Less-than-truckload carrier Saia has announced the opening of two new service centers. The company said the additions are part of a plan to add 18 to 21 terminals this year. Saia previously expected to add just 16 locations in 2024.
Located in Stockton, California, and Davenport, Iowa, the new facilities are part of a strategic initiative “to enhance service capabilities and support our expanding customer base,” a Monday news release said.
The company unveiled a $1 billion capital expenditures budget on a quarterly call in February. The capex plan is more than double the amount invested in the network during 2023 and almost triple what was spent in 2022. The 2024 outlay calls for $550 million on real estate, $400 million to $450 million for equipment and approximately $50 million on IT projects.
Saia (NASDAQ: SAIA) already spent $235.7 million this year on the acquisition of 17 properties from bankrupt Yellow Corp.’s (OTC: YELLQ) estate. It also inked a deal to acquire 11 of the defunct carrier’s leased properties for $7.9 million. Some of the locations will take time to onboard as Saia makes repairs and performs upgrades.
Neither the Stockton nor the Davenport location appears to be part of the sites acquired from Yellow.
In addition to the locations announced Monday, Saia (NASDAQ: SAIA) has announced the opening of eight other terminals this year in Minnesota, Montana, New Jersey, Pennsylvania, Texas and Utah. The planned openings could push the company’s total terminal count to 210 to 215, a low- to midteens percentage increase in network door count, by year-end.
In addition to adding door capacity, some of the new locations will allow it to unwind interline arrangements where it worked out of partner facilities in some markets.
“The Stockton terminal will significantly boost our service offering in Northern California, while the Davenport terminal will strengthen our operations in the Midwest,” said Patrick Sugar, Saia’s executive vice president of operations, in the news release. “Both facilities are strategically located to improve our service and provide customers with increased shipping flexibility.”
Saia also said Monday it is continuing to hire new drivers, dockworkers and other staff to accommodate the growth plan.
In June the company announced shipments across its network were 18% higher year over year in the first two months of the second quarter, outpacing a 15.7% y/y growth rate in the first quarter.
The carrier will report second-quarter results on Friday.
Table: Results from Yellow’s first two auctions (Source: Court filings)
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