Plans to deliver frozen parcels will put Japan Post hot on the trail of rival Yamato Transport Co. in a market the private company created.

As early as next fiscal year, Japan Post intends to expand its Yu-Pack door-to-door delivery service to frozen goods, sources said.

Challenging Yamato in services that it initiated is now believed to be a business strategy of Japan Post, which is targeted for privatization by the Koizumi government.

Delivery of frozen parcels would follow last fall's commencement of golfing and skiing gear delivery services which were also developed by Yamato.

Japan Post plans to tie up with private delivery companies, but Yamato will not be among them.

The public corporation is in a legal battle with Yamato over an antimonopoly suit. Yamato has charged that Japan Post is competing unfairly with the private sector by offering parcel services at prices below those of private competitors.

As for its frozen parcel service, Japan Post plans to accept orders from corporate customers that send large numbers of chugen midyear gifts and oseibo year-end gifts. Such parcels will be delivered to individual homes.

To avoid an enormous capital investment prior to privatization, Japan Post does not plan to install its own freezers for storage or freezer vehicles needed for delivery.

The public entity, instead, will consign delivery of frozen parcels to private companies such as Nippon Express Co., under the Yu-Pack logo.

Since post offices are not equipped with frozen facilities, frozen parcels will not be accepted at the offices.

Japan Post plans to start the service at Izutsuya department store in Kita-Kyushu, Fukuoka Prefecture, as early as this summer.

In fiscal 2003, about 50 million frozen parcels were delivered, compared with the total door-to-door delivery of 2.8 billion parcels. However, it is one of a few delivery markets expected to grow.(IHT/Asahi: March 11,2005)