Quantcast

XPO Logistics to Keep Con-way's Truckload Shipping Arm - KOAM TV 7

XPO Logistics to Keep Con-way's Truckload Shipping Arm

Updated:

By Robbie Whelan

XPO Logistics Inc. has rejected bids for the truckload shipping business it took on as part of its $3 billion acquisition of Con-way Inc., and now plans to hold onto the unit, Chief Executive Bradley Jacobs said Monday.

Three trucking companies submitted final bids last week to purchase Con- way's truckload operations, which had been for sale since mid-2015, Mr. Jacobs said in an interview. Truckload businesses typically carry goods on long- distance hauls for one individual customer per truck. Con-way, which XPO acquired in October, mainly operates as a less-than-truckload, or LTL, carrier, combining orders from multiple customers in each truck.

"We went though the process, we compared the offers we got with what we think we could do with it...and I think we can improve it by integrating it and bringing it lots of new customers from our other service lines," Mr. Jacobs said.

The two business lines use different distribution networks, because LTL carriers often pick up and drop off cargo at more locations than truckload carriers.

XPO has grown rapidly over the last three years through a series of debt- fueled acquisitions that have transformed the company into one of the world's largest logistics-services providers. The Con-way deal marked XPO's biggest foray into owning and operating a fleet of trucks in the U.S. Prior to the acquisition, XPO focused on freight-brokerage and other middleman services between shippers and transportation companies.

Since the deal, XPO has laid off about 200 back-office workers at Con-way and closed seven of the terminals it acquired. Earlier this month, XPO sued competitor YRC Worldwide Inc., alleging that YRC had poached several top executives from Con-way Freight, the company's LTL segment, and stolen trade secrets. YRC had declined to comment on the matter.

Cross-selling its various services to customers is one of Mr. Jacobs's key strategies to increase revenue at XPO.

XPO's shares are down 41% in the last year. In November, Mr. Jacobs hired Tony Brooks, a veteran food-and-beverage and retail-industry executive, to lead XPO's new Con-way LTL unit.

At the time of its acquisition by XPO, Con-way's truckload business produced roughly 14% of revenue, and operated at a loss in the first half of 2015. Con-way's total revenue was $2.7 billion in the first half of last year, roughly flat from the same period in 2014. Operating income was $136 million, also roughly flat.

"Now we're going to go full force on decreasing our empty miles and building on those 10,000 customer relationships we already have," Mr. Jacobs said.

  • Local NewsMore>>

  • Emergency Workers Establish Better Communication After Simulation

    Emergency Workers Establish Better Communication After Simulation

    Tuesday, June 19 2018 7:06 PM EDT2018-06-19 23:06:21 GMT

    "If I understand other responders' roles, then I can help them do their jobs better,"

    More >>

    "If I understand other responders' roles, then I can help them do their jobs better,"

    More >>
  • Couple Sentenced for Financially Exploiting An Elderly Man

    Couple Sentenced for Financially Exploiting An Elderly Man

    Tuesday, June 19 2018 6:55 PM EDT2018-06-19 22:55:36 GMT
    Kevin MillerKevin Miller
    Kevin MillerKevin Miller
    A McDonald County, Missouri couple is sentenced for a 2016 crime involving kidnapping. On October 25th, 2016, McDonald County Sheriff's deputies responded to 321 West Sarratt Road in Goodman regarding a well-being check involving an elderly man. According to court documents, when authorities arrived they found a 79-year-old man in a room with a padlock on the outside of the door. The victim told deputies he had been locked in the room for about six months and that the couple h...More >>
    A McDonald County, Missouri couple is sentenced for a 2016 crime involving kidnapping. On October 25th, 2016, McDonald County Sheriff's deputies responded to 321 West Sarratt Road in Goodman regarding a well-being check involving an elderly man. According to court documents, when authorities arrived they found a 79-year-old man in a room with a padlock on the outside of the door. The victim told deputies he had been locked in the room for about six months and that the couple h...More >>
  • Area Pearl Harbor Survivor Honored in Frontenac

    Area Pearl Harbor Survivor Honored in Frontenac

    Tuesday, June 19 2018 6:09 PM EDT2018-06-19 22:09:23 GMT
    "I wasn't expecting it and I don't deserve it, ha ha. I don't feel like I deserve it anyways" Casey Bangert humbly accepts his Quilt of Honor made by Sooki Fields from the little Balkans Quilt Guild. "They served our country. And it is the recognition to say thank you, it's just a way of saying we appreciate it" says Fields.  Casey isn't your average veteran. He enrolled in the Navy when he was 17 years old, and is one of the few survivi...More >>
    "I wasn't expecting it and I don't deserve it, ha ha. I don't feel like I deserve it anyways" Casey Bangert humbly accepts his Quilt of Honor made by Sooki Fields from the little Balkans Quilt Guild. "They served our country. And it is the recognition to say thank you, it's just a way of saying we appreciate it" says Fields.  Casey isn't your average veteran. He enrolled in the Navy when he was 17 years old, and is one of the few survivi...More >>
Powered by Frankly

KOAM - Licensed to Pittsburg, Kansas
Send tips, ideas and press releases to: tips@koamtv.com
Send newsroom questions or comments to: comments@koamtv.com
Phone: (417) 624-0233 or (620) 231-0400
Web comments or questions: webmaster@koamtv.com
Newsroom Fax: (417) 624-3158

Powered by WorldNow All content © Copyright 2000 - 2018 KOAM. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.