ABF Adds Western States To Dual-System Network

ABF Freight System Inc. now offers next-day and second-day delivery to the western third of the nation. This completes ABF’s coast-to-coast expansion of its parallel regional short-haul and national long-haul service.

ABF is the largest subsidiary of Fort Smith-based Arkansas Best Corp., a transportation holding company.

Speaking at the J.P. Morgan Aviation, Transportation & Defense Conference in New York on March 23, Arkansas Best CFO Michael E. Newcity said the company rolled out the program in March 2006 in the Northeast.

ABF has gradually expanded the service, which it terms its Dual-System Network, to the rest of the United States.

Despite launching this initiative during a deep recession, Newcity said, “We continued to see the operational success, the improved service, interest by our customers in what we were doing. That told us that we needed to continue this organic expansion versus making an acquisition or two that would have cost us $500 million to $1 billion.”

Newcity also said the company has seen a 16.2 percent increase in quarter-to-date tonnage through March 21. He estimated that would have been 18 percent without the effects of winter storms in the first few weeks of the quarter.

Arkansas Best reported a net loss of $3.1 million, or 12 cents a share, in the fourth quarter of 2010, an improvement over its net loss of $88.7 million, or $3.54 a share, in the same quarter of 2009. The company is scheduled to report first-quarter results on April 18.