Mon, Jul 12, 2004 - Page 11 News List

These companies deliver the goods, one at a time

RACE AGAINST TIME Taiwan has a new industry that is growing quickly: parcel delivery services. Now, two firms are giving Chunghwa Post a run for its money

By Jackie Lin  /  STAFF REPORTER

In Japan, around 20 packages are delivered per person through home-delivery services each year, she said. But in Taiwan, the figure is less than one.

"We're not trying to be greedy. But just think about making that figure grow three to five times. That indicates there are a plenty of business opportunities to be developed," she said.

Even though both companies have painted a rosy picture of the sector's outlook, they have yet to taste success, as their financial statements are still in the red.

At President Chain's investor conference in April, the company reported shrinking losses in President Transnet's revenues for last year.

"We are optimistic that the company will turn a profit this year," Wu Wen-chi (吳玟琪), the company's head of investor relations, said at the time.

Taiwan Pelican expects to break even this year. Chien said the company hopes to achieve NT$1.6 billion in revenues by December, up from last year's NT$1.2 billion.

Even as these two companies have made chai pei a familiar term among local shoppers, they have forced the nation's postal service to adapt.

"Since this new kind of demand has emerged, we have to offer diversified services to fight for market share," said Beggy Yeh (葉淑美), a section chief at state-run Chunghwa Post Co (中華郵政), which operates 1,316 post offices around the country.

Yeh noted that, after home-delivery companies were established, the number of packages handled by post offices has dropped.

"The lack of chai pei services for fresh foodstuffs has dragged down our business," she added.

According to the Ministry of Transportation and Communications' statistics, post offices delivered 17.2 million packages in 2000. The figure dropped to 10.6 million in 2001 and continued to plunge to a record-low 8 million in 2002.

To remedy this situation, Chunghwa Post also jumped on the chai pei bandwagon, and launched home-delivery services for frozen and perishable goods earlier this year.

At the initial stage, the service was limited to major cities such as Taipei, Taichung, Kaohsiung, Hsinchu and Tainan.

Since July 1, the network has been expanded nationwide, but as of now only 13 main post offices can receive consignments of perishable goods.

Alisa Lin (林玉霞), in charge of vehicle purchases for Chunghwa Post, said that by the end of this year, the company will have invested NT$36.4 million on 32 vans and trucks it requires for its brand-new service.

In addition, over 10,000 regular postal vans and motorcycles will also be equipped with mobile refrigeration devices to facilitate delivery of perishable goods.

"The public response has been very positive. We're confident we can challenge private companies with our high-quality service," Yeh said.

It remains to be seen whether or not these delivery service providers can turn a profit soon.

But one thing is for sure: the increased competition leaves customers as the biggest winners.

All three companies offer pick-up and delivery services 365 days a year.

"I like to serve people. And this is clear proof: healthy competition boosts quality of service," Chang said.

And what was the worst obstacle Chang encountered in his daily rounds?

"I hate it when my van gets towed away. It's a waste of time," he said.

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