XPO opens up three new services acquired through auction of Yellow’s properties and assets

Earlier this week, Greenwich, Conn.-based less-than-truckload (LTL) carrier services provider XPO opened up three of the 28 service center locations it acquired through an early December court-supervised auction, in which a dozen trucking companies bought properties that resold about three-fourths of Yellow’s properties for a total of just under $1.9 billion.

XPO officials said that the three service centers that opened include:

• Goodlettsville, Tennessee (Greater Nashville): Located on 36 acres, the 53,000-square-foot facility has 100 doors for loading and receiving freight in proximity to several major highways, including I-65. The site is one of two that XPO plans to open this quarter in the Nashville metropolitan area;
• Grand Junction, Colorado: Located on seven acres, this facility will strengthen XPO’s linehaul operations nationally and support growth in the Grand Junction metropolitan area, which serves as a critical mid-point for freight moving between Denver and Salt Lake City; and
• Nogales, Arizona: Located on a four-acre site just minutes from the southern US border, this facility will provide additional support for XPO to meet the rapidly growing need for cross-border freight service to and from Mexico

XPO said that its North American network is now comprised of 297 service centers, including the three it opened this week. And it added that these locations are in close proximity to major population centers and interstate highways to reduce shipping times.

“Our first three acquired facilities have launched on schedule, following our landmark investment in our network,” said Mario Harik, chief executive officer of XPO, in a statement. “Each service center is in a prime position to enhance our nationwide capacity, service excellence and operating efficiency. With a deeper presence in strategic markets, we are introducing new premium services and expanding our existing offerings, such as our cross-border service with Mexico.”

As previously reported, in early December, XPO, the fourth-largest LTL carrier with $4.6 billion in revenue last year, was provisionally named the new owner of 28 service centers that were previously operated by Yellow. XPO bought 26 Owned Real Properties and two Leased Real Properties for $870 million on the first day of Yellow’s terminal auction.

Anthony Hoereth, SVP of Sales at XPO, provided LM with some additional information about these new service centers in a Q&A below:

LM: What are the main benefits of these service centers for XPO customers?

Hoereth: We acquired service centers in growing freight markets where we’re experiencing high demand. These new service centers will allow us to accommodate our customers’ shipping needs with greater flexibility and efficiency. Importantly, these locations bring us closer to our customers, which reduces rehandles and shipping times. 

With these new locations, we’re also expanding our existing offerings and introducing new premium services, such as our Mexico cross-border service. With our new location in Nogales, AZ, we now have seven service centers at the US-Mexico border.   

LM: Did XPO previously have service centers in these locations? If not, did they serve customers in these areas?

Hoereth: Many of the locations we acquired are among the “crown jewels” in U.S. trucking located on prime real estate close to major population centers and interstates. While our existing 294 service centers across North America already provide coverage to customers in 99% of zip codes, these added locations will drive greater efficiencies for our business and strengthen our service. 

For example, in the Greater Nashville area, we used to dispatch drivers up to an hour from our service center in Nashville to pick up and deliver freight in Goodlettsville. Now with our new service center in Goodlettsville, our drivers only need to be on the road for about 5-10 minutes to get to our customers which leads to higher efficiency and better service. 

LM: What is the timing for XPO to open the other 25 service centers previously owned by Yellow that it acquired? 

Hoereth: Over the next year, we are planning to open these service centers in a phased approach which will be dependent on the timing it takes to renovate each site. As we move ahead in phase one, we plan to open eight additional centers in locations such as Houston, Indianapolis, Columbus, and Brooklyn. The second phase will include 11 sites that are expected to open in the back half of 2024 and includes sites such as St. Paul, Bakersfield, Little Rock, and Atlanta. The five remaining service centers, which include Portland, Carlisle and St. Louis are expected to open in early 2025.