Japan Post gives up plan to enter int'l distribution with TNT
Japan Post’s planned entry into international distribution services with leading Dutch logistics company TNT N.V. is to be scrapped due to differences over their business strategies, Japan Post officials said Tuesday.
The decision is seen as a major setback for Japan Post, which will be privatized in October 2007, as it had intended to nurture logistics services around Asia as a new profit-making source, considering its weak earning power in conventional postal services.
Last October, Japan Post and TNT announced a plan to set up a joint venture to work together in international distribution services.
In the air cargo business field, Japan Post is to begin logistical operations in August between Japan and China through a joint venture it set up earlier this year with All Nippon Airways Co., Nippon Express Co. and Mitsui O.S.K. Lines Ltd.
Business plans of the joint venture, ANA & JP Express, are likely to be affected by Japan Post’s decision to scrap its planned alliance with TNT, as ANA & JP Express was created on the premise that Japan Post and the Dutch company would join hands in international operations, industry watchers said.
