LTL giant Roadway Corp. plans to expand more into the next-day freight delivery market, primarily through acquisitions of carriers that specialize in next-day deliveries.
Roadway chairman & CEO Michael W. Wickham told shareholders recently that the next-day segment of the industry "is the fastest growing of the ground freight markets, and it is more profitable than the longer haul markets."
Akron, OH-based Roadway recently acquired New Penn Motor Express, a next-day, regional ground carrier based in the Northeast. Wickham said New Penn is the jump-off point for similar acquisitions in the near future.
"Once we have paid down our debt, the expertise and knowledge of New Penn's management team will provide the model for further expansion in the next-day market," Wickham said. "That is planned through the purchase of next-day carriers in additional geographical areas. We have been able to maintain revenue yields in a very competitive market. That will mean a lot to us as we come out of this downturn." Besides New Penn, other Roadway subsidiaries include Roadway Express and Arnold Transportation Services.