Future of struggling Hongkong Post in the air after budget

The future of the 173-year-old Hongkong Post has been called into question in John Tsang Chun-wah's latest budget.

"We shall review the business operation of Hongkong Post with the objectives of enabling the [post office] to further support the development of the logistics industry in Hong Kong and expand its service offerings in response to market needs," the financial secretary said yesterday, as he highlighted how modern communications could pose a challenge to the future of the traditional delivery business.

Tsang did not specify what the proposals would contain, but a government spokesman said one option would be to consider how the post office could work with the Airport Authority to provide delivery services for passengers who had already checked in.

"The post office should consider how to upgrade the service value during changing times," the spokesman said. "It's a question about the future and the prospect."

Founded in 1841, prior to the Treaty of Nanking, Hongkong Post has been run as a trading fund since 1995.

It incurred a HK$3 million operating loss last year, down from HK$114 million in 2013, thanks to increases in postal fees.