Information & communication operators

Postal & Logistics, Financial and Digital Services

Kazpost JSC today is an aggregator company of a large–scale range of socially significant activities, rendering postal and logistics, financial, brokerage, agency and other services. This is the only subsidiary of the Fund, bears social responsibility for the delivery of pensions, benefits and periodicals.

Key performance results

The company employs about 20 thousand persons. And, despite the fact that the company has not always experienced favorable periods from a financial point of view, over the past 10 years, the question of cuts has never been raised. The close-knit team of Kazpost consistently implements the Development Strategy, which is expressed in a set of measures to launch new projects and initiatives that improve the financial situation. 

The accelerated digitalization is one of the key areas of the Strategy. The Kazpost team is actively automate logistics processes, reengineer courier products, and introduce piecework remuneration for our couriers.

In 2022, the company focused on improving the quality of courier delivery service. A mobile application was developed to reduce the processing time, unloading and loading of mail due to automation of processes, GoPost application for couriers, palletization and containerization of parcels.

The development of e-commerce opens up an international market for Kazakhstan with global resources for the sale of goods, access to quality products, and the transition to non-cash payments. Therefore, Kazpost JSC keeps pace with the market. For improving the quality of e-commerce services, processes were reengineered in 2022 and the GoPost ecosystem was created. Fulfillment centers have been opened where online store owners can receive a range of services, including acceptance, processing, storage, tracking and delivery of goods to the final consumer. At the same time, online stores minimize their logistics costs, warehouse rental for goods, personnel and other costs, as well as significantly reduce the delivery time of parcels. In almost all regional centers of the country, e-commerce centers operate in the Kazpost offices. The post offices and parcel supermarkets are another areas of e-commerce. The Kazpost market share in this segment exceeds 19%.

The company’s social responsibility is great – Kazpost employees deliver pensions and home benefits to over-80 population, people with disabilities, veterans. Periodicals are delivered 24/7 to the most remote settlements. It is no coincidence that the year 2022 was declared the “Year of the Postman” in the company, which allowed solving a number of pressing issues of the activities of postmen and operators of Kazpost.

The focus is on infrastructure

In 2022, the bonded warehouse located on the territory of the Khorgos - Eastern Gate SEZ reached self-sufficiency. It carries out the import and transit of commercial goods from China to Europe and Central Asia through Kazakhstan, as well as operations for processing transit freight to the EAEU countries and receiving mail intended for Kazakhstan (with the possibility of up to 100 tonnes daily). The bonded warehouse has the ability to receive and send freight by rail and road. Its main feature is the storage of goods without payment of customs duties. The commissioning of the warehouse made it possible to realize postal shipments to non-CIS countries, contributing to the development of Kazakhstan’s transit potential, reducing the delivery time of goods from 1 to 10 days and increasing trade turnover.

Kazakhstan bond’s services are in demand by clients from Russia, Uzbekistan, Kyrgyzstan, and Azerbaijan. Cooperation agreements have been reached with major Chinese logistics companies and with partner postal administrations, which will increase the volume of direct commodity flows. A contract for transit to Russia has been concluded with Yiwu Yuexuan Trade Co. LTD, work is underway to conclude an agreement with other clients. In August 2022, a pilot of receiving postal transit in the amount of 400 kg to the Russian Federation was conducted.

Storing goods in a bonded warehouse is most profitable for retailers and electronic trading platforms. Such warehouse placement helps them to have the goods “at hand”, while paying tax duties and fees only after the actual export of the goods from the customs territory for delivery to the purchaser. This permits the business to reduce costs and at the same time deliver their orders to customers faster.

It is also beneficial for end consumers who receive their goods in a shorter time without waiting for delivery from the country of origin. Together, all these advantages contribute to the development of e-commerce and the solution of the state task of reducing the volume of shadow turnover of funds due to increased number of non-cash payments.

Kazpost JSC pays a lot of attention to the modernization of logistics infrastructure. To date, the company has 13 sorting centers and three hubs with a total area of more than 25 thousand square meters. Within five years, production capacity will increase by another 33.4 thousand square meters, that is, almost 2.5 times by 2025.

E-commerce

The branch network of Kazpost, including the branches of the partner network, covers the entire territory of the country, up to rural areas and comprises more than 2,700 production branches employing more than 18 thousand people.

Fulfillment centers operate in Almaty, Aktobe, Astana with a full cycle of services for the reception, storage, collection, packaging and delivery of goods to customers. This is convenient for entrepreneurs who minimize their logistics costs, rent a warehouse for goods, etc. Due to the placement of goods in the fulfillment center, the delivery time of parcels is reduced.

