Japan Post eyes corporate business
The steadily diversifying Japan Post will expand its business scope yet again with a joint venture in delivery of corporate documents.
Its partner will be a wholly owned subsidiary of Mitsubishi UFJ Trust and Banking Corp., which already provides similar services, sources said.
The public postal corporation will compete for the service with Yamato Transport Co. and other distribution companies, which are aggressively expanding delivery of corporate documents.
The plan to form a joint venture with Mitsubishi UFJ Daiko Business Co. is expected to be announced this month, sources said.
In preparation for privatization slated for October 2007, Japan Post intends to expand its comprehensive document handling, including packaging and delivery of corporate documents, in addition to conventional mail collection and delivery.
The operations of Mitsubishi UFJ Daiko Business include packaging and sending business-related documents, such as invitations for shareholders meetings, and clerical work for its parent Mitsubishi UFJ Trust and Banking.
Under the plan being finalized, the company would spin off its division of packaging and sending documents, and Japan Post would join that entity in a new venture, the sources said.
Japan Post is expected to hold more than 50 percent of shares in the venture.
The volume of conventional mail handled by Japan Post has been falling 2 to 3 percent annually since 2001.
An official attributed the decline to private-sector competition and the growing popularity of e-mail.
Japan Post is wholly owned by the government, and its operations are regulated by the Japan Post Law. However, the public corporation is allowed under the law to invest in companies whose operations are closely related to its main business. Delivery of corporate documents and distribution businesses would fall under that provision.
That provision was included to give more discretion to management when Japan Post was established in 2003.
Separately, the postal privatization laws enacted in October will allow Japan Post to engage in international logistics business from April, ahead of privatization.
