Tag: Asia

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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DHL Malaysia has a win-win relationship with Transmile

DHL Express (Malaysia) has not been affected by the financial debacle in Transmile Group Bhd, DHL Malaysia country manager Sam Leong said.

Despite facing internal problems, Transmile had been able to deliver on its commitment to DHL and there had been no change to DHL’s relationship with the cargo carrier, he said.

Transmile provides express air cargo service to DHL, which is also the former’s single biggest customer. Transmile has said that DHL is expected to contribute almost half of Transmile’s revenue from July 2007 to June 2008.

Leong also pointed out that the relationship was good for DHL because Transmile operated out of Subang airport.

He also revealed that he received many calls in the first few weeks when the troubles in Transmile emerged.

Transmile has since put in place a new management team, led by group managing director Wong Yoke Ming, in the aftermath of its financial debacle.

The new management team is currently developing a strategic roadmap to bring the company back to profitability in the next three to five years.

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European courier TNT eyes Subic logistics facility

European courier TNT NV is looking at the possibility of taking over the Subic Bay logistics facility that will be vacated by US-based Federal Express when it relocates its Asia-Pacific hub operations to Guangzhou, China next year.

Sources said the Dutch courier, in line with its expansion binge amid increased traffic in the region, could be eyeing the Subic facilities currently being used by FedEx for its Asia- Pacific regional hub operations.

Earlier, the country tried to lure another foreign courier to take over the facility, which is adjacent to the Subic Bay International Airport.

European courier DHL International GmBH has announced as early as last year that it was definitely not taking over FedEx’s facility in Subic.

US-based United Parcel Service of America Inc., on the other hand, has a hub in Clark, Pampanga.

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Blue Dart calls for dedicated cargo space in top airports

Courier major Blue Dart Express is in talks with airport operators in Delhi, Mumbai, Bangalore, Hyderabad and Kolkata for dedicated cargo space to be shared with its international parent company, the DHL Group.

In these major airports, the express company is looking at taking around 15,000-30,000 sq metre of space while in smaller ones like Kolkata, the space requirement would be below 5,000 sq metre.

The move will help cut down on turnaround time for loading and unloading cargo and courier in airports, Blue Dart managing director Anil Khanna told ET.

We are keen on dedicated cargo space in major airports with access to both air and city sides. The private airport operators are receptive to our needs, Mr Khanna added. While Delhi and Mumbai airports are getting upgraded and modernised, Bangalore and Hyderabad will have new greenfield airports by middle of next year.

Blue Dart already has some dedicated space in the Delhi airport but company executives said there is a need to expand this further with growing demand from the air expresss business. The turnaround time at airports is key to our business, Mr Khanna said. Most of the metro airports currently undergoing upgradation, including greenfield projects in Bangalore and Hyderabad, plan to have dedicated cargo terminal.

The courier and package distribution major has chalked out plans to invest about Rs 1,000 crore over five to eight years to expand its infrastructure and ground services.

This will be funded through our internal accruals, Mr Khanna said. Blue Dart plans to expand aircraft fleet, ramp up group handling facilities and double warehousing capacity from the current one million sq ft. Its ground express service would cover 17,500 locations around the country from around 14,600 at present over the next five years. We plan to have 20 pct market share of the ground segment by 2015, he added.

The size of organized ground handling segment is pegged at around Rs 1,200 crore, which is just about 30 pct of the total market. The remaining market is dominated by local players. Blue Dart has over 40 pct market share of the domestic air express segment.

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Green Office award underscores DHL’s commitment towards environmental sustainability

DHL today announced that its Singapore-based Asia Pacific Regional Office at Parkview Square has been successfully certified as a ‘Green Office’ by the Singapore Environment Council, making it the first and only international company in the industry to be awarded the label here.

DHL is one of the 10 corporate and government offices in Singapore to have made the cut, passing a rigorous audit covering indicators such as environmental policy and commitment, energy consumption, paper usage, purchasing practices especially those related to IT, focus on recycling, as well as training linked to environmental issues.

Some of the best practices adopted by the regional office include installing water saving devices, converting to energy saving lights, reducing the extent of lighting and elimination of disposables, as well as switching to recycled paper and encouraging double-sided printing. The office has also introduced a Let’s Go Green campaign to educate the employees on environmental-friendly practices, and encourage them to do their part for the environment.

By adopting these effective measures, DHL’s Asia Pacific Regional Office has significantly reduced its electricity and water consumption by 30 pct and 25 pct respectively.

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