LTL news: ODFL expands in Indianapolis

Earlier this week, less-than-truckload (LTL) transportation services provider Old Dominion Freight Line (ODFL) broke ground on a service center expansion at its Indianapolis-based regional hub.

ODFL is committing roughly $22 million to this expansion and plans on hiring 183 new employees to work there by 2016. It will also increase the size of 122,300 square-feet location of the hub by more than 84,000 square feet from 223 doors to 325 doors, according to company officials.

ODFL Senior Vice President of Marketing, Pricing, and Strategic Development Chip Overbey told LM that ODFL has received tremendous support from the shipping community in the markets that are served by its Indianapolis facility.

“The marketplace has been very receptive to our service and value proposition,” he said. “As a result, for several years now we have seen continued growth that has compounded year-over-year which was the catalyst for our expansion. As part of our normal planning and projection process we realized a couple of years ago that if our growth rate in the markets continued at the same pace, then we would need to add more capacity in the Indianapolis area and be prepared to service our client base in the future.  So with the future in mind, we started the process in September of last year and began preparing to start the expansion in the second half of this year.  Today, we anticipate the project to be complete around the end of October of 2012.”

As for customer benefits, Overbey explained that the increased size of this facility provides more capacity for growth in the Indianapolis marketplace and should allow ODFL to continue to deploy its technology-based services to provide customers with more effective, efficient, and time-sensitive service.

This facility, he said, currently direct loads 67 percent of its network on a daily basis, and as the facility continues to grow he said ODFL has the potential to have greater speed-to-market with less risk of loss or damage.

“The facility will also have even more opportunity for the distribution of sold goods within the region and contiguous regions that have been imported into the U.S.,” he said. Even with this expansion we should still have room to grow again if the market so demands.”

In terms of competitive advantages this expansion provides from an ODFL perspective, Overbey cited how this expansion continues to emphasize that OD’s service offerings and value proposition are being very well received.  From its location in Indianapolis, he said ODFL can provide next and second day service east of the Mississippi to the eastern seaboard and at the same time it can deliver to the west coast in three to four days, from southern California to Seattle, Washington. 

“We are truly a one stop-option for regional and national distribution which fits well in today’s just-in-time supply chain environment,” he said. “In addition we can also service our customers’ NAFTA needs to Canada and Mexico as well as work with them on their imports from places like China and other countries around the world.   I believe that the shipping community in the Indy market understands that we are serious about keeping the promises we have made to their supply chain as well helping them keep the promises they have made to their customers as well in the US and around the world.”