XPO Logistics is creating a spin-off company called GXO Logistics Inc to take over the logistics operations of its global supply chain solutions.
The existing business will be focused purely on freight transportation, including less-than-truckload and truck brokerage.
Brad Jacobs, Chairman and CEO at XPO Logistics said the move was an exciting step forward for the growth of its logistics division.
“The new company is called GXO – three letters that stand for the game-changing opportunities we’re bringing to the table for customers, employees and shareholders, with a nod to our XPO heritage,” he said.
“GXO will take this legacy into the future as an independent public company, with countless ways to deliver logistics at full potential.”
GXO is set to become the second largest contract logistics provider in the world and will focus on its strategic priorities and blue-chip customer base.
Malcolm Wilson, Europe CEO at XPO Logistics and future CEO of GXO Logistics Inc said he was looking forward to leading the global team to new opportunities.
“The new company’s brand identity captures the qualities that make us an industry leader – our ability to deliver faster, leaner, smarter logistics for customers at lower cost, using advanced automation and data science,” he said.
The company has two supply chain locations in both New South Wales and Queensland.