USPS has funds sufficient for fleet renewal, CFO tells Congress

May 28, 2015
Author: Katie Conigliaro

With the average age of its vehicles at 23 years, the US Postal Service “cannot wait any longer” to replace its aging fleet, its chief financial officer told Congress earlier this week.

The US Postal Service, which operates one of the largest vehicle fleets in the world, has delayed a planned renewal or even refurbishment of its 180,000 vehicles for around decade because of a lack of funds.

But the USPS now has $6B in cash reserves and is ready to begin the process of choosing a supplier or suppliers to provide the next generation of purpose-built mail delivery trucks.

The next generation of vehicles can incorporate the latest safety and environmental bells and whistles, which will protect employees, cut down on fuel costs, and help the Postal Service meet its sustainability goals. Also, given the growth in packages, new vehicle designs could address the challenges of larger and irregularly shaped items.