Postal Services

The Hong Kong Post Office provides reliable, efficient and universal
postal services at reasonable prices to meet the needs of Hong Kong and
its international postal obligations. Since August 1, 1995, the Post Office
has operated as a trading fund department. This gives it a higher degree of
flexibility in resource management and enables it to respond more
effectively to changes in markets and operating environment, improve
productivity, efficiency and customer service standards and introduce
new services to its customers.

In May, the Post Office launched its new corporate identity as Hongkong
Post with a logo of a humming bird drawn like a letter 'P', the bird's
wings capturing the mark of a franking machine, on a green background.
It is displayed on posting boxes and delivery vans and is becoming a
familiar sight on the streets of Hong Kong.

During the year, Hongkong Post handled 1.28 billion items of mail, or a
daily average of 3.5 million items, representing an increase of 8.4 per cent
over 1996. Some 81.5 per cent of the items involved were local mail and
18.5 per cent overseas mail. Some 10 275 tonnes of letter mail and 3 787
tonnes of parcels were despatched overseas by air, representing a
decrease of 8.3 per cent from 1996. Outward surface mail comprised
5 424 tonnes of letter mail and 2 621 tonnes of parcels, representing an
increase of 4.7 per cent over 1996. Japan, Mainland China, Taiwan,
Germany and Singapore were major partners in letter mail; Japan, USA,
Mainland China and Britain were major partners in parcels.

A reliable and efficient postal service has been important in Hong Kong's
development as a leading commercial, financial and industrial centre.
Hongkong Post provides two deliveries of letter mail each weekday to
commercial and industrial areas and one delivery to residential areas.
Parcels are delivered to all addresses in Hong Kong.

Performance pledges are published for the delivery of mail, philatelic and
counter services. Hongkong Post achieved the pledged standards - and in
most areas exceeded them - in 1997.

On July 3, Hongkong Post introduced a new local postage structure
designed to offer choice, cost savings and new services to major users.
Local mail charges were reduced by a weighted average of 4 per cent,
against projected inflation of 5.7 per cent since the last revision in
September 1996.

Hongkong Post's premium service, Speedpost, which provides a
door-to-door collection and delivery service for customers sending
time-sensitive documents, samples or merchandise, continued to play an
important part in supporting the business community. Amid intense
competition from private couriers, Hongkong Post handled a total of 4.3
million Speedpost items in 1997, representing a decrease of 0.1 per cent
over 1996. With an extensive network covering 82 countries, major
exchange partners included Mainland China, Japan, USA, Taiwan and
Australia.

During the year, Ma On Shan Post Office and Tung Chung Post Office
were opened, bringing the total number of post offices in Hong Kong to
127. Construction work on the new Air Mail Centre building at Chek Lap
Kok was completed in August and the installation of a comprehensive
Postal Mechanisation System was completed in December. The centre,
with new systems incorporating the state-of-the-art technology in mail
processing, will be ready for operations when the new airport is
commissioned.

Hongkong Post continued to review existing postal operations to identify
and explore further areas for mechanisation and automation. A new
Automatic Mailing System has been put on trial to provide customers
with a self-service facility to post ordinary and registered letters. If
satisfactory, the system will be installed in various places to provide a
convenient service to members of the public.

To reduce the response time in handling customer enquiries, a
computerised system has been developed in 1997 for tracking and tracing
items. It will also automate the accounting work with carriers and
overseas postal administrations. The module for tracking Speedpost items
was implemented in August. Modules for other functions, including
registered letters and parcels, will be implemented in phases within the
next two years.

A new service - Hongkong e-Post - was introduced as part of Hongkong
Post's initiative to support the government's Helping Business
Programme. Hongkong e-Post is an advanced postal solution for
business and large organisations which require an easy-to-use and reliable
means of communication with their clients. Electronic messages
generated by computers in these businesses, such as account statements,
invoices, direct mail shots, circular letters, and so on, are sent to
Hongkong Post either through a telephone or data line, or on computer
tapes or diskettes. At Hongkong Post, the electronic messages are turned
into physical paper mail and then passed straight into the mail delivery
stream without delay. Hongkong Post has set up a pilot site at Tseung
Kwan O Post Office. Hongkong Post plans a full-scale system by adding
new technology in order to be able to offer more value-added services to
businesses in Hong Kong.

The pilot Postshop at the General Post Office marks the introduction of a
new and convenient service to the public by applying the 'Browse and
Buy' retail concept. Customers can buy postal-related products, souvenirs
and packaging materials there, and send them off through the post.
Hongkong Post plans to extend the concept by making postal-related
souvenirs available in more outlets in its retail network, and also offer
them for sale through a catalogue/mail order arrangement.

A set of definitive stamps with no connotation of sovereignty was issued
in January 1997 for pre-payment of postage before and after July 1. Six
sets of special stamps were also issued during the year featuring the Year
of the Ox, Hong Kong Migratory Birds, Hong Kong Modern Landmarks,
Commemoration of the Establishment of the Hong Kong Special
Administrative Region of the People's Republic of China, 1997 World
Bank Group/International Monetary Fund Annual Meetings and Hong
Kong Seashells. Special stamp sheetlets were issued to commemorate
Hong Kong's success at the 1996 Paralympic Games and in the 'classics'
series.

The Hong Kong '97 Stamp Exhibition held from February 12 to 16
attracted some 260 000 visitors. Two definitive stamp sheetlets and other
philatelic products were issued to commemorate the exhibition. Hongkong
Post also participated in seven international stamp exhibitions overseas to
promote the collection of Hong Kong stamps and to raise the international
awareness of Hong Kong stamps.

Hong Kong has maintained a high international reputation for its efficient
postal services. Hongkong Post has actively participated in the activities
organised by the Universal Postal Union (UPU), the Asian-Pacific Postal
Union (APPU), and has also attended the various international postal
meetings and conferences either as a participating postal administration or
an observer. Since reunification with China, Hongkong Post has attended
the meetings of both unions as a member of the delegation of the People's
Republic of China. In technical meetings and activities on postal business
not limited to states, Hongkong Post also attended as a separate postal
administration using the name 'Hong Kong, China'.

In March, Hongkong Post hosted the Asia Pacific Post Workshop which
was attended by delegates from 14 postal administrations in the region. In
November, Hongkong Post was host of the UPU Direct Mail Seminar
attended by more than 70 delegates. During the year, Hongkong Post
attended the meetings of the UPU Postal Operations Council, the
Asian-Pacific Postal Training Centre Governing Board and the APPU
Executive Council, the UPU Direct Mail Advisory Board and the UPU
Express Mail Service Contract Management Team.

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