Govt may ease restrictions on Japan Post intl services
The government has begun looking into allowing Japan Post to take up international postal delivery services and acquire companies before the privatization of postal services in 2007, according to government sources.
The government plans to review the Japan Post Law that regulates investment by the organization so that it can establish affiliates in foreign countries and form capital tie-ups with private companies, the sources said.
According to the sources, the government apparently plans to speed up the improvement of Japan Post’s mail delivery after the privatization of the postal services so it can compete with international delivery services being offered by foreign postal service firms.
The government also plans to boost Japan Post’s overseas businesses by expanding its investment range, which has been limited to investment in companies engaged in processing postal delivery information, allowing it to set up affiliates, tie up with private companies and acquire firms.
The government will also approve Japan Post’s expansion into the Asian market as soon as possible, the sources said.
As international distribution is dominated by four companies, including DHL International Ltd., an affiliate of Deutsche Post, and Federal Express of the United States, the government plans to ease restrictions on Japan Post in the run-up to privatization, the sources said.
In addition to considering integrating several family companies engaged in long-distance mail delivery into a transport company of its own, Japan Post is also exploring ways to make inroads into the Chinese market.
Japan Post is expected to proceed with its overseas ambitions following the law revision, the sources said.
However, some experts have cautioned against the expansion of Japan Post’s business on the grounds that it may hamper the development of private companies in this field, so the Council on Economic and Fiscal Policy will deliberate further on plans for Japan Post’s expansion.
