Last Mile Brief 29/06/2023: Post Danmark to face competition as Denmark’s postal market to be opened up
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From 1 January 2024, Demark’s postal service will undergo a significant shake up. The market will be open to private companies, but the state will still be obliged to ensure that everyone in the country can receive and send letters.
The change means the end of the Universal Postal Agreement that in recent years has seen PostNord subsidiary Post Danmark exclusively deliver letters.
Commenting on the decision, Transport Minister Thomas Danielsen said he was hopeful the move would mean better service and prices:
“I do not do pricing for any private companies, but I have an expectation that the competition will ensure better and cheaper prices and service, just as we have seen in the parcel area, the telecommunications area and much else.”
The state will still be obliged to ensure that everyone in Denmark can send and receive letters – including internationally. Therefore, the Danish Transport Agency must in the future “regularly” examine whether the market lives up to that obligation.
If, contrary to expectations, it is found that this is not the case, the Ministry of Transport will be able to intervene via an authorization under the Postal Act and appoint a company to deal with the specific problem for a fee.
The delivery of mail can, depending on local conditions, consist of letterbox facilities, mailboxes and parcel boxes/close boxes on Denmark’s islands, as well as locked boxes on the mainland for storing mail to and from the islands.