Less-than-truckload carrier Saia announced the opening of two terminals in California and Minnesota. The facilities were acquired from bankrupt Yellow Corp.’s estate.
A service center near Anaheim, California, appears to be a location previously leased by Yellow (OTC: YELLQ) while a location in Owatonna, Minnesota, had been owned and operated by the defunct carrier. In total, Saia (NASDAQ: SAIA) acquired 28 owned and leased properties valued at more than $240 million from Yellow.
Saia has already expanded its coverage map this year by adding new terminals in Montana, New Jersey, Texas and Utah. It plans to open as many as 16 locations this year.
“The terminal near Anaheim will significantly boost our service offering in Southern California, replacing our current Long Beach facility, while the Owatonna terminal will strengthen our operations in the Upper Midwest, as this is a new market for Saia,” said Patrick Sugar, Saia’s executive vice president of operations, in a Monday news release.
Saia’s capital expenditures budget for 2024 includes $550 million in real estate, which will boost its total door count 12% to 14%. It also has $400 million to $450 million earmarked for equipment purchases.
The Owatonna location is part of the company’s larger growth plans for the western U.S, including the Great Plains.
Earlier this month, Saia reported 18%-plus year-over-year growth in shipments for the first two months of the second quarter. That growth rate led the industry and outpaced a 15.7% increase in shipments in the first quarter.
“Our success is built on our ability to duplicate our service excellence in new locations, which means hiring great people and growing our culture, so we can support our customers,” said Sugar. “These facilities are another opportunity to showcase this dedication along with more direct coverage.”
