Shanghai Postal Bureau promises faster express- mail service

The Shanghai Courier Service Corp., which operates under the Shanghai Postal Bureau, will officially merge the bureau’s telegraph-delivery, city express-delivery and express-mail networks in June to become the first city express-delivery company in the postal sector nationwide. After the merger, the company will have more than 300 staff and some 200 motorcycles. The bureau said it promises to deliver parcels in less than 90 minutes if the destination is within the Inner Ring Road, reported the 21 Shiji Jingji Baodao (Twenty-first Century Economic News) on May 14. The time needed for deliveries to other locations around Shanghai has also been clearly defined. With more than 600 postal agencies and 1,000 street-side newsstands across the city, the Shanghai Postal Bureau will compete with a large number of smaller express-delivery companies in the city. China Post used to dominate the express-mail market, but its market share has dropped to 40 percent as other express-delivery companies have captured 60 percent of the market, according to the latest industry statistics. Small firms crowd market Although international express-delivery firms have not yet entered Chinas domestic market, the existence of a large number of small private express-delivery companies in Shanghai, the largest commercial city in China, has already brought great pressure on the postal service, the article said. Most of Shanghais small express-delivery companies have just one room, several telephones and a few delivery people. Such companies can survive because their costs are so low. According to industry insiders, many of these small companies earn profits of nearly 50 percent. Large express-delivery companies, on the contrary, have seen a shrinking profit margin due to their large scale. There are more than 300 express-delivery companies registered in Shanghai, of which five to six are operating at a considerable scale. In addition to these, many others that have not registered with the authorities are doing business illegally. This means Shanghais express-delivery business involves a great number of competitors scattered around the city, the story said.
Copyright 2001 China Online. Source : World Reporter (Trade Mark)CHINA
ONLINE, 18th May 2001