Mainland, Taiwan to cooperate on express delivery
Mainland, Taiwan to cooperate on express delivery
>From CHINA ONLINE, March 30th, 2001
(29 March 2001) To compete with the growing number of foreign
express-delivery companies, Taiwans China Express plans to unite
with the mainlands Express Mail Services. China Express under the
Department of Posts and Telecommunications
(DPT) of Taiwans Ministry of Transportation and Communications (MTC)
plans to join hands with the mainlands Express Mail Services under
the State Postal Bureau to compete for cross-Strait express delivery
market share. Taiwans MTC has submitted the plan to Taipeis Mainland
Affairs
Council for examination and approval, UDNNews.com reported on March
28. Taiwans minister of transportation and communications said that
current cross-Strait postal communications only includes letters and
publications, which means that express service and parcel delivery
are not part of the deal. Taiwan business people who need express
delivery services are forced to use foreign or private companies.
According to China Express statistics, foreign express-delivery
companies now control 50 percent of the China-Taiwan
express-delivery market. Among the foreign companies, DHL Worldwide
Express controls 33.4 percent of the market share, United Parcel
Service (UPS) of America Inc. has 4.6 percent, FedEx Corp. holds 3.5
percent, Overseas Courier Service (OCS) carries 2.3 percent and TNT
Express hauls 1.2 percent. Domestically operated small express-delivery
companies control the
other 50 percent of the market. A survey that was supported by Taiwans DPT
indicated that if the
cross-Strait express-delivery services begin operation, 34.8 percent
of the polled business people would use the services. On the other
hand, roughly 54 percent of the respondents were hesitant and said
they would decide at that time. DPT said that its credibility and cheaper
delivery charges would
make China Express more competitive than the foreign companies.
China Express would have no problem grabbing market opportunities
valued at 430 million New Taiwan dollars (US$13.15 million),
according to DPT. The first step of the plan is to start offering the
cross-Strait
express-delivery services at selected post officesthose with large
business volumes among the 1,315 postal services currently in
operation. This new line of business is expected to bring in NTD 18.74
million
(US$573,088) of extra annual income for the postal services, the
article said.
Copyright 2001 China Online. Source : World Reporter (Trade Mark)CHINA
ONLINE, 30th March 2001
