Tag: Japan

Japanese universal postal service to exclude parcels

The government has entered the final stage of negotiations on working out a system that will in principle not require universal service for parcel delivery after the privatization of the postal services in fiscal 2007, government officials said Saturday. The universal service will cover only ordinary mail items, including postcards, the officials said. In other countries, universal service is usually required for parcel delivery, but the government decided against this because the door-to-door parcel service in the private sector is highly developed. The current system requires Japan Post to submit to the Internal Affairs and Communications Ministry a report on its parcel delivery fees before it raises them.

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Japan PM vows to mend fences with China and reform postal service

Prime Minister Junichiro Koizumi promised Friday to mend fences with China while renewing his controversial pledge to privatise Japan’s mammoth post office.

He vowed to split Japan’s vast postal service into four private entities despite the risk of dividing his ruling party which is concerned the move could offend Japan Post’s 270,000 workers and their families.

The government would begin enacting bills in April 2007 to divide the postal giant regardless of the million votes its workers were reputed to be capable of mobilising, he said.

The law change would allow for private carriers and financial institutions to compete in the huge markets presently dominated by Japan Post.

The post office manages some 355 trillion yen (3.5 trillion dollars) in savings and insurance funds, making it the world’s largest financial institution in terms of assets.

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Japan Post announces tie-up with Dutch mail giant TPG

Japan Post President Masaharu Ikuta formally announced on Wednesday that the public corporation has agreed to tie up with Dutch mail and logistics giant TPG NV. Ikuta also revealed in a press conference that Japan Post has been approached by several other foreign logistics and postal corporations for possible alliances, saying that the Japanese corporation “has no reason to reject proposals for friendly relations.” Although the current law does not allow Japan Post to make overseas investments or to forge full-fledged tie-ups with foreign firms, the public corporation cannot afford to just wait and do nothing until its privatization, for fears foreign logistics companies will grab a bigger slice of the Japanese market, Ikuta said.

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Japan Post and TPG of the Netherlands seeking alliance

Japan’s state postal service plans to form a business alliance with the Dutch post and logistics group TPG, a media report said Wednesday.

TPG executives have been holding talks here with Japan Post since Tuesday on details of the alliance expected to focus on international express services, the Jiji Press news agency reported.

No official was immediately available at Japan Post to confirm the report.

The two companies signed an agreement late last year to aim for a “strategic alliance to become leading players in the express and logistics market in Asia,” Jiji added.

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Japan PM to press ahead with controversial postal reform

Japanese Prime Minister Junichiro Koizumi reiterated Tuesday the need for planned controversial post office reforms despite differences within his ruling Liberal Democratic Party (LDP). Koizumi’s pet project to privatize the national postal service has divided the ruling party because his plan risks offending the one million Japan Post workers who traditionally have voted for the LDP.
“With no reform, we will see no growth. Reform is necessary in any era,” Koizumi told an annual convention of the party, which has ruled Japan almost continuously since it was founded about 50 years ago. “The LDP must continue to push for reform by going back to our founding principle that we are a national party that seeks prosperity of the entire Japanese public,” he said.

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