Preparing for Postal Privatization: Post Offices in Japan
As the clock ticks toward the start of its 10-year privatization process, Japan Post is struggling to keep its nationwide post office network from shrinking, particularly in rural regions where services are heavily dependent on individuals and other parties that serve as local agents. Postal Agencies Decrease to 30-Year Low Japan Post’s network comprises post offices and local postal agencies run mainly by commissioned individuals, agricultural and other credit cooperatives, and municipalities.
Agencies account for about one-fifth of Japan Post’s network, which had a total of 24,525 offices and agencies at the end of July.
Many agencies are located in under populated rural regions, and a number of them have been temporarily closed as these regions face steep falls in population.
In May this year, the number of postal agencies, excluding such suspended ones, fell below 4,000 for the first time in 30 years in a protracted downtrend that started in 1995.
The biggest contributor to the recent decrease has been municipalities. The number of agencies runs by municipalities more than halved to 164 from 349 in the same 12 months.
Japan Post is increasing efforts to keep postal agencies from falling in number. In January, the corporation raised fees paid to agents.
Backed by the fee hike, the number of postal agencies that resumed operations after temporary shutdowns totaled 93 in the four months through July, a 3.5-fold jump over the same period last year.
Despite the sharp rise, however, the number of resumed agencies remains comparatively small. The privatized post office network management company still faces the task of ensuring stable operations for the nationwide system.
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