Japan Post’s plan to enter the international distribution market with leading Dutch logistics company TNT N.V. will be scrapped because the two carriers disagree on strategy, Japan Post officials said Tuesday.

The decision is seen as a major setback for Japan Post, which will be privatized in October 2007. It wanted to nurture logistics services throughout Asia into a new source of revenue because its earning power in conventional postal services is weak.

In air cargo, Japan Post will offer logistic operations in August between Japan and China through a joint venture it set up earlier this year with All Nippon Airways Co., Nippon Express Co. and Mitsui O.S.K. Lines Ltd.

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