New York City, XPO Renew Emergency Logistics Deal
New York City renewed a multiyear contract with XPO Logistics that calls for the company to provide emergency management services across the five boroughs of the nation’s most populous city.
A June 1 statement from XPO said the primary purpose of the program is to aid New Yorkers during natural disasters such as Superstorm Sandy in 2012 or hurricanes Joaquin and Irene in 2015 and 2011, respectively.
Pricing terms of the contract were not released. Menlo Logistics, a former Con-way Inc. subsidiary, has been doing this work for the city since 2008.
XPO inherited the contract when it bought Con-way in 2015, and the new deal extends the relationship for three years.
XPO has been managing two dedicated logistics facilities that house the city’s inventory of emergency relief supplies, including meals ready-to-eat, water, first-aid kits, baby formula, diapers and blankets.
In case of emergency, XPO would have to transport such supplies to more than 100 shelters throughout the city.
XPO said it gets paid based on the use of the contract, so in the case of an emergency the revenue collected would increase.
XPO, based in Greenwich, Conn., ranks No. 1 on the Transport Topics Top 50 list of the largest logistics companies in North America.
