FedEx Freight expands its presence in Phoenix

Earlier this week, FedEx Freight, the less-than-truckload (LTL) subsidiary of Memphis-based global freight transportation and logistics services provider FedEx said it recently official celebrated the opening of a new Phoenix, Ariz.-based 218-door facility.

Company officials said that this facility, its West Phoenix Service Center, is “perfectly positioned” to serve the growing Phoenix market, while bringing FedEx Freight’s total door count to almost 26,000. And they added that FedEx Freight regularly evaluates opportunities to invest in capacity growth through door and yard expansions and fleet maintenance shop footprints. This includes continually evaluating the network based on changing market conditions and maximizing the use of existing assets like collaboration within the FedEx enterprise network to reduce empty miles and provide peak support.

“The continued growth in the Phoenix market coupled with our expanded footprint with additional doors provides us the much-needed capacity to meet the growing demand,” Scott Doleman, regional vice president, said in a statement.

And Lance Moll, FedEx Freight President and CEO added in the same statement said this expansion is about more than adding buildings or square footage.

“This is about strategically planning capacity increases to better serve our customers in growing markets,” he noted.

A FedEx Freight spokesperson told LM that the company is always monitoring its ability to serve its customers, adding that continued growth in the Phoenix market necessitated a replacement facility.

“FedEx Freight forecasted three-to-four years ago that this would be an opportunity for this market, and we are excited to see this new facility come to fruition,” she said, while also noting that FedEx Freight currently operates out of two facilities in the Phoenix metro area to provide optimal service for its shipper customers.

When asked what the biggest benefits of this facility are for its shipper customers, the spokesperson said that this new facility provides much-needed capacity to better serve its customers in this market and also allow for continued long-term growth.

“Our new West Phoenix Service Center is a state-of-the-art LEED Silver Certified Facility, strategically placed to meet the growing demand in this market and differentiate FedEx Freight from our competitors,” said the spokesperson.

In its fiscal fourth quarter earnings results, which were issued in late June, FedEx reported that FedEx Freight revenue—at $2.7 billion—saw a 23% annual gain, with operating margin up 570 basis points to 21.8%, with the company saying the strong results were paced by at 28% increase in revenue per shipment, stemming from its ongoing commitment to revenue quality and also profitable growth.