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PostNord to continue Danish deliveries until 2023

The Danish arm of Swedish-Danish post distribution company PostNord is to continue delivering the country’s post until at least 2023 after a new deal was agreed with the government.

PostNord to continue Danish deliveries until 2023
PostNord will deliver Denmark's letters until at least 2023. Photo: Mads Claus Rasmussen/Ritzau Scanpix

Post Danmark – the Danish subsidiary of PostNord – extended its contract to deliver post in the country with the government and its allied left wing parties, the transport ministry confirmed in a statement on Monday.

“Distributions of post is an important societal task which every sitting government must take responsibility for,” transport minister Benny Engelbrecht said in the statement.

A “large proportion” of people in Denmark still “do not receive their post digitally and therefore need to receive their post at their home address,” Engelbrecht said.

“It must be possible to receive a letter from your family and to write to your family, regardless of where in the country you live.

“That’s why the deal with Post Danmark has been extended, so Danes can be reassured that post will get through while political work to secure a new, long-term postal agreement continues,” the minister 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. The Danish state has spent to keep the Danish side of the company afloat. Inefficient mail distribution and poor financial management have been among the criticisms.

PostNord was established in 2009 via a merger of the formerly-national Post Danmark and Sweden’s Posten.

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Parcel popularity gives Danish post service record result

An increase in online shopping during the coronavirus pandemic was a key factor as the Postnord postal service recorded its best-ever annual result in 2020.

Parcel popularity gives Danish post service record result
Photo: Mads Claus Rasmussen/Ritzau Scanpix

The Danish-Swedish company has posted its best profit since 2009, the year it was formed through the merger of Post Danmark and Posten AB.

The company published its annual results on Tuesday, revealing the record year.

Earnings of just under 1.3 billion kroner were brought in by the company in 2020, dwarfing the 200 million kroner profit in 2019.

Company director Annemarie Gardshol cited a number of reasons for the impressive return in written comments to news wire Ritzau.

“Naturally, a large demand for parcels has contributed,” Gardshol said.

“But at the same time, we have also had a very high productivity level and good progress in our internal improvement programmes,” she added.

The overall 2020 turnover for the company is 28.6 billion kroner, an increase of one percent compared to 2019.

The Danish component of the turnover amounted to 6.9 billion kroner, around one quarter of the overall amount. Both turnover and profit increased within the Danish arm of Postnord.

READ ALSO: Could Denmark split with Sweden over PostNord postal service? (2019)

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