CAPEC Press Release on Japan Post Privatisation

FOR IMMEDIATE RELEASE

Express Companies Call for Fair Competition to Benefit Japan Businesses

TOKYO – 25 October 2007 – Today, chief executives from Asia of four major international air express carriers welcomed the newly-privatized Japan Post as a full competitor, but called for an end to regulatory policies that favor the government-owned entity. 

The four companies – DHL, FedEx Express, TNT and UPS – participated at a meeting organized by the Conference of Asia Pacific Express Carriers (CAPEC).  The four companies jointly urged the Japanese government to ensure fair competition for all market participants in keeping with the spirit of laws privatizing Japan Post.  CAPEC emphasized that creating a competitive environment for all players will not only develop the express delivery industry in Japan, but also boost its global competitiveness.

“We congratulate the Japan Government on its decision to privatize Japan Post.  This is a step in the right direction, as it creates a level playing field for all express carriers and ultimately, the real winners will be businesses and consumers in Japan. Businesses in Japan today are heavily reliant on just-in-time systems and processes, and they are well-positioned to benefit from a competitive air express sector. The privatization of Japan Post will put all companies in the industry on an equal playing field and help stimulate the industry and Japan’s economy,” said Dave Tan, Executive Director of CAPEC, the association that represents the international air express industry in Asia.

In their meetings, the four chief executives reaffirmed the vital role that air express plays as a catalyst for trade and investment. Their discussions highlighted how the express delivery industry contributes to faster cycle times, improved return on investment, and growth in an economy which focuses on technology and service sector activities.

In an effort to  further liberalize Japan’s express delivery industry and revitalize the nation’s economy, CAPEC also recommended setting up a time table with specific deadlines by which Japan Post will comply with the same regulations and processes as the rest of the express delivery industry for its competitive products such as Express Mail Service (EMS). CAPEC also urged for a transparent, open environment in which business can compete equally and voice their comments.  The chief executives cited specific policies and regulations that directly undermine the express delivery industry’s competitiveness.  They said such policies place limitations on cargo clearance through customs; security procedures; and other financial and accounting procedures.

After 136 years of operation under state ownership, Japan Post was divided into four operating entities on October 1, 2007.  The newly formed parent company, Japan Post Holdings Company, and its four subsidiaries, have assumed ownership and control of the delivery, post office, banking and life insurance services that were formerly handled by the government operation.  The insurance and banking companies will eventually be sold to the public, but the government will permanently retain a share of the delivery and post office entities through Japan Post Holdings Company.