SHARE
COPY LINK

POST

Could Denmark split with Sweden over PostNord postal service?

The Danish Ministry of Transport is to look into the consequences of withdrawing Denmark from PostNord, the postal service it co-owns with Sweden.

Could Denmark split with Sweden over PostNord postal service?
Photo: Philip Davali/Ritzau Scanpix

Several political parties favour withdrawing Denmark completely from the Danish-Swedish postal company, newspaper Jyllands-Posten reports.

The Danish People's Party, the Liberals, the Conservatives and the Social Liberal party all see benefits in leaving the cooperation, according to the report.

A final decision by the parties is pending further consideration, however. The Ministry is to make an assessment no later than March.

The Swedish government has meanwhile announced it will launch an inquiry to look into the postal system by early spring.

Hans Kristian Skibby, the Danish People's Party’s spokesperson for post, said he would prefer a purely Danish company to operate the country’s post.

“Hopefully we can have a happy divorce with PostNord in Sweden,” Skibby said.

The Danish government owns 40 percent of PostNord, with 60 percent owned by its counterpart in Stockholm.

The company has faced sharp criticism on several occasions since it began announcing losses in 2012.

Inefficient mail distribution and poor financial management have been among the criticisms.

But pulling Denmark out of PostNord would be as expensive exercise, according to says Per Nikolaj Bukh, a professor of business economics at Aalborg University.

“Costs for separation would be in the 100-million-kroner class,” Bukh said.

Neither would such a move solve the issues with Denmark’s postal service, according to the professor.

“The Danish part of the postal service will not become more efficient by splitting it up,” he said.

One concern amongst the Danish political parties is that the financial situation in the Swedish part of PostNord will come under increasing pressure in the future due to digitalization. That could result in a negative impact on Danish state finances, given the current joint ownership.

But Denmark cannot simply run away from the bill, Bukh said.

“Experience with the Swedes tells us that the matter can be viewed in different ways. Sweden is not just going to let Denmark make off with the benefits,” he said.

Skibby claimed that Denmark has paid its share in the form of bailouts to PostNord.

“We cannot go blindly into a partnership in which we take on some of Sweden’s financial burdens,” he said.

PostNord continues to make a loss but came increasingly close to breaking even in Denmark in 2019.

The company has also cut deliveries, raised prices and closed virtually all of Denmark's post offices over the last decade, replacing them with counters in supermarkets and convenience stores.

The Danish and Swedish states injected funds to assist the company during the 2018 cost-cutting programme.

An EU commission opened in June 2019 will investigate whether state support of around two billion kroner from Denmark and Sweden breached EU rules.

READ ALSO: Danish postal service continues to lose money, but closer to breaking even

Member comments

  1. My experience living in Copenhagen has been extremely positive with one exception . The postal system . I have never had such a poor experience. Post Nord refused to deliver parcels to my address but instead left them at various locations in Copenhagen . In most cases they did not even try to deliver . After multiple calls to them waiting up to 25 mins on hold. Their response was that they did not know why parcels were not being delivered? Amazon manage to do it .
    Letters sent back to the UK would take weeks to arrive and a parcel I sent to the US took 2 months ! Notwithstanding COVID and the pressures on all of us in our jobs . Postnord is really below par in comparison with other national postal services .

Log in here to leave a comment.
Become a Member to leave a comment.

POST

Can you rely on Sweden’s Postnord to deliver cards and presents on time?

Wednesday marks the last day you can send first class letters or parcels in Sweden and still hope they'll make it in time for Christmas Eve. But how reliable is PostNord, the company which runs Sweden's postal service?

Can you rely on Sweden's Postnord to deliver cards and presents on time?

What can you still send and hope for it to be delivered by Christmas? 

The Christmas deadline for letters and parcels outside of Sweden already passed on December 12th, as has the deadline for ordering anything online and hoping for it to arrive on time, with most e-commerce companies advising customers that anything ordered later than December 19th will not arrive in time. 

But if you’re sending first-class letters, pre-paid parcels, and small packages for delivery through the letterbox, you can still send them up until December 21st. The same goes for other parcel services such as Postnord MyPack Home, PostNord MyPack Home small, PostNord MyPack Collect, and Postpaket parcels.  

And if you’re willing to pay a bit extra, you can send express mail letters, express parcels, and first class ‘varubrev’ small parcels up until December 22nd. 

“Those dates still apply. We have written in a press statement that if you send by those dates you can be pretty sure that they will arrive in time,” Anders Porelius, head of press at PostNord, told The Local on Tuesday. 

But can you trust Postnord to deliver when they say they will? 

Not entirely.

The Swedish Post and Telecom Authority, Sweden’s postal regulator, ruled on December 8th that the company was failing to meet its regulatory target of delivering 95 percent of all letters within two working days, with 28 million letters delivered late between June and November. 

An investigative documentary by TV4’s Kalla Fakta (Cold Facts) programme, was sent pictures showing huge piles of late, undelivered letters in one of PostNord’s terminals, and interviewed postal workers who said that they were unable to complete their deliveries now they had been moved from daily to every other day, as they had twice as many letters to deliver on the days when they worked. 

“You get yelled at by the customers, and rightly so, you get yelled at by your bosses, and you scold yourself because you feel like you’re not able to do enough,” said Emilia Leijon, one postal worker. “We pretty much never manage to deliver a whole satchel. There’s too much post and too little time.” 

What is PostNord doing about the delays? 

The Swedish Post and Telecom Authority has given the company until January 30th to carry out an analysis into why it is not managing to meet its targets, and to draw up an action plan of how it is going to improve. 

SHOW COMMENTS