XPO Logistics’ expansion
XPO Logistics (XPO) is the second-largest less-than-truckload services provider in the United States. The transporter is also the largest provider of last-mile logistics for heavy goods in North America. On August 8, the company announced the opening of its first hub in Canada for last-mile distribution. XPO’s 50,000 square foot facility is located in Toronto and will cater to customers throughout Ontario.
About the last-mile network hub
XPO Logistics aids the final stage of bulky merchandise deliveries from distribution centers and retail stores to homes and businesses. The company’s last-mile hubs offer services like pre-assembly and inspection in preparation for delivery. The hubs also facilitate positioning of goods close to final destinations.
The transporter expects to facilitate ~14 million last-mile deliveries across North America in 2018. The Toronto last-mile hub is part of XPO’s planned network expansion. The company expects to have 85 last-mile hubs in North America in 2018. XPO also offers the last-mile service in Europe.
XPO Logistics’ president, Troy Cooper, said, “We’re delighted to extend our last mile capabilities in Canada with the opening of our Toronto hub. Demand for our service is on the rise, as more people buy heavy goods online and retailers outsource deliveries. Consumers in Canada already have access to a first-rate in-home experience from XPO with our experienced team and technology – now we’re accelerating delivery to homes in the country’s largest metropolitan area.”
XPO Logistics is included in 40 ETF portfolios. The Invesco DWA Industrials Momentum ETF (PRN) with a weight of 2.34% in the stock. Other major transporters included in PRN’s holdings are J.B. Hunt Transport (JBHT) at 4.2%, Union Pacific (UNP) at 3.93%, and Old Dominion Freight Line (ODFL) at 2.78%.