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Dive Brief:
- LTL giants XPO, Estes Express Lines and Saia are racing to reopen Yellow Corp’s terminals. which they acquired in a court-supervised auction last year after the largest bankruptcy in trucking history.
- XPO announced the reopening of three properties in Tennessee, Colorado and Arizona. Estes first-time features on a pair of terminals acquired in Nevada and New Jersey. Saia reopened a leased property in Montana the company added to its network from Yellow.
- “With a deeper presence in strategic markets, we are introducing new premium services and expanding our existing offerings, such as our cross-border service to Mexico,” XPO CEO Mario Harik said in his company’s announcement.
Dive Insight:
Carriers see capacity additions as critical density in their networks that will position them to improve service and profitability as fare demand recovers.
However, many of Yellow’s old properties required significant repair and maintenance work to bring them up to the standards of their new owners before they could be brought back into service.
Locations acquired by XPO in Goodlettsville, Tennessee, in the greater Nashville area. Grand Junction, Colorado; and Nogales, Arizona, are located near major population centers and interstate highways to reduce shipping times, according to the company.
The additions were part of more than 128 purchases and 23 leases acquired by Yellow in a court-supervised federal bankruptcy auction last year, and the initial openings mark another milestone in an ongoing shift in LTL industry.
Harik and Executives at the other companies noted the strategic value of the additions and noted the changes in news releases.
“Each service center is in a prime position to enhance our nationwide capacity, service excellence and operational efficiency,” Harrick said.
Estes’ new terminals in Reno, Nevada and Cinnaminson, New Jersey opened alongside a separate terminal in Florence, South Carolina.
Estes’ acquisitions of Yellow will add a total of 985 doors to its network, the carrier said.
“These recent acquisitions represent the largest influx of terminals and equipment in Estes’ history,” said Webb Estes, president and COO. “I applaud our team for their speed and agility, which allowed us to integrate these elements into our operations quickly and seamlessly.”
Saia’s terminal in Missoula, Montana is its first in the state. Like Estes, the carrier also opened another terminal that was not purchased in the bankruptcy auction, in Garland, Texas.
“In addition to these two, we plan to open another 16 to 17 new terminals over the next several months, in addition to relocating several existing facilities to larger or strategically advantageous locations to reduce shipping time, improve pickup and delivery flexibility, and increase capacity. in regions,” said EVP of Operations Patrick Sugar.