Seino has no plans to enter mail delivery services
Seino Transportation Co. has no plans to enter the mail delivery business because it finds it difficult to meet requirements set under the government’s plan to privatize the sector, Liberal Democratic Party (LDP) officials said Wednesday.
The company’s policy was conveyed by Toshiaki Hashimoto, a senior Seino Transportation official, during a meeting of the public management, home affairs, posts and telecommunications division of the LDP’s Policy Research Council.
The LDP officials said Hashimoto told the meeting that it is difficult for Seino Transportation to offer nationwide mail delivery services at the uniform rate as the state-run postal service does.
A set of four postal services deregulation bills are now being debated in the Diet.
The bills include one that would allow private firms to begin offering mail services under certain conditions and one to establish a new public corporation in 2003 to take over the three state-run postal services — mail, postal savings and kampo life insurance.
In April, another major transportation firm Yamato Transport Co. said it abandoned plans to enter the mail delivery business because the government’s moves to privatize the sector are likely to put too many requirements on new entrants.
Hashimoto said the state-run postal service has an established system for mail delivery services.
Private-sector firms cannot afford to bear costs of capital investment to have such a system, Hashimoto was quoted as saying.
AP-NY-06-26-02 0102EDT
FDMSKYviaNewsEdge
Copyright 2002 Federal Document Clearing House
