Japan Post is in talks with TNT Post Group NV of the Netherlands and several Japanese transportation companies about an international distribution alliance, sources said Wednesday.
After the Japan Post privatization legislation is enacted, possibly Friday, they are expected to reach an agreement on the alliance this year to launch international distribution services in April, they said.
On Tuesday, the Lower House passed legislation to privatize Japan's vast postal system, which would allow Japan Post to start international distribution of goods starting April.
Under the current law, Japan Post can only deliver international mail it receives in Japan to its foreign counterparts.
As demand for Japan Post's mail services has been falling due to the spread of e-mail, it must develop new revenue sources, the sources said.
It plans to team up with European and Japanese firms with international distribution networks to offer specialized services for corporate customers, the sources said.
Japan Post is seeking to develop cooperation with TNT Post Group in international mail and logistics services in Asia and set up a joint logistics venture with the Dutch firm, they said.
The strategy is expected to enable Japan Post to compete with major international distribution companies, including DHL International Gmbh, an affiliate of Deutsche Post, as well as FedEx and United Parcel Service of America, Inc.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.