Japan Post President Masaharu Ikuta unveiled measures Wednesday to reform small designated post offices that have often drawn criticism for their vested interests.

The measures include revising the way top positions in the special postal outlets are handed down from father to son within a single family, the sources said.

"There is systemic fatigue," Ikuta said.

He said reform was needed but commented on the advantage of the community-based operations.

Other practices, including exemption from transfers between post offices, face revision. The retirement age for postmasters of the designated, or "tokutei," post offices, would be lowered to 60 from 65.

In addition, Japan Post included a plan to purchase the rented buildings of approximately 19,000 tokutei with some 70 billion yen. By turning them into assets, the new Japan Post will be capable of expanding and managing more diversified businesses, including operating convenience stores.

Japan Post intends to introduce the measures in phases after the privatization of postal services starts in October 2007. But some steps, namely the introduction of transfers and acquisitions of office buildings, will begin earlier.