Roadrunner opens outbound LTL centers in Florida

Roadrunner Transportation Systems Inc., a fast-growing provider that outsources its transport services, said late yesterday it would open service centers in Florida to provide outbound less-than-truckload (LTL) coverage across the state.

The new outbound terminals give the Cudahy, Wis.-based company full statewide coverage. Roadrunner's Florida launch follows similar service center openings in the New York metro area; Philadelphia; Baltimore; and, most recently, Boston.

In a research note today, Benjamin Hartford, transport analyst at Milwaukee-based Robert W. Baird & Co., said the announcement is consistent with the company's strategy of building scale through volume growth and market share gains through low-cost offerings.

Hartford said Roadrunner plans to operate about 30 national LTL terminals over the next three to five years. The company currently operates 25 LTL service centers nationwide, according to information on its website.

Roadrunner's LTL 2012 tonnage increased by 9 percent over 2011 figures. Of the overall growth, 5 percent was organically generated, according to Hartford.

Roadrunner's trucking asset partners consist of independent contractors that provide it with dedicated freight capacity and other companies that supply it with space under nonexclusive contractual agreements. The company focuses on the small to mid-sized shipper segment, which it has called an "expansive and underserved segment" of the shipper market.