The Ukrposhta postal company and the European Investment Bank have signed an agreement under which the bank will provide a loan of EUR 30 million for modernization of Ukrposhta’s logistics network with three new sorting hubs, 20 postal depots, and IT infrastructure.
The document was signed during the Ukraine-EU summit in Brussels on 6 October, the CFTS reports, citing the Ministry of Infrastructure.
"The signing of this guarantee agreement with the European Investment Bank will provide us with the opportunity to qualitatively modernise Ukrposhta’s existing logistics network, namely to create new sorting centers and purchase the necessary modern equipment for faster and more convenient shipments," Minister of Infrastructure Vladyslav Kryklyi said.
The EIB loan was provided along with a technical assistance package that includes a market analysis, development of a business plan, and the investment needs for the new logistic network. The EIB also assisted in the development of Ukrposhta’s investment program, a crucial element for securing the ElB’s affordable financing.
With the loan from the bank, Ukrposhta will design and roll out a new, state-of-the-art parcel logistics network, reduce delivery times, and improve the overall quality of postal services.
According to Ukrposhta’s General Director Ihor Smilianskyi, the EIB loan is part of a major investment in postal infrastructure.
“In total, as part of the strategy to upgrade the logistics network, we plan to attract about EUR 100 million for construction of eight sorting hubs and 62 regional depots. This will comprise loans from the EIB and the EBRD, as well as the company's own investments… Modernization of the postal infrastructure will allow reduction of the negative impact on the environment: the new logistics centers will meet all the EU’s environmental standards, they will be fully automated and moved out of the city, thus significantly reducing freight traffic in cities,” Smilianskyi said.