The Saudi government has taken further steps towards the privatization of the national postal services. The public Postal Authority recently announced it had decided to forfeit its 50 percent share in the revenues from postbox rentals, in favor the private post agencies.
Private postal agents receive a commission on the services they provide, including 15 percent on stamp sales, 20 percent on receipts from franking machines and 50 percent from the proceeds of renting postboxes.
A source at the private Azizia Post Agency told Al-Hayat it expected this measure to boost postbox rental revenues to SR 12 million ($3.2 million) per annum. A post box rental fee currently stands at 300 Saudi riyals ($80) for a three-year period.
In May 1998, the Saudi government authorized the private operation of its postal services. Private postal agencies currently total 67 across the Kingdom, including some with foreign participation. Of this total, 28 are located in the capital city Riyadh.
The Saudi Consultative Council endorsed in January this year the privatization of the national postal service, and stressed the importance of bringing the express mail service to competitive level, both domestically and internationally.
A total of 488 main post offices and 175 branch-offices deliver 650 million postal articles a year to 4,700 cities, towns and villages around the kingdom. Express and electronic postal delivery reaches many cities and towns in the Kingdom along with a number of foreign countries.
In a continuing process of expansion, the Fourth Development Plan provided for five new central post offices in Madinah, Abha, Buraidah, Jizan and Sakaka, to complement the three main postal complexes in Dammam, Jeddah and Riyadh, as well as the establishment of 11 new regional offices.
The Directorate-General of Posts, separate from telecommunications, is a department of the Ministry of Posts, Telephones and Telegraphs (PTT). — (Mena Report)
© 2001 Mena Report (www.menareport.com)
