- LTL bidders seeking Yellow Corp.’s coveted terminals could meet a variety of needs, especially in areas where real estate is considerably expensive, analysts said.
- Nearby facilities could be obtained to provide a larger space, or even to get property where a truck can make a right-hand turn instead of left, providing opportunities to make a network more fluid, Stephens’ Jack Atkins said.
- In high-density areas, lack of available land, high costs for parcels and zoning restrictions can preclude terminal development, Craig Decker of Brown Gibbons Lang & Co. wrote in an email to Transport Dive.
LTL carriers might want to expand to an area or secure a terminal to bring it online later in the future, analysts said.
And a bidder might acquire a terminal and sell an existing facility in an area. That means a successful bid could still create opportunities for other business in the future.
TFI International CEO, Chairman and President Alain Bédard noted interest in acquiring some Yellow assets on an Aug. 1 earnings call, prior to Yellow’s Chapter 11 bankruptcy filing. He cited one example of interest as a terminal in Florida near a TFI location.
But Bédard also suggested at the time that major bids wouldn’t come from the Canada-based LTL provider.
“There are a whole host of things can happen here,” Atkins said. “And we'll see how that kind of plays out.”