Gov. Studying Japan Post Privatization Options

The Public Management Ministry [Japan] is studying ways to allow the planned Postal Public Corporation to own stakes in private firms by, for example, acquiring domestic and foreign trucking firms and buying stocks issued by private businesses, ministry sources said. The plan is part of efforts to set up distribution networks that will complement similar systems operated by postal offices across the country, with the aim of providing more efficient postal services. In 2003, the Postal Public Corporation will be launched as a state-run institution to take over the three categories of postal services–mail delivery, life insurance and savings.” The article states, “The government will present the next ordinary Diet session with a bill designed to set up the Postal Public Corporation. The ministry wants to ensure that the bill includes a provision that will allow the corporation to hold stakes in private companies, according to the sources. However, critics say the plan may transform the Postal Public Corporation into a dominant entity that could damage private-sector competitors.” The Daily Yomuri reports “The Public Management Ministry believes the Postal Public Corporation will be able to reduce the number of days needed to deliver postal materials overseas and lower the cost of foreign mail delivery by forming tie-ups with overseas door-to-door delivery firms and shipping companies with international air-delivery networks, the sources said. In addition, the public corporation will be able to learn marketing skills used by private businesses through investment in their operations.

Daily Yomuri