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The best real estate market * USA - Terminal Buy Time
Carriers with strong balance sheets and plenty of cash are finding the best real estate market in years for expanding and upgrading their LTL terminal networks
Washington,DC,USA -Trafffic World, by John Gallagher Not since Consolidated Freightways unloaded 280 terminals after its Sept. 2, 2002, shutdown have as many quality properties come up for sale... But terminal network realignments and operation downsizing is affecting the real estate market in the LTL sector more than bankruptcies. In November Con-way Freight stripped 40 facilities out of its 303-terminal network in a move estimated to save the carrier $30 million to $40 million and eliminate 124,000 miles per day from its system. The company plans to sublease 30 terminals it was leasing and sell outright the other 10... As part of the final phase of its Yellow Transportation-Roadway merger, parent company YRC Worldwide is reducing its terminal network from 704 to 450. A group of those terminals was sold to North American Terminals Management for $150 million and then leased back to YRC. But roughly 150 properties are on the open market - and depending on where they're located, there are deals to be had, as commercial property values have dropped 20 percent or more from just a year ago... For LTL carriers, predictions of more pressure on the rates they can get for their service in 2009 and beyond will make "building for the future" a tough policy to justify even for carriers with cash. But Steve O'Kane, president of A. Duie Pyle, a West Chester, Pa.-based LTL. believes the key is maintaining a growth strategy during times when filling trucks is most challenging...
Labels: trucking industry news USA
posted by Unknown @ 5:11 PM
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