Two local postal service companies – UCS Express Mail Services and Myanmar USU Co – were granted licences recently to offer international express mail services, according to the Ministry of Communication and Information Technology (MICT).
Both companies will pay K150 million ($150,000) annually for the permit to engage in international services for the next five years, said U Win Than Htwe from UCS Express Mail Services.
The two companies hope to be operational by the end of the year and are working to implement infrastructure such as information technology that will link them to networks in other countries and build warehouses to accommodate service needs.
UCS Express Mail Services said it could take up to three years for them to turn a profit but expect to incur between of K300-400 million in annual expenses – effectively operating at a loss while they build market presence.
Myanmar Express Mail Services (EMS) and DHL were the first two private mailing services to be granted permission to operate international express mail services by the MICT. Since then, six postal service companies have been given licenses to offer international express mail services. “As the government allows more private companies to compete, customers are provided with more benefits and options,” U Win Than Htwe said.
The companies are will offer express mail service between Myanmar and over 200 countries.