The U.S. Postal service announced Thursday that the Chattanooga Processing & Distribution Center on Shallowford Road will be closed and its operations moved to Nashville and Atlanta.

As a result of studies begun five months ago, the Postal Service has made the decision to move all mail processing operations from:

· Chattanooga Processing & Distribution Center (P&DC) to the Nashville P&DC and Atlanta P&DC.

· Jackson Processing and Distribution Facility (P&DF) to the Memphis P&DC.

· Johnson City Customer Service Mail Processing Center (CSMPC) to the Knoxville P&DC.

Once the transfers are completed, the mail processing operations at the closing sites will cease. There will be no change to any of the retail units, business mail entry units or vehicle maintenance facilities at these locations at this time.

It also has been determined as a result of the study of the Jet Cove Annex, that there was no significant opportunity to improve efficiency or service through consolidation of mail processing operations, and no changes will be made at this time, officials said.

The Postal Service has experienced a 25-percent decline in first-class mail volume since 2006, and receives no tax dollars for its operations, relying instead on the sale of postage, and postal products and services, it was stated.

“The decision to consolidate mail processing facilities recognizes the urgent need to reduce the size of the national mail processing network to eliminate costly underutilized infrastructure,” said Chief Operating Officer Megan Brennan. “Consolidating operations is necessary if the Postal Service is to remain viable to provide mail service to the nation.”

Specific dates have not been set for the transition. Until a specific date has been announced, residential and business mailers will continue to be served through the current facilities.

In December 2011, the Postal Service agreed to impose a moratorium on closing or consolidating post offices and mail processing facilities prior to May 15, 2012, to give Congress and the Administration the opportunity to enact an alternative plan.

This delay was designed to allow Congress sufficient time to enact comprehensive postal legislation. In the meantime, the Postal Service continued all necessary steps required for the review of these facilities, including public notifications, public input meetings and consideration of public comments.

Implementation of this consolidation is contingent upon the outcome of pending rulemaking for a proposal to revise existing service standards. This announcement is provided in advance so that appropriate planning and notification can be made in accordance with existing employee agreements.

A list of mail processing studies and their status is available at usps.com/ourfuturenetwork. Specific information about individual studies, including public meeting summaries and summary briefs, is posted on the website, usps.com/areamailprocessing, as it becomes available.