Japan Post and China Post are in the final stages of a comprehensive business tie-up which willboost both the groups’ express operations.
Under the agreement, the two giants will increase the weight limits of their express mailservices by up to 20kg from the current 30kg, the Nikkei business daily reports.
They will also expand the areas of next-day delivery from Shanghai to Beijing and other majorcities, the daily said. Japan Post is also considering acquiring a stake in a distributionsubsidiary of China Post or creating a new joint venture for such operations.
Japan Post is to privatise in October, splitting into four different entities, including apostal delivery unit. Japan Post chairman Yoshifumi Nishikawa was scheduled to meet his China Postcounterpart Liu Andong in Beijing this week with the aim of signing a memorandum of understandingon the deal, said Nikkei.
If a deal is signed, it will be Japan Post’s first comprehensive alliance with a majoroverseas postal service provider or shipping company.
China Post has recognised the importance of the Japanese market for some time. Late lastyear, it signed a cooperation deal with private Japanese CEP operator Sagawa Express fordoor-to-door delivery services between the two countries, putting in competition with privateoperators.
China Post said in February that it expected a 5.5% rise in revenues to over EUR 6.6 billionthis year as postal reforms in the country materialise. It plans to make its mail and expressbusinesses more competitive with the big four private foreign companies – TNT, DHL, FedEx and UPS.
