The Conference Board of Canada’s Review of Canada Post

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An analysis of The Future of Postal Service in Canada, published by theConference Board of Canada, April 2013, authored by Vijay Gill, Crystal Hoganson, and David Stewart-Patterson.

It is a concept that is a good start, but is too limited in scope.

The identification of the problems and solutions outlined by this report are not surprising at all, as these have been known and discussed for well over a decade. The Conference Board is simply reiterating Canada Post’s present mantras and does not look outside the corporation’s present mindset for identifying the challenges or possible solutions.

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Canada Post’s Rising Debt Load

In early 2007, Canada Post was debt free and had a maximum availability of $300 million in external borrowing. In 2010, Canada Post had a $3.2 billion pension shortfall along with a potential debt load of $3.9 billion dollars in external borrowing – a startling change.

Canada Post has went from debt-free four years ago, to a potential $7.1 billion in debt, or if the funds not fully utilized, around $5 billion. Canada Post may not have borrowed all this money or perhaps used some of this capital to pay-off the pension which may make it less than $7.1 billion.

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