Chapter 4 Our Operations

Mail Transport Equipment

Mail transport equipment (MTE) is the term given to sacks, trays, pallets, and wheeled containers that contain mail as it moves within or between facilities. The Mail Transport Equipment Service Center (MTESC) is an integrated network of 23 facilities for managing the MTE inventory, overseeing repair, storage, and distribution to internal and external customers. MTESC processes over 70,000 orders annually, serving 2,300 postal sites and large-volume mailers. In 2008, the Postal Service closed the leased warehouses that had been used to augment the MTESC, achieving a savings of $5.4 million.

Multiple efforts are underway to improve MTE — improving its performance and durability while reducing cost and any negative environmental impact. There is an ongoing effort to standardize MTE inventory. Instead of sending empty flat tubs to the MTESC for redistribution, plants will recycle them within their facility to reduce re-handling, a change expected to save up to $12 million annually. Use of a new lighter weight plastic pallet will further reduce cost. A “pallet round-up” program helped recover 57,000 pallets, for a savings of $1.1 million. A “closed-loop” pallet inventory system is now in development, along with a new Web ordering system to be tested in 2009.

Facilities

The Postal Service oversees 34,175 properties nationwide, totaling more than 325.5 million square feet. In 2008, approval for facility projects over $25 million rests with the Board of Governors. Design and construction of major processing plants are managed at Headquarters. Approval for projects under $25 million is established by the Postmaster General following review by the Postal Service’s Capital Investment Committee. Most of the Postal Service Facilities program work — planning, leasing, purchasing, designing, and construction — is performed by its field offices.

Real Estate Inventory

Realty Asset Management

Realty Asset Management manages the disposition of real property that has been declared excess to operational requirements. Realty Asset managers generate revenue by selling surplus property and leasing, or subleasing, excess space. In 2008, the Postal Service recognized $71.2 million in gains from sale of postal-owned buildings and land.