A major new Japanese parcels delivery operator will be created with the merger of the domesticparcel services of Japan Post and Nippon Express as of October 2008. It is the first major deal for
the Japan Post Group following its restructuring into four separate companies as of October 1,2007.The new company will compete strongly with Yamato Transport and Sagawa Express for leadershipof Asia’s largest express delivery market. Nippon Express and Japan Post are currently numbersthree and four respectively in the Japanese domestic market but are some way behind Yamato andSagawa, which each claim market shares of more than 30%.
The Daily Yomiuri newspaper cited a joint statement from the two companies on Friday sayingthat the new parcels company would take over Japan Post’s Yu-Pack service and Nippon Express’Pelican delivery operation. Japan Post Group, or its new postal service company Japan Post Service,is expected to have a majority stake in the new company. The two parties are also looking at otherways to develop their new business alliance.
Japan Post has been developing a more aggressive strategy for both the domestic andinternational express parcels markets as part of its restructuring and gradual privatisation overthe coming decade. It has launched a cargo airline in cooperation with ANA, and also sealed aninternational cooperation partnership with China Post.
Nippon Express, with a minority stake in the Japan Post-ANA airline and with a majorinternational air and sea freight transport business of its own, recently signed a deal withKintetsu to target the Japanese express market.
