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Japan Postís parcel service integration may be postponed

Date Posted: 2009-08-20

The October integration of Japan Post and Nippon Express parcel delivery operations is facing opposition from the Internal Affairs and Communications Minister, and may be deferred.

Japan Post, which operates mail delivery on behalf of the government-owned Japan Post Holdings, had submitted a request for the integration more than a month ago. Minister Tsutomu Sato has refused to sign the integration plan, citing concerns about how the plan would cause a deterioration in services while causing confusion with customers. Sato says he simply cannot sign the agreement, and in a meeting with Japan Post President Yoshifumi Nishikawa, asked that the project timing be reconsidered.

Sato also pointed out price increases for parcel delivery services in some parts of the country, including mountain areas, and said the timing was not good. The rate hikes had been requested by Satoís predecessor, Kunio Hatoyama.

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