PostNord’s socio-economic value – is PostNord worth saving?

Original title: PostNords samfundsøkonomiske værdi - er PostNord værd at redde?

There is currently (October 2017) a public debate about whether public funds should be used to restructure PostNord Denmark. In this study, we conclude that PostNord generates socioeconomic value and that PostNord is therefore worth saving.

The study takes as a starting point a hypothetical scenario in which PostNord does not exist, and investigates what will happen to letters and parcels in the short and long term.  

Short term, the alternative operators cannot absorb all of PostNord’s letters and parcels. The lack of capacity will make it difficult and likely more expensive to send and receive letters and parcels in Denmark.

Long term, alternative operators can handle the collection and delivery of some letters and parcels – most likely at higher and differentiated prices. However, some letters are not lucrative for the alternative operators, for instance letters that need to be collected or delivered in rural areas or small packets from China. Therefore, it will be necessary to compensate one or more operators for the provision of universal service.

The study is commissioned by PostNord