Logistics & Transportation

India - New Postal Law may threaten domestic delivery operators

Source: Bisnis Indonesia, 31 August 2009

The chairperson of the Indonesian Express Delivery Services Companies Association (Asperindo) has expressed concern that the passing of the Postal Bill to allow foreign businesses providing domestic postal services will result in as many as 90% of 965 units of domestic delivery businesses going bust. At this point, the government and the House of Representatives had yet reached an agreement over the involvement of foreign parties in domestic postal services.

One of the main reasons was that many local delivery companies were small and medium enterprises (SMEs) which will not have the capital to compete with bigger foreign players. Asperindo is now urging the involvement of foreign operators to be limited. Separately, it also estimated the sector was able to create 100,000 jobs and commanded a market share of Rp6 trillion (US$592.1 million).

China - Domestic express delivery players feeling the heat

Source: SinoCast Transportation Beat, 31 August 2009

The latest express delivery license regulations by China's Ministry of Transport states that the registered capital of each company should not be less than RMB500,000 (US$73,189.3), if it is engaged in the express delivery business within a single province, autonomous region, or municipality. For those that have express delivery operations among provinces, autonomous regions, or municipalities, the minimum registered capital is RMB1 million (US$146,390.7). For international express deliver providers, the minimum requirement is RMB2 million (US$292,799.7).

Based on the new requirements, analysts estimate that 80% of Chinese private express delivery service providers will fail to obtain their operating licenses. In addition, under the new post law which will be taking effect from 1 October 2009, the delivery of some letters should be operated exclusively by post companies. This will further create stress on businesses of smaller express delivery operators.

Indonesia - Public transportation systems need reform

Source: The Jakarta Post, 07 September 2009

Experts revealed that Indonesia’s public transportation systems need urgent reforms, an issue that should be on the immediate agenda of the new central government. Transportation revitalization should include reforms to public transport financial management. The current system, by which drivers pay rental fees to public vehicle owners, should be changed to a per-kilometer rate controlled by the administration.

It was argued that per-kilometer rate would guarantee drivers’ and transportation operators’ incomes, thus improving services, which in turn would maintain loyal users and attract private vehicle owners to switch to public transportation. The introduction of a per-kilometer rate would also see the elimination of inefficient routes with too many public transport vehicles.

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