Japan is considering revising its postal law to ease conditions for private entrants to competewith Japan Post, which still has a de facto monopoly despite partial market opening in 2003.
The Kyodo news agency cited government sources as saying that a draft law would be submitted toParliament next year to open up the market in October 2007. This is the date when Japan Post willbe broken up into four separate companies, including a mail services provider.
Amendments would include lifting the obligation for private competitors to operate a nationwidenetwork, and allowing mail acceptance at outlets such as shops. At present, letters must be postedinto letter-boxes. Under an amended postal law, private firms would be able to use the Japan Postnetwork for downstream access and final delivery or contract other distribution providers.
Although Japan ended the national post office’s legal monopoly in 2003, the tough conditions fornew entrants have prevented any direct competition at a nationwide scale. Private operators such asYamato Transport have introduced limited local and regional services.
The move could open the way for parcel and freight firms such as Yamato Transport, NipponExpress or Sagawa Express to enter the domestic postal market on a larger scale. Yamato recentlysigned a deal with Deutsche Post to set up a joint venture to provide direct mailing services inJapan.
Meanwhile, Japan Post has corrected financial results reported in late May for the year endingMarch 31, 2006 due to revised figures for international mail services and stamp sales. It had saidthat its mail business, covering letters and parcel delivery, suffered a 99% drop to net profits ofjust 200 million yen (€1.4 million). This figure has now been revised to a profit of 2.6 billionyen.
