Dive Brief:
A federal bankruptcy judge has authorized the acquisitions of additional Yellow Corp. terminals by Estes Express Lines and R+L Carriers for a total of $192.5 million, as reported in court documents from last month. Estes invested $142.5 million to acquire seven terminals and repurchase leases for four others, according to the documents and a company announcement made this month. Meanwhile, R+L Carriers spent $50 million via its subsidiary, RAMAR Land Corp., to acquire a single terminal located in Maybrook, New York.
Dive Insight:
These real estate transactions contribute to nearly $2 billion in terminal acquisitions and an additional $82.9 million in lease purchases associated with the bankruptcy of the defunct LTL carrier last year. Trucking companies are competing against XPO, Saia, and others to expand their capacity in anticipation of a recovery in the freight market.
Estes, a major player in property acquisitions during the auction, has successfully added over 700 doors to its network through the establishment of six new terminals and the relocation of 14 others to more expansive facilities, the company noted.
Among Estes’ recent terminal acquisitions are:
- A 167-door, 52.7-acre terminal in Tracy, California
- A 75-door, 13.5-acre terminal in Fort Wayne, Indiana
- An 80-door, 21.9-acre terminal in Jeffersonville, Indiana, servicing Louisville, Kentucky
- A 136-door, 39.2-acre terminal in Hagerstown, Maryland
- A 67-door, 8.6-acre terminal in Omaha, Nebraska
- A 216-door, 42.9-acre terminal in Cincinnati, Ohio
- A 198-door, 95-acre terminal in Ringgold, Georgia, servicing Chattanooga, Tennessee
Additionally, Estes has buy-backs for leases in Norway, Michigan; Dunmore, Pennsylvania (near Scranton); Miami; and Orange, Florida. Last year, R+L Carriers acquired eight Yellow terminals along with three leases for a total of $211.5 million.
The terminal that R+L purchased last month in New York is a 304-door, 51.2-acre facility, making it the second-largest site available during a third round of the real estate auction, as noted in a filing from September.
