The sale of failed trucker Yellow’s real estate is turning into a battle for a competitive edge in a corner of the trucking industry that forms a crucial part of the U.S. economy, the Wall Street Journal reported. Estes Express Lines, the largest privately held trucking company in the country with revenues last year of more than $5 billion, is the stalking-horse, or lead bidder, for Yellow’s nationwide network of truck terminals with a bid of $1.525 billion. If Estes wins the auction, scheduled for late November, it would give the Richmond, Va.-based operator a big leg up in the thriving less-than-truckload segment of the trucking industry. The sector has been growing about 15% to 20% annually over the past two years and well-run LTL carriers are operating with margins of 15% or more, said Satish Jindel, president of SJ Consulting Group. “It’s even more attractive and desirable to have control over the assets which are critical entry barriers,” Jindel said. Yellow went out of business this summer, dragged down by years of poor management, heavy debts and a fight with the Teamsters union. It left behind about 30,000 workers, 170 terminals and a once-in-a-generation opportunity for rivals to expand.
