Less-than-truckload carrier Saia announced Monday the opening of two new terminals, which is part of a previously disclosed $1 billion capital plan for 2024.
The new locations are in Garland, Texas, and Missoula, Montana. The Garland location will be the company’s fourth terminal in the Dallas-Fort Worth market, while the Missoula site will be its first in that state.
The carrier previously acquired 28 service centers valued at $244 million in a pair of auctions of defunct Yellow Corp.’s (OTC: YELLQ) assets. The Missoula location appears to be one of 11 leased terminals Saia purchased from the estate’s second auction.
“We’re eager to add coverage across our network,” said Patrick Sugar, Saia’s EVP of operations. “These new terminals were built, or renovated, to enable us to provide our customers with enhanced service so we can meet their supply chain needs.”
Saia (NASDAQ: SAIA) has added 25 terminals in the past three years and nearly 50 since it embarked on an expansion project in the Northeast in 2017. It plans to open as many as 20 terminals this year and relocate as many as 10 current locations into larger spaces.
It plans to spend a total of $550 million on real estate during the year, which includes amounts spent making repairs and upgrades at the acquired sites.
“Beyond these two, we intend 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 key areas,” Sugar said.
Saia has been one of the most aggressive carriers in expanding market share since Yellow’s demise last summer.
It reported an 18% year-over-year increase in shipments during the fourth quarter alongside a 12% increase in yield (excluding fuel surcharges). Its shipments were up 12% and 19% y/y, respectively, in the first two months of the year.
The company’s guidance implies it will be operating a network of 210 to 215 service centers by year-end, approximately a 12% to 14% increase in total door count.
Saia also plans to spend $400 million to $450 million on tractors and trailers this year.
