News From Terre Haute, Indiana

Local & Bistate

February 23, 2012

UPDATE: No mail processing centers would close before mid-May

Terre Haute facility on list of planned closings

TERRE HAUTE — The U.S. Postal Service says it will close eight mail processing operations across Indiana — including the facility at Terre Haute — unless Congress enacts an alternative cost-cutting plan before May 15.

The Postal Service announced today that the work now performed at the local mail processing and distribution center would be moved to Indianapolis and Evansville, under the proposed consolidation.

Processing facilities in Gary, Kokomo and South Bend also are being consolidated into other facilities. Kokomo will move to Indianapolis, South Bend to Fort Wayne and Terre Haute to Indianapolis and Evansville.

In Illinois, the U.S. Postal Service plans to move mail processing operations from Carbondale and Centralia to Evansville. Other Illinois processing centers affected are: operations at Bloomington to Peoria and Champaign; from Effingham to Champaign; from Quincy to Columbia; and from Springfield to St. Louis.

Specific dates have not been set for the transition, but no change will occur prior to a  May 15 moratorium, said Mary Dando, USPS spokeswoman.

The USPS agreed to impose a moratorium “because Congress asked. But Congress has done nothing,” she said. “We are anxiously waiting for action from Congress.”

No change will occur to the retail operations or the business mail entry unit operations at this time, according to a USPS news release.

Until a specific date is announced, residential and business mailers will continue to be served through the current facilities.

A Postal Service study indicated that moving mail processing operations out of Terre Haute would eliminate 36 positions and save more than $7.05 million annually.

The Postal Service conducted a public hearing in November in Terre Haute.

In December, the Postal Service agreed to impose a moratorium on closing or consolidating post offices and mail processing facilities to give Congress the opportunity to enact an alternative plan.

This delay was designed to allow Congress sufficient time to enact comprehensive postal legislation. In the meantime, the Postal Service continued all necessary steps required for the review of these facilities, including public notifications, public input meetings and consideration of public comments.

Postal officials blamed a lack of business, according to a news release.

“The decision to consolidate mail processing facilities recognizes the urgent need to reduce the size of the national mail processing network to eliminate costly underutilized infrastructure,” said Chief Operating Officer Megan Brennan. “Consolidating operations is necessary if the Postal Service is to remain viable to provide mail service to the nation.”

The Postal Service has experienced a 25 percent decline in first-class mail volume since 2006 and receives no tax dollars for its operations. It relies on the sale of postage and postal products and services.

The Associated Press contributed to this report.

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