XPO Logistics (No. 12 on the CCJ Top 250) has made a couple of announcements in regards to its October 2015 acquisition of Con-way Inc, saying it will close seven terminals it acquired during the Con-way purchase, and also that it will keep the Con-way Truckload division, particularly for its cross-border freight network with Mexico.
The company said in a statement it decided to close the seven terminals “in remote areas without exiting any markets.” XPO did not specify the specific locations being closed.
“We’re continuing to migrate to a more efficient LTL organization, with better network efficiency and greater utilization of our capacity,” the company’s statement read. “As part of our planned restructuring, we decided to close seven service centers in remote areas without exiting any markets. By consolidating these small terminals with larger neighboring locations, we’re increasing our network density and providing customers with faster transit times to hundreds of communities. All of our LTL customers have continuity of service during the transition.”
In an update to investors, XPO said it has decided to keep Con-way’s truckload business “as part of its integrated supply chain offering.” It’s decision, XPO said, came from the “value shippers place on owned truckload capacity, particularly in U.S.-Mexico cross-border lanes, and the opportunity to improve the utilization of the assets.”