Post Office Offers New Services

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Responding to the challenge of the Internet with its e-mail and text messaging that has resulted in a decline of "snail mail," the nation's post office (Correos) is offering new services to remain relevant.

An overwhelming number of younger Costa Ricans have never received a letter delivered by hard-working postmen to their homes and the bundles of letters that once left and arrived at businesses have dried up. But in the next two months, Correos will modernize.

But to do this, Correos is becoming leaner, closing down some branch offices. Correos general manasger Alvaro Goni says that actually this process began three years ago.

Among the new services are handling Grupo ICE's correspondence with electrical and phone customers and logistic support for small and medium business engaged in export.

More recently, Correos has sold medallions for the Casa de las Monedas to collectors. It has also collected on bills for water, lights and phones in alliance with BN Servicios, a part of Banco Nacional.

The answer to becoming marginalized is all in diversification, Goni emphasizes. He says that as late as 2006, some 87% of the state-owned company's income came from delivery of letters. By last year, that figure had declined to 56%.

Six years ago, Correos reported a deficit of 576 million colones. Last year, it reported a profit of 249 million. Flushed with that success, the company then became a call center for Banco Nacional, employing 50 persons with hopes to double the number of employees by year's end.

In fact, to keep up with new services, Correos has to invest in 14 new vehicles to join its 400 motorcycles and 67 cars it has now. Part of that mobile service, says Goni, is to deliver Tico passports with visas from the U.S. Embassy in Pavas.

Sounding very much like a private business, Correos officials told the nespaper La Nacioin that 10 of the 118 branch offices it runs now would be closed because they have been "unprofitable."