XPO adds capacity in Metro Atlanta region, with 46 LTL dock doors

As part of its ongoing efforts to expand capacity, Greenwich, Conn.-based less-than-truckload (LTL) services provider XPO said this week it recently completed expanding its Norcross, Ga.-based service center, which it said will substantially expand capacity into Metro Atlanta.

Company officials said that this expansion will add 46 LTL dock doors in Georgia for XPO, which will allow XPO to handle more freight and “provide even better service to customers.” The Norcross service center currently employs more than 120 people, said XPO. And XPO said it expects to hire additional dockworkers and driver sales representatives. The company employs nearly 700 people across seven service centers in Georgia.

What’s more, XPO explained this capacity addition represents what XPO called another milestone in its implementation efforts to add capacity in its North American network, with a goal of opening 900 net new doors throughout the U.S. by the first quarter of 2024.

“As part of our strategic plan, we’re adding new doors in markets that can use more capacity and sustain growth over time,” said Dave Bates, chief operating officer of XPO, in a statement. “The expansion of the Norcross service center in the growing metro Atlanta area will greatly benefit our customers as we’ll be able to serve their needs with additional flexibility and speed. It also allows us to strengthen our local presence with more well-paying career opportunities and expanded service to businesses across the region.”

An XPO spokesperson told LM that the company is focused on adding doors to high-demand markets, where it is capacity-constrained and expect strong growth in the future.

“The decision to expand our service center in Norcross was driven by increased demand from our customers in the region,” the spokesperson said. “The expansion will enable us to take additional freight with flexibility and greater ease, enhancing the quality of service we’re already providing.”

XPO remains on track to open 900 net new doors by early 2024, having already added roughly half since announcing the plan, the spokesperson noted.

XPO’s Chief Investor Relations Officer Tavio Headley said in an interview with LM earlier this year that XPO’s LTL 2.0 plan includes key objectives like investing in capacity ahead of demand and, in turn, allow the company to earn profitable market share by being able to provide extremely high levels of service to its customers.

As for how XPO has been able to take market share, Headley said providing best-in-class service is a major driver, and it has allowed the company to expand its customer relationships. Another driver, he cited, is expanding its sales organization, with a focus on penetrating target vertical markets and looking at vertical markets where it has a footprint that can be larger.

“A lot of that goes back to customer service levels,” he said. “And the underlying theme is making these investments into capacity so that we can take on more demand. The investments are helping us now but once you start to see the maximum proof, we are going to be extremely well-positioned.”

Another key growth driver, he said, is pricing optimization, which is XPO leaning on its proprietary technology, which has presented very unique opportunities with its blue-chip customers, for XPO to increase its win rates, when having discussions about potential business.