Turkey's post office to expand operations overseas

Turkey's post office will expand its operations overseas, PTT Chairman of the Board and General Manager told Anadolu Agency on Wednesday.

Harun Maden said that the post office would expand its operations into international logistics, goods transport and package deliveries, taking advantage of the increase in e-commerce.

The PTT will partner with Turkish Airlines, whose large international flight network will offer cargo facilities for the logistics expansion.

"Classic postal services are declining, as consumers use the Net," Maden said. "But the increase in package delivery from electronic commerce allows us to compensate for this decline. We will partner with Turkish Airlines, which has one of the most important flight networks including 279 destinations around the world, to create a new company for goods transport and package deliveries," Maden explained.

Maden said that the new company will focus on electronic commerce and its increasing demand for logistics.

"People used to go to do their shopping in a store and carry the items they bought home with their cars. But now we see a day-by-day shift in shopping to e-commerce, to the Internet. This change is occurring rapidly around the world, and it is developing rapidly in Turkey. As PTT, we want to become the primary actor in the transport of packages in e-commerce. We have initiatives in both the local and international areas," Maden said.

But legislation regulating the PTT must be completed before the new business can start up, Maden said.

Liberalization of the European postal sector took place approximately 20 years ago, but Turkey enacted similar legislation only two years ago.

"As a result, state regulation of the sector is unfinished, and incomplete regarding the issue. We plan to expand both in our country and abroad with partnerships in Europe and Asia after the completion of those regulations."

The PTT also entered into online commerce business two years ago.

"We are unable to support our activities in this area with the necessary funding and marketing due to incomplete legislation, and lack of infrastructure for our company. So proceeds have been relatively weak. But after the completion of legislation, e-PTTavm.com will become a significant marketing platform. Currently, countries such as Kosovo, Albania, Jordan and Iran have asked to use this portal in their own language. We are working on this issue. We will soon provide this service," Maden said.

Maden pointed out that there are two important requirements for the success of e-commerce sites: The first is fast and safe delivery, and the second is payment.

"We have postal service for deliveries and we also provide payment services through the PTT Bank. So I believe we will be very successful in this area with both our own sales portals and with other companies operating in e-commerce," Maden said.

The first post office in Turkey was opened on Oct. 23, 1840, and the postal service celebrates its 175th anniversary this week.

The agency earned a profit of 287 million Turkish lira ($98 million) in 2014 and 219 million lira (76 million) in the first 8 months of this year. The PTT is investing in system modernization and the opening of new branches.

The agency's extensive countrywide network includes 4,700 offices, 40,000 workers and over 7,000 vehicles. Nearly all offices provide customers with banking services with PTT Bank which was introduced in March 2004.