Less-than-truckload carrier Saia said Wednesday that it will open three terminals in the western U.S. during September. The expansion is part of a bigger plan to open 18 to 21 new facilities this year.
Two new terminals in Bismarck and Fargo, North Dakota, will be the carrier’s first locations in the state. A new terminal in Sidney, Montana, will be its fourth in that state. Earlier this year, Saia (NASDAQ: SAIA) opened its first Montana location in Missoula. The Bismarck location appears to be one of the 28 terminals it acquired from bankrupt Yellow Corp. (OTC: YELLQ).
Saia opened six former Yellow locations across Montana, South Dakota and Wyoming last month.
“Every facility we open is an opportunity to create long-term value by strengthening our network and enhancing our ability to serve our customers better,” said Patrick Sugar, Saia’s EVP of operations, in a news release. “Our expansion into North Dakota is particularly significant, as it allows us to provide a higher level of service in this market.”
Even with the cost drag associated with launching the terminals, the company expects to see a normal change rate in margin (100 to 200 basis points of deterioration) from the second to the third quarter this year. The company has a longer-term goal of delivering 100 to 200 bps of annual margin improvement.
