks of the new draft SEQPlan

The plan to use the innovative technology as part of the new Maroochydore CBD was cemented on site today when Mayor Mark Jamieson and Envac Asia Region president Chun Yong Ha formally signed the contract for the $20 million underground waste collection system.

New plan accommodates Sunshine Coast Council's vision for growth.