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XPO Logistics Expands Less-Than-Truckload Network
January 18,
2022 by Laurie Northington in Business Strategy, Industry 
XPO Logistics (NYSE: XPO), a leading provider of freight transportation services, has announced the opening of two less-than-truckload (LTL) terminals to increase customer service capacity in its North American network. In addition, the company 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’s 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 Mario Harik, acting president, less-than-truckload, and chief information officer. “Our investments in this high-ROIC business will benefit customers across our national LTL platform.”
XPO’s comprehensive 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%, by year-end 2023;
- Further improve network flow with targeted initiatives;
- Continue to implement accessorial charges for detained trailers, oversized 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 has one of the largest LTL networks in North America, with approximately 21,000 employees, 291 terminals and 13 million shipments in 2021.