There are 219 parcel supermarkets for self-service, which have two zones: receiving and sending parcels. This format of service rendering increases the efficiency of business processes by introducing the service in self-service mode.

Automated parcel terminal is an automated terminal for the delivery of goods ordered from online stores and catalogs, created as an alternative delivery service with a working mode of at least 8 hours. At the moment, 151 post offices are operating in Kazakhstan in all regional centers and cities of republican significance.

The “post.kz” corporate Internet portal is a hypermarket of services. The portal is constantly working to improve its convenience for users of postal and financial services online. This system permits carrying out Internet banking for individuals with attaching of bank cards.

Clients of B2B services at post.kz are more than 700 companies. The service of sending parcels, online filling out forms and other services helps to make doing business more convenient. The total number of registered users was about 1,770 thousand, 600 people join post.kz everyday.

There are licenses for brokerage, dealer, transfer-agency activities, opening and maintaining bank accounts of individuals.

Every year the business sphere expands, new projects are implemented aimed at creating comfortable conditions for the client. It takes an active part in the process of implementing state and industry programs in the field of mail. Transparency and balance are maintained as part of the national infrastructure that performs important social functions, and at the same time as a commercial organization

Postal Services

The company plans to reformat the technology of rendering services in rural post offices by introducing a mobile application based on the GoPost ecosystem by the end of 2023.

Postal items from the UPU are read by RFID antennas installed at work sites where mail traffic is received and processed. This process generates the bulk of the information needed to determine the quality of service.

Integration with the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan has been carried out with respect to international postal items not exceeding 200 euros or 31 kg. Preliminary transmission of data on these types of postal items to the state customs control bodies and receipt of preliminary decisions is carried out. Due to integration, it is possible to reduce the processing time of mail and the number of requests from state bodies.

As part of the network modernization, it is required to purchase about 2 thousand tablets for operators and 3.5 thousand smartphones for couriers for a total amount of KZT2.4 billion. As a result of the network modernization, the Company will cover rural support settlements in the north and east of Kazakhstan with a population of less than 2 thousand people.

Social Partnership

The year 2022 exposed the contradictions between the difficult conditions of the company’s activities in the new economic realities and the increased needs of the Labor Man. Not without conflicts, but in Kazpost, through the efforts of professional associations of workers and representatives of employers, through conciliation procedures and mediation, it was possible to reach compromise solutions.

With the support of the Sole Shareholder - Samruk-Kazyna JSC - the management of Kazpost JSC decided to increase the official salaries of the company’s production staff – over 14 thousand people (93.5% of the total staff). In 2022, the average monthly official salary of employees increased by 29.6% or from KZT149.2 thousand to KZT193.4 thousand, including for production personnel, the average official salary growth was 33.3% or the average monthly official salary increased from KZT135.0 thousand to KZT179.9 thousand.

In 2022, the preparation of the new version of the Collective Agreement began. For employees with continuous experience of 30 years or more, in case of reaching retirement age and termination of the employment contract, a one-time allowance in the amount of three average monthly official salaries will be paid. Previously this item was absent. Also, upon termination of the employment contract, a one-time allowance in the amount of three average monthly official salaries will be received by employees of branches with disabilities of group 1 or 2 (previously there was one average monthly official salary).

The contract takes into account the interests of employees who have suffered an occupational injury or who have fallen ill in the performance of their work duties. They will be released from work with the payment of at least 100% of the average official salary until the employee regains his/her working capacity. Or he/she will be diagnosed with disability or loss of professional ability to work. Previously, this category of employees was paid no more than 50% of the average official salary.

The list of employees associated with the transportation and delivery of cash and valuables has been expanded. Along with the approved list of specialists, the heads of mobile post offices are included; employees for this position are provided with an additional payment for risk.

Participation in the KMG IPO

In the period from November 09 to December 2, 2022, as part of the IPO, the company participated in accepting applications for the acquisition of KMG shares. Residents of the country were given the opportunity to submit applications to acquire shares through 1,170 branches and remotely through our website.

For creating conditions for accessibility to all citizens of the country in the IPO program and for reaching the maximum number of investors, in August 2022, integration measures were carried out with the information systems of Astana International Exchange Central Securities Depository Limited (AIX CSD). This event permitted citizens of the country to make a direct subscription to acquire KMG shares through the Tabys application.