HK$4.6bn to boost Hongkong Post operations

The government said on Wednesday that it plans to pour in HK$4.6 billion from the Capital Investment Fund to support Hongkong Post (HKP) over the next three years. The amount is to be injected into the Post Office Trading Fund. In a paper submitted to the Legislative Council, the Commerce and Economic Development Bureau said it remains difficult for the trading fund to support HKP's operations due to changes in the international landscape and increasing operational costs, even though it has carried out a number of measures to increase revenue and reduce expenditure. It expects the fund’s cash reserves to only cover HKP’s operating expenses for less than a year based on current mail volume trends as well as revenue and expenditure forecasts. “The proposed capital injection is a short-term financial solution necessary for the continued operation of HKP such that public postal services are not affected,” the paper wrote. The HK$4.6 billion injection also includes HK$510 million required for the refurbishment of the Air Mail Centre that is expected to be completed by the end of 2029 at the earliest. The bureau said that the existing centre – that has operated for almost three decades – requires structural works beyond daily maintenance, adding that there are limited spare parts for its mail sorting system. A next-generation centralised material handling system will be installed at the refurbished centre so that operations can be more cost-effective. It will also integrate with the Customs and Excise Department's postal clearance system, and incorporate smart and digital processing capabilities to enhance overall efficiency. Edited by Aaron Tam