Tag: Japan

A privatization of Japan Post into four independent units could increase profits by up to 900 billion yen a year, according to an estimate presented Friday to the government’s postal privatization preparatory office.

The estimate was computed by Sakon Uta, a senior analyst at McKinsey & Co., who attended the day’s meeting of experts convened by the office, government officials said.

The estimate will be presented to a meeting of the government’s key policy-setting panel, the Council on Economic and Fiscal Policy, to be held next Monday, the officials said. The council is headed by Prime Minister Junichiro Koizumi.

The government has begun looking into allowing Japan Post to take up international postal delivery services and acquire companies before the privatization of postal services in 2007, according to government sources.

The government plans to review the Japan Post Law that regulates investment by the organization so that it can establish affiliates in foreign countries and form capital tie-ups with private companies, the sources said.

According to the sources, the government apparently plans to speed up the improvement of Japan Post’s mail delivery after the privatization of the postal services so it can compete with international delivery services being offered by foreign postal service firms.