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BNS - The state-owned postal company AS Eesti Post is planning to invest 150 million kroons (EUR 9.6 mln) in expanding its logistics service into Latvia and Lithuania.
"Our major corporate clients have expressed the wish that there be a common solution on offer in the three Baltic countries," Eesti Post board member Aavo Karmas told reporters on Thursday.
The company already has taken the first steps in that direction, he said.
"We have made a tentative business plan and charted the needs of customers," Karmas said.
The main question now is whether the company will expand on its own or do it in collaboration with local enterprises.
The chairman of the supervisory board of Eesti Post, Meelis Atonen, said expansion was necessary because it was difficult for Eesti Post to be successful on such a small market as the market of Estonia.
Ahti Kallaste, the postal company's CEO, pointed out that competition on the market was intense and volumes had fallen in all segments. He named the overall decline of the economy as the main reason for this.
Eesti Post earned a net profit of 2.2 million kroons in 2009. Its budgeted revenues for 2010 stand at 748.2 million kroons and costs at 737.6 million kroons.
(EUR 1 = EEK 15.65)
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