Tag: Asia

Chasing China

Posted by | Sep 17, 2007 | |

DHL’s recent decision to increase its dedicated flight frequencies for overnight service between Hong Kong and Beijing helps the company keep pace with other moves by the competition in the Asian market.

DHL just announced a 25 percent boost in capacity between Hong Kong and Beijing, adding a 727-200 freighter operated by Air Hong Kong – a 60/40 joint venture between Cathay Pacific and DHL – on a key trade lane.

UPS, meanwhile, says Asia export volume grew 25 percent during the second quarter, with China leading the charge. The company is building a package-and-freight hub in Shanghai, which UPS expects to open next year, linking the city to the UPS international network with direct service to Europe, Asia and the Americas.

FedEx operations cover more than 200 cities and counties across China, and it has plans to add 100 more in coming years as it prepares to open an intra-Asia hub in the Southern China city of Guangzho. This year, the company increased its flight frequencies into the country, with the authority to operate 30 weekly flights, the most, it says, of any U.S.-based carrier.

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India’s blue dart seeks continued 100 pct FDI in express couriers

Posted by | Sep 17, 2007 | |

Courier major Blue Dart Express has sought continuation of the 100 per cent foreign direct investment for the industry even as the Centre plans to introduce the Post Office Act (Amendment) Bill in the winter session of Parliament.

At present, 100 per cent foreign equity is allowed in domestic express companies. The bill proposes to bring down the ceiling to 49 per cent, raising concerns for the industry.

Foreign companies such as DHL (which holds 81 per cent in Blue Dart), FedEx and new entrants such as TNT have substantial interest in the growing Indian market.

“The bill in the current form is retrograde. On one hand, the government wants more FDI by opening up the economy and on the other, you take a step backward. If there was no FDI allowed in the sector from the beginning, then any limit, be it 49 per cent or more can be considered. But if there is already 100 per cent FDI allowed, why go back? People have invested huge amount of money in the sector under this policy,” Blue Dart MD Anil Khanna said.

Postal department officials said the bill could be introduced in the winter session of the Parliament. It is preparing to move Cabinet for approval.

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Privatized Japan Post gets new business model

Posted by | Sep 17, 2007 | |

Introducing Toyota Motor Corp.’s business methods to Japan Post Corporation, which will be privatized on Oct. 1, is the next challenge for Norio Kitamura, a former Toyota Motor Italia president who will be the chairman and chief executive officer of Japan Post Service Co., one of four operating firms in charge of postal services.

Japan Post will be divided into a holding company and four operating firms handling postal delivery, customer service, postal savings and postal insurance.

Kitamura was the president of the Italian subsidiary of Toyota. for 10 years until June 2006, when he was urged to take the Japan Post position by Toyota’s former chairman, Hiroshi Okuda, then a member of the Council on Economic and Fiscal Policy.

He was chosen because of his remarkable achievements at the Italian subsidiary, but his experience at Toyota, which is famous for kaizen (operational improvements), is also expected to contribute to better postal services.

Although the postal services are different from the automobile industry, “the basics of business are the same,” Kitamura said.

In the fiscal year that ended in March 31, the total operating income of Japan Post was 19.6 trillion yen. Income from postal delivery was 1.9 trillion yen, an increase of 3.3 billion yen from the previous fiscal year due to increased shipments of small packages and international mail. However, the total quantity of domestic and international mail and packages has decreased over the past five years.

Increasing value of small packages and international mail, which only account for about 10 percent of the total quantity of postal material, is also a key for the postal delivery business. USD = 115.090 JPY

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India: Postal dept liable to pay for late delivery

Posted by | Sep 17, 2007 | |

The postal department is liable to compensate a consumer for not delivering a consignment within the stipulated time as assured under it Speed Post service, the Delhi Consumer Commission has held.

Rejecting the department’s plea that the Indian Post Office Act gives it immunity from paying compensation for any delay in delivering articles, the Commission, presided over by Justice J D Kapoor, said it was liable for any “deficiency in service or negligence”.

“The immunity under the law of any office or of any government authority has nothing to do with the concept of compensation to a consumer due to the negligence of the opposite party (post offices) in not maintaining the standard of service,” Justice Kapoor said.

Allowing the appeal of complainant Yatendra Sharma, the Commission observed in a recent order that the department could be saddled with liability for non-delivery of postal articles within the stipulated time under its special Speed Post scheme.

“Whenever any consumer avails service like Speed Post or courier and if there is any shortcoming or inadequacy in the manner of performance, the service provider can be held guilty for deficiency in service,” it said.

The Commission’s ruling came in response to an appeal by Sharma, a resident of Sahibabad in Uttar Pradesh, who sought compensation for the delay in delivering a consignment, sent through Speed Post to Singapore in 2002.

A consumer forum had quashed his complaint on the ground that the postal department was immune under a statute from paying any compensation on this ground.

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UPS granted air rights to expand service to Japan

Posted by | Sep 13, 2007 | |

The U.S. Departments of State and Transportation today reached an agreement that will allow UPS and other air carriers to expand air operations to and from Japan.
The agreement provides UPS the authority to operate six daily flights between the U.S. and Nagoya, Japan, in addition to its daily service to Tokyo and Osaka. Nagoya, the fourth largest city in Japan, offers UPS significant opportunities to continue expanding its business in Asia. In addition, UPS will be able to connect these flights to its new air hub in Shanghai, China.
UPS has operated in Japan since 1987 and transitioned to a wholly owned international express delivery operation in 2004. The company’s operations cover 15 metropolitan areas, offering express delivery, customs brokerage and supply chain management services. UPS currently offers 47 weekly flights to and from Tokyo and Osaka.
Japan is one of the more than 40 countries and territories UPS serves in Asia. The company operates air hubs in Taipei, Hong Kong, Singapore and the Philippines and will formally open its hub in Shanghai in 2008.

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