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The Conference of Asia Pacific Express Carriers,
or CAPEC, an interest group representing the world's top express courier firms
in Asia, has asked China's State Post Bureau (China Post) to further lower
restrictions and interference in the mainland's express mail service sector as
the regulator is finalizing the amended rules.
CAPEC, which represents DHL, FedEx Corp, United Parcel Service and TNT Express,
has sent a statement urging China Post to set up a regulatory board separated
from its business service department, reduce administrative interference in the
industry and increase transparency. ``As China is gradually opening its
logistics and express market to foreign investors, no major foreign companies
want to miss the opportunity to tap the emerging market,'' an industry source
said.
China Post is under a restructuring and amending the industry regulations as the
market has been partially opened in 2003 for foreign firms under the World
Trade Organization agreement. Market watchers said the restructuring will be
finalized by year-end, when the market is fully opened under the WTO terms.
Global giants have already announced expansion plan in China. FedEx said last
week that it plans to spend US$439 million (HK$3.42 billion) to build an Asia
Pacific hub in Guangzhou Beiyun International Airport to replace the existing
one in the Philippines. Rival UPS, which picked Shanghai as its based, plans to
invest US$500 million in China over the next two years.
China Post, a former monopoly, has already lost a 62 percent share of the
international forwarding service market to its global peers. It fares better in
the domestic courier service sector, and managed to keeps a 90 percent share,
with the remaining 10 percent shared among around 1,000 small private courier
firms. As a part of the reform, China Post earlier said it plans to spin off
three major businesses, including logistic, express and China Freight Post
Airline, which has sent applications to run Hong Kong, Macau and international
routes.
Yan Chunlin, China chief representative of CAPEC, said the organization would
like to have regular meetings with China Post after the restructuring.
``We know the reform document of China Post has sent to the State Council, and
hope China Post will enhance transparency in the future,'' Yan said.
CAPEC has also asked China Post to relax restrictions on delivering mail. China
Post issued a rule in February 2002 banning non-state express mail companies
from delivering mail under 500 grams.
CAPEC hopes to see no additional restrictions in China's amended Postal Law and
suggested the restriction reduce to mail under 350 grams.
alman.loong@singtaonewscorp.com
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