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Croatia and Israel Post Sign Agreement on Technical Cooperation

The CEO of Croatia Post, Robert Jukić, and the CEO of Israel Post, Avi Hochman, today signed an Agreement on Technical Cooperation in Tel Aviv, according to a press release.

By signing the agreement, Croatia pošta has gained a quality partner that will assist it with its expertise and experience in the implementation of the second phase of the restructuring process, which primarily relates to the modernization of business processes. ‘An exceptionally important step in modernization lies ahead of Croatia pošta, without which we will not be able to complete the initiated process. Only through the modernization of operations, and thus the introduction of new services, will Croatia pošta be ready for the year 2013 and the complete liberalization of the market in a way that neither its future nor its market position will be in question,’ said Robert Jukić. He emphasized that he is proud that the partnership has been established precisely with Israel pošta because, as he says, there is much to learn from Israel pošta.

Let us recall that at the end of 2008, Croatia pošta adopted the Development Strategy of Croatia pošta, which initiated the restructuring process, aiming to prepare the Croatian national postal operator for the complete liberalization of the postal services market in Croatia, which will take effect on January 1, 2013. In the first phase of the restructuring process of Croatia pošta, the emphasis was primarily placed on optimizing the number of employees and restructuring the system based on the outdated county division.

During 2009 and 2010, Croatia pošta reduced the number of employees by almost 1,800 people. It also introduced a modern divisional organization modeled after modern global postal operators. Twenty county postal centers were abolished, and 1,710 people were transferred from administration to the operational part of the business. Through these steps, Croatia pošta stabilized its operations and, after years of negative performance, ended 2009 with a profit of 158.7 million kuna from its core activities. The final net result was negatively affected by the operations of companies co-owned by Croatia pošta, primarily Croatia poštanska banka, but the achieved results are proof that Croatia pošta is a stable and highly liquid company that fulfills all its obligations within contractual deadlines and has no debts, neither to employees and the state nor to suppliers.

The signing of the agreement on technical cooperation with Israel pošta will provide Croatia pošta with experiential assistance precisely in the next phase of restructuring, which primarily relates to the modernization of business processes. Namely, Croatia pošta must necessarily continue the restructuring process by investing in modernization. By building a central logistics center, which will modernize the sorting processes of mail items, Croatia pošta will stand alongside European and global postal operators, and the prerequisites for the development of new services in the Croatian market will be established. This involves a whole range of new services, as well as an additional increase in the quality of current services, which will primarily result in an additional increase in revenue. The construction of the central logistics center and the modernization of business processes will also lead to further reductions in operating costs, which can no longer be reduced due to the current production processes, as stated in the press release.