XPO Logistics expands LTL network

US-based freight transportation service provider, XPO Logistics, opened two Less Than Truckload (LTL) terminals earlier this month to increase customer service capacity in its North American network.

The company also increased production capacity at its trailer manufacturing facility, and will open four more fleet maintenance shops this quarter.

The announcement marks the latest progress in XPO Logistics’ previously announced plan to drive growth and efficiencies in its North American LTL network. In October 2021, the company opened a 264-door terminal in Chicago Heights, Illinois, and initiated actions to enhance freight flows in the face of increasing demand.

In the current quarter, XPO’s LTL investments include: 26 new doors at a cross-dock terminal in Sheboygan, Wisconsin; 24 new doors at a cross-dock terminal in Texarkana, Arkansas; new fleet maintenance shops at terminals in Ohio, Florida, New York and Nevada; and Equipment upgrades to the company’s LTL trailer manufacturing facility in Searcy, Arkansas, with the expectation of nearly doubling the year-over-year number of units produced in 2022.

“The strategic actions we initiated in the fourth quarter began showing results in a matter of weeks, giving us good traction for the execution of our plan in 2022,” said XPO Logistics Acting President – less-than-truckload and Chief Information Officer, Mario Harik.

“Our investments in this high-ROIC business will benefit customers across our national LTL platform.”

XPO Logistics’ LTL action plan will continue to improve network-wide operating efficiency and support future revenue growth. Specifically, the company expects to: Expand its North American LTL door count by 900 doors, or approximately 6.0 per cent, by year-end 2023; further improve network flow with targeted initiatives; continue to implement accessorial charges for detained trailers, oversised freight and special handling; expand the 2022 graduate count at its US driver training schools, approximately doubling the 2021 count; and significantly increase the number of units produced at its trailer manufacturing facility.

XPO Logistics claims to have one of the largest LTL networks in North America, with approximately 21,000 employees, 291 terminals and 13 million shipments in 2021.

In other news, Troy Cooper stepped down from his role as President of XPO Logistics.

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