• The Postal Service recently introduced its new vehicles and modernized facility in Panama City to demonstrate how investments are being utilized

• Local investments nationwide are transforming the Postal Service, ensuring long-term improvements to service speed, reliability and affordability

• Upgrades are made possible by a $40 billion investment strategy to modernize and transform USPS and its unparalleled delivery network

PANAMA CITY, FL — The U.S. Postal Service today highlighted investments of more than $389 million in Florida as part of its transformation and modernization strategies. These investments are intended to upgrade and optimize its facilities, vehicle fleet and unparalleled delivery network to deliver long-term service speed and reliability improvements in the region and nationwide. USPS demonstrated how these investments are having a positive impact locally at the new Panama City Sorting and Delivery Center (SDC).

The Postal Service also revealed its new fleet of delivery vehicles, including its Next Generation Delivery Vehicles (NGDVs) and zero-emission electric models that are already in operation.

As America’s shipper of choice, the ongoing modernization of its integrated mail and package network is a core component of the Postal Service’s journey to success. The $40 billion nationwide strategy aims to revitalize the Postal Service's processing, transportation, and delivery networks, and ensure that USPS continues to provide high-quality, world-class service to the American public for decades to come.

"Through our nationwide investment strategy, we are transforming and modernizing the Postal Service. The introduction of our new facilities and vehicles in Panama City is a clear demonstration of this progress. Our $40 billion investment over a decade represents more than just an upgrade; it's a commitment to our employees, our customers, and the future of the Postal Service," said Acting Postmaster General and CEO Doug Tulino. "These new, state-of-the-art facilities and vehicles will significantly boost our delivery efficiency, helping to ensure financial sustainability and competitiveness in today's rapidly evolving marketplace."

Investments in Florida

As part of its universal service obligation, the Postal Service serves more than 10.4 million addresses across Florida six and often seven days a week. USPS also boasts an engaged workforce of nearly 40,000 employees in the state. Through its nationwide investment strategy, the Postal Service is taking action to address decades of deferred maintenance in the organization’s local operations in Florida.

Of the total $40 billion investment, as of the first quarter of fiscal year 2025 (FY25), more than $389 million has been invested to enhance facilities, vehicles and the employee experience in Florida. Further investments are expected in the coming years as part of this strategic plan.

As of the first quarter of FY25, investments across Florida include:

• More than $121 million to renovate 288existing facilities and nearly $66 million to construct 19 new ones. These new and renovated facilities help create a more conducive and efficient work environment for USPS employees.

• More than $37 million to purchase 34 state-of-the-art package sorting machines in Florida. These new machines increase operational precision and processing efficiency to allow faster, more reliable delivery across the state and the region.

• More than $142 million in Florida for the replacement of the Postal Service’s aging fleet with modern, efficient vehicles, including a significant investment in both gas and electric vehicles. To date, USPS has deployed more than 4,100new delivery vehicles across the state that feature enhanced safety features and larger cargo capacity.

• Additionally, USPS has optimized SDC parking structures to ensure enhanced efficiency and ergonomics for letter carriers while loading, parking, and charging their vehicles. This includes an investment of more than $24 million in infrastructure at strategic facilities in Florida.

New vehicles improve service reliability, reduce emissions and enhance employee experience

The Panama City SDC event showcased the Postal Service's acquisition of several new vehicles, notably featuring the Next Generation Delivery Vehicles (NGDVs). These vehicles are purpose-built, specifically designed to meet the unique needs of the Postal Service.

Designed with employee safety and comfort in mind, these new vehicles provide an improved working environment for dedicated letter carriers in Florida. Key features, such as improved visibility, ergonomic seating, and user-friendly interfaces, are intended to enhance safety and the employee experience.

These vehicles not only enhance delivery speed and accuracy in Florida but also elevate the customer experience. With increased cargo capacity, these vehicles can transport more packages per trip, reducing the number of trips required and improving efficiency. Their improved reliability also minimizes downtime for maintenance and repairs, ensuring consistent and timely delivery service.

The event highlighted Battery Electric Vehicles (BEVs) currently operating out of the Panama City SDC. These zero-emission vehicles, along with the new gas-powered vehicles engineered for higher fuel efficiency, underscore the Postal Service's commitment to sustainability and fiscal responsibility. These investments aim to reduce the organization’s carbon footprint and operational costs.

Deployment of new vehicles based on operational needs

The vehicles showcased at the Panama City SDC event represent the first set of modern vehicles that the Postal Service will deploy in Panama City and the surrounding communities. Over the next five years, the region is set to receive dozens of other new vehicles that will be deployed based on several factors, including delivery volume, infrastructure readiness, and operational needs.

Ongoing commitment to modernizing America’s largest and oldest federal fleet

In December 2022, the Postal Service announced its intent to purchase 106,000 vehicles through 2028, with at least 66,000 of those vehicles being battery electric.

As this announcement has become reality, 2024 represented the largest quantity of new vehicle deliveries in the Postal Service’s history. As of early 2025, the Postal Service has received more than 29,000 of the 106,000 new delivery vehicles.

State-of-the-art Sorting and Delivery Centers

State-of-the-art SDCs are pivotal to the success of the Postal Service’s transformational 10-year investment plan. These upgraded facilities are designed to optimize operational efficiency through swift and accurate mail sorting and delivery, a critical aspect of the strategy’s effectiveness.

In addition to streamlining operations, SDCs provide improved work environments for Postal Service employees. This focus on employee well-being is intended to not only boost worker morale but also increase productivity.

The strategic role of SDCs also extends to the deployment of the Postal Service's new vehicle fleet. These enhanced centers serve as essential hubs, contributing to improved service reliability in a financially self-sufficient manner.

Beyond their functional roles, SDCs play a significant part in enhancing the customer experience. By streamlining operations in a disciplined and precise manner, these new facilities are part of an integrated processing and transportation network with the capability to support all mail and package products at a significantly lower overall cost.

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