Saia consolidates operations with other Yellow regionals

By Staff -- Logistics Management, 2/1/2001

In a move designed to increase density in one- and two-day lanes, regional less-than-truckload (LTL) carrier Saia Inc. of Atlanta will consolidate its operations with those of sister companies Action Express and WestEx Inc. under the Saia brand name. All three companies are subsidiaries of Yellow Corp.

The consolidation increases Saia's market reach from 12 to 21 states in the Southern and Western regions of the United States. Saia CEO Rick O'Dell says the move gives Action Express and WestEx access to Saia's service enhancements and quality-control processes. The three carriers will be able to use the same internal computer system and operating procedures, he says, adding that he expects the transition to be "seamless and smooth for our customers and our employees."

Founded 77 years ago, Saia (pronounced SIGH-ah) reported revenues exceeding $368 million in 2000. Adding Action and WestEx, with combined 2000 revenues of more than $117 million, places Saia among the top 15 LTL revenue-generators in the country.

Bert Trucksess, president of parent company Yellow Corp.'s regional carrier group, says, "The focus by these three carriers has always been one- and two-day service, so this integration strategy is a perfect fit. Now Saia can concentrate on increasing its density in one- and two-day lanes in the Southern and the West Coast regions."

The new, larger Saia will now provide regional one- and two-day service covering 21 states from Southern Virginia, south and west to California, and northwest into Oregon and Washington, with partner service to the rest of the continental United States. Although Trucksess says Saia has no immediate plans to expand beyond its new 21-state territory, he does note that "if you look at a map, you can see that the opportunity is out there."

Saia, which also provides service to Puerto Rico, Canada, and Mexico, has more than 5,300 employees in 114 locations.