AMSTERDAM/KRALENDIJK – A recent evaluation of postal services in the Caribbean Netherlands advises a fundamental shift in the concession structure: instead of a single concessionaire for all three islands, separate postal concessions should be established for Bonaire, Saba, and St. Eustatius. The current concession has been held by Flamingo Express Dutch Caribbean (FXDC) since 2014.
The report concludes that the current one-size-fits-all model struggles to meet the specific needs and logistical challenges of each island. It notes that postal volumes have dropped by roughly one-third since 2014 due to digitization, and this downward trend is expected to continue. At the same time, online shopping has led to growth in the parcel market.
Key issues affecting delivery performance include the lack of street names and postal codes, limited opportunities for automation due to small market size, and unreliable air connections between the islands. These factors frequently cause significant delays in mail delivery, especially for inter-island and international post.
To address these challenges, the report recommends not only splitting the concession but also exploring cost-saving measures such as community mailboxes and introducing postal codes—particularly on Bonaire—to enable more efficient sorting and distribution.
The study further suggests introducing island-specific performance targets and involving local stakeholders more actively in monitoring service levels. Local bodies like the Centraal Dialoog Bonaire could take on a formal role in reviewing delivery performance and holding the concessionaire accountable.
Subsidies
With the declining profitability of universal postal services, future government subsidies may be necessary. If so, according to the advisors, these should be tied to measurable quality benchmarks through a performance-based bonus-malus system.
