Japan Post's planned JV with TNT to be delayed

Japan Post and Dutch mail and logistics giant TNT NV now expect the launch of their planned joint venture to be far behind the original schedule of April, Japan Post President Masaharu Ikuta said Wednesday.

Last October, the two firms agreed to set up the venture in April to start joint express transport and delivery services in the Asia-Pacific region.

It is uncertain when the two firms will be able to form the new firm, Ikuta told a news conference, adding that they will continue talks on the matter.

Japan Post hopes the planned overseas business will be a major source of revenue, as it faces falling demand for its domestic mail service.

In the talks on the joint venture, TNT has brought up many new proposals, Ikuta said.

At present, it is difficult for Japan Post to judge how much of the proposed plans Japan Post can handle, he said, explaining the reasons for the delay.

Meanwhile, Japan Post will continue preparations to establish a joint international air cargo firm with All Nippon Airways as planned, according to Ikuta.

The joint cargo firm is set to use the overseas logistics network to be operated by the planned joint venture between Japan Post and TNT.

Japan Post’s international distribution services to be delayed
Japan Economic Newswire Plus 03-15-2006
Japan Post’s entry into international distribution services is likely to be substantially delayed from the original target of April due to differences on business plans with a Dutch partner, its president said Wednesday.

During a news conference, Masaharu Ikuta divulged the delay in launching a joint company in Japan between Japan Post and TNT Post Group, a Dutch operator of express delivery and logistics services, to utilize each other’s networks and cooperate in the international distribution business.

The state-backed Japan Post, which will be privatized in October 2007, intends to nurture the distribution business around Asia as a new source of revenue.

Japan Post is allowed to enter into the international distribution business from April under laws that passed in the Diet last October regarding the privatization of the public corporation.

It is due to form an alliance shortly with All Nippon Airways, Nippon Express Co. and Mitsui O.S.K. Lines Ltd. in the air cargo business field.