As a preparatory step to privatize Japan's massive postal services, a company dedicated to the planning of the postal reform started operation on Monday.
The company, set up by the public corporation Japan Post, will become a holding company in October 2007, when Japan begins a 10- year privatization.
Under a legislation passed in October 2005, the Japan Post will be split into four entities: postal savings, postal insurance, mail delivery, and over-the-counter services. The four operating units will be privatized over a period of 10 years.
The newly established firm will focus on plans to manage 260, 000 employees and assets now controlled by the Japan Post and study possible business models for the four entities, according to Kyodo News.
Yoshifumi Nishikawa, former president of Sumitomo Mitsui Banking Corp., has been appointed as president of the new company.
The company started operations with a capital of 300 billion yen (about 2.61 billion U.S. dollars), including a capital stock of 150 billion yen (about 1.30 billion dollars).