USPS Raises Price Tag From AttacksThe terrorist attacks on Sept. 11 have cost the U.S. Postal Service an estimated $65 million to $70 million, up from the original $50 million estimate.
The USPS said half of the money is needed for repairs to the Church Street postal station in lower Manhattan. The facility at 90 Church St., which also houses several other federal offices, including the Internal Revenue Service, is across the street from the site of the World Trade Center.
Other costs include postal service assistance to the FBI in equipment, as well as the need for added trucks, facilities and cargo transportation.
The USPS has provided paperwork to the Office of Management and Budget seeking federal funds. Shortly after the attacks, the OMB and President Bush announced that $40 billion in emergency spending had been allotted to assist in the humanitarian, recovery and national security needs related to the attacks. The USPS has not received any funds yet.
The USPS said it might update its rate case to adjust for the effects of the terrorist attacks, though it has no plans to do so now. Insiders said the postal service probably would because the attacks have undoubtedly taken a toll on USPS revenues.
FedEx Express, Memphis, TN, said it has received $101 million from the federal government under the Air Transportation Safety and System Stabilization Act. The payment compensates FedEx for a portion of its direct losses incurred as a result of the grounding of aircraft after the attacks. The money also is to compensate for subsequent losses through Dec. 31. Additional payments are expected before the end of the year.
The aid measure, which was enacted after the attacks, provides $15 billion in aid to U.S. air carriers to help prevent bankruptcies and minimize other financial hardships. About $500 million will go to cargo airlines.
The financial cost of the attacks to the UPS is about $130 million for the quarter. United Parcel Service, Atlanta, has not received any funds yet. The USPS is not eligible for this portion of money.