A proposal to privatise Bahrain’s postal service has been tabled.
The Southern Municipal Council wants to revamp the existing Bahrain Post into a regulator, which would then oversee the operations of private postal delivery firms.
It is driven by concerns about a lack of competition in the sector holding back its development.
“Bahrain Post has had a monopoly over the same services for the past century,” said council chairman Bader Al Tamimi.
He said despite the presence of international freight companies in Bahrain, there had been a lack of progress in developing Bahrain’s domestic postal service.
“It (Bahrain Post) will never contend with top carriers like DHL and Aramex because it continues to be seen as a government service, rather than something that could be provided by the private sector,” said Mr Al Tamimi.
“The time has come for Bahrain Post to be a regulator, similar to the Telecommunications Regulatory Authority (TRA).
“Its current services could be offered to the highest private sector bidders.
“This way, it would ensure development of the service while at the same allowing the private sector to thrive in the sector.”
However, he added that Bahrain Post could still generate revenues through its supply of postage stamps, as well as leasing out warehouse space and even post offices to private sector companies that enter the sector.
“There is no need for Bahrain Post to continue in its current format,” he said.
“Some of the things it does will stay, but others have to go to the private sector - which can handle it better.
“Bahrain Post will continue issuing stamps, owning warehouses that could be leased to winning bidders and post offices even, when managed by private operators.
“But the main delivery, receiving and shipping service should be handled by the private sector only.”
In October it emerged Bahrain’s postal services were being upgraded to improve commercial operations, while at the same time accommodate a surge in the number of incoming parcels being delivered as a result of online shopping.
However, the new proposal to privatise the sector was not received warmly by the Transportation and Telecommunications Ministry.
“Online purchases are increasing and we receive a large number of parcels daily, which we deliver to homes, post boxes or any other place of the customer’s choosing,” said the ministry in a written response to the GDN.
“People can also access our services via our website or special app.
“We are seeking to operate as a commercially-oriented entity and expanding to offer services of other ministries and government bodies, besides providing facilities to embassies and consulates.”
It also pointed to Bahrain’s postal service being ranked second in the GCC, behind the after the UAE, after scoring 95 per cent in a performance index.
“We are seeking further growth and hope to reaching the highest rank,” it said.
mohammed@gdn.com.bh
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