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Package push

USPS making investments for future, CNBC reports

Delivery Operations VP Ed Phelan
Delivery Operations VP Ed Phelan is interviewed about the Postal Service’s efforts to grow its package business.

The Postal Service is making major investments and testing new delivery concepts to support its fast-growing package business, CNBC reported last week.

More than 20 machines that can sort 6,000 parcels an hour are being deployed to USPS facilities across the nation, reporter Morgan Brennan told viewers in the first of two reports May 8. (Some employees may be unable to view external videos on postal computers.)

Brennan also discussed the Postal Service’s plans for new delivery vehicles with more cargo space for packages, as well as the same-day delivery services being tested in several cities.

CNBC’s second report examined the Postal Service’s test of larger mailboxes to accommodate packages, thus reducing unsuccessful delivery attempts.

About 85 percent of parcels can fit inside the larger boxes, Delivery Operations VP Ed Phelan said.

USPS shipping and package volume grew 14.4 percent during fiscal 2015’s second quarter (Jan. 1-March 31) compared to the same period a year ago. Overall, package volumes have surged about 30 percent during the past five years.

“The hope is this push into packages will be the thing that enables the U.S. Postal Service to essentially reinvent itself and move back towards more sustainable profitability,” Brennan reported.

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