Yamato Transport Co. will start its own international delivery service as a replacement for a service deal with United Parcel Service starting on Oct. 1, the company said on Monday.

Yamato, the leading private parcel delivery service company in Japan, is ready to launch its own service, which it says will be up to 60 percent cheaper than UPS.

The Tokyo-based company expects that there is enough demand for it services, including the shipment of business documents and free sample distribution. It aims to deliver 3 million parcels, and 10 percent of the international small cargo market.

In its new service, the company set prices by dividing the world into four areas and weight into seven areas, from one kilogram up to 25. Delivery of a one-kilogram parcel from Tokyo to any city in Asia will be as much as 1,600 yen, as opposed to the UPS "deputy' delivery for 4,000 yen, the company said. Delivery will take three to seven days.

(116.44 yen = 1 USD